A. Z to point X
B. X to point X
C. X to point Z
D. Y to point X
Economics Mcqs
Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 A pair of socks is ?
A. an inferior effect
B. a Geffen good
C. a normal good
D. none of these answers
If income where to double and prices were to to double the budget line would ?
A. stay the same
B. rotate inward
C. shift outward in a parallel fashion
D. rotates outward
E. shift inward in parallel fashion
If consumption when young and when old are both normal goods, an increase in the interest rate ?
A. will always increase the quantity of saving
B. will always decrease the quantity of saving
C. will increase the quantity of saving if the substitution effect outweighs the income effect
D. will increase the quantity of saving if the income effect outweighs the substitution effect
A reasonable measure of the standard of living in a country is ?
A. real GDP per person
B. nominal GDP per person.
C. Real GDP
D. The growth rate of nominal GDP per person
When a national has very little GDP per person ?
A. it is doomed to being relatively poor forever
B. none of these answers
C. an increase in capital will likely have little impact on output
D. it has the potential to grow relatively quickly due to the “catch-up-effect”
E. It must be a small nation.
The opportunity cost of growth is ?
A. a reduction in current investment
B. a reduction in current consumption
C. a reduction in taxes
D. a reduction in current saving
Copper is an example of ?
A. a renewable natural resource
B. physical capital
C. technology
D. a non-renewable natural resource
Thomas Malthus argued that ?
A. none of these answers
B. an ever-increasing population is constrained only by the food supply resulting in chronic faminies
C. technological progress will continuously generate improvement in productivity and living standards.
D. labor is the only true factor of production
Which of the following describes an increase in technological knowledge ?
A. A farmer sends his child to agricultural college and the child returns to work on the farm
B. A farmer hires another day laborer
C. A farmer buys another tractor
D. A farmer discovers that it is better to plant in the spring rather than in the fall