1 - The opportunity cost of one DVD in Japan is ?
1 - The opportunity cost of one DVD in Japan is ?
One ton of steel
2 - Unions tend to increase the disparity in pay between insiders and outsiders by ?
2 - Unions tend to increase the disparity in pay between insiders and outsiders by ?
Increasing the wage in the Unionized sector which may create an increase in the supply of workers in the non-unionized sector
3 - Union might increase efficiency in the case Where they ?
3 - Union might increase efficiency in the case Where they ?
Offset the market power of a large firm that is the dominant employer in a region
4 - Which of the following is an example of a reason why firms might pay efficiency wages ?
4 - Which of the following is an example of a reason why firms might pay efficiency wages ?
All of these answers
5 - Which of the following government policies would fail to lower the unemployment rate ?
5 - Which of the following government policies would fail to lower the unemployment rate ?
Raising the minimum wage
6 - If, for any reason the wage is held above the competitive equilibrium wage?
6 - If, for any reason the wage is held above the competitive equilibrium wage?
The quantity of labour supplied will exceed the quantity of labour demanded and there will be Unemployment
7 - A minimum wage law tends to ?
7 - A minimum wage law tends to ?
Create more unemployment in low-skill job markets than in high-skill job markets
8 - Refer to Figure 1. The unemployment rate is ?
8 - Refer to Figure 1. The unemployment rate is ?
5.8 Percent
9 - According to the Office of National Statistics UK, a husband who chooses to stay home and take care of household is ?
9 - According to the Office of National Statistics UK, a husband who chooses to stay home and take care of household is ?
Not in the labour force
10 - TO reduce cyclical unemployment the government might ?
10 - TO reduce cyclical unemployment the government might ?
Reduce government expenditure
11 - Reducing involuntary unemployment ?
11 - Reducing involuntary unemployment ?
Helps the economy move on the to Production Possibility Frontier
12 - Occupational immobility of labour occurs if ?
12 - Occupational immobility of labour occurs if ?
People do not have the right skills to work
13 - If the real wage is too high in the labour market ?
13 - If the real wage is too high in the labour market ?
The quantity demanded of labour equals the quantity supplied
14 - Supply side policies are most appropriate to cure ?
14 - Supply side policies are most appropriate to cure ?
A fall in aggregate demand
15 - If the minimum wage is set above the equilibrium wage rate, then another thing unchanged ?
15 - If the minimum wage is set above the equilibrium wage rate, then another thing unchanged ?
There will be equilibrium in the labour market
16 - In a perfectly competitive labour market firms are wage takers and the marginal cost of labour equals?
16 - In a perfectly competitive labour market firms are wage takers and the marginal cost of labour equals?
The total cost of labour
17 - Demand for labour is more likely to be wage inelastic if ?
17 - Demand for labour is more likely to be wage inelastic if ?
Wages are a small proportion of total costs
18 - A decrease in the supply of labour is likely to lead to ?
18 - A decrease in the supply of labour is likely to lead to ?
A higher equilibrium wage and lower quantity of labour
19 - The Marginal Revenue Product is likely to be wage inelastic if ?
19 - The Marginal Revenue Product is likely to be wage inelastic if ?
There are many substitutes for the final product
20 - IF Unemployment insurance were so generous that it paid laid off workers 95 percent of their regular salary ?
20 - IF Unemployment insurance were so generous that it paid laid off workers 95 percent of their regular salary ?
The official unemployment rate would probably overstate true unemployment
21 - Which of the following types of unemployment will exist even if the wage is at the competitive equilibrium ?
21 - Which of the following types of unemployment will exist even if the wage is at the competitive equilibrium ?
Frictional Unemployment
22 - Which of the following statements about efficiency wage theory is true ?
22 - Which of the following statements about efficiency wage theory is true ?
Paying above the competitive equilibrium wage may improve worker health lower worker turnover improve worker quality and increase worker effort
23 - Some frictional Unemployment is inevitable because ?
23 - Some frictional Unemployment is inevitable because ?
There are changes in the demand for labour among different firms.
24 - Sector shifts tend to raise which type of unemployment ?
24 - Sector shifts tend to raise which type of unemployment ?
Frictional Unemployment
25 - A reservation wage is the ?
25 - A reservation wage is the ?
minimum wage the worker is willing to accept
26 - Which one of the following types of Unemployment results from the wage being held above the competitive equilibrium wage ?
26 - Which one of the following types of Unemployment results from the wage being held above the competitive equilibrium wage ?
Structural unemployment
27 - A miner who has been unable to find work for so long that he has stopped looking for work is considered to be ?
