Question # 1

Ordinal measurement approach was not presented by

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Allen

Hicks

Edge worth

Robbins

As the MPS increases, the multiplier will

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Increase

Either increase or decrease depending on the size of the change in investment

Remain constant

Decrease

If there is a price celling which of the following is NOT likely to occur.

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Rationing by first come first served

Black markets

Gray markets

Sellers providing goods for free that were formerly not free

In monopoly in long run equilibrium.

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The firm is productively effieient

The firm is allocatively inefficient

The firm produces where marginal cost is less than marginal revenue

The firm produces at the sociality optimal level

To be productively efficient a firm must produce where

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Marginal costs are maximized

Marginal costs are minimized

Average costs are minimized

Average revenue is maximized

Occupational immobility of labour occurs if.

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People lack information

People do not want to work

People do not have the right skills to work

People cannot afford to move location

Which does the government not control directly.

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Spending on health

spending on defense

Firm's investment decisions

spending on education

An increase in aggregate demand if aggregate supply is totally inelastic will.

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Increase price but not output

Increase output but not price

Increase out put and price

Decrease output and price

Injection are

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Assumed to be exogenous

Assumed to be a function of national income

Decrease aggregate demand

Decrease the investment into an economy

Inflation.

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Reduces the cost of living

Reduces the standard of living

Reduce the price of products

Reduces the purchasing power of a price

Demand for labour is more likely to be wage inelastic if.

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Wages are a small proportion of total costs

Demand for the final product is price elastic

It is easy to replace labour

Capital is a good substitute forlabour

To reduce the supply of money the government could.

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Reduce interest rates

Buy back government bonds

Sell government bonds

Encourage banks to lend

The law of demand states that.

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As the quantity demanded rises, the price rises.

As the price rises the quantity demanded rises

As the price rises, the quantity demanded falls.

As supply rises, the demand rises.

Which of the following is a policy instrument .as opposed to a government objective.

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Lower interest rates

A better balance of trade position

Faster economic growth

Lower un employment

In a recession

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Unemployment is likely to be low

prices are likely to increase

Growth is negative

Growth is slow

The socially optimal rate of growth is

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Zero

Negative

Where the marginal social benefit the marginal social cost

total social costs are minimized

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 reflationary policy

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Increases aggregate supply

Increases aggregate demand

Decreases the price level

Increase full employment

Economic growth can be measured by

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The CPI

The CBI

GDP

MPC

For equilibrium in an open four sector economy

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Actual injections = actual withdrawals

Planned injections = Planned withdrawals

Savings = investment

Government spending = tax revenue

If one car company takes over another car company this is an example of which type of integration.

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Vertical

Horizontal

Conglomerate

Literal

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