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

A multinational busniess

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Sells products abroad

Produces in more than one country

Imports from abroad

Sells only domestically

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

The length of a business cycle would be measured from

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Peak t trough

Trough to peak

Peak to Peak

The slump to the expansion

Which of the following is a possible government objective as opposed to a policy.

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Lower interest rates

Lower taxation rates

Lower government spending

Lower inflection

Say's law states that

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Supply creates its own demand

Demand creates its own supply

There is no such things as a free lunch

Macro economics policy activism is essential to ensure full employment.

If economics when we say that people are rational, we mean that they.

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Never make mistakes

Try to get what they desire as best they can, given the limitations they face.

Logically figure out what to do

Behave in a random unpredictable manner

A reduction in the money supply is likely to

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Reduce interest rates

Increase the interest rate

Increase inflation

Decrease deflation

In monopoly when abnormal profits are made.

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The prize set is greater than the marginal cost

The price is less than the average cost

The average revenue equals the marginal cost

Revenue wquals total cost

Economics is the study of.

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All business, including how they operate why the exist and how they afect

Decisions that people must make because goods and services are limited.

How to save money, spend money invest savings, and balance a checkbook

The stock market the bond market and investment strategies

Big business and its impact on our live

A supply curve that starts at the origin has

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A price elasticity of supply greater than one

A price elasticity of supply equal to one

A price elasticity of supply less than one

A positive price elasticity of supply

A cut in the tax rate designed to reduce the business investment is an example of.

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Expansionary demand side policy

Contractionary demand side policy

Expansionary supply side policy

Contractionary supply side policy

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

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

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

Can economic theories be tested.

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No since individuals will seldom respond in predictable ways

Yes, since all individuals respond int he same ways to the same situation.

No , since the general behavior of a large numebr of individuals cannot be predicated

Yes , since people will, on average, respond in predictable ways to changes in costs and benefits.

Barriers to entry do not include

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Patents

Internal economics of scale

Mobility of resources

High investment costs

A reduction in the costs of production will

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Lead to a movement along the supply curve

Shift the demand curve

Shift the supply curve

Lead to an extension of supply

In marketing "USP " Stand for

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Unique selling proposition

Underlying sales pitch

Unit sales point

Under sales procedure

Over time the price of primary products tends to fall because.

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Demand is income elastic

Supply is income elastic

Of outward shifts in supply

Demand is price elastic

Labour productivity measures.

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The output per worker

The output per machine

Total output

Marginal output

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