27 - A miner who has been unable to find work for so long that he has stopped looking for work is considered to be ?
Not in the labour force
28 - Refer to Figure 1. The labour force participation rate is ?
28 - Refer to Figure 1. The labour force participation rate is ?
70.2 Percent
29 - Refer to Figure 1 The labour fouce is ?
29 - Refer to Figure 1 The labour fouce is ?
98.0 million
30 - The amount of unemployment that the economy normally experiences is known as ?
30 - The amount of unemployment that the economy normally experiences is known as ?
The natural rate of unemployment
31 - Less demand in the economy may increase unemployment; this may lead to less spending which may reduce demand further. This is called ?
31 - Less demand in the economy may increase unemployment; this may lead to less spending which may reduce demand further. This is called ?
The downward multiplier
32 - Which of the following is not a supply side measure ?
32 - Which of the following is not a supply side measure ?
Helping individuals to move location to find work
33 - If there is cyclical unemployment in the economy the government might ?
33 - If there is cyclical unemployment in the economy the government might ?
Encourage savings
34 - The natural rate of unemployment is likely to fall if ?
34 - The natural rate of unemployment is likely to fall if ?
unemployment benefits increase
35 - If people are made unemployed because of a fall in aggregate demand this is known as ?
35 - If people are made unemployed because of a fall in aggregate demand this is known as ?
Seasonal unemployment
36 - If employees cannot accept a job because of the costs of moving this is known as ?
36 - If employees cannot accept a job because of the costs of moving this is known as ?
Cyclical unemployment
37 - A profit maximising firm will employ labour up to the point where ?
37 - A profit maximising firm will employ labour up to the point where ?
Marginal cost = marginal product
38 - The Marginal Revenue Product is ?
38 - The Marginal Revenue Product is ?
Upward sloping due to the law of demand
39 - A fall in demand for labour is likely to lead to ?
39 - A fall in demand for labour is likely to lead to ?
A lower equilibrium wage and higher quantity of labour
40 - An increase in the wage rate ?
40 - An increase in the wage rate ?
will cause a shift in the demand for labour
41 - All of the following are benefits of the single market except ?
41 - All of the following are benefits of the single market except ?
it is easier to book holidays in member countries
42 - In the ERM, each country fixed participant Collectively the group ________ against the rest of the world?
42 - In the ERM, each country fixed participant Collectively the group ________ against the rest of the world?
a nominal exchange rate, floated
43 - If one country, with floating exchange rates, has higher inflation than its competitors we would expect its exchange rate to ?
43 - If one country, with floating exchange rates, has higher inflation than its competitors we would expect its exchange rate to ?
depreciate
44 - Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?
44 - Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?
appreciation
45 - A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?
45 - A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?
undermines
46 - With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?
46 - With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?
reduced
47 - perfect international capital mobility suggests that international funds will be responsive to ________ differentials?
47 - perfect international capital mobility suggests that international funds will be responsive to ________ differentials?
interest rate
48 - A rise in the real exchange rate will ________ the competitiveness of the domestic economy?
48 - A rise in the real exchange rate will ________ the competitiveness of the domestic economy?
reduce
49 - A current account deficit means that a country may ?
49 - A current account deficit means that a country may ?
reduce its stock of foreign assets
50 - If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will ?
50 - If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will ?
fall
51 - If the economy is in the recessionary phase of the business cycle, aggregate demand ___ unemployment ____ inflation ___ and the current account of the balance of payments is likely to move towards ____?
51 - If the economy is in the recessionary phase of the business cycle, aggregate demand ___ unemployment ____ inflation ___ and the current account of the balance of payments is likely to move towards ____?
falls; rises; falls; surplus
52 - If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?
52 - If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?
rise; falls; rises; deficit
53 - If the US economy is forecast to come out of recession because military expenditure has increase then the exchange value of the UK pound will tend to ?
53 - If the US economy is forecast to come out of recession because military expenditure has increase then the exchange value of the UK pound will tend to ?
appreciate
54 - If currency dealers expect the value of the pound to fall, the exchange value will tend to ?
54 - If currency dealers expect the value of the pound to fall, the exchange value will tend to ?
depreciate
55 - If the Pakistan receives larger than expected revenues from exports then the exchange value of its currency will tend to ?
55 - If the Pakistan receives larger than expected revenues from exports then the exchange value of its currency will tend to ?
appreciate
56 - If a nation's interest rates are relatively low compared to those of other countries. then the exchange value of its currency will tend to ?
56 - If a nation's interest rates are relatively low compared to those of other countries. then the exchange value of its currency will tend to ?
depreciate
57 - The price of one country's currency in terms of another country's currency is the ?
