Question # 1

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

Capital, as economists use the term.

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Is the money the firm spends to hire resources

Is money the firm raises from selling stock

Refers to the process by which resources are transformed into useful forms

Refers to things that have already been produced that are in turn used to produce other goods and services.

Developing economics usually have

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Low GDP per captia

Low CPI

Large balance of payments surpluses

Large budget surpluses

Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are.

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Market prices

Sticky prices

Fixed prices

Regulatory prices

Finding a partner to work with abroad is called a.

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Takeover

Merger

Acquisition

Joint venture

To adjust from gross National Product to Net National Product

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Deduct deprecation

Deduct indirect taxes

Deduct subsidies

Add inflation

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.

Which of the following is a normative statement in economics.

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More spending by the government reduces poverty

Higher taxes lead to less desire to work

the UK Economy is growing fast relative to other European Union members

The Government should concentrate on reducing unemployment

An increase in aggregate demand is more likely to lead to demand pull inflation if.

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Aggregate supply is perfectly elastic

Aggregate supply is perfectly inelastic

Aggregate supply is unit elastic

Aggregate supply is relatively elastic

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

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

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

Which of the following best describes the selling of a production license to another firm.

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Hands over all rights to its products

Sells its products abroad

Sells the right to produce to another business

Sells the business to another business

A demand switching policy could be.

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Higher interest rates

Higher income tax

Traiffs

Reduced government spending

In a recession

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Unemployment is likely to be low

prices are likely to increase

Growth is negative

Growth is slow

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

A shift in supply will have a bigger effect on price than output if demand is.

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Income elastic

Income inelastic

Price elastic

Price inelastic

To maximize sales revenue a firm should produce where

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Marginal cost is zero

Marginal revenue is maximized

Marginal revenue is zero

Marginal revenue equals marginal cost

In perfect competition.

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the products firm offer are very similar

Products are heavily differentiated

A few firms dominate the market

Consumers have limited information

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

If demand is price inelastic.

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An increase in price must raise profits

An increase in price decreases revenue

An increase in price increase revenue

A decrease in price reduces sales.

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