ECO401 Quiz No 3 Spring 2012

 ECO401 VU Quiz No 3 Solved Spring 2012

Question # 1 of 10 ( Start time: 12:22:29 AM ) Total Marks: 1
————— is the rate at which a firm can substitute capital for labor and hold output constant.
Select correct option:
Diminishing marginal returns
Marginal rate of substitution
Marginal rate of production
Marginal rate of technical substitution
Question # 2 of 10 ( Start time: 12:23:48 AM ) Total Marks: 1
An increase in the total output of a country over time is called:
Select correct option:
Inflation
Economic growth
Economic development
Unemployment
farm can produce 100 kilogram of apples per year with 2 workers and 400 kilogram of apples per year with 3 workers. The marginal product of the third worker is:
Select correct option:
100 kilogram.
300 kilogram.
400 kilogram.
500 kilogram.
Question # 4 of 10 ( Start time: 12:26:12 AM ) Total Marks: 1
According to the Real Business Cycles (RBC) School, fluctuations in output occur because of:
Select correct option:
Change in price level.
Change in technology.
Change in aggregate demand.
Unanticipated change in demand management policies.
Question # 5 of 10 ( Start time: 12:27:40 AM ) Total Marks: 1
Suppose the consumption function is C = 200 + 0.6 Yd. What is marginal propensity to consume?
Select correct option:
6
60
0.6
600
Question # 6 of 10 ( Start time: 12:29:08 AM ) Total Marks: 1
A risk neutral person always has ___________ marginal utility of income.
Select correct option:
Diminishing
Increasing
Undefined
Constant
Question # 7 of 10 ( Start time: 12:30:38 AM ) Total Marks: 1
ABC Company is running a business of car manufacturing and finds sharp increase in prices of spare parts which in turn increases cost of manufacturing cars. This increase in cost of production will:
Select correct option:
Shift demand curve for cars to the right.
Shift demand curve for cars to the left.
Shift supply curve for cars to the left.
Bring no change in demand or supply curves for cars.
Question # 8 of 10 ( Start time: 12:32:05 AM ) Total Marks: 1
The saving function is:
Select correct option:
The level of planned saving for every change in disposable income.
The level of planned saving at different levels of disposable income.
The ratio of total saving to total disposable income.
The ratio of a change in planned saving to a change in disposable income.
Question # 9 of 10 ( Start time: 12:33:31 AM ) Total Marks: 1
Suppose supply of agricultural products is price inelastic and government decides to increase taxes on agricultural products. More of the tax burden in this case would fall on:
Select correct option:
Producers.
Consumers.
Government.
Both producers and consumers.
Question # 10 of 10 ( Start time: 12:35:00 AM ) Total Marks: 1
If marginal product is below average product:
Select correct option:
The total product will fall
The average product will fall
Average variable costs will fall
Total revenue will fall

ISL201 GDB Idea Solution Spring 03 July 2012

 ISL201 GDB Idea Solution Spring 03 July 2012

 Solution:-

Every individual, according to Islam, is accountable for his actions done in this world. He would be rewarded for his good actions and punished for his evil actions in the hereafter. Accountability for individual’s actions is meaningless if the individual is not provided reasonable freedom to act independently. Therefore, Islam puts highest value on individual’s freedom of action in every field of human activity such as social, political, economic religious, moral, etc.
Islamic principle of economic freedom means that an individual has been allowed liberty by God to earn wealth, own it, enjoy it and spend it as he likes. It also entails freedom to adopt any profession, business or vocation to earn livelihood. But Islam has not allowed unlimited freedom in the economic sphere. As we have already discussed, Islam makes distinction between Halal (lawful) and Haram (unlawful). In the field of production, distribution, exchange and consumption, only Halal (lawful) means are permitted. Remaining within the restrictions of Halal and Haram, an individual enjoys full freedom to earn and spend wealth as he likes. Thus Islam recognizes free enterprise, human initiative, and individuals potential. It also recognizes role of organization, capital, labor and market forces in economic field. No unnecessary curbs are placed on the individual or the organization regarding earning or owning of wealth. No upper limit or ceiling is imposed on properties or holdings. Besides restrictions of Halal and Haram, other restrictions are rarely placed on economic activities, prices of goods, ownership or on monopolies unless the same are really necessary for safeguarding the common interest of Muslim community.

Another Solution:-

The Prophet Muhammad informed us in a very famous tradition, commonly quoted with reference to halal and haram, about the importance of the heart. He said:
"There is in the body a clump of flesh - if it becomes good, the whole body becomes good and if it becomes bad, the whole body becomes bad. And indeed it is the heart."
[The hadith in full :- Bukhary, Volume 1, Book 2, Number 49: Narrated An-Nu'man bin Bashir: I heard Allah's Apostle saying, 'Both legal and illegal things are evident but in between them there are doubtful (suspicious) things and most of the people have no knowledge about them. So whoever saves himself from these suspicious things saves his religion and his honor. And whoever indulges in these suspicious things is like a shepherd who grazes (his animals) near the Hima (private pasture) of someone else and at any moment he is liable to get in it. (O people!) Beware! Every king has a Hima and the Hima of Allah on the earth is His illegal (forbidden) things. Beware! There is a piece of flesh in the body if it becomes good (reformed) the whole body becomes good but if it gets spoilt the whole body gets spoilt and that is the heart.']
He said that after explaining that the halal is clear and that the haram is clear and that between them are obscure areas, not known to most people. However, what protects a person from the haram and ensures that he remains in the halal is knowledge; but beyond knowledge, it is the state of the heart. If the heart is good, then it makes use of the knowledge and it avoids what is prohibited. If the heart is bad, then the knowledge is of no benefit to it and it will indulge in what is prohibited.