[{"id":213209,"question":"The law of diminishing returns states that as more of a variable factor is added to a certain amount of a fixed factor beyond some point.","choices":[{"text":"Total Physical product begins to fall","value":"A"},{"text":"The marginal physical product rises","value":"B"},{"text":"The marginal physical product falls","value":"C"},{"text":"The average physical product falls.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213208,"question":"As the MPS increases, the multiplier will","choices":[{"text":"Increase","value":"A"},{"text":"Either increase or decrease depending on the size of the change in investment","value":"B"},{"text":"Remain constant","value":"C"},{"text":"Decrease","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213207,"question":"Which of the following is not an obvious or direct determinant of a country's imports.","choices":[{"text":"Real exchange rate","value":"A"},{"text":"Income","value":"B"},{"text":"Tariff rates","value":"C"},{"text":"Interest rate","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213206,"question":"Which is the most volatile component of aggregate demand.","choices":[{"text":"Net exports","value":"A"},{"text":"Consumption","value":"B"},{"text":"Investment","value":"C"},{"text":"Government spending","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213205,"question":"Which of the following is a determinant of consumption.","choices":[{"text":"Expectations about future prices","value":"A"},{"text":"Level of indebtedness of consumers","value":"B"},{"text":"The price level","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213204,"question":"Say's law states that","choices":[{"text":"Supply creates its own demand","value":"A"},{"text":"Demand creates its own supply","value":"B"},{"text":"There is no such things as a free lunch","value":"C"},{"text":"Macro economics policy activism is essential to ensure full employment.","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213203,"question":"The hypothesis that people know the true model of the economy and that they use this model and al available information to form their expectations of the future is the","choices":[{"text":"Relational expectations hypothesis.","value":"A"},{"text":"Active expectations hypothesis","value":"B"},{"text":"Static expectations hypothesis","value":"C"},{"text":"Adeptive expectations hypothesis","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213202,"question":"Rapid increases in the price level during periods of recession or high unemployment are known as.","choices":[{"text":"Slump","value":"A"},{"text":"Stagnation","value":"B"},{"text":"Stagflation","value":"C"},{"text":"Inflation","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213201,"question":"In a market system sellers act in ___ interest, but this leads to behaviors in ___ interest.","choices":[{"text":"Self : self","value":"A"},{"text":"Self ; society's","value":"B"},{"text":"Society's ; society's","value":"C"},{"text":"society's, self","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213200,"question":"The economists who emphasized wage flexibility as a solution for unemployment were.","choices":[{"text":"Monetarists","value":"A"},{"text":"New keynesians","value":"B"},{"text":"Classical economists","value":"C"},{"text":"Keynesians","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213199,"question":"Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are.","choices":[{"text":"Market prices","value":"A"},{"text":"Sticky prices","value":"B"},{"text":"Fixed prices","value":"C"},{"text":"Regulatory prices","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213198,"question":"Government policies that focus on increasing production rather than demand are called.","choices":[{"text":"Fiscal policies","value":"A"},{"text":"Monetary 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employment is determined primarily by","choices":[{"text":"Interest rates","value":"A"},{"text":"The level of prices","value":"B"},{"text":"The level of aggregate supply in the economy","value":"C"},{"text":"The level of aggregate demand for goods and services","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213194,"question":"A cut in the tax rate designed to reduce the business investment is an example of.","choices":[{"text":"Expansionary demand side policy","value":"A"},{"text":"Contractionary demand side policy","value":"B"},{"text":"Expansionary supply side policy","value":"C"},{"text":"Contractionary supply side policy","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213193,"question":"A cut in the income tax rate designed to encourage household consumption is an example of.","choices":[{"text":"Expansionary demand side policy","value":"A"},{"text":"Contractionary demand side policy","value":"B"},{"text":"Expansionary supply side policy","value":"C"},{"text":"Contractionary supply side policy","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213192,"question":"A study of how increase in the minimum wage rate will effect the national unemployment rate is an example of.","choices":[{"text":"Descriptive economics","value":"A"},{"text":"Normative economics","value":"B"},{"text":"Macro economics","value":"C"},{"text":"Micro economics","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213191,"question":"World trade has been increasing due to.","choices":[{"text":"Increased tariffs","value":"A"},{"text":"Increased legal barriers","value":"B"},{"text":"Increased embargoes","value":"C"},{"text":"Reduced protectionism","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213190,"question":"Why might a country resist globalization.","choices":[{"text":"Greater choice of final products","value":"A"},{"text":"Greater choice of supplies","value":"B"},{"text":"Greater competition for domestic firms","value":"C"},{"text":"More markets to sell to","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213189,"question":"Finding a partner to work with abroad is called a.","choices":[{"text":"Takeover","value":"A"},{"text":"Merger","value":"B"},{"text":"Acquisition","value":"C"},{"text":"Joint venture","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213188,"question":"Globalization is made more difficult by","choices":[{"text":"The actions of the World Trade Organization","value":"A"},{"text":"The removal of protectionist measures","value":"B"},{"text":"Exchange rate instability","value":"C"},{"text":"More free trade agreements","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213187,"question":"Which of the following best describes the selling of a production license to another firm.","choices":[{"text":"Hands over all rights to its products","value":"A"},{"text":"Sells its products abroad","value":"B"},{"text":"Sells the right to produce to another business","value":"C"},{"text":"Sells the business to another business","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213186,"question":"A multinational busniess","choices":[{"text":"Sells products abroad","value":"A"},{"text":"Produces in more than one country","value":"B"},{"text":"Imports from abroad","value":"C"},{"text":"Sells only domestically","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213185,"question":"Globalization is likely to increase with","choices":[{"text":"More protectionism","value":"A"},{"text":"An increase in tariffs","value":"B"},{"text":"More trade within countries","value":"C"},{"text":"Greater trade flows between countries","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213184,"question":"Which of the following is not a global organization?","choices":[{"text":"IMF","value":"A"},{"text":"World bank","value":"B"},{"text":"Competition commission","value":"C"},{"text":"WTO","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213183,"question":"The marginal propensity to consume in a less Developed Country is likely to be.","choices":[{"text":"<sub>Less than 0</sub>","value":"A"},{"text":"Nearly 0","value":"B"},{"text":"High","value":"C"},{"text":"Low","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213182,"question":"An injection of funds into a less developed country might set off the","choices":[{"text":"Multiplier","value":"A"},{"text":"Marginal propensity to save","value":"B"},{"text":"Average propensity to consume","value":"C"},{"text":"The Laffer effect","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213181,"question":"In a less developed country.","choices":[{"text":"The infrastructure is likely to be good.","value":"A"},{"text":"Real wages are likely to be high","value":"B"},{"text":"Unemployment is likely to be low","value":"C"},{"text":"The primary sector is likely to be significant","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213180,"question":"Less Developed countries lend to have","choices":[{"text":"A high average age","value":"A"},{"text":"A slow population growth rate","value":"B"},{"text":"High life expectancy","value":"C"},{"text":"A low literacy rate","value":"D"},{"value":"E"}],"correctAnswer":4}]