(A) Revenue from Value Added Tax
(B) Level of company profits
(C) Level of unemployment
(D) Average level of wages
Tag: Economics Mcqs
If, in a fully employed, closed economy, the supply of money and the velocity of circulation of money both increase, then in the short-run?
(A) Unemployment of factors will result
(B) Real national output will expand
(C) The volume of transactions will increase
(D) The average level of prices will rise
The “perfect information” assumption of perfect competition includes all of the following except one. Which one?
(A) Consumers know their preferences.
(B) Consumers know their income levels.
(C) Consumers know the prices available.
(D) Consumers can anticipate price changes.
Which of following is an example of a homogeneous product?
(A) gasoline
(B) copper
(C) personal computers
(D) Both (a.) and (b.)
A Cobb-Douglas production function:
(A) Exhibits constant returns to scale.
(B) Exhibits increasing returns to scale.
(C) Exhibits decreasing returns to scale.
(D) Can exhibit constant, increasing, or decreasing returns to scale.
Assume that a firm’s production process is subject to increasing returns to scale over a broad range of outputs. Long run average costs over this output will tend to:
(A) Increase.
(B) Decline.
(C) Remain constant.
(D) Fall to a minimum and then rise.
An isocost line reveals the:
(A) Costs of inputs needed to produce along an isoquant.
(B) Costs of inputs needed to produce along an expansion path.
(C) Input combinations that can be purchased with a given outlay of funds.
(D) Output combinations that can be produced with a given outlay of funds.
Which of the following costs always declines as output increases?
(A) Average cost
(B) Marginal cost
(C) Fixed cost
(D) Average fixed cost