Question # 1

Price equal to.

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Total revenue -quantity

Total revenue/quantity sold

total quantity sold * quantity sold

Total revenue/total cost

Normal profit occurs when

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Average revenue equals average variable cost

Marginal revenue equals marginal cost

Average revenue equals marginal cost

Average revenue equals average cost

An increase in price all other, things unchanged leads to.

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Shift demand outwards

Shift demand inward

A contraction of demand

An extension of demand

If the price in a market is fixed by the government above equilibrium.

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There is excess equilibrium

There is excess supply

There is excess demand

There is equilibrium

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

An increase in national income is.

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Likely to increase exports

Likely to decrease savings

Likely to decrease investment

Likely to increase spending on imports

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

Investment is an out stable element of aggregate demand because is depends heavily on.

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Government policy

Expectations

National income

Historic trends

Aggregate demand will increase if

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Consumption falls

Investment falls

Exports fall

imports fall

A deflationary policy could include

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Increasing injections

Reducing taxation rates

Reducing interest rates

Reducing government spending

The marginal propensity to consume in a less Developed Country is likely to be.

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_{Less than 0}

Nearly 0

High

Low

Friend man's theory of consumption focuses on

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Past income

Current income

Disposable income

Permanent income

Menu costs in relation to inflation refer to

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Costs of finding better rates of return

Costs of altering price lists

Costs of money increasing its value

Costs of revaluing the currency

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.

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

Sales taxes are generally considered to be.

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Proportional taxes

Regressive taxes

Progressive taxes

Indirect taxes

World trade has been increasing due to.

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Increased tariffs

Increased legal barriers

Increased embargoes

Reduced protectionism

The precautionary demand for money is

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An idle balance

An active balance

Directly related to interest rates

Inversely related to income

According to schumpater

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Monopolies are inefficient

Monopoly profits act as an incentive for innovation

Monopolies are allocatively efficient

Monopolies are productively efficient

Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by.

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An fall in demand

An increase in supply

Improvements in production technology

An increase in demand

Demand pull inflation may be caused by

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An increase in costs

A reduction in interest rate

A reduction in government spending

An outward shift in aggregate supply

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