Question 2

We can distinguish four economic theories, the social -, institutional -, post Keynesian - and neoclassical economic theory. There is one theory that is closer to real-world people and social contexts.

Question 3

We can distinguish four economic theories, the social -, institutional -, post Keynesian - and neoclassical economic theory. There is one theory that puts emphasis on the role of uncertainty and instability, recognizing that markets do not automatically lead to the highest well-being but have built-in shortcomings.

Question 4

We can distinguish four economic theories, the social -, institutional -, post Keynesian - and neoclassical economic theory. There is one theory that acknowledges that economic behaviour is guided by group-level rationality.

We can distinguish four economic theories, the social -, institutional -, post Keynesian - and neoclassical economic theory. There is one theory, which uses the Engel curve to explain how consumers divide their income between consumption and saving.

We can distinguish four economic theories, the social -, institutional -, post Keynesian - and neoclassical economic theory. There is one theory emphasizing the important role of advertisement in consumer choice.

Question 3

We can distinguish four economic theories, the social -, institutional -, post Keynesian - and neoclassical economic theory. There is one theory, which states that “We often are not maximizers of our goals but are simply satisficing them”.

Question 4

We can distinguish four economic theories, the social -, institutional -, post Keynesian - and neoclassical economic theory. There is one theory that assumes that preferences are neatly ordered and fixed per individual and over time.

Why is scarcity a relative concept and not an absolute concept?

Question 2

What is economic pluralism?

Question 3

Why is the Neoclassical Economic definition of rationality also referred to as “what’s in it for me”?

What is the difference between risk and uncertainty?

Using the third-person criterion, which of the activities listed below counts not as leisure but as unpaid work?

If the propensity to save is 0.34, how much is the propensity to consume?

Question 7

If Juan’s wage is 100 peso per hour and Maria’s wage is 80 peso per hour, and Juan works 8 hours per day and Maria works 4 hours per day.

How much is the daily value of market goods that they can buy together?

Question 8

If a jeans costs 80 dollar and your budget allows you to buy 1.5 jeans.

What should the price be for you to be able to buy exactly 2 jeans with your budget?

Question 9

If the demand for chocolate increases by 20% in response to a price discount of 30%.

How much is the price elasticity of demand for chocolate?

Question 10

In the point of utility maximization, the slope of the indifference curve is equal to the slope of:

Question 1

We can distinguish four economic theories, the social -, institutional -, post Keynesian - and neoclassical economic theory. There is one theory in which the bureaucratic system of worker motivation plays an important role in the performance of workers.

Which theory is referred to here?

Question 2

We can distinguish four economic theories, the social -, institutional -, post Keynesian - and neoclassical economic theory. There is one theory that focuses on the long run in their analysis of firm inputs and costs.

Which theory is referred to here?

We can distinguish four economic theories, the social -, institutional -, post Keynesian - and neoclassical economic theory. There is one theory which analyses markets as fully competitive.

Question 4

We can distinguish four economic theories, the social -, institutional -, post Keynesian - and neoclassical economic theory. There is one theory in which the management approach seeks to balance stakeholder interests.

Which theory is referred to here?

Question 1

We can distinguish four economic theories, social -, institutional -, post Keynesian - and neoclassical economics. There is one theory, which argues for a role of the state as a developmental state.

Which theory is referred to here?

We can distinguish four economic theories, social -, institutional -, post Keynesian - and neoclassical economics. There is one theory emphasizing imperfect information as the major market failure.

Which theory is referred to here?

We can distinguish four economic theories, social -, institutional -, post Keynesian - and neoclassical economics. There is one theory, which understands the state and society as closely intertwined.

Which theory is referred to here?

We can distinguish four economic theories, social -, institutional -, post Keynesian - and neoclassical economics. There is one theory that emphasises the problem of government capture.

Which theory is referred to here?

