Which of following affects a measure of GDP?

A decrease in imports from a partner in a trade agreement.

Economic activity is not recorded when

The government pays child support

Which of the following defines inflation?

a persistent increase in the price level

Cross elasticity of demand

relates values in two different markets

is only present in a free market economy

has benefits not recognized by the consumer

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IB Economics

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A quiz to entertain perspective students in economics.

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Questions 28

Answers

1
The four major factors of production are land, labor, capital and:
training
entrepreneurship
energy
technology
2
Commodity goods
are only agricultural products
have a high price elasticity of demand
are bought in bulk
are used in the production of consumer goods
3
Services are
intangible things
all of the above
public goods
not included in a measure of GDP
4
Market-based supply side policies include all but which of the following?
Government training programs
Elimination of subsidies
Weakening the power of unions
Elimination of a minimum wage
5
Unemployment associated with a deflationary gap is known as
Demand deficient unemployment
Structural unemployment
Seasonal unemployment
Frictional unemployment
6
What measure do economics typically use to measure economic development?
FDI
APL
HDI
GDP
7
Scarcity is
present when a drought occurs
a small supply
unlimited human wants and limited resources
when a good or service is not available
8
Which of following affects a measure of GDP?
An increase in the value of workers remittances from abroad.
A decrease in imports from a partner in a trade agreement.
A decrease in the human development index.
A decrease in resources available for future generations.
9
What two market forces determine the price of a product in a free market?
vitality and image
taxes and subsidies
costs and revenues
supply and demand
10
A free good
is always a merit good
is a public good
has no price
represents scarcity
11
A specific tax
is a per unit expenditure tax
is a direct tax
is an income tax
is a proportionate expenditure tax
12
How an indirect tax affects the consumer depends on
depend the type of indirect tax
the PES of the supply curve
all of the above
the PED of the demand curve
13
Economic activity is not recorded when
A consumer speaks with customer service
A manufacturer sells a new car
A consumer buys a used car
The government pays child support
14
Excess demand occurs as a result of
deflation
scarcity
an increase in demand
a non-equilibrium price
15
Price increases in the market can be associated with
a decrease in quantity demanded
both of the above
an increase in demand
none of the above
16
"Ceteris paribus" is used to
Sometimes
Complicate the analyses undertaken
All of the answers
Make economics like a science
17
Any good or service that has a price and is thus being rationed
is known as an economic good
is known as merit good
means a shortage is occurring
means no equilibrium in the market
18
Which of the following defines inflation?
a persistent increase in the price level
an increase in the money supply
all of the above
an increase in the price level
19
Cross elasticity of demand
is always negative
relates values in two different markets
does not control for the "ceteris paribus" condition
has a value always greater than 1
20
What measure is used in economics to measure economic growth?
APL
FDI
GDP
HDI
21
A central bank has all but which of the following functions?
Loan funds to commercial banks
Set a target inflation rate
Adjust interest rates
Print money
22
Which of the following is not a determinant of price elasticity of demand?
The relative expenditure on the good
The need for the good
Prices of substitute goods
Time
23
A rationing system
all of the above
is not present in a managed economy
is only present in a free market economy
is not present in a planned economy
24
Which of the following will not lead to market failure?
A supply shock
Monopoly power
Factor immobility
Pollution not paid for by either consumer or producer
25
Subsidies always
lead to exports
benefit the consumer
benefit society
all of the above
26
"The next best alternative foregone when an economic decision is made" is the definition of
Profit
Scarcity
Opportunity Cost
Loss
27
A merit good
has benefits not recognized by the consumer
always implies a positive externality
all of the above
sometimes implies market failure
28
Typically, what do companies NOT consider a cost?
Electricity
Pollution
Hours worked
Office supplies

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