| 1 |
The long run Philips curve is _________ at the ______
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A. Horizontal natural rate of inflation
B. Horizontal , natural rate of unemployment
C. Vertical , natural rte of inflation
D. Vertical , equilibrium rate of unemployment.
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| 2 |
Perfect price discrimination means that every customer.
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A. Buys the same amount
B. Pays the same price
C. Pays what she thinks the product is worth
D. Contributes the same revenue.
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| 3 |
The allocation of resources is not efficient it
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A. The marginal cost of production does not equal society marginal benefit
B. The distribution is inequitable
C. Economic growth is low
D. Unemployment is high
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| 4 |
A fixed exchange rate, plus perfect capital mobility _______ the scope for monetary policy.
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A. Enhances
B. Undermines
C. Encourages
D. Facilitates
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| 5 |
The level of the equilibrium exchange rate offsets international difference in.
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A. Comparative advantage
B. Absolute advantage
C. Opportunity cost
D. Relative costs
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| 6 |
In the event of an increase in the international price of oil that encouraged the central bank to accept lower real interest rates, inflation would most likely.
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A. Fall
B. Increases
C. Remain the same
D. Fluctuate
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| 7 |
Macro economics is the study of.
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A. Individual building blocks in the economy
B. The relationship between different sectors of the economy
C. Household purchased decisions
D. The economy as a whole
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| 8 |
One of the transmission mechanism of monetary policy is through consumer house hold wealth.___________ and consumption.
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A. rise, increases, increases
B. rise, falls, increases
C. rise, increases, falls
D. rise, falls, falls
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| 9 |
If as result of householder wish to save more there is a change in equilibrium income and no change in equilibrium saving this as an example of.
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A. Market imperfection
B. The law of diminishing returns
C. The paradox of thriff
D. Market failure
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| 10 |
The real value can be derived from a nominal value by
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A. Adjusting changes over time
B. Adjusting for data collection errors
C. Adjusting for population changes
D. Adjusting for changes in prices
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| 11 |
An upward shift in marginal cost ___________ output and an upward shift in _____ marginal revenue __ output.
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A. Reduce , reduce
B. Reduce , increase
C. Increased, increased
D. Increases, reduces
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| 12 |
Except for taxes to offset ___ taxes are.
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A. Imperfect competition , popular
B. Extremality's, distortionary
C. Inequality, a first best option
D. Poor health, unnecessary
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| 13 |
The business cycle is not transmitted from one country to another through.
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A. Private sector imports and exports
B. Economic policy
C. The duration of compulsory education
D. Labour supply changes
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| 14 |
Fiscal policy is weak under floating exchange rates as fiscal expansion.
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A. Crowds out imports
B. Crowds out public consumption
C. Crowds out exports
D. Reduces the budget deficit
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| 15 |
If a firm not operating at the output necessary to achieve al scale economies it has not achieved its.
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A. Efficient scale
B. Average efficient scale
C. Maximum efficient scale
D. Minimum efficient scale
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| 16 |
If a long average cost rises, output rises from left to right this is an example of.
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A. Increasing returns to scale
B. Decreasing returns to scale.
C. Constant returns to scale
D. the minimum efficient scale
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| 17 |
A supply curve is directly affected by
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A. Technology
B. Input costs
D. All of the above
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| 18 |
Economics assumes that people consume goods and services to achieve.
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A. Status
B. Prestige
C. Utility
D. Self esteem
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| 19 |
In Nash equilibrium each player chooses the best strategy.
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A. Assuming other players move first.
B. Dominated by the other players
C. Given the strategies of other players
D. That is a credible threat
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| 20 |
Economic transition involves high inflation because ______ and _____
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A. High monetary growth, high wages.
B. High budget deficits, devaluation
C. High monetary growth, devaluation
D. Prices surge from an artificially low level to their equilibrium level the inflation tax is required as source of government revenue.
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