981. The quantity demanded of Pepsi has decreased. The best explanation for this is that ?
A. Pepsi’s advertising is not as effective as in the past .
B. The price of Coca Cola has increased,
C. Pepsi consumers had an increase in income.
D. The price of Pepsi increased

982. An increase in price from 25 pence to 30 pence leads to an increase in the quantity supplied from 40 units to 44 units. The price elasticity of supply is ?
A. +2
B. +0.5
C. -2
D. -0.5

983. A shift in aggregate supply is likely to ?
A. Reduce the general price level and reduce national income
B. Reduce the general price level and increase national income
C. Increase the general price level and reduce national income
D. Increase the general price level and increase national income

984. An increase in aggregate demand will have most effect on prices if ?
A. Aggregate supply is price inelastic
B. Aggregate supply is price elastic
C. Aggregate supply has a unitary price elasticity
D. Aggregate demand is price inelastic

985. Which of the following would decease aggregate demand ?
A. increase consumption
B. increasing export revenue
C. increased taxation revenue
D. increased investment

986. Increase unemployment benefits and less incentive to work would ?
A. shift aggregate supply to the right
B. shift aggregate supply to the left
C. shift aggregate demand to the right
D. shift aggregate demand to the left

987. Increased levels of spending on imports ?
A. shift aggregate supply to the right
B. shift aggregate supply to the left
C. shift aggregate demand to the right
D. shift aggregate demand to the left

988. Positive cross elasticities suggest that goods are ____ and negative cross-elasticities that goods are ?
A. substitutes inferior
B. normal, complements
C. substitutes complements
D. normal, inferior

989. Surplus labor theories assume that ?
A. LDCs are overpopulated
B. labor contributes nothing to output in LDCs
C. the marginal products of labor is closed to zero in LDCs
D. urban unemployment is high in LDCs

990. During the 1980s and 1990s a period of economic conservative governments in much of West and Japan, a leading approach among development economists was ?
A. neoclassicism
B. Marxism
C. Rostow’s model
D. classical approach

 

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