STUDENTS SUCCESS
Revision Examination Tests
“Come all for this Greatness”
... 100% Correct Ans ...
MBA EXIT EXAM 2024-2025 ACTUAL EXAM COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS
Quiz The demand and supply curves show the relationship between the...
Ans: market price level when the amount of a good that is demanded holding all
other factors constant.
Quiz The degree to which quantity demanded 'reacts' to price changes can be
determined with the ____ of demanded.
Ans: elasticity
Quiz The law of demand states that as prices rise, quantity demanded ____ (and
vice-versa).
Ans: falls
Quiz Quantity supplied is _____(positively/negatively) associated with price
increases, though the degree to which quantity supplied can respond to price
changes depends on the elasticity of supply.
Ans: -positively
Quiz Goods that are easily made (low marginal cost) are _____(more/less) elastic
than those that are not.
Ex: capacity constraints of a generator or factory, or seats in a stadium
Ans: more
Quiz Goods that are easily made are ____(low/high) marginal cost.
Ans: -low
Quiz What are 'comparative statistics?'
,Ans: - changes in equilibrium price and quantity
Quiz T/F: If a 'determinant' of demand or supply changes, then the entire price-
quantity relationship changes.
Ans: -true
Quiz Example of comparative statistics?
Ans: - an increase in demands that occurs because there has been a positive
income shock is expected to increase the amount bought of a good-even holding
prices constant.
Quiz What are the 5 important demand determinants?
Ans: 1. Tastes and preferences (ex: increase in demand for organic products)
2. Income/wealth (ex: fall in restaurant demand during recessions)
- important differences for normal goods and inferior goods
3. Price of other related goods (ex: change in demand for taxi services after entrance
of low-cost ride-share options).
4. Exogenous shocks (Ex: change in demand for generators following long-lasting
power outage).
5. Future expectations (ex: change in demand for toilet paper during COVID crisis).
Quiz What are the 3 primary important supply determinants?
Ans: 1. Input costs (increase in supply due to innovation to cost-saving technology).
2.Government regulation (ex: new taxes and subsidies)
3. Price of other goods you produce (ex: switch in production to product that can
command higher price in the market).
Quiz What results in comparative statistics?
Ans: Resulting change in equilibrium price and quantity following a change to supply
and/or demand.
Quiz What are comparative statistics used for?
Ans: -used to compare two 'statistic' states of the world- before and after some
innovation in supply/demand (ex: supply shock).
Quiz T/F: price/quantity change is also impacted by the elasticity of supply and
demand.
, Ans: true
Quiz If there is an increase in demand when supply is perfectly elastic, this will cause
the equilibrium quantity to ....
Ans: increase, but price will remain the same.
Quiz What guides economic behavior?
Ans: -price movements guide economic behavior-reduce surpluses and shortages
Quiz If a market is not equilibrium and there is no intervention preventing price
movement, then price is expected to do what two things?
Ans: 1. decrease (surplus)
2. increase (shortage)
Quiz Market failures and market intervention impedes the ___ from functioning as an
efficient "coordinating" mechanism.
Ans: - prices
Quiz Broadly elasticities measure the ______ of one variable to a change in another
variable.
Ans: - responsiveness
Quiz Elasticities and total revenue: if demand is inelastic, then total revenue is
expected to ___following a piece increase (and vice versa).
Ans: -increase
Quiz Elasticities and total reveue: If demand is elastic, then total revenue is expected
to ___ following a price increase (and vice versa).
Ans: -decrease
Quiz The optimal price for a firm with market power can be recovered using the
Lerner Index or ____ rule.
Ans: inverse-elasticity rule
Quiz T/F: Elasticities can be recovered from estimated demand functions
Ans: True
- ex:regression of quantity demanded on data including price, and other relevant
variables
Revision Examination Tests
“Come all for this Greatness”
... 100% Correct Ans ...
MBA EXIT EXAM 2024-2025 ACTUAL EXAM COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS
Quiz The demand and supply curves show the relationship between the...
Ans: market price level when the amount of a good that is demanded holding all
other factors constant.
Quiz The degree to which quantity demanded 'reacts' to price changes can be
determined with the ____ of demanded.
Ans: elasticity
Quiz The law of demand states that as prices rise, quantity demanded ____ (and
vice-versa).
Ans: falls
Quiz Quantity supplied is _____(positively/negatively) associated with price
increases, though the degree to which quantity supplied can respond to price
changes depends on the elasticity of supply.
Ans: -positively
Quiz Goods that are easily made (low marginal cost) are _____(more/less) elastic
than those that are not.
Ex: capacity constraints of a generator or factory, or seats in a stadium
Ans: more
Quiz Goods that are easily made are ____(low/high) marginal cost.
Ans: -low
Quiz What are 'comparative statistics?'
,Ans: - changes in equilibrium price and quantity
Quiz T/F: If a 'determinant' of demand or supply changes, then the entire price-
quantity relationship changes.
Ans: -true
Quiz Example of comparative statistics?
Ans: - an increase in demands that occurs because there has been a positive
income shock is expected to increase the amount bought of a good-even holding
prices constant.
Quiz What are the 5 important demand determinants?
Ans: 1. Tastes and preferences (ex: increase in demand for organic products)
2. Income/wealth (ex: fall in restaurant demand during recessions)
- important differences for normal goods and inferior goods
3. Price of other related goods (ex: change in demand for taxi services after entrance
of low-cost ride-share options).
4. Exogenous shocks (Ex: change in demand for generators following long-lasting
power outage).
5. Future expectations (ex: change in demand for toilet paper during COVID crisis).
Quiz What are the 3 primary important supply determinants?
Ans: 1. Input costs (increase in supply due to innovation to cost-saving technology).
2.Government regulation (ex: new taxes and subsidies)
3. Price of other goods you produce (ex: switch in production to product that can
command higher price in the market).
Quiz What results in comparative statistics?
Ans: Resulting change in equilibrium price and quantity following a change to supply
and/or demand.
Quiz What are comparative statistics used for?
Ans: -used to compare two 'statistic' states of the world- before and after some
innovation in supply/demand (ex: supply shock).
Quiz T/F: price/quantity change is also impacted by the elasticity of supply and
demand.
, Ans: true
Quiz If there is an increase in demand when supply is perfectly elastic, this will cause
the equilibrium quantity to ....
Ans: increase, but price will remain the same.
Quiz What guides economic behavior?
Ans: -price movements guide economic behavior-reduce surpluses and shortages
Quiz If a market is not equilibrium and there is no intervention preventing price
movement, then price is expected to do what two things?
Ans: 1. decrease (surplus)
2. increase (shortage)
Quiz Market failures and market intervention impedes the ___ from functioning as an
efficient "coordinating" mechanism.
Ans: - prices
Quiz Broadly elasticities measure the ______ of one variable to a change in another
variable.
Ans: - responsiveness
Quiz Elasticities and total revenue: if demand is inelastic, then total revenue is
expected to ___following a piece increase (and vice versa).
Ans: -increase
Quiz Elasticities and total reveue: If demand is elastic, then total revenue is expected
to ___ following a price increase (and vice versa).
Ans: -decrease
Quiz The optimal price for a firm with market power can be recovered using the
Lerner Index or ____ rule.
Ans: inverse-elasticity rule
Quiz T/F: Elasticities can be recovered from estimated demand functions
Ans: True
- ex:regression of quantity demanded on data including price, and other relevant
variables
