Thapar University

School of Behavioral Sciences & Business Studies

Quiz-I (Repeat), n!ineerin! cono"ics (U#U$%&)
Ti"e' &$ (ins) (a* (ar+s' &$
,ate' -th (ay,.$&/
Roll no..
Name .........................................................
Branch.Group

&) Which of the following results in a

shifting of the demand curve?
a) An increase in the tax on
cigarettes leading to their fall in
demand.
) !lashing of ad rates " a
television channel resulting in a
rise in the numer of ads.
c) 0all in the sales of ,i1ali
crac+ers due to heavy rains
and floods 2efore ,i1ali)
d) A rise in the electricit" charges
leading to a lesser consumption.
e) All of the aove.
Based on the following
information answer
the questions 2 to 4.
#n a "ear numer of cars sold
decreased " $%& during the "ear'
prices of cars increased " (&' per
capita income declined " $& and
price of petrol increased " )%&
income elasticit" of demand for cars
is estimated to e *).( and cross
price elasticit" of petrol and cars is
estimated to e +%.,%.
.) -he impact of decline in per capita
income on the demand for cars is
a) $& sales decline
2) 34 sales decline
c) ).(& sales decline
d) .& sales decline
e) (& sales decline.
3) -he impact of increase in price of
petrol on the demand for cars is
a) %.,%& sales decline
) )%& sales decline
c) 34 sales decline
d) %..(& sales decline
e) %.)(& sales decline.
/) #f sales decline ecause of increase
in petrol and decrease in income are
,& and ,&
respectivel"' the price electricit" of
demand for cars would e
a) $./
) ..$
c) 0
d) ).
e) $%
5) When the Government increases tax
on cigarettes' cigarette
manufacturers pass much of the
additional tax on to consumers in the
form of higher prices. -his implies
that the demand for cigarettes is
a) Relatively less elastic than
supply
) Relativel" more elastic than
suppl"
c) As elastic as the suppl"
d) 1erfectl" inelastic
e) 1erfectl" elastic.
6. Which of the following is not a t"pe
of 2ualitative forecasting?
a) executive opinions
) sales force composites
c) consumer surve"s
d) the 3elphi method
e) "ovin! avera!e
-) Given an actual demand of 0)' a
previous forecast of (/' and an 4 of .
,' what would the forecast for the
next period e using simple
exponential smoothing?
a) .(.(
) (5.)
c) 5%)6
d) 0).%
e) 0(.(
% A firm has a production function of
the following form 6 7 8 * $9
Where 6 is output' 8 is the capital
input and 9 is the laour input per
time period. -he wage rate and the
rental rate on capital is :) per unit.
-he cost minimi;ing output
a) is achieved " producing at an"
point along the iso2uant.
2) achieved 2y usin! la2our input
only)
c) is achieved " using the capital
input onl".
d) is impossile to achieve.
6) When average product is falling it is<
a) 9ess than marginal product
) =2ual to marginal product
c) 7reater than "ar!inal product
d) None of these
&$)#f a firm moves from one point on a
production iso2uant to another'
which of the following will not
happen.
a) A change in the ratio in which
the inputs are comined.
) A change in the marginal
products of the inputs.
c) A change in the rate of technical
sustitution.
d) 8 chan!e in the level of output)