WorksheetsNEC preparation 5
Total questions: 10
Worksheet time: 10mins
Which one of the following is the most likely disadvantage that may arise from the growth in the size of a firm?
An increase in the size of the marketing budget.
The need to purchase components in large quantities.
Problems in coordinating different parts of the business.
"The change in a firm's total revenue that results from employing one additional unit of a resource, when all other factors are kept constant." The statement above describes
marginal product
marginal revenue product
marginal revenue
marginal utility
A basic role of entrepreneurs in the economy is to
create dividends for investors in new businesses.
buy and sell the common stocks of new corporations.
take the risks associated with starting new businesses.
show government what new products the economy can produce and sell.
Significant barriers to entry exist in which of the following market structures?
Oligopoly only
Monopoly only
Monopolistic competition and monopoly
Oligopoly and monopoly
Which one of the following combinations of policy instruments involves only the use of monetary policy measure?
Lower interest rates and a reduction in the exchange rate
Lower interest rates and a budget deficit
Lower taxes and more government spending
Supply-side policies are aimed mainly at
reducing the government's budget deficit.
improving the underlying trend rate of economic growth.
combating cyclical unemployment
Which best measures a nation's standard of living over time?
Rate of inflation.
Rate of unemployment.
Real income per capita.
Money income per capita.
What is an essential feature of a market economy?
Central planners determine what, how and for whom to produce.
It aims for equality in the distribution of goods and services.
The market price reflects both the private and external costs of production.
The price mechanism sends signals to consumers and producers to allocate resources.
What is a definition of market failure?
market forces of demand and supply do not allocate resources efficiently
not all consumers can afford to buy the goods they would like
private benefits of consumption are greater than external benefits
public goods are only provided by a government
In every economic system, people must choose how to
satisfy all of the wants of society.
make the best use of scarce resources.
create an equal distribution of income.
save money to reduce the national debt.
