Question # 1

The resources in an economy are

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Constantly increasing

Fixed at any moment

Constant decreasing

Able to be transferred easily between industries

The resources in the economy do not include.

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Demand

Land

Labor

Capital

A profit maximizing firm in perfect competition produces where

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Total revenue is maximized

Marginal revenue equals zero

Marginal revenue equals marginal cost

Marginal revenue equals average cost

If the marginal revenue is less than the marginal cost then to profit maximize a firm should.

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Reduce output

Increase output

Leave output where it is.

Increase costs

In a recession a government.

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Is likely to want to increase demand in the economy

Is likely to want to decrease demand in the economy

Is likely to want to stabilize demand in the economy

Is likely to want to increase supply in the economy

If labour productivity per week is 200 units and there are 5 employees what is the total output.

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40 units

195 units

1000 units

200 units

An increase in the wage rate.

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Will usually lead to more people employed

Will decrease total earnings if the demand for labour is wage elastic

Is illegal in a free market

Will cause a shift in the demand for labour

What is the effect of imposing a fixed per unit tax on a good on its equilibrium price and quantity.

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Price falls, quantity rises

Price rises, quantity falls

Both price and quantity fall

Both price and quantity rise

In economics, the term 'scarcity' refers to the fact that

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Everything worthwhile costs money

No society is able to produce enough to fully satisfy the desires of people for goods.

Even in wealthy societies, like the united states, some people are poor

sometimes shortages of product result if its price is set too low.

In any urban are there are people who have had healed wounds

The sacrifice involved when you choose a particular course of action is called the

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Alterative

Opportunity cost

Consumer cost

Producer cost

To reduce cyclical unemployment the government might.

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Increase the budget surplus

Increase the balance of payments deficit

Reduce interest rates

Reduce government expenditure

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

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

The first level of output at which the long run average costs are minimized is called.

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The minimum Efficient Scale

The minimum External scale

The Maximum External scale

The maximum Effective scale.

In monopolistic competition firms profit maximize where

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Marginal revenue = average revenue

Marginal revenue= Marginal cost

Marginal revenue= Average cost

Marginal revenue = Total cost

In monopoly which of the following is true.

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There are many buyers and sellers

There is one main buyers

There is one main seller

The actions of one firm do not affect the market price and quantity.

If marginal cost is positive and falling.

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Total cost is falling

Total cost is increasing at a falling rate

Total cost is falling at a falling rate

Total cost is increasing at an increasing rate.

Increased levels of spending on imports

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shift aggregate supply to the right

Shift aggregate supply to the left

Shift aggregate demand to the right

Shift aggregate demand to the left

Laboratory experiments cannot be performed in economics because.

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Of resource scarcity

Economics is a natural science

Of the difficulty of distinguishing between normative and positive statements.

Economics is a social science

The profit per scale is a measure of.

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Profit

Profitability

Feasibility

Realism

In order to maximize profits a monopoly company will produce that quantity at which the.

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Marginal revenue equals average total cost

Price equals marginal revenue

Marginal revenue equals marginal cost

total revenue equals total cost

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