A. goods are sold at prices above legal or official price.
B. buyers and/or sellers are not paying taxes as they should
C. illegal substances are sold
D. transactions are not recorded in the GDP figures.
Related Mcqs:
- A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work, save and invest. These economists are?
A. Supply-side economics
B. neo-Keynesian economists
C. rational-expectations economists.
D. new classical economists. - A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work save and invest these economists are ?
A. supply side economists
B. neo-Keynesian economists
C. rational -expectations economists
D. New classical economists - Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?
A. None of these answers
B. Disagree because they have different scientific judgments
C. really don’t disagree at all. It just appears that they disagree
D. disagree because they have different values - Suppose two economists are arguing about policies that deal with unemployment One economist says the government should fight unemployment because it is the greatest social evil The other economist response Nonsense Inflation is the greatest social evil These economists ?
A. really don’t disagree at all It just appears that they disagree.
B. disagree because they have different values.
C. none of these answers.
D. disagree because they have different scientific judgments. - A group of modern economists who believe that markets clear very rapidly and that expanding the money supply will always increase prices rather than employment are the ?
A. Keynesians
B. post-keynesians
C. monetarists
D. new classical school - The term ‘rent’ as it is used by economists. refers to ?
A. the return to any factor of production that is in fixed supply
B. the profit earned by the owner of any housing unit.
C. the amount paid each year by a tenant for an apartment
D. any profit earned by stockholders when they sell their stock - Economists use the term regulatory capture to mean a situation where the private sector firms being regulated ?
A. Persuade the regulator to operate in the industry’s interests
B. Persuade the regulator to act in the firms interests.
C. Bribe the regulator.
D. Persuade the government to change the regulatory regime. - When economists use the term real business cycle theory they are suggesting that business cycles are caused by ?
A. Shifts in aggregate supply
B. changes in export demand due to the state of the world economy
C. business confidence
D. business expectations - If a government were to fix a minimum wage for adult workers, economists would predict ?
A. wages in general would fall as employers tried to hold down costs
B. fewer young workers would be employed
C. the costs and prices of firms employing cheap labour would increase
D. there would be more unemployment - According to the classical economists, those who are not working ?
A. have chosen not to work at the market wage
B. have given up looking for a job but would accept a job at the current wage if one were offered to them.
C. are too productive to be hired at the current wage
D. are unable to find a job at the current wage rate