57 - The price of one country's currency in terms of another country's currency is the ?
exchange rate
58 - The record of country's transfers of land inter-government payments and money sent by migrants to and from abroad is called its ?
58 - The record of country's transfers of land inter-government payments and money sent by migrants to and from abroad is called its ?
capital account of the balance of payments
59 - The record of a country's imports and exports of of goods and services plus net investment incomes and current transfers of money to and from abroad, is called its ?
59 - The record of a country's imports and exports of of goods and services plus net investment incomes and current transfers of money to and from abroad, is called its ?
balance of payments on current account
60 - The record of country's imports and exports of goods is called its ?
60 - The record of country's imports and exports of goods is called its ?
visible trade balance
61 - If VAT rates rise, then costs are likely to ___ and demand is likely to ____?
61 - If VAT rates rise, then costs are likely to ___ and demand is likely to ____?
rise; fall
62 - Government policies that focus on changing interest rates are called ?
62 - Government policies that focus on changing interest rates are called ?
monetary policies
63 - Government policies that focus on increasing production rather than demand are called ?
63 - Government policies that focus on increasing production rather than demand are called ?
supply-side policies
64 - As prices rise. People will want to keep more money as cash and in bank accounts This is called ?
64 - As prices rise. People will want to keep more money as cash and in bank accounts This is called ?
real balance effect.
65 - The demand for ice-cream is lower outside of summer causing lower demand for ice-cream salesman if they cannot find other work, this is called _______ unemployment?
65 - The demand for ice-cream is lower outside of summer causing lower demand for ice-cream salesman if they cannot find other work, this is called _______ unemployment?
seasonal
66 - Unemployment resulting from imperfect information in the labour market is called ____ unemployment?
66 - Unemployment resulting from imperfect information in the labour market is called ____ unemployment?
Frictional
67 - Aggregate supply is the total amount ?
67 - Aggregate supply is the total amount ?
of goods and services produced in an economy.
68 - Cyclical unemployment is the ?
68 - Cyclical unemployment is the ?
Unemployment that occurs during recessions and depressions.
69 - An individual who is not working and who has given up looking for work is classfied as ?
69 - An individual who is not working and who has given up looking for work is classfied as ?
a discouraged worker:
70 - The labour force can be defined as ?
70 - The labour force can be defined as ?
Those of working age who are seeking work and are available to for work at current wage rates.
71 - Reducing inflation is a more important objective than economic growth is an example of ?
71 - Reducing inflation is a more important objective than economic growth is an example of ?
Objective economics
72 - Which of the following is a possible government objective as opposed to a policy ?
72 - Which of the following is a possible government objective as opposed to a policy ?
Lower interest rates
73 - Which of the following can the government not use directly to control the economy ?
73 - Which of the following can the government not use directly to control the economy ?
Pay rates within the private sector
74 - Which does the government not control directly ?
74 - Which does the government not control directly ?
Firms investment decisions
75 - What is meant by an objective ?
75 - What is meant by an objective ?
A strategy
76 - In the EMU a country's competitiveness can change because of ?
76 - In the EMU a country's competitiveness can change because of ?
domestic wage and price adjustment
77 - The Maastricht criteria for entry to the EMU are that applicants should have ?
77 - The Maastricht criteria for entry to the EMU are that applicants should have ?
all of the above
78 - A monetary union means ________, ________ and ________?
78 - A monetary union means ________, ________ and ________?
permanently fixed exchange rates, free capital movements, a single interest rates
79 - The single European Act committed ________ governments to a ________ in 1992?
79 - The single European Act committed ________ governments to a ________ in 1992?
European union, single market
80 - The main features of the European Monetary system are ?
80 - The main features of the European Monetary system are ?
all of the above
81 - Fiscal policy is weak under floating exchanges rates as fiscal expansion ?
81 - Fiscal policy is weak under floating exchanges rates as fiscal expansion ?
crowds out exports
82 - Floating exchange rates are ____ in the short run?
82 - Floating exchange rates are ____ in the short run?
volatile
83 - In the short run the level of floating exchange rates is determined mainly by ?
83 - In the short run the level of floating exchange rates is determined mainly by ?
speculation
84 - The competitive advantage from a devaluation is likely to be offset by _______ and ________?
84 - The competitive advantage from a devaluation is likely to be offset by _______ and ________?
higher import prices, higher wages increases
85 - In the absence of international capital controls, central banks set ________ to provide the correct incentive for speculators?
