Eco401 Online Quiz

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Question # 1 of 15 ( Start time: 07:45:05 PM ) Total Marks: 1 
Which of the following is true about the entrepreneur? 
Select correct option: 

An entrepreneur is an innovator. 
An entrepreneur is someone who brings resources together and produces a product. 
An entrepreneur is a risk taker. 
All of the given options are correct.

Question # 2 of 15 ( Start time: 07:46:04 PM ) Total Marks: 1 
Goods X and Y are complements while goods X and Z are substitutes. If the supply of good X increases: 
Select correct option: 

The demand for both Y and Z will increase. 
The demand for Y will increase while the demand for Z will decrease. 
The demand for Y will decrease while the demand for Z will increase. 
The demand for both Y and Z will decrease.

Question # 3 of 15 ( Start time: 07:47:05 PM ) Total Marks: 1 
If the income elasticity of demand for boots is 0.2, a 10% increase in consumer income will lead to a: 
Select correct option: 

20% increase in the quantity of boots demanded. 
20% decrease in the quantity of boots demanded. 
2% increase in the quantity of boots demanded. 
0.2% increase in the quantity of boots demanded.

Question # 4 of 15 ( Start time: 07:48:27 PM ) Total Marks: 1 
A person with a diminishing marginal utility of income: 
Select correct option: 

Will be risk averse. 
Will be risk neutral. 
Will be risk loving. 
Cannot decide without more information.

Question # 5 of 15 ( Start time: 07:49:13 PM ) Total Marks: 1 
Assume Leisure is a normal good. If income effect equals substitution effect then a wage rate increase will lead a person to: 
Select correct option: 

Increase hours of work 
Decrease hours of work 
Not change hours of work 
None of the given options


Question # 6 of 15 ( Start time: 07:50:10 PM ) Total Marks: 1 
The substitution effect of a price decrease for a good with a normal indifference curve pattern: 
Select correct option: 

Is always inversely related to the price change. 
Measures the change in consumption of the good that is due to the consumer's feeling of being richer. 
Is measured by the horizontal distance between the original and the new indifference curves. 
Is sufficient information to plot an ordinary demand curve for the commodity being considered.

Question # 7 of 15 ( Start time: 07:51:25 PM ) Total Marks: 1 
More output could be produced with available resources if: 
Select correct option: 

Resources are allocated efficiently. 
Resources are imperfectly shiftable among alternative uses. 
Prices are reduced. 
The economy is operating at a point inside the production possibilities curve.

Question # 8 of 15 ( Start time: 07:52:09 PM ) Total Marks: 1 
A new technology which reduces costs for firms: 
Select correct option: 

Shifts the supply curve to the right. 
Shifts the supply curve to the left. 
Reduces the equilibrium quantity. 
Raises the equilibrium price.

Question # 9 of 15 ( Start time: 07:52:57 PM ) Total Marks: 1 
If consumer incomes increase, the demand for product Y: 
Select correct option: 

Will necessarily remain unchanged. 
Will shift to the right if Y is a complementary good. 
Will shift to the right if Y is a normal good. 
Will shift to the right if Y is an inferior good.

Question # 10 of 15 ( Start time: 07:54:07 PM ) Total Marks: 1 
The study of economics basically focuses on: 
Select correct option: 

For whom resources are allocated to increase efficiency. 
How society spends the income of individuals. 
How scarce resources are allocated to fulfill society's goals. 
What scarce resources are used to produce goods and services.

Question # 12 of 15 ( Start time: 07:55:15 PM ) Total Marks: 1 
A partial explanation for the inverse relationship between price and quantity demanded is that a: 
Select correct option: 

Lower price shifts the supply curve to the left. 
Higher price shifts the demand curve to the left. 
Lower price shifts the demand curve to the right. 
Higher price reduces the real incomes of buyers.
Question # 13 of 15 ( Start time: 07:56:31 PM ) Total Marks: 1 
Demand is elastic when the elasticity of demand is: 
Select correct option: 

Greater than 0. 
Greater than 1. 
Less than 1. 
Less than 0.


Question # 14 of 15 ( Start time: 07:57:34 PM ) Total Marks: 1 
Which of the following is not an assumption of ordinal utility analysis? 
Select correct option: 

Consumers are consistent in their preference. 
Consumers can measure the total utility received from any given basket of good. 
Consumers are non-satiated with respect to the goods they confront. 
All are necessary.

Question # 15 of 15 ( Start time: 07:58:17 PM ) Total Marks: 1 
Suppose we find that the cross-price elasticity of demand for two products is a negative number. We know that: 
Select correct option: 

The two goods are normal goods. 
The two goods are inferior goods. 
The two goods are substitutes. 
The two goods are complements.

