Question # 1

In perfect price discrimination

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Consumer surplus is maximized

Produce surplus is zero

Community surplus is maximized

Consumer surplus is zero

If firm earn normal profits.

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They will aim to leave the industry

Other firms will join the industry

The revenue equals total costs

No profit is made in accounting terms

The diamond water paradox can be explained by suggesting that the price of a product is determined by.

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Consumer incomes

Its marginal utility

Consumer surplus

Diminishing marginal utility

If the "Regulated -market" price is below the equilibrium price.

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The quantity demanded will be greater than quantity supplied

Demand will be les than supply

Quantity demanded will be less than quantity supplied

Quantity demanded will equal quantity supplied

Economics growth can be seen by an outward shift of.

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The production possibility frontier

The gross domestic barrier

The marginal consumption frontier

The Minimum Efficient scale

Which of the following is not involved with fiscal policy.

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Income tax

National insurance

VAT

Interest rates

An increase in costs will

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Shift aggregate demand

Shift aggregate supply

Reduce the natural rate of unemployment

Increases the productivity of employees

In a market system sellers act in ___ interest, but this leads to behaviors in ___ interest.

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Self : self

Self ; society's

Society's ; society's

society's, self

Increase un employment benefits and less incentive to work would.

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Shift aggregate supply to the right

Shift aggregate supply to the left

Shift aggregate demand to the right

Shift aggregate demand to the left

To prevent the external value of the currency from failing the government might

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Reduce interest rates

Sell its own currency

Buy its own currency with foreign reserves

Increase its own spending

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.

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

An increase in the price of a complement or produce.A would.

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Shift demand for product a out wants

Shift demand for product A inwards

shift supply for product A out wards

Shift supply for product A inwards

A contraction in supply occurs when

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Demand shifts out wards

The supply curve shifts inwards

The quantity supplied falls when the price falls

The supply curve shifts outwards

As income increases.

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the average propensity to consume gets nearer in value to the marginal propensity to consume

the average propensity to consume diverges in value from the marginal propensity to consume

the average propensity to consume falls

The averge propensity to consume always approaches 0

A multinational busniess

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Sells products abroad

Produces in more than one country

Imports from abroad

Sells only domestically

Friend man's theory of consumption focuses on

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Past income

Current income

Disposable income

Permanent income

An increase in demand for a product should.

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Increase equilibrium price and quantity.

Decrease equilibrium price and quantity.

Increase equilibrium price and decrease quantity.

Decrease equilibrium price and increase quantity.

The natural rate of unemployment is likely to tall if

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Unemployment benefits increase

Income tax increases

More training is available for the unemployed

Geographical immobility increases

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

When internal economics of scale occur

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Total costs fall

Marginal costs increase

Average costs fall

Revenue falls

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