Economics assumes that people consume goods and services to achieve ?
A. Status
B. Prestige
C. Utility
D. Self-esteem
Economics Mcqs
The income effect of a price increase of a normal good is to ________ of that good and the substitution effect is to _________ of that good?
The income effect of a price increase of a normal good is to ________ of that good and the substitution effect is to _________ of that good?
A. increase quantity demanded, reduce quantity demanded
B. increase quantity demanded, increases quantity demanded
C. reduce quantity demanded, reduce quantity demanded
D. reduce quantity demanded, increase quantity demanded
Inferior goods have _________ and luxury goods have _________?
Inferior goods have _________ and luxury goods have _________?
A. negative income elasticity income elasticity greater than 1
B. income elasticity greater than 1, negative income elasticities
C. Positive income elasticities, negative income elasticities
D. None of the above
Positive cross elasticities suggest that goods are ____ and negative cross-elasticities that goods are ?
Positive cross elasticities suggest that goods are ____ and negative cross-elasticities that goods are ?
A. substitutes inferior
B. normal, complements
C. substitutes complements
D. normal, inferior
If demand is __________ then price cuts will _________ spending?
If demand is __________ then price cuts will _________ spending?
A. inelastic; increase
B. elastic; increase
C. elastic, decrease
D. none of the above
Increased levels of spending on imports ?
Increased levels of spending on imports ?
A. shift aggregate supply to the right
B. shift aggregate supply to the left
C. shift aggregate demand to the right
D. shift aggregate demand to the left
Increase unemployment benefits and less incentive to work would ?
Increase unemployment benefits and less incentive to work would ?
A. shift aggregate supply to the right
B. shift aggregate supply to the left
C. shift aggregate demand to the right
D. shift aggregate demand to the left
Which of the following would decease aggregate demand ?
Which of the following would decease aggregate demand ?
A. increase consumption
B. increasing export revenue
C. increased taxation revenue
D. increased investment
An increase in aggregate demand will have most effect on prices if ?
An increase in aggregate demand will have most effect on prices if ?
A. Aggregate supply is price inelastic
B. Aggregate supply is price elastic
C. Aggregate supply has a unitary price elasticity
D. Aggregate demand is price inelastic
A shift in aggregate supply is likely to ?
A shift in aggregate supply is likely to ?
A. Reduce the general price level and reduce national income
B. Reduce the general price level and increase national income
C. Increase the general price level and reduce national income
D. Increase the general price level and increase national income