Question # 1

To be allocatively efficient ta firm must produce where

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the total cost equals demand

the average revenue equals the marginal revenue

The price equals the average cost

The price equals the marginal cost

Compared to the case of perfect competition, a monopolist is more likely to

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Charge a higher price

Produce a lower quantity of the product

Make a greater amount of economic profit

All of the above

Sales taxes are generally considered to be.

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Proportional taxes

Regressive taxes

Progressive taxes

Indirect taxes

"Income inequality can be high in the free market and should be reduce ".This is an example of what.?

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Judicial economic statement.

Positive economic statement

Formative economic statement

Normative economic statement

Companies in the private sector are owned by

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The government

Shareholders

Employees

The community

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

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

If there is a price celling there will be

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Shortages

Surpluses

Equilibrium

None of these

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

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

Developing economics usually have

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Low GDP per captia

Low CPI

Large balance of payments surpluses

Large budget surpluses

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

Developing economies usually

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Have large industrialized sectors

Are dependent on primary products

Have high levels of wealth

Earn more from exports than is spent on imports

In the short term a firm will produce provided the revenue

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Covers fixed costs

Covers variable costs

Covers total costs

Covers revenue

A mixed economy

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Has supply but not demand

Has demand but not supply

Has supply and demant

Has market forces and government intervention

Which of the following is an injection into the economy.

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Investment

Saving

Taxation

Import spending

The accelerator assumes.

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The marginal propensity to consume is constant

The economy is at full employment

There is a constant relationship between net investment and the rate of change of output

The multiplier is constant

Supply is likely to be more price elastic.

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In the short run rather than the long run

If factors of production are relatively immobile between industries.

If there are very few producers

If it is easy to expand output

The socially optimal rate of growth is

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Zero

Negative

Where the marginal social benefit the marginal social cost

total social costs are minimized

A demand switching policy could be.

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Higher interest rates

Higher income tax

Traiffs

Reduced government spending

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