.........

Question # 1 of 15 ( Start time: 08:00:58 PM ) Total Marks: 1 
Assume that the government sets a ceiling on the interest rate that banks charge on loans. If the ceiling is set below the market equilibrium interest rate, the result will be: 
Select correct option: 

A surplus of credit. 
A shortage of credit. 
Greater profits for banks issuing credit. 
A perfectly inelastic supply of credit in the market place.

Question # 2 of 15 ( Start time: 08:02:05 PM ) Total Marks: 1 
Suppose the price of railway ticket decreases, what will happen in the market for airline travel? 
Select correct option: 

The demand curve for airline travel shifts left. 
The demand curve for airline travel shifts right. 
The supply curve of airline travel shifts left. 
The supply curve of airline travel shifts right.

Question # 3 of 15 ( Start time: 08:03:18 PM ) Total Marks: 1 
Our economy is characterized by: 
Select correct option: 

Unlimited wants and needs. 
Unlimited material resources. 
No energy resources. 
Abundant productive labor.

Question # 4 of 15 ( Start time: 08:04:05 PM ) Total Marks: 1 
Which of the following is a characteristic of a mixed economy? 
Select correct option: 

In mixed economy, resources are governed by both government and individuals. 
Mixed economy utilizes the characteristics of both market economy and planned economy to allocate goods and services. 
People are free to make their decisions and government controls the Defence. 
All of the given options are true.

Question # 5 of 15 ( Start time: 08:04:47 PM ) Total Marks: 1 
The total utility curve for a risk neutral person will be: 
Select correct option: 

Straight line. 
Convex. 
Concave. 
None of the given options.

Question # 6 of 15 ( Start time: 08:05:35 PM ) Total Marks: 1 
The short run, as economists use the phrase, is characterised by: 
Select correct option: 

All inputs being variable. 
At least one fixed factor of production and firms neither leaving nor entering the industry. 
No variable inputs - that is, all of the factors of production are fixed. 
A period where the law of diminishing returns does not hold.

Question # 7 of 15 ( Start time: 08:06:43 PM ) Total Marks: 1 
In pure capitalism, freedom of enterprise means that: 
Select correct option: 

Businesses are free to produce products that consumers want. 
Consumers are free to buy goods and services that they want. 
Resources are distributed freely to businesses that want them. 
Government is free to direct the actions of businesses.

Question # 8 of 15 ( Start time: 08:07:04 PM ) Total Marks: 1 
A market is said to be in equilibrium when: 
Select correct option: 

Supply equals Price. 
There is downward pressure on price. 
The amount consumers wish to buy at the current price equals the amount producers wish to sell at that price. 
All buyers are able to find sellers willing to sell to them at the current price.

Question # 9 of 15 ( Start time: 08:07:54 PM ) Total Marks: 1 
The correlation between an asset's real rate of return and its risk (as measured by its standard deviation) is usually: 
Select correct option: 

Positive. 
Strictly linear. 
Flat. 
Negative.

Question # 10 of 15 ( Start time: 08:09:01 PM ) Total Marks: 1 
The cross elasticity of demand of complements goods is: 
Select correct option: 

Less than 0. 
Equal to 0. 
Greater than 0. 
Between 0 and 1.

Question # 11 of 15 ( Start time: 08:10:02 PM ) Total Marks: 1 
Indifference curves that are convex to the origin reflect: 
Select correct option: 

An increasing marginal rate of substitution. 
A decreasing marginal rate of substitution. 
A constant marginal rate of substitution. 
A marginal rate of substitution that first decreases then increases.

Question # 12 of 15 ( Start time: 08:10:44 PM ) Total Marks: 1 
We know that the demand for a product is elastic if: 
Select correct option: 

When price rises, revenue rises. 
When price rises, revenue falls. 
When price rises, quantity demanded rises. 
When price falls, quantity demanded rises.

Question # 13 of 15 ( Start time: 08:11:35 PM ) Total Marks: 1 
Goods X and Y are complements while goods X and Z are substitutes. If the supply of good X increases: 
Select correct option: 

The demand for both Y and Z will increase. 
The demand for Y will increase while the demand for Z will decrease. 
The demand for Y will decrease while the demand for Z will increase. 
The demand for both Y and Z will decrease.

