Question # 1

Why might a country resist globalization.

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Greater choice of final products

Greater choice of supplies

Greater competition for domestic firms

More markets to sell to

A cut in the income tax rate designed to encourage household consumption is an example of.

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Expansionary demand side policy

Contractionary demand side policy

Expansionary supply side policy

Contractionary supply side policy

Unfair competition does not include

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Price cutting

predatory pricing

Cartels

Price fixing

Which of the following is a normative statement in economics.

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More spending by the government reduces poverty

Higher taxes lead to less desire to work

the UK Economy is growing fast relative to other European Union members

The Government should concentrate on reducing unemployment

A shift in supply will have a bigger effect on price than output if demand is.

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Income elastic

Income inelastic

Price elastic

Price inelastic

In a less developed country.

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The infrastructure is likely to be good.

Real wages are likely to be high

Unemployment is likely to be low

The primary sector is likely to be significant

Why does it make sense in assume that people are rational, if you want to predict their behavior.

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People are not guided by emotions when making decisions

People wheo act in the way that best gets them what they want will tend to repeat that behavior, and will tend to learn from mistakes that they do make

People never make mistakes, and tend to make the correct choices all of the time

People always logically figure out what to do.

Which of the following would decrease aggregate demand.

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Increased consumption

Increasing export revenue

Increased taxation revenue

Increased investment

Economic growth can be measured by

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The CPI

The CBI

GDP

MPC

Which of the following is a characteristic of pure monopoly.

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one seller of the product

Low barriers to entry

Close substitute products

Perfect information

"Reducing inflation is a more important objective than economic growth" is an example of.

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Normative economics

Positive economics

Objective economics

Reality economics

Aggregate demand refers to the total demand for all domestically produced goods and services in an economy generated from.

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The household and government sectors

The household sector

All sectors except the rest of the world

All sectors including the rest of the world.

Revealed preference theory was presented by.

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Samuelson

Hicks

Marshall

rICARDO

An increase in demand for a product should.

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Increase equilibrium price and quantity.

Decrease equilibrium price and quantity.

Increase equilibrium price and decrease quantity.

Decrease equilibrium price and increase quantity.

Which of the following can the government not use directly to control the economy.

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Pay rates within the privates sector

Pay rates in the public sector

Investment in education

Benefits available for the un employed and sick

When an economy first begins to frow more slowly.

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GDP increase

Inflation is likely to increase

Stock levels are likely to increse

Investment in equipment is likely to increase

Firm in oligopoly are likely to.

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Invest heavily in branding

Act independently of other firms

Try to differentiate its products

Try to be a price maker

In perfect competation.

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The price equals the marginal revenue

The price equals the average variable cost

The fixed cost equals the variable costs

The price equals the total costs

If the price elasticity is -0.3 this means.

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Demand is upward sloping

Demand is price elastic

A price fall would increase revenue

Demand is price inelastic

Demand for primary products is likely to be

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Very sensitive to price

Price elastic

Unit elastic

Income inelastic

Scarcity means that

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We cannot have everything that we might want

We have to make choices between the things we desire.

There are costs to just about any activity we undertake

We must give up some thing in order to obtain other things.

All of the above are correct

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