Furniture firm “The Baobab Tree” sells dinner tables at 250 African Francs each. Last month, it sold 20 tables (Q). The total cost of production is 4000 African Francs (TC). And the value of the capital stock, consisting of the workshop and the tools, is 30,000 African Francs (K)

Question 2

Restaurant “Under the Baobab Tree” has an annual growth rate of 5% (g). It receives no credit or other outside funding (x), so all funding is internal. The ratio of retained earnings from gross profit is what the owner uses as personal income, and this ratio is 50% (sc).

How much is the profit rate (r) given the annual growth rate of this restaurant, according to Post Keynesian economics?

Furniture firm "The Baobab Tree" operates in rural Africa in a market of monopolistic competition. It can therefore set the price of dinner tables above the competitive price as can be found in urban areas. Its unit production costs are 200 African Francs. The sales price is 250 African Francs.

How much is the mark-up (k’) that this firm uses, according to Post Keynesian economics?

Question 4

Restaurant "Under the Baobab Tree" operates in a competitive market. A standard meal costs 30 African Francs. With more guests, marginal costs first go down but when all tables are occupied, they go up.

At what level of marginal costs will this restaurant maximize its profits according to Neoclassical Economics?

1 point

The country Tax Paradise Republic has a tax revenue of 2 million peso. The Minister of Finance wants to increase the revenue by increasing the tax rate from 10% to 15%. Most people are against this increase.

Do you think that the new tax revenue will be higher than 3 million peso or lower than 3 million peso?

Question 6

In which type of market do we see a kinked demand function and what explains this?

Question 7

Which equation demonstrates that a firm's income is distributed over two classes?

1 point

Question 8

What is the key factor of government failure in social economics?

Question 9

What is the difference between a share and a bond?

1 point

Question 10

A common pool resource is a type of public good. How does it score on excludability and rivalry?

We can distinguish four economic theories, social -, institutional -, post Keynesian - and neoclassical economics. There is one theory, which claims that unemployment is involuntary and refers to aggregate demand in the economy as a whole.

Which theory is referred to here?

Question 2

We can distinguish four economic theories, social -, institutional -, post Keynesian - and neoclassical economics. There is one theory, which acknowledges the combination of segmentation, market power by banks, financialisation and increased income inequality as the causal mechanisms behind the 2007-2008 financial crisis.

Which theory is referred to here?

We can distinguish four economic theories, social -, institutional -, post Keynesian - and the neoclassical economics. There is one theory in which the analysis of financial markets is based for decades on the Efficient Market Hypothesis.

Which theory is referred to here?

We can distinguish four economic theories, social -, institutional -, post Keynesian - and neoclassical economics. There is one theory in which labour supply is not free but constrained by both formal and informal institutions.

Which theory is referred to here?

Question 1

We can distinguish four economic theories, social -, institutional -, post Keynesian - and neoclassical economics. There is one theory, which sees the economy as an open system arguing that there is a fallacy of composition at the macro level.

We can distinguish four economic theories, social -, institutional -, post Keynesian - and neoclassical economics. There is one theory in which the macroeconomic flow includes not only flows of G and T but also additional arrows between the government on the one hand and households and firms on the other hand.

Question 3

We can distinguish four economic theories, social -, institutional -, post Keynesian - and neoclassical economics. There is one theory, which recognises money as a matter of trust. Which theory is referred to here?

1 / 1 point

We can distinguish four economic theories, social -, institutional -, post Keynesian - and neoclassical economics. There is one theory, which claims inflation as simply the result of excessive money supply.

Which theory is referred to here?

Neoclassical Economics uses the concept of the value of the marginal product of labour.

How is it defined?

How does the discouraged worker effect impact upon the unemployment statistics of a country?

In Post Keynesian economics, the labour supply curve is not a straight upward sloping line.

Explain why the bottom part of the labour supply curve is so flat, compared to the middle part.

The Brexit Bank has a balance total of 400 billion pound. The value of the shares held by all shareholders is 12 billion pound as listed on the London Stock Exchange.

How much is the equity ratio, also called leverage ratio, of this bank?

Question 5

In Post Keynesian economics, the monetary economy is distinguished from the real economy.

Through which two flows are they related?

In Social Economics statistical discrimination is a key concept. It is also applied to financial markets.

Which of the options below shows statistical discrimination in mortgages?

Question 7

The Minister of Finance of the Republic of Keynes has decided to increase net government expenditures by 3 billion euro. The country's propensity to consume is, on average, 0.7.

How big is the multiplier effect of this injection?

Which price generates an equilibrium between S and I according to Neoclassical Economic theory?

1 point

Question 9

In the Republic of Keynes, the Consumer Price Index (CPI) was 100 in January 2016 and 122 in January 2016. It stands at 138 in January 2017.

How much was the inflation in, respectively, 2016 and 2017?

Question 10

Calculate inflation from a Post Keynesian perspective. The oil price increase in a country is 8.5% and production cost reductions have increased industrial productivity by 4.5%. The money supply has increased by 3%.

How much is the inflation?

We can distinguish four economic theories, social -, institutional -, post Keynesian - and neoclassical economics. There is one theory in which the dominant measure of growth, GDP, is regarded as inadequate.

Which theory is referred to here?

We can distinguish four economic theories, social -, institutional -, post Keynesian - and neoclassical economics. There is one theory, which presents the standard growth equation as ΔΥ = Ι/Κ.

Which theory is referred to here?

Question 3

We can distinguish four economic theories, social -, institutional -, post Keynesian - and neoclassical economics. There is one trade theory, which analyses the world as a single market where goods and services are exchanged relatively freely. Which theory is referred to here?

We can distinguish four economic theories, social -, institutional -, post Keynesian - and neoclassical economics. There is one theory that analyses both the costs and gains from trade giving particular emphasis on asymmetric patterns between trading partners.

Which theory is referred to here?

We can distinguish four economic theories, social -, institutional -, post Keynesian - and neoclassical economics. There is one theory, which studies environmental economics with the purpose to understand the relationship between the economy and the natural environment in terms of inadequate pricing.

Which theory is referred to here?

We can distinguish four economic theories, social -, institutional -, post Keynesian - and neoclassical economics. There is one theory, which uses the IPAT-model integrated into a stock-flow model in order to analyse the environmental impact of the economy.

Which theory is referred to here?

We can distinguish four economic theories, social -, institutional -, post Keynesian - and neoclassical economics. There is one theory, which goes beyond the analysis of inequality and poverty to regard wellbeing as multidimensional?

Which theory is referred to here?

We can distinguish four economic theories, social -, institutional -, post Keynesian - and neoclassical economics. There is one theory, which uses the variables of status and fairness to analyze inequality and poverty.

Which theory is referred to here?

Social Economic growth theory emphasizes inclusive growth.

How could such inclusion be measured?

Question 2

What is the infant industry argument of the Institutional Economics of growth?

Question 3

In Post Keynesian Economics, growth is seen as endogenous. This means that two variables in the growth equation are determined at the same time.

Which two variables are these?

The consumer surplus after trade can be visualized in a supply and demand diagram.

Which function shifts (D or S) and in which direction (left or right) with trade?

Calculate the leakage effect of trade as compared to autarky.

The propensity to consume is 0.8 and the propensity to import is 0.3.

Tip: first calculate the multiplier without trade and then the multiplier with trade

Neoclassical Economics explains trade with the help of the concept of comparative advantage.

What is comparative advantage?

In ecological economics, an important indicator is a country’s ecological footprint.

How is this measured?

If population growth is 1.2%, and the increase in affluence is 3.2%,

How much should the green technology impact of our consumer goods be in order to have radical green growth (a decline in environmental impact)?

Question 9

Why is income inequality increasing when the profit rate is higher than the economic growth rate?

1 point

What is the difference between vertical inequality and horizontal inequality?