Question # 14 of 15 ( Start time: 08:12:40 PM ) Total Marks: 1 
When an industry's raw material costs increase, other things remaining the same: 
Select correct option: 

The supply curve shifts to the left. 
The supply curve shifts to the right. 
Output increases regardless of the market price and the supply curve shifts upward. 
Output decreases and the market price also decrease.

Question # 15 of 15 ( Start time: 08:13:06 PM ) Total Marks: 1 
The numerical measurement of a consumer's preference is called: 
Select correct option: 

Satisfaction. 
Use. 
Pleasure. 
Utility.

...........

Question # 1 of 15 ( Start time: 08:15:23 PM ) Total Marks: 1
The extra value that consumers receive above what they pay for that good is called:
Select correct option:
Producer surplus.
Utility.
Marginal utility.
Consumer surplus.

Question # 2 of 15 ( Start time: 08:16:11 PM ) Total Marks: 1
Consider two commodities X and Y. If the cross-elasticity of demand is positive, it means the goods are:
Select correct option:
Independent.
Complements.
Substitutes.
Inferior.

Question # 3 of 15 ( Start time: 08:16:54 PM ) Total Marks: 1
At any given point on an indifference curve, the the slope is equal to:
Select correct option:
Unity.
The marginal rate of substitution.
The consumer's marginal utility.
None of the given options.

Question # 4 of 15 ( Start time: 08:18:17 PM ) Total Marks: 1
When the price of petrol rises by 8%, the quantity of petrol purchased falls by 6%. This shows that the demand for petrol is:
Select correct option:
Perfectly elastic.
Unit elastic.
Price elastic.
Price inelastic.

Question # 5 of 15 ( Start time: 08:16:54 PM ) Total Marks: 1
If the cost of computer components falls, then
Select correct option:
The demand curve for computers shifts to the right.
The demand curve for computers shifts to the left.
The supply curve for computers shifts to the right.
The supply curve for computers shifts to the left.

Question # 6 of 15 ( Start time: 08:21:02 PM ) Total Marks: 1
The correlation between an asset's real rate of return and its risk (as measured by its standard deviation) is usually:
Select correct option:
Positive.
Strictly linear.
Flat.
Negative.

Question # 7 of 15 ( Start time: 08:22:18 PM ) Total Marks: 1
We know that the demand for a good or service is inelastic if:
Select correct option:
When price rises, quantity demanded rises.
When price rises, quantity demanded falls.
When price rises, total revenue rises.
When price rises, total revenue falls.

Question # 8 of 15 ( Start time: 08:23:12 PM ) Total Marks: 1
Which of the following is not an assumption of ordinal utility analysis?
Select correct option:
Consumers are consistent in their preference.
Consumers can measure the total utility received from any given basket of good.
Consumers are non-satiated with respect to the goods they confront.
All are necessary.

Question # 9 of 15 ( Start time: 08:24:38 PM ) Total Marks: 1
If your demand price for one unit of a good is Rs. 100 and the market price is Rs. 75, your consumer's surplus will be:
Select correct option:
Rs.25.
Rs.50.
Rs.75.
Rs.100.

Question # 10 of 15 ( Start time: 08:26:02 PM ) Total Marks: 1
A market is said to be in equilibrium when:
Select correct option:
Supply equals Price.
There is downward pressure on price.
The amount consumers wish to buy at the current price equals the amount producers wish to sell at that price.
All buyers are able to find sellers willing to sell to them at the current price.

Question # 11 of 15 ( Start time: 08:26:32 PM ) Total Marks: 1
Which of the following does NOT refer to macroeconomics?
Select correct option:
The study of the aggregate level of economic activity.
The study of the economic behavior of individual decision-making units such as consumers, resource owners, and business firms.
The study of the cause of unemployment.
The study of the cause of inflation.

Question # 12 of 15 ( Start time: 08:27:39 PM ) Total Marks: 1
Which of the following defines the opportunity cost?
Select correct option:
It is measured only in rupees.
It is the cost to society of producing the goods.
It is the difficulty associated with using one good in place of another.
It is the cost of next best alternative forgone.

Question # 13 of 15 ( Start time: 08:28:37 PM ) Total Marks: 1
The law of increasing opportunity costs states that:
Select correct option:
The more one is willing to pay for resources, the larger will be the possible level of production.
Increasing the production of a particular good will cause the price of the good to rise.
In order to produce additional units of a particular good, it is necessary for society to sacrifice increasingly larger amounts of alternative goods.
Only by keeping production constant can rising prices be avoided.

