Question # 1

The price mechanism cannot.

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Act as a signal

Act as an incentive

Act as a rationing device

Shift the demand curve

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.

A profit maximizing firm will employ labour up to the point where.

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Marginal revenue = Marginal product

Margial cost = Marginal product

Marginal revenue product = Average cost of labour

Marginal revenue product = Marginal cost of labour

If there is a price floor there will be.

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Shortages

Surpluses

Equilibrium

All of these

An increase income will

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Lead to a movement along the demand curve

Shift the supply curve

Shift the demand curve

Lead to an extension of demand

The effects of inflation on the price competitiveness of a country's products may be offset by

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An appreciation of the currency

A revaluation of the currency

A depreciation of the currency

Lower inflation abroad

If firms join together to set prices and quantities this is known as what.

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Interaction

Conglomerate

Collusion

Integration

A benefit to consumers of price discrimination is that

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Some products are produced that would not other wise be produced

Producer surplus increases

Consumer surplus decreases

Firms profits increase

An increase in aggregate demand if aggregate supply is totally inelastic will.

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Increase price but not output

Increase output but not price

Increase out put and price

Decrease output and price

Nationalization occurs when

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The government bans a product

The government takes control of an industry

the government taxes a product to a raise the price.

The government taxes a product to a raise its price.

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.

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

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

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

Investment depend mainly on.

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Past levels of income

Future expected profits

Present national income levels

Historic data

In economics we ofthe say that a particular event will occur "as long as other things stay the same. " The conduction that other thing saty the same is also called.

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Ceteris paribus

Marginal decision making

Incentives

Secondary effects

To reduce cyclical unemployment the government might.

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Increase the budget surplus

Increase the balance of payments deficit

Reduce interest rates

Reduce government expenditure

"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

An injection of funds into a less developed country might set off the

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Multiplier

Marginal propensity to save

Average propensity to consume

The Laffer effect

World trade has been increasing due to.

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Increased tariffs

Increased legal barriers

Increased embargoes

Reduced protectionism

What is the effect of imposing a fixed per unit tax on a good on its equilibrium price and quantity.

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Price falls, quantity rises

Price rises, quantity falls

Both price and quantity fall

Both price and quantity rise

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