Question # 1

Which of the following is not a macro economic issue.

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Unempolyment

Inflaction

The wages paid to footballers

Economic growth

Increased levels of spending on imports

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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

An increase in investment is most likely to be caused by.

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Lower interest rates

Lower national income

A decreasing the marginal propensity to consume

An increase in with drywalls.

According to the quantity theory of money an increase in the money supply is most likely to lead ot inflation if

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The velocity of circulation decreases

The number of transactions decreases

There is deflation

The velocity of circulation and the number of transactions is constant

If injection are less than with drawls at the full employment level of national income there is.

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an inflationary gap

Equilibrium

A deflationary gap

Hyperinflation

If one car company takes over another car company this is an example of which type of integration.

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Vertical

Horizontal

Conglomerate

Literal

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

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Interaction

Conglomerate

Collusion

Integration

If injections are greater than withdrawals.

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National income will increase

National income will decrease

National income will stay in equilibrium

Price will fall

The economists who emphasized wage flexibility as a solution for unemployment were.

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Monetarists

New keynesians

Classical economists

Keynesians

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 resources in the economy do not include.

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Demand

Land

Labor

Capital

Which does the government not control directly.

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Spending on health

spending on defense

Firm's investment decisions

spending on education

The precautionary demand for money is

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An idle balance

An active balance

Directly related to interest rates

Inversely related to income

A study of how increase in the minimum wage rate will effect the national unemployment rate is an example of.

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Descriptive economics

Normative economics

Macro economics

Micro economics

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

Scarcity means that

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We cannot have everything that we might want

We have to make choices between the things we desire.

There are costs to just about any activity we undertake

We must give up some thing in order to obtain other things.

All of the above are correct

An increase in price all other things unchanged leads to.

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A shift in supply out wards

A shift in supply in wards

A contraction of supply

An extension of supply

Japan's low interest rates in the mid 80's were due to.

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High rates of domestic savings.

A decrease in Japan's exports

Increases in the U.S. deficit

High rates of domestic spending in Japan

A welfare less occurs in monopoly where

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The price in greater than the marginal cost

The price is greater than the marginal benefit

The price is greater than the average revenue

Has the right to investigate monopolies and will assess each one on its own mertis

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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