Economics MCQs

Page No. 351

Suppose the demand for good Z goes up when the price of good Y goes down. We can say that goods Z and Y are ?


a perfect substitutes


bcomplements


cunrelated goods.


d substitutes.


View Answer complements

Demand curves are derived while holding constant ?


a incomes, tastes, and the price of other goods.


b income, tastes, and the price of the good.


c income and tastes


dtastes and the price of other goods



What effect is working when the price of a good falls and consumers tend to buy it instead of other goods ?


a The ceteris paribus effect


bThe diminishing marginal utility effect.


cThe substitution effect


dThe income effect



The law of demand implies that ?


aas prices rise, demand decrease


bas prices fall, quantity demanded increase


cas prices fall demand increases


das prices rise, quantity demanded increases



Interventionist policies to restore regional imbalance focus on ?


a subsidies to encourage firms that moves


btax concessions for firms that move.


c improved infrastructure


dall of the above


View Answer all of the above

A way of helping depressed regions by having lower wages lower local taxes and lower unemployment benefit has been suggested as ?


amarket-orientated economists


bleft-wing theorists


cKeynesian.


dnew-Keynesian



Reaganomics was a radical shift in policy aimed at directly tackling ?


athe charities economy


bthe demand side of the economy


cthe underground economy


dthe supply side of the country



According to supply-side economists, as tax rates are reduced, labor supply should increase. This implies that ?


athere is no income effect when tax rates are changed


bthe income effect of a wage change is greater than the substitution effect of a wage change.


c there is no substitution effect when tax rates are changed


dthe substitution effect of a wage change is greater than the income effect of a wage change



The success of regional and urban policies has been limited by ?


abureaucracy


bbad luck


c poor communications


d the low level of government grants and by the fact that some projects would have gone ahead anyway



A way helping depressed regions by having wage subsidies lower business taxes and capital subsidies has been suggested as ?


a New classical economists.


bLeft wing theorists


c interventionist policies.


dmonetarists.



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