MCQ questions choose the correct answer 1 As inflation increases and becomes more volatile, resulting in greater uncertainty, which of the following is most likely to occur The price system becomes less efficient as a coordinating mechanism Investment by firms is likely to increase International co...

1 1 The price system becomes less efficient as a coordinating mechanism 2 3 the unemployment rate an ...

MCQ questions choose the correct answer 1. As inflation increases and becomes more volatile, resulting in greater

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MCQ questions choose the correct answer

1. As inflation increases and becomes more volatile, resulting in greater uncertainty, which of the following is most likely to occur?

2. The Phillips curve describes the relationship between:

3. Which of the following is an example of fiscal policy

4. What is unlikely to be a feature of a large firm in a monopoly position in a market?

5. In monopolistic competition:

6. Compared to a single-price monopoly, a perfectly competitive industry produces

7. Which of the following assumptions are essential parts of the 'kinked demand' curve analysis of an oligopoly market?

Rivals reduce prices in response to any price increase
Rival firms will increase price in response to any price increase
Rivals reduce prices in response to any price decrease and ignores any price increase
Rival increase price in response to any price increase and ignores any price decrease

8. What might cause the balance on the current account of a country to improve?

9. A country's terms of trade is the ratio of

the quantity of its exports to the quantity of its imports
the value of its exports to the value of its imports
the index of its export prices to the index of its import prices, multiplied by 100
domestic prices to international prices, multiplied by 100

10. An increase in injections into the economy may lead to:

11. In the aggregate demand and aggregate supply model, the intersection of the AD and AS curves determines

12. How does a firm in perfectly competitive market guarantee that it makes the maximum profit?

13. Prices tend to be lower in a competitive industry than in a monopoly. Why is this?

14. A single price monopoly will

15. A monopolistically competitive firm has excess capacity because in the

16. One key difference between an oligopoly market and a competitive market is that

oligopolistic firms are independent from each other while competitive firms are interdependent.
oligopolistic firms sell completely unrelated products while competitive firms sell identical products.
oligopolistic firms are relatively small while firms in a competitive markets are relatively large.
oligopolistic firms are price makers while competitive firms are price takers.

17. Comparative advantage occurs when:

A country has a lower opportunity cost in the production of a good than other countries
A country has more product lines than other countries
A country can produce more goods than anyone else
The exchange rate appreciates

18. An increase in aggregate demand is more likely to lead to demand-pull inflation if:

19. If aggregate supply is totally price inelastic, an increase in aggregate demand will:

20. The theory of "absolute advantage"

Best describes a situation where there are 2 countries, A and B, and potentially two goods which can be traded, which are X and Y. A is absolutely better at producing X and B is absolutely better at producing Y, and so if A specializes in producing X and B in Y, and they trade together then both countries will gain.
Best describes the global strategy of business who always seek to gain an absolute advantage over their rivals.
Explains why developed countries have a competitive advantage over poorer countries.
Best describes a situation where there are 2 countries, A and B, and potentially two goods which can be traded, which are X and Y. If A was absolutely better at producing both X and Y compared to B then there would be no advantage in A trading with B.