Question # 1

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 price mechanism does not act as a

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Signal

Incentive

Rationing device

Indicator of income

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

If the fprice in a market is fixed by the government below equilibrium.

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There is excess equilibrium

There is excess supply

There is excess demand

There is equilibrium

If a maximum price is set below equilibrium there will be.

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A price fall

A price increase

Excess supply

Excess demand

Which of the following would increase aggregate demand.

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Increasing saving

Increasing import spending

Increasing taxation revenue

increased investment

Which of the following is not a macro economic issue.

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Unempolyment

Inflaction

The wages paid to footballers

Economic growth

An outward shift in the marginal efficacy of capital should.

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Decrease consumption

Increase aggregate demand

Reduce aggregate supply

Slow economic growth

In the long term a firm will produce provident the revenue covers.

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Fixed costs

Variable cost

Total costs

Revenue

The economists who emphasized wage flexibility as a solution for unemployment were.

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Monetarists

New keynesians

Classical economists

Keynesians

Economists use the term utility to mean

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The value of a product before it has been advertised

The satisfaction a consumer obtains from a good or service

any characteristic of a good or service which cannot be measured

The contribution a good or service makes to social welfare

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

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

All currencies other than the domestic currency of a given country are referred to as.

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Reserve currencies

Neal monies

Foreign exchange

Hard currency

Equilibrium in the market for good A obtains.

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When there is no surplus or shortage prevailing in the market

Where the demand and supply curves for A intersect

When all of what is produced of A is consumed

All of the above

The free market involves

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The free provision of products

The subsidizing of products by the government

Market forces of supply and demand

All trade via barter

There are three fundamental questions every society must answer Which of the following is one of these questions.

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What goods and services are to be produced.

How are the good and services to be produced.

Who will get the goods and services what are produced.

All of the above

If there is a price celling there will be

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Shortages

Surpluses

Equilibrium

None of these

Who advocates laissez fair.

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Monetarists

Classical

Neo classical

Modern

Economists use the term marginal utility to mean.

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Additional satisfaction gained divided by additional cost of the last unit.

Additional satisfaction gained by the consumption of one more unit of a good

Total satisfaction gained when consuming a given number of units.

The process of comparing marginal units of all goods which could be purchased

Which of the following is a determinant of consumption.

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Expectations about future prices

Level of indebtedness of consumers

The price level

All of the above

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