85 - In the absence of international capital controls, central banks set ________ to provide the correct incentive for speculators?
interest rates
86 - Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _______ and ________ ?
86 - Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _______ and ________ ?
sell foreign exchange buy domestic currency
87 - When capital mobility is perfect interest rate differentials will tend to be offset by ?
87 - When capital mobility is perfect interest rate differentials will tend to be offset by ?
expected exchange rate changes
88 - Within the circular flow of income, an increase in domestic income will tend to increase ?
88 - Within the circular flow of income, an increase in domestic income will tend to increase ?
taxes
89 - Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account ?
89 - Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account ?
surplus
90 - In a fixed exchange rate regime, the central the exchange rate ?
90 - In a fixed exchange rate regime, the central the exchange rate ?
B and C
91 - When the $/£ exchange rate rises the pound _____ and when the $/£ rates falls the pound ________?
91 - When the $/£ exchange rate rises the pound _____ and when the $/£ rates falls the pound ________?
appreciates, depreciates
92 - If the economy is in the though phase of the business cycle, aggregate demand ____ unemployment ______ inflation ______ and the current account of the balance of payments is likely to move towards ________?
92 - If the economy is in the though phase of the business cycle, aggregate demand ____ unemployment ______ inflation ______ and the current account of the balance of payments is likely to move towards ________?
falls; falls; falls; surplus
93 - If the economy is at the peak of the business cycle, aggregate demand ____ unemployment _______ inflation _______ and the current account of the balance of payments is likely to move towards _______?
93 - If the economy is at the peak of the business cycle, aggregate demand ____ unemployment _______ inflation _______ and the current account of the balance of payments is likely to move towards _______?
is static; low; rises; deficit
94 - If a large car importer in the Pakistan wants to import many cars, then the exchange value of the Pak rupees will tend to ?
94 - If a large car importer in the Pakistan wants to import many cars, then the exchange value of the Pak rupees will tend to ?
depreciate
95 - If Pakistan's incomes rise faster than those in most other countries the the exchange value will tend to ?
95 - If Pakistan's incomes rise faster than those in most other countries the the exchange value will tend to ?
depreciate
96 - If the Pakistan takes part in a war in the Middle East, then the exchange value of its currency will tend to ?
96 - If the Pakistan takes part in a war in the Middle East, then the exchange value of its currency will tend to ?
depreciate
97 - If the exchange rate between the UK and Japan changes from £1 = 100 yen to £1 = 150 yen then ceteris paribus, the price of UK goods in Japan ?
97 - If the exchange rate between the UK and Japan changes from £1 = 100 yen to £1 = 150 yen then ceteris paribus, the price of UK goods in Japan ?
will increase
98 - The situation when a country imports more than it exports is ?
98 - The situation when a country imports more than it exports is ?
a trade deficit
99 - The record of a county's transfers of shareholding property and bank deposits to and from abroad is called its ?
99 - The record of a county's transfers of shareholding property and bank deposits to and from abroad is called its ?
financial account on the balance of payments.
100 - The record of country's imports and exports of goods and services is called its ?
100 - The record of country's imports and exports of goods and services is called its ?
balance of trade
101 - An economy that trades with and has financial dealing with other countries is called a/an ________ economy?
101 - An economy that trades with and has financial dealing with other countries is called a/an ________ economy?
open
102 - If interest rates rise then costs are likely to _______ and demand is likely to _________?
102 - If interest rates rise then costs are likely to _______ and demand is likely to _________?
rise, fall
103 - Government policies that focus on changing taxes and government spending are called ?
103 - Government policies that focus on changing taxes and government spending are called ?
fiscal policies
104 - As prices rise, there will be costs of constantly changing price-tags and reprinting price-lists This is called ?
104 - As prices rise, there will be costs of constantly changing price-tags and reprinting price-lists This is called ?
menu costs of inflation
105 - The natural rate of unemployment is generally thought of as the ?
105 - The natural rate of unemployment is generally thought of as the ?
sum of frictional unemployment and structural unemployment.
106 - Unemployment resulting from changes in the pattern of demand or supply in the economy is called _______ unemployment?
106 - Unemployment resulting from changes in the pattern of demand or supply in the economy is called _______ unemployment?
structural
107 - Unemployment resulting from real wages being above their equilibrium level is called _________ unemployment?
107 - Unemployment resulting from real wages being above their equilibrium level is called _________ unemployment?
disequilibrium
108 - Aggregate demand is the total demand for all goods and services in an economy from ?
108 - Aggregate demand is the total demand for all goods and services in an economy from ?
all sectors of the economy including the rest of the world.
109 - Classifying discouraged workers as unemployed would ?
