An index of prices of all domestically produced goods in the economy is the ?

Related Mcqs:

1. In certain industries Japanese employers hesitate to lay off workers Therefore they sometimes have excess supplies of goods that they cannot sell on the home market without lowering prices. To hold down losses they sell goods in overseas markets at prices well beneath those in japan This practice is best referred to as ?

   A. Orderly marketing
   B. trigger pricing
   C. domestic content pricing
   D. dumping

2. The whole class of goods that will be under produced or not produced at all in a completely unregulated market economy are referred to as ?

   A. Pareto goods
   B. public goods
   C. private goods
   D. free goods

3. In the Px = export price index, Pm = import price index, Qx = export quantity index,and Qm = import quantity index. Developing countries tend to maintain that their commodity term of trade have declined over the long run suggesting that _________ has declined?

   A. Px/Pm
   B. Pm/Px
   C. (Pm/Px)Qm
   D. (Px/Pm)Qx

4. Suppose that the offshore assembly provisions (OAP) of the United States are granted to finished computers that are imported and produced domestically This policy will tend to ?

   A. cause foreign assemblers of computers to use more computer components that are supplied by countries other than the United States
   B. Increase the Price of computers to consumers in the United States
   C. Increase the Production of computers in the United States
   D. Increase the production of computer components in the United States

5. If the home country government grants a subsidy on a domestically produced good domestic producers tend to ?

   A. Capture the entire subsidy in the form of higher profits
   B. Increase their level of production
   C. reduce wages paid to domestic workers
   D. consider the subsidy as a increase in production cost

6. A attempts to limit outsourcing of jobs to foreigners by requiring that a minimum percentage of a product’s value must be produced domestically if that good is to be sold in the domestic market ?

   A. domestic subsidy
   B. voluntary restraint agreement
   C. domestic content requirement
   D. tariff-rate quota

7. Suppose the economy is initially in long run equilibrium Then suppose there is a drought that destroys much of the wheat crop if policymakers allow the economy to adjust to long-run equilibrium on its own, according to the model to aggregate demand and aggregate supply what happens to prices and output in the long run ?

   A. Output rises; prices are unchanged from the initial value
   B. Output and the price level are unchanged from their initial values
   C. Output falls; prices are unchanged from the initial value
   D. Prices fall; output is unchanged from its initial value

8. When supply exceeds demand, sellers must lower prices to stimulate sales, when demand exceeds supply, prices increase as buