More output could be produced with available resources if:
Select correct option:

  • Resources are allocated efficiently.
  • Resources are imperfectly shiftable among alternative uses.
  • Prices are reduced.
  • The economy is operating at a point inside the production possibilities curve.


A schedule which shows the various amounts of a product consumers are willing and able
to purchase at each price in a series of possible prices during a specified period of time is
called:
Select correct option:

  • Supply Scedule.
  • Demand Scedule.
  • Quantity supplied Scedule.
  • Quantity demanded Scedule.


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Suppose we find that the cross-price elasticity of demand for two products is a negative
number. We know that:
Select correct option:

  • The two goods are normal goods.
  • The two goods are inferior goods.
  • The two goods are substitutes.
  • The two goods are complements.


If diminishing marginal utility holds and a person consumes less of a good, then all else
being equal:
Select correct option:

  • The price of the good will rise.
  • Marginal utility will rise.
  • Expenditure on the good will increase.
  • Marginal utility will decline.


AD curve slopes upward for both Keynes and classical
Select correct option:

  • True
  • False


The cross elasticity of demand of complements goods is:
Select correct option:

  • Less than 0.
  • Equal to 0.
  • Greater than 0.
  • Between 0 and 1.


Our economy is characterized by:
Select correct option:

  • Unlimited wants and needs.
  • Unlimited material resources.
  • No energy resources.
  • Abundant productive labor.


A Natural Monopoly is most likely to exist when:
Select correct option:

  • There are large barriers to entry.
  • There are long term patents.
  • There are large economies of scale.
  • There is government regulation of the industry.


The trend of unemployment over the last forty years is:
Select correct option:

  • A decrease in unemployment.
  • It has remained largely unchanged.
  • An increase in unemployment.
  • It is too difficult to tell so don't bother.


Which one of the following is most likely to lead to an increase in aggregate demand? An
increase in:
Select correct option:

  • Government tax revenues
  • Household savings
  • Business capital investment
  • Demand for imports


A nation's production possibilities curve is "bowed out" from the origin because:
Select correct option:

  • Resources are not perfectly shiftable between productions of the two goods.
  • Capital goods and consumer goods utilize the same production technology.
  • Resources are scarce relative to human wants.
  • Opportunity costs are decreasing.


Which of the following markets is most likely to be oligopolistic?
Select correct option:

  • The market for corn.
  • The market for aluminum.
  • The market for colas.
  • The market for ground coffees.


Which best expresses the law of demand?
Select correct option:

  • A higher price reduces demand.
  • A lower price reduces demand.
  • A higher price reduces quantity demanded.
  • A lower price shifts the demand curve to the right.