Perfect competition is an industry
with…
A. a few firms producing goods that differ somewhat in quality.
B. a few firms producing identical goods.
C. many firms producing goods that differ somewhat.
D. many firms producing identical goods.
E. None of the above.
Trade-offs are required because wants
are unlimited and resources are…
A. economical.
B. unlimited.
C. efficient.
D. marginal.
E. scarce.
If the price of a good is above the
equilibrium price,
A. there is a surplus and the price will rise.
B. there is a shortage and the price will fall.
C. there is a shortage and the price will rise.
D. the quantity demanded is equal to the quantity supplied and the
price remains unchanged.
E. there is a surplus and the price will fall.
Marginal revenue is:
A. The added revenue that a firm takes in when it increases output
by one additional unit.
B. The additional profit the firm earns when it sells an additional
unit of output
C. The difference between total revenue and total cost
D. The ratio of total revenue to quantity
E. None of the above
In broad terms, the best way of describing the difference
between microeconomics and macroeconomics is that…
A. They use different sets of tools and ideas.
B. Microeconomics studies the effects of government taxes on the national
unemployment rate whereas macroeconomics does not.
C. Macroeconomics studies the effects of government regulation and taxes on
the price of individual goods and services whereas microeconomic does not.
D. Microeconomics studies decisions of individual people and firms and
macroeconomics studies the entire national economy.
E. None of the above.
Which of these is not a major
macroeconomic issue?
A. Economic growth.
B. Regulation.
C. Unemployment.
D. Balance of payments and exchange rates.
E. Inflation.
Real GDP is:
A. the value of goods and services produced during a given year
valued at the prices that prevailed in that same year.
B. the value of goods and services produced during a given year at
market value.
.C. the value of final goods and services produced in a given year
when valued at the prices of a reference base year.
D. the same as Nominal GDP.
E. A more precise name for GDP.
When the unemployment rate _____ the natural
unemployment rate, real GDP_____ potential GDP.
A. is greater than; equals
B. equals; is less than
C. is less than; is less than
D. equals; is greater than
E. is less than; is greater than
Name 3 types of inflation.
A. Demand-Pull.
B. Cost-Pull.
C. Cost-Push.
D. Stagflation.
E. Demand-Push.
Which of these is not a determinant for
the demand of money?
A. RPI.
B. The nominal interest rate.
C. Financial innovation.
D. Real GDP (income).
E. The price level.