109 - Classifying discouraged workers as unemployed would ?
increase the unemployment rate
110 - Since 1998 many government have defined unemployment using ?
110 - Since 1998 many government have defined unemployment using ?
the ILO/OECD standardised unemployment measurement
111 - The percentage of the labour force that is unemployed is the ?
111 - The percentage of the labour force that is unemployed is the ?
Unemployment rate
112 - Which of the following is not likely to be government objective ?
112 - Which of the following is not likely to be government objective ?
Increasing employment
113 - Which of the following is a policy instrument as opposed to a government objective ?
113 - Which of the following is a policy instrument as opposed to a government objective ?
Lower unemployment
114 - Which of the following is not a macroeconomic issue ?
114 - Which of the following is not a macroeconomic issue ?
Economic growth
115 - Which of the following is not involved with fiscal policy ?
115 - Which of the following is not involved with fiscal policy ?
Income tax
116 - Which of the following is macroeconomic issue ?
116 - Which of the following is macroeconomic issue ?
Your decision to work or stay at home
117 - Satellite television subscription and television detection devices are ways in which broadcasting companies address the ________ problem?
117 - Satellite television subscription and television detection devices are ways in which broadcasting companies address the ________ problem?
free rider
118 - A good example of a public good is ?
118 - A good example of a public good is ?
national defence
119 - Market failure may arise because of ?
119 - Market failure may arise because of ?
all of the above
120 - If my neighbour burns garden waste causing my house to fill with smoke this is an example of ?
120 - If my neighbour burns garden waste causing my house to fill with smoke this is an example of ?
a consumption externality
121 - A competitive equilibrium is Pareto-efficient because ?
121 - A competitive equilibrium is Pareto-efficient because ?
All of the above
122 - In the insurance industry, high-risk customers are more likely to take out insurance. This is an example of ?
122 - In the insurance industry, high-risk customers are more likely to take out insurance. This is an example of ?
adverse selection
123 - In Nash equilibrium each player chooses the best strategy ?
123 - In Nash equilibrium each player chooses the best strategy ?
given the strategies of other players
124 - When a market is contestable, incumbent firms must __________ to avoid the entry of new competitors?
124 - When a market is contestable, incumbent firms must __________ to avoid the entry of new competitors?
behave like competitive firms
125 - All of the following are types of imperfect competition except ?
125 - All of the following are types of imperfect competition except ?
unfair competition
126 - Tax shifting ?
126 - Tax shifting ?
occurs when house hold can alter their behaviour and do something to avoid paying a tax.
127 - Which of the following is the government most likely to subsidies ?
127 - Which of the following is the government most likely to subsidies ?
Positive externalities
128 - The government is considering placing a tax on cigarettes to raise revenue to finance health-care benefits. The demand for cigarettes is price inelastic Which of the following statements is True ?
128 - The government is considering placing a tax on cigarettes to raise revenue to finance health-care benefits. The demand for cigarettes is price inelastic Which of the following statements is True ?
The tax on cigarettes may not raise as much revenue as anticipated in the years to com because the demand for cigarettes is likely to become more elastic over time.
129 - An example of an indirect tax is ?
129 - An example of an indirect tax is ?
VAT
130 - If a government were to fix a minimum wage for adult workers, economists would predict ?
130 - If a government were to fix a minimum wage for adult workers, economists would predict ?
the costs and prices of firms employing cheap labour would increase
131 - In a free market system rationing occurs when there are increases in ?
131 - In a free market system rationing occurs when there are increases in ?
supply
132 - Economics say that there has to be some from of rationing whenever ?
132 - Economics say that there has to be some from of rationing whenever ?
there is excess demand
133 - If a maximum price is set below equilibrium there will be ?
133 - If a maximum price is set below equilibrium there will be ?
Excess supply
134 - A public good ?
134 - A public good ?
Has the properties of being non-excludable and non-diminishable
135 - Agricultural prices tend to be unstable because ?
135 - Agricultural prices tend to be unstable because ?
Demand and supply are price inelastic
136 - If the price in a market is fixed by the government above equilibrium ?
136 - If the price in a market is fixed by the government above equilibrium ?
There is excess supply
137 - A positive externality occurs when ?
137 - A positive externality occurs when ?
The social marginal costs are higher than the private marginals costs
138 - Income inequality can be high in the free market and should be reduced This is an example of What ?
138 - Income inequality can be high in the free market and should be reduced This is an example of What ?
Normative economic statement
139 - A decrease in demand for a products should ?
139 - A decrease in demand for a products should ?
