Adam Smith was __________?

Related Mcqs:

1. The Ultimate effect of the invisible hand of Adam Smith is that in a competitive economy everyone ?

   A. benefits if each acts in his/her own interest
   B. will increase their profits in a free market
   C. should act to maximize economic growth
   D. should act to promote the public interest

2. Adam Smith advocated ?

   I- laissez faire
   II- the invisible hand
   III- free trade policy
   IV- competitive markets

   A. I and II only
   B. II and III only
   C. I , II and III only
   D. I , II , III and IV

3. Adam smith’s invisible hand concept suggests that a competitive market outcome ?

   A. maximizes total surplus
   B. generates equality among the members of society
   C. minimizes total surplus
   D. both maximizes total surplus and generates equality among the members of society

4. The classical trade theories of Smith and Ricardo predict that ?

   A. Countries will completely specialize in the production of export goods
   B. Considerable trade will occur between countries with different levels of technology
   C. Small countries could obtain of the gains from trade when trading with large countries
   D. All of the above

5. Which of the following is not a reason why Joe Smith (an American) might participate as a demander in the foreign exchange market ?

   A. his desire to open a bank account in Japan
   B. his desire to purchase an automobile produced domestically
   C. his desire to travel to Europe
   D. his desire to purchase Treasury bills issued by the British government

6. Suppose that the firms collude and become a cartel The best level of output for the cartel as a whole is ___________ the price equals __________ and profits total __________?

   A. 2 million barrels per day, $100, $60 million
   B. 4 million barrels per day, $80, $160 million
   C. 6 million barrels per day, $60, $60 million
   D. 8 million barrels per day, $40, $20 million

7. Higher export demand __________ output and a higher MPZ __________ output?

   A. reduces, reduces
   B. reduces, increase
   C. increase, reduces
   D. increases, increases

8. If a firm wage costs increase this will cause __________ and __________?

   A. marginal cost to increase, output to fall
   B. marginal revenue to increase output to fall
   C. opportunity cost to increase the firm will close
   D. average cost will rise output will increase ____ output and an upward shift in marginal revenue ____ output

9. The firm would maximize profit by selling computers in the United States at a price of __________ and _________ computers in Japan at a price of __________?

   A. 200, $2,000, 100 $1,000
   B. 300, $1,800, 800 $800
   C. 300, $1,800, 400 $800
   D. 500, $1,400, 400 $800

10. Keynesians and monetarists differ over how steep the IS and LM curves actually are Monetarists claim that the IS curve must be __________ and the LM curve must be __________?

    A. flat; steep
    B. flat; flat
    C. steep; flat
    D. steep; steep