851. Which of the following statements supports deregulation of industries ?
A. Technological change has made it possible for many industries to become more competitive
B. Because few real natural monopolies exist there is rarely a reason for government regulation
C. Many instances of government regulation have succeeded in reducing competition in industries where competition may be beneficial
D. All of the above

852. A way of helping depressed regions by having wage subsidies lower business taxes and capital subsidies has been suggested as ?
A. New classical economists
B. left-wing theorists
C. interventionist policies
D. monetarists

853. Economic growth can be shown by ?
A. An inward shift of the production possibility frontier
B. A movement along the production possibility frontier
C. An outward shift of the production possibility frontier
D. A decision by the government to produce inside the production possibility frontier

854. In a free market the combination of products produced will be determined by ?
A. Market forces of supply and demand
B. The government
C. The law
D. The public Sector

855. The speculative demand for money occurs when ?
A. Individuals hold money just in case an emergency happens
B. Individuals hold money to buy things
C. Individuals hold money rather than other assets because they are worried about the price of the other assets falling
D. Individuals hold money to shop

856. Open Market Operations occur when the government ?
A. Reduces the interest rate
B. Buys and sells bonds and securities
C. Increases taxation
D. Increase the exchange rate

857. A variable whose value is determined by the model of which it is a part is termed ?
A. exogenous
B. constant
C. endogenous
D. independent

858. The fraction of change in income that is consumed or spend is called ?
A. the marginal propensity of expenditure
B. the marginal propensity to save
C. the average propensity to consume
D. the marginal propensity to consume

859. Keynes suggested that decisions to consume and save were based on ?
A. previous decisions
B. absolute income
C. relative income
D. permanent income

860. As the MPS increases the multiplier will ?
A. decrease
B. remain constant
C. increase
D. either increase or decrease depending on the size of the change in investment


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