Question # 14 of 15 ( Start time: 08:30:03 PM ) Total Marks: 1
The marginal rate of substitution is equal to the:
Select correct option:
Magnitude of the slope of the indifference curve
Relative price
Marginal cost of each good
Slope of the budget line

Question # 15 of 15 ( Start time: 08:31:02 PM ) Total Marks: 1
If the income elasticity of demand is 1/2, the good is:
Select correct option:
A luxury.
A normal good (but not a luxury).
An inferior good.
A Giffen good.

CS504 Assignment No. 1 Solution

Q1 [Marks 10]

While developing the Virtual University Learning Management System (LMS), there was a requirement stated that: "Students should be able to post their questions on MDB of LMS, so that it may help them to clarify their concepts in case of any confusion, after they have attended the lecture.

To post any MDB, we suppose that student is already logged in on LMS (with already provided student ID and password), now to post question, student will open discussion board and place his/her question there and click the post button, in which case his/her MDB will be posted."

You are required to write the above requirement (of posting MDB) in narrative use case form (also called elaborated form, discussed in lecture 6).

Tips: 1) The components of elaborated use case are: Use case Name Implementation priority Actors Summary Preconditions: Post-condition: Extend Uses Normal course of events Alternative path Exception Assumptions

2) Note that the above components are also discussed in Chapter 3 of handouts (Lecture No. 6).

3) You are required to write the use case in narrative form. Diagrammatic form is not required.

Q2 [10 Marks] Draw the ACTIVITY DIAGRAM of the given scenario: Scenario:

An XYZ university has a well defined library that stores more than 1000 books, from which some are allowed only in library while others can be borrowed by students. The library also has 10 computer terminals (with already installed Library Management System) placed in the library. In order for a student to borrow the book, following mechanism is followed:

Student logins the library management system with already provided login ID and password. After login, student has two options: Either he can enter the book information (he already knows the title, author name, edition etc.) he is looking for or alternatively he may select from interface to view the complete catalog (in sorted form) from which he can select a book. Once he has selected a book from either of the above two options, he may request the system to issue him the said book. System now verifies the book status, issues that book to student and updates the catalog. Along with issuing the book, the system also prints a voucher of the book with student information, book information and other related information. Student signs this voucher and submits to librarian, which hands over the book to student.

..........

What is UML Activity Diagrams

Use an activity diagram (activity diagram: A special case of a statechart diagram in which all of the states are action states and the transitions are triggered by the completion of actions in the source state.) to describe the internal behavior of a method and represent a flow driven by internally generated actions.

In Edraw Professional, the UML Activity Diagrams template and shapes are in the Software folder.
Who can use them and how

* Software developers: Represent software applications using the Unified Modeling Language (UML) notation.
* Software developers: Illustrate and interpret software application relationships, actions, and connections.
* Program managers: Show high-level static software structures in presentations and specification documentation.

UML Activity Diagram Symbols

Edraw is ideal software to draw UML activity diagrams



Examples of UML Activity Diagrams


How to draw UML activity diagrams

1. Identify the scope of the activity diagram

Begin by identifying what it is you are modeling. Is it a single use case? A portion of a use case? A business process that includes several use cases? A single method of a class? Once you identify the scope of your diagram, you should add a label at the top, using a note, indicating an appropriate title for the diagram and a unique identifier for it. You may also want to include the date and even the names of the authors of the diagram.

2. Add start and end points

Every activity diagram has a starting point and an ending point, so you might as well add them right away. In UML Distilled (see Resources), Fowler and Scott make ending points optional. Sometimes an activity is simply a dead end but, if this is the case, then there is no harm in indicating the only transition is to an ending point. This way, when someone else reads your diagram, he or she knows you have considered how to exit these activities.

3. Add activities

If you are modeling a use case, introduce an activity for each major step initiated by an actor (this activity would include the initial step, plus any steps describing the response of the system to the initial step). If you are modeling a high-level business process, introduce an activity for each major process, often a use case or a package of use cases. Finally, if you are modeling a method, then it is common to have an activity for this step in the code.

4. Add transitions from the activities

My style is always to exit an activity, even if it is simply to an ending point. Whenever there is more than one transition out of an activity, you must label each transition appropriately.

5. Add decision points

Sometimes the logic of what you are modeling calls for a decision to be made. Perhaps something needs to be inspected or compared to something else. Important to note is that the use of decision points is optional. For example, in Figure 1 I could just as easily have modeled the accepted and rejected transitions straight out of the "Enroll in University" activity.

6. Identify opportunities for parallel activities

Two activities can occur in parallel when no direct relationship exists between them and they must both finish before a third activity can. In Figure 1 you see it is possible to attend the overview or enroll in seminars in either order, but both activities must occur before you can end the overall process.