Question # 1

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

The goal of a pure market economy is to best meet the desires of.

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Consumers

Companies

Workers

The government

What lies is at the heart of the allocation of goods and services in a free market economy.

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Concerns of equity or equal distribution among individuals.

The order or command of the ruling government or dictator

The wishes of consumers in the market

The price mechanism

Economics given can be shown by

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An inward shift of the production possibility frontier

A movement down the production possibility frontier

An outward shift of the production possibility frontier

A movement up the production possibility frontier

All currencies other than the domestic currency of a given country are referred to as.

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Reserve currencies

Neal monies

Foreign exchange

Hard currency

Why does it make sense in assume that people are rational, if you want to predict their behavior.

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People are not guided by emotions when making decisions

People wheo act in the way that best gets them what they want will tend to repeat that behavior, and will tend to learn from mistakes that they do make

People never make mistakes, and tend to make the correct choices all of the time

People always logically figure out what to do.

In a less developed country.

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The infrastructure is likely to be good.

Real wages are likely to be high

Unemployment is likely to be low

The primary sector is likely to be significant

Which of the following is not involved with fiscal policy.

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Income tax

National insurance

VAT

Interest rates

For perfectly competitive firm

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Price equals marginal revenue

Price is greater than marginal revenus

Price equal total revenue

Price equals total cost

Equilibrium in the market for good A obtains.

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When there is no surplus or shortage prevailing in the market

Where the demand and supply curves for A intersect

When all of what is produced of A is consumed

All of the above

Investment depend mainly on.

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Past levels of income

Future expected profits

Present national income levels

Historic data

Economic theory assumes that people

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Act in greedy and selfish ways, without regard for the welfare of others.

Act without regard for their own interests.

Are not motivated by self interest

Are motivated by self interest but still might be concerned for the welfare of others.

If there is a price celling which of the following is NOT likely to occur.

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Rationing by first come first served

Black markets

Gray markets

Sellers providing goods for free that were formerly not free

According to schumpater

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Monopolies are inefficient

Monopoly profits act as an incentive for innovation

Monopolies are allocatively efficient

Monopolies are productively efficient

In order to maximize profits a monopoly company will produce that quantity at which the.

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Marginal revenue equals average total cost

Price equals marginal revenue

Marginal revenue equals marginal cost

total revenue equals total cost

The marginal propensity to consume in a less Developed Country is likely to be.

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_{Less than 0}

Nearly 0

High

Low

Globalization is made more difficult by

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The actions of the World Trade Organization

The removal of protectionist measures

Exchange rate instability

More free trade agreements

Barriers to entry do not include

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Patents

Internal economics of scale

Mobility of resources

High investment costs

When marginal revenue equals marginal cost

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Total revenue equal total cost

There is the biggest positive difference between total revenue and total cost

there is the biggest negative difference between total revenue and total cost.

Profits are zero

The standard of living is often measured by

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Real GDP per capita

Real GDP

Real GDP * Population

Real GDP Plus depreciation

Injection are

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Assumed to be exogenous

Assumed to be a function of national income

Decrease aggregate demand

Decrease the investment into an economy

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