Question # 1

An independent assessment of the impact of firm's activities on society is called a.

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Financial audit

Balance sheet

Profit and uses account

Social audit

If there is cyclical unemployment in the economy the government might.

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Increase interest rates

Encourage savings

Cut taxes

Reduce government spending

In the long run in perfect competition

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Price = average= cost = marginal cost

Price = average cost = total cost

The price covers fixed cost

total revenue = total variable cost

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

A subsidy paid to producers.

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Shifts the supply curve

Shifts the demand curve

Leads to a contractional supply

Leads to an extension of supply

If product an inferior good.

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Demand is inversely related to income

Demand is inversely related to price

Demand is directly related to price

Demand is inversely related to the price of substitutes

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

If employees cannot accept a job because of the costs of moving this is known as.

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Occupational immobility

Cyclical unemployment

Structural immobility

Geographical immobility

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

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.

Resources in an economy

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Are always fixed

Can never decrease

Always increase over time

Are limited at any moment in time

An increase in price all other things unchanged leads to.

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A shift in supply out wards

A shift in supply in wards

A contraction of supply

An extension of supply

Acquisition and merger are examples of.

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Internal growth

External growth

Organic growth

Underlying growth

Any combination of products inside the production possibility frontier is

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Allocatively inefficient

X inefficient

Consumer inefficient

Productively inefficient

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

In monopolistic competition if firms are making abnormal profit other firms will enter and

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The marginal cost will shift outwards

the demand curve will shift inwards

The average cost will shift downwards

The average variable cost will increase

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

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

Exchange rates that are determined by the unregulated forces of supply and demand are.

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Floating exchange rates

Pegged exchange rates

Fixed exchange rate

Managed exchange rates

Which of the following rights be a scarce good.

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Love

faith

Self control

All of above

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

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