Decrease equilibrium price and quantity
140 - A shift in demand will have more effect on price than quantity if ?
140 - A shift in demand will have more effect on price than quantity if ?
The price elasticity of supply is + 2
141 - The price mechanism does not act as a ?
141 - The price mechanism does not act as a ?
Indicator of income
142 - The price mechanism cannot ?
142 - The price mechanism cannot ?
shift the demand curve
143 - A subsidy paid to producers ?
143 - A subsidy paid to producers ?
Shifts the supply curve
144 - If the price was fixed below the equilibrium price there would be ?
144 - If the price was fixed below the equilibrium price there would be ?
Excess demand
145 - A shift in supply will have a bigger effect on price than output if demand is ?
145 - A shift in supply will have a bigger effect on price than output if demand is ?
Price inelastic
146 - An increase in income will ?
146 - An increase in income will ?
Shift the demand curve
147 - An inferior good is one for which an increase in income causes a(n) ?
147 - An inferior good is one for which an increase in income causes a(n) ?
decrease in demand
148 - Suppose consumer tastes shift toward the consumption of apples Which of the following statements is an accurate description of the impact of this event on the market for apples ?
148 - Suppose consumer tastes shift toward the consumption of apples Which of the following statements is an accurate description of the impact of this event on the market for apples ?
There is an increase in the demand for apples and an increase in the quantity supplied of apples.
149 - Which of the following statements is true about the impact of an increase in the price of lettuce ?
149 - Which of the following statements is true about the impact of an increase in the price of lettuce ?
The equilibrium price and quantity of salad dressing will fall
150 - Suppose there is an increase in both the supply and demand for personal computers. In the market for personal computers, we would expect?
150 - Suppose there is an increase in both the supply and demand for personal computers. In the market for personal computers, we would expect?
the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous.
151 - An increase (rightward shift) in the demand for a good will tend to cause ?
151 - An increase (rightward shift) in the demand for a good will tend to cause ?
a decrease in the equilibrium price and quantity.
152 - If the price of good is below the equilibrium price ?
152 - If the price of good is below the equilibrium price ?
there is a shortage and the price will rise
153 - All of the following shift the supply of watches to the right except ?
153 - All of the following shift the supply of watches to the right except ?
an increase in the price of watches
154 - A monopolistic market has ?
154 - A monopolistic market has ?
only one seller
155 - The law of supply states that an increase in the price of a good ?
155 - The law of supply states that an increase in the price of a good ?
increases the quantity supplied of that good
156 - If an increase in the price of blue jeans leads to an increase in the demand for tennis shoes, then blue jeans and tennis shoes are ?
156 - If an increase in the price of blue jeans leads to an increase in the demand for tennis shoes, then blue jeans and tennis shoes are ?
Substitutes
157 - The problem posed by a natural monopoly is that it faces a _____ This means that _______?
157 - The problem posed by a natural monopoly is that it faces a _____ This means that _______?
decreasing average cost curve, marginal cost lies below average cost
158 - If two firms doing the same thing in the same industry join together, this is known as a ?
158 - If two firms doing the same thing in the same industry join together, this is known as a ?
horizontal merger
159 - The social costs of monopoly power arises because ?
159 - The social costs of monopoly power arises because ?
there is too little output at too high a cost
160 - The effect of a tax to offset a negative externality will be to ____ price and ______ quantity?
160 - The effect of a tax to offset a negative externality will be to ____ price and ______ quantity?
increase, reduce
161 - Taxes creates a wedge between the sales price and purchase price that prevents the price system equating ____ and ______?
161 - Taxes creates a wedge between the sales price and purchase price that prevents the price system equating ____ and ______?
marginal costs, marginal benefits
162 - Except for taxes to offset ______ taxes are ______?
162 - Except for taxes to offset ______ taxes are ______?
externalities , distortionary
163 - If the consumption of good by one person does not reduce the quantity available by others and nobody can be easily excluded from consumption, we are referring to a ?
163 - If the consumption of good by one person does not reduce the quantity available by others and nobody can be easily excluded from consumption, we are referring to a ?
public good
164 - Markets sometimes fail to exist because of________?
164 - Markets sometimes fail to exist because of________?
a and b
165 - Externalities arise because there is a divergence between ________ and _________?
165 - Externalities arise because there is a divergence between ________ and _________?
private costs, social costs or benefits
166 - The allocation of resources is not efficient if ?
166 - The allocation of resources is not efficient if ?
the marginal cost of production does not equal society's marginal benefit
167 - We cannot say whether one allocation of resources is better than another allocation because ?
167 - We cannot say whether one allocation of resources is better than another allocation because ?
