BLACK STUDENTS IN ECON

What option best describes Microeconomics?

• Focuses on the individual perspective

• Focuses on individual nations

• Focuses on nations and economies

• Focuses on employment demand

What is a recession?

• A period of permanent economic decline

• The lowest point of an economic contraction

• A period of temporary economic decline

• The lowest point of an economic expansion

What is the ability of one country to produce a product more efficiently than can another country

• Comparative Advantage

• Absolute Advantage

• Ricardian Advantage

• Heckscher-Ohlin Advantage

What is a trade deficit?

• When a country only uses imported products

• When a country exports more than it imports

• When a country is self-sufficient

• When a country imports more than it exports

What are we most likely to see at what stage of the business cycle?

• High unemployment during booms

• High unemployment during recession

• High unemployment during peaks

What best describes Marginal cost?

• The maximum amount a consumer is willing to pay for an additional good or service

• The additional cost to a producer of hiring an additional unit of labor

• The additional cost of purchase

• The maximum additional fixed cost from consumers

What best describes economies of scale?

• Refers to the efficiency increase due to national-wide specialisation and international trade for remaining good

• Firms operating operating at local, regional and global scales

• Refers to the cost advantage a company gains from operating on a larger scale

• Moving from agricultural to industrial-based economies

What is the Expenditure GDP formula?

• Y=C+I+N

• Y=C+WL+WT-IN

• Y=C+I+G+NX

• Y=C+I+N+WL

What point is optimal for consumption for the consumer?(factor in the indifference curve and the budget constraint)

• Marginal Benefit=Wage

• Marginal Budget=Budget Constraint slope

• Marginal Rate of subsitution=Wage

• Marginal rate of Technical Cost= Utility

Is Income a stock or flow variable?

• Stock

• Flow

Answer explanation

Income is a flow variable because it is measured over a period of time