Question # 1

Globalization is made more difficult by

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The actions of the World Trade Organization

The removal of protectionist measures

Exchange rate instability

More free trade agreements

What does the phrases "there is no such thing as a free lunch'mean"

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Individuals must always pay money for the food the eat.

No restaurant wner will provide food to patrons unless they pay her

Restaurant owners act selfishly

Consumption of any good requires that other goods be given up

Which of the following is true.

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If the marginal cost is greater than the average cost the average cost fallls.

If the marginal cost is greater than the average cost the average cost increases.

If the marginal cost is positive total costs are maximized

If the marginal cost is negatives total costs increase at a decreasing rate if output increases

Developing economies usually

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Have large industrialized sectors

Are dependent on primary products

Have high levels of wealth

Earn more from exports than is spent on imports

The diamond water paradox can be explained by suggesting that the price of a product is determined by.

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Consumer incomes

Its marginal utility

Consumer surplus

Diminishing marginal utility

An increase income will

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Lead to a movement along the demand curve

Shift the supply curve

Shift the demand curve

Lead to an extension of demand

Which of the following is not involved with fiscal policy.

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Income tax

National insurance

VAT

Interest rates

Which of the following is an injection into the economy.

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Investment

Saving

Taxation

Import spending

Unfair competition does not include

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Price cutting

predatory pricing

Cartels

Price fixing

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

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

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Lower interest rates

Lower taxation rates

Lower government spending

Lower inflection

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

Game theory

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Firm are assumed to act independently

Firms are assumed to cooperate with each other

Firm collude as part of a cartel

Firms consider the actions of others before deciding what to do.

A government might use tax to.

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Discourage consumption of positive externalities

Discourage consumption of public goods

Discourage consumption of merit goods

Discourage consumption of negative externalities

Total revenue equals

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Price Plus quantity

Price multiplied by quantity sold

Price divided by the quantity sold

Price minus quantity sold

If the economy grows the government's budget position will automatically

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Worsen

Improve

Stay the same

Increase with inflaction

Barriers to entry do not include

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Patents

Internal economics of scale

Mobility of resources

High investment costs

Which of the following is not a global organization?

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IMF

World bank

Competition commission

WTO

According to the quantity theory of money an increase in the money supply is most likely to lead ot inflation if

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The velocity of circulation decreases

The number of transactions decreases

There is deflation

The velocity of circulation and the number of transactions is constant

Free trade is based on the principle of

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Comparative advantage

Comparative scale

Economics of advantage

Production possibility advantage

If a few firms dominate an industry the market is known as.

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Monopolistic competition

Competitively monopolistic

Duopoly

Oligopoly

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