We can't make value judgments to compare different people's welfare
168 - An allocation is Pareto-efficient if no reallocation of resources would make some people _______ without making others ________?
168 - An allocation is Pareto-efficient if no reallocation of resources would make some people _______ without making others ________?
better off; worse off
169 - Moral hazard means that the act of insuring ____ that the desired outcome will occur?
169 - Moral hazard means that the act of insuring ____ that the desired outcome will occur?
increases the likelihood
170 - A dominant strategy is ?
170 - A dominant strategy is ?
a player's best strategy whatever the strategies adopted by rivals
171 - The prisoners Dilemma Game demonstrates that ?
171 - The prisoners Dilemma Game demonstrates that ?
players are better off if they co-operate
172 - The reason for the kinked demand curve is that ?
172 - The reason for the kinked demand curve is that ?
The oligopolist believers that competitors will match price cuts but not price rises
173 - A natural monopoly has a declining _______ over a large range of output?
173 - A natural monopoly has a declining _______ over a large range of output?
long run average cost
174 - A monopoly may be self-perpetuating because profits may be used for ?
174 - A monopoly may be self-perpetuating because profits may be used for ?
all of the above
175 - Comparing a monopoly and competitive firm, the monopolist will ?
175 - Comparing a monopoly and competitive firm, the monopolist will ?
produce less at a higher price
176 - Where a tax can be shifted, the incidence depends on ?
176 - Where a tax can be shifted, the incidence depends on ?
elasticities of demand and supply
177 - Tax incidence is the ?
177 - Tax incidence is the ?
ultimate distribution of a tax's burden.
178 - VAT is a good example of which kind of tax ?
178 - VAT is a good example of which kind of tax ?
Ad valorem
179 - Economists use the term Black Markets for situations where ?
179 - Economists use the term Black Markets for situations where ?
goods are sold at prices above legal or official price.
180 - If the market price is below the equilibrium price ?
180 - If the market price is below the equilibrium price ?
quantity demanded will be greater than quantity supplied
181 - It is necessary to ration a good whenever ?
181 - It is necessary to ration a good whenever ?
demand exceeds supply
182 - A price ceiling is ?
182 - A price ceiling is ?
a maximum price usually set by government that sellers may charge for a good
183 - Nationalisation occurs when ?
183 - Nationalisation occurs when ?
The government takes control of an industry
184 - With a positive externality ?
184 - With a positive externality ?
There is under-consumption in the free market
185 - When supply increase in an agricultural market farmer's earning might fall because ?
185 - When supply increase in an agricultural market farmer's earning might fall because ?
Demand is price inelastic
186 - Merit goods are ?
186 - Merit goods are ?
Under provided in the free market economy
187 - If the price in a market is fixed by the government below equilibrium ?
187 - If the price in a market is fixed by the government below equilibrium ?
There is excess demand
188 - A public good will ?
188 - A public good will ?
Not be provided in the free market
189 - An increase in demand for a product should ?
189 - An increase in demand for a product should ?
Decrease equilibrium price and increase quantity
190 - A shift in supply will have more effect on price than quantity if ?
190 - A shift in supply will have more effect on price than quantity if ?
The price elasticity of supply is – 3
191 - A shift is demand will have more effect on price than quantity if ?
191 - A shift is demand will have more effect on price than quantity if ?
The price elasticity of supply is infinity
192 - Which best describes consumer surplus ?
192 - Which best describes consumer surplus ?
The difference the price a consumer pays for an item and the price he/she is willing to pay
193 - A movement along the supply curve may be caused by ?
193 - A movement along the supply curve may be caused by ?
A shift in demand
194 - A movement along the demand curve may be caused by ?
194 - A movement along the demand curve may be caused by ?
A shift in supply
195 - Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by ?
195 - Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by ?
An increase in demand
196 - A reduction in the costs of production will ?
196 - A reduction in the costs of production will ?
Shift the supply curve
197 - If demand increase in a market this will usually lead to ?
197 - If demand increase in a market this will usually lead to ?
A higher equilibrium price and output
198 - Suppose both buyers and sellers of wheat expect the price of wheat to rise in the near future. What would we expect to happen to the equilibrium price and quantity in the market for wheat today ?
198 - Suppose both buyers and sellers of wheat expect the price of wheat to rise in the near future. What would we expect to happen to the equilibrium price and quantity in the market for wheat today ?
price will increase, quantity is ambiguous.
199 - Suppose a frost destroys much of the Florida orange crop. At the same time, suppose consumer tastes shift toward orange juice, What would we expect to happen to the equilibrium price and quantity in the market for orange juice ?
