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Fani Warraich
ECONOMICS
-
Microeconomics
Which of the following is an INCORRECT statement about a budget constraint?
A. Points on a budget constraint represent combinations of the goods that exactly use up income.
B. Points within the budget constraint represent combinations of the goods that do not use up all the income..
C. If points A and B lie on the budget constraint, we can deduce that people will be indifferent between the two.
D. If the price of one good decreases, all else the same, the budget constraint will swivel or rotate outward.
Fani Warraich
ECONOMICS
-
Microeconomics
The concept of opportunity cost is based upon the principle of:
A. Need.
B. Consumption.
C. Scarcity.
D. Profit.
Fani Warraich
ECONOMICS
-
Microeconomics
The essence of Engel's law is that as family income rise:
A. The savings rate increases.
B. The proportion of income spent on food declines.
C. Expenditure on food declines.
D. Proportion of income spent on luxuries declines.
Fani Warraich
ECONOMICS
-
Microeconomics
The optimal capital stock is achieved when the user cost of capital is equal to:
A. The interest rate..
B. The depreciation rate..
C. The marginal product of capital..
D. Tobin's q..
Fani Warraich
ECONOMICS
-
Macroeconomics
The labour measure (L) is:
A. The average number of workers employed x average hours worked.
B. The average number of workers (employed + unemployed) x average hours worked.
C. The total number of workers employed x average hours worked.
D. The total number of workers (employed + unemployed) x average hours worked.
Fani Warraich
ECONOMICS
-
Macroeconomics
The aggregate production function for the Solow growth model assumes ___________ returns to scale and _____________ marginal productivity of labour and capital.
A. Increasing , Diminishing.
B. Constant , Diminishing.
C. Decreasing , Constant.
D. Constant , Creasing.
Fani Warraich
ECONOMICS
-
Macroeconomics
It is the _______ interest rate that matters for spending decisions and the _______ interest rate that is relevant when we look at monetary questions.
A. Interbank , Exchange.
B. Exchange , Interbank.
C. Real , Nominal.
D. Nominal , Real.
Fani Warraich
ECONOMICS
-
Macroeconomics
Which kind of demand fluctuates the most?
A. Consumption demand..
B. Private demand for investment..
C. Aggregated demand..
D. Demand by firms for investment goods..
Fani Warraich
ECONOMICS
-
Macroeconomics
In short-run macroeconomic analysis, demand is often viewed as the driving force. Which component of total demand is often regarded as being independent of economic conditions and thus exogenous in the model?
A. Consumption and private spending.
B. Investment, saving.
C. Net exports.
D. Government spending and tax receipts.
Fani Warraich
ECONOMICS
-
Macroeconomics
What is not a component of the GDP?
A. Consumption goods.
B. Investment spending by firms on capital goods.
C. Public sector's own demand for goods.
D. Employment rate.
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