Question # 1

GDP plus net property income from aboard equals what.

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GNP

NNP

Depreciation

Real GDP

In perfect competition.

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the products firm offer are very similar

Products are heavily differentiated

A few firms dominate the market

Consumers have limited information

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

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

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 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

Effective branding will tend to make

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Demand mover price inelastic

Supply more price inelastic

Demand more income elastic

Supply more income elastic

An increase in national income is.

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Likely to increase exports

Likely to decrease savings

Likely to decrease investment

Likely to increase spending on imports

Menu costs in relation to inflation refer to

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Costs of finding better rates of return

Costs of altering price lists

Costs of money increasing its value

Costs of revaluing the currency

The bowed shape of the production possibilities curve illustrtres.

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The law of increasing marginal cost

the production in inefficient

That production is inattainable

The demand is relatively inelastic

A public good will

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Be underprovided in the free market

Be overprovided in the free market

Not be provided in the free market

Has no opportunity cost

A recurring theme in economics is.

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People have unlimited wants in the face of limited resources

There are unlimited resources

Our country is rich, we just don't realize it

People have limited wants in the face of limited resource.

A depreciation of currency occur when

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The value of the currency falls

The value of the currency increases

Inflation falls

The balance of payments improves

Tariffs.

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Decrease the domestic price of a product.

Increase government earnings from tax

Increase the quantity of imports

Decrease domestic production

If marginal cost is positive and falling.

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Total cost is falling

Total cost is increasing at a falling rate

Total cost is falling at a falling rate

Total cost is increasing at an increasing rate.

Inflation.

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Reduces the cost of living

Reduces the standard of living

Reduce the price of products

Reduces the purchasing power of a price

When referring to economic growth we normally refer to.

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Growth in actual real per capita output

Growth in potential real per capita output

Growth in actual nominal per capita output

Growth in potential real per capita output

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

Which of the following can the government not use directly to control the economy.

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Pay rates within the privates sector

Pay rates in the public sector

Investment in education

Benefits available for the un employed and sick

Acquisition and merger are examples of.

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Internal growth

External growth

Organic growth

Underlying growth

For equilibrium in an open four sector economy

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Actual injections = actual withdrawals

Planned injections = Planned withdrawals

Savings = investment

Government spending = tax revenue

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