199 - Suppose a frost destroys much of the Florida orange crop. At the same time, suppose consumer tastes shift toward orange juice, What would we expect to happen to the equilibrium price and quantity in the market for orange juice ?
price will increase, quantity is ambiguous.
200 - Suppose there is an increase in the both the supply and demand for personal computers Further, suppose the supply of personal computer increase more than demand for personal computers In the market for personal computers i the market for personal computer
200 - Suppose there is an increase in the both the supply and demand for personal computers Further, suppose the supply of personal computer increase more than demand for personal computers In the market for personal computers i the market for personal computer
the equilibrium quantity to rise and the equilibrium price to fall
201 - A decrease (leftward shift) in the supply for a good will tend to cause ?
201 - A decrease (leftward shift) in the supply for a good will tend to cause ?
an increase in the equilibrium price and quantity
202 - If the price of good is equal to the equilibrium price ?
202 - If the price of good is equal to the equilibrium price ?
the quantity demanded is equal to the quantity supplied supplied and the price remains unchanged
203 - If the price of a good is above the equilibrium price ?
203 - If the price of a good is above the equilibrium price ?
there is a surplus and the price will fall
204 - Which of the following shifts the demand for watches to the right ?
204 - Which of the following shifts the demand for watches to the right ?
none of these answers
205 - If an increase in consumer incomes leads to a decrease in the demand for camping equipment, then camping equipment is ?
205 - If an increase in consumer incomes leads to a decrease in the demand for camping equipment, then camping equipment is ?
an inferior good
206 - The law of demand states that an increases in the price of a good ?
206 - The law of demand states that an increases in the price of a good ?
decreases the quantity supplied of that good
207 - A perfectly competitive market has ?
207 - A perfectly competitive market has ?
many buyers and sellers.
208 - Which company in the United States would likely be most concerned about Brazil's dumping of steel in the U.S market ?
208 - Which company in the United States would likely be most concerned about Brazil's dumping of steel in the U.S market ?
Tennessee Mining Co. an iron-ore mining company
209 - A _______ allows a specified number of goods to be imported each year, and it not specifies from where the product is shipped and who is permitted to import ?
209 - A _______ allows a specified number of goods to be imported each year, and it not specifies from where the product is shipped and who is permitted to import ?
selective quota
210 - According to the cost-based definition of dumping, dumping occurs when a firm sells a product abroad at a price that is less than ?
210 - According to the cost-based definition of dumping, dumping occurs when a firm sells a product abroad at a price that is less than ?
average total cost
211 - The form of dumping that represents the greatest potential net welfare loss the for importing national is ?
211 - The form of dumping that represents the greatest potential net welfare loss the for importing national is ?
predatory dumping
212 - A attempts to limit outsourcing of jobs to foreigners by requiring that a minimum percentage of a product's value must be produced domestically if that good is to be sold in the domestic market ?
212 - A attempts to limit outsourcing of jobs to foreigners by requiring that a minimum percentage of a product's value must be produced domestically if that good is to be sold in the domestic market ?
domestic content requirement
213 - A production subsidy that is granted to a producer of an import-competing good ?
213 - A production subsidy that is granted to a producer of an import-competing good ?
has only a protective effect deadweight loss
214 - international dumping may involve ?
214 - international dumping may involve ?
All of the above
215 - Governments around the world tend to auction quota licenses ?
215 - Governments around the world tend to auction quota licenses ?
seldom
216 - ________ are profits that accrue to whomever has the right to import the good that is restricted by the quota?
216 - ________ are profits that accrue to whomever has the right to import the good that is restricted by the quota?
quota rents
217 - Similar to import tariffs import quotas tend to result in ?
217 - Similar to import tariffs import quotas tend to result in ?
higher prices and reduced imports
218 - Quotas are government-imposed limits on the _________ of goods trade between countries?
218 - Quotas are government-imposed limits on the _________ of goods trade between countries?
quantity
219 - For year the U.S government levied quotas on inexpensive oil imported from the Middle East The quotas led to cost increases for U.S consumers totaling $3 billion for oil products. An apparent justification of this policy was that ?
219 - For year the U.S government levied quotas on inexpensive oil imported from the Middle East The quotas led to cost increases for U.S consumers totaling $3 billion for oil products. An apparent justification of this policy was that ?
one should not be too dependent on foreign suppliers of crucial resources
220 - If the home country government grants a subsidy on a domestically produced good domestic producers tend to ?
220 - If the home country government grants a subsidy on a domestically produced good domestic producers tend to ?
Increase their level of production
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