What is the reward to capital?
rent
interest
profit
wage
Basic questions of resource allocation include what to produce, how to produce and for _____ to produce.
Which statement is a normative statement?
The annual rate of inflation in Malaysia increased from 2.8% in May 2022 to 3.4%.
The annual rate of inflation was 3.4% in Malaysia, lower than the 7.7% annual rate of inflation for Thailand.
The Malaysian Central Bank raised interest rates from 2.0% to 2.25% on 6 July 2022.
The rise in interest rates in Malaysia in July 2022 is expected to only have a small impact on the rate of inflation.
Net investment = Gross investment - ?
A firm moved its capital equipment to a larger factory. It installed more of the same equipment and increased the size of its workforce. What must be true?
The firm is operating in the long run.
The firm is operating in the very long run.
The firm’s division of labour has increased.
The firm’s supply curve has shifted to the left.
When national income is in equilibrium, injection = ? .
Investment+Government spending+Exports=?+Tax+Imports
Which statement is not correct?
Addictive drugs are regarded as demerit goods because users are unaware of the full damage they do.
Air is regarded as a free good because its use has no opportunity cost.
National defence is a public good because one citizen ‘consuming’ it reduces the amount of it available to others.
Visits to a doctor are regarded as private goods partly because they are rival.
The diagrams show production possibility curves.Which diagram shows constant opportunity costs?
If working practices in agriculture could be improved, how would this be likely to be shown on the production possibility curve?
by a movement from R to T
by a movement from S to R
by a movement from S to T
by a movement from T to R
What is most likely to cause an increase in the consumer surplus in the market for a normal good?
an increase in consumer incomes
an increase in the number of substitute goods
an increase in the price of a complementary good
an increase in the price of the good
What is not held constant when aggregating individual firms’ supply curves to give the short-run market supply curve?
the number of firms in the industry
the price of the product
the prices of factors of production
the state of technology
Which elasticity would a shortage of skilled workers affect?
cross elasticity of demand
income elasticity of demand
price elasticity of demand
price elasticity of supply
A specific tax is imposed on a product for which the elasticity of supply is zero. Which statement is correct?
The burden of this tax will fall entirely on consumers.
The burden of this tax will fall entirely on suppliers.
The burden of this tax will fall mainly on consumers.
The burden of this tax will fall mainly on suppliers.
What is most likely to cause the price level to rise? An increase in
productivity of labour.
raw material prices.
income taxes.
subsidies paid to producers.
What is most likely to increase a country’s circular flow of income?
Its budget deficit increases.
Its imports increase.
Its interest rates increase.
Its exchange rate increases.
Which supply-side policy is most likely to decrease a government’s budget deficit?
cutting tax rates on company profits
cutting unemployment benefits
raising spending on education and training
raising tax-free income tax allowances
The features of public goods are non-rival and ______.
GDP at Factor Cost = GDP at Market Prices ? Indirect Taxes ? Indirect Subsidies
GNI = GDP + ? from abroad