| 1 |
The firms long run output decision will be where.
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A. Long run average cost a lowest
B. Marginal revenue equals output
C. Marginal revenue equals long run marginal cost
D. Marginal cost equals output
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| 2 |
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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| 3 |
Market failure may arise because of.
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A. Imperfect competition
B. Taxation
C. Externalities
D. All of the above
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| 4 |
The price elasticity of demand measures
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A. The responsiveness of quantity demanded to a change in prie.
B. How far a demand curve shifts
C. A change in price
D. A change in quantity demanded
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| 5 |
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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| 6 |
The theory that explains business cycles by the dynamic interaction of consumption and investment demand is the.
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A. Sun spect theory
B. Multiplier accelerator model
C. Solow theory
D. New classical theory
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| 7 |
Under floating exchange rates, expectations of higher interest rates are likely to cause an __________ of the exchange rate.
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A. Depreciation
B. Appreciation
C. fall
D. Devaluation
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| 8 |
Economic growth may depend upon __________ and_________
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A. Population size , x -efficiency
B. Population age distribution, education
C. Population growth, education
D. Population growth, technical progress
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| 9 |
The effect of a tax to offset a negative eternality will be to ________ price and ____ quantity.
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A. Reduce, reduce
B. increase, increase
C. Increase , reduce
D. reduce, increase
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| 10 |
A current account deficit means that a country may.
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A. Reduce its stock of foreign assets
B. Increases its stock of foreign assets
C. Increases its savings
D. Increases its foreign currency reserves.
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| 11 |
A fall in investment demand can result from
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A. Higher interest rates
B. Lower expected future profits
C. More expensive capital goods
D. All of the above
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| 12 |
Injection into the circular flow are _________ and _______
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A. Consumption, investment, exports
B. Investment exports, transfer payments
C. Investment government expenditure, exports.
D. Taxes, exports, transfer payments.
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| 13 |
The cost of using capital services is the
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A. wage rate of capital
B. Interest charges
C. Marginal capital cost
D. Rental rate for capital
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| 14 |
Women and non whiles on average receive lower comes than white men because.
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A. They tend to work in relatively unskilled jobs
B. Educational disadvantage
C. Firms are reluctant to invest in training
D. All of the above
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| 15 |
In linear consumption function with a positive slope less that on means that if income increase, consumption will.
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A. Fall
B. Not change
C. Fluctuate
D. Increase
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| 16 |
GDP per head may be an imperfect measure of economic welfare because it excludes.
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A. The value of leisure
B. Externalities
C. Untraded goods
D. All of the above
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| 17 |
If a country has a burden of debt it cannot sustain it can.
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A. Reschedule debt
B. Get a loan from an international organization
C. Default on the loan
D. Any of the above
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| 18 |
A person who is made redundant because of the contraction of an industry is a victim of.
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A. Frictional unemployment
B. Demand deficient unemployment
C. Classical unemployment
D. Structural unemployment
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| 19 |
M4 is a _________ measures of money and includes deposits at both _____________ and
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A. Narrow, banks, building societies
B. Wide, banks, insurance companies
C. narrow, banks, insurance companies
D. Wide, banks, building societies.
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| 20 |
If goods are exported for less than society's marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from.
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A. An import subsidy
B. A quota
C. Comparative advantage
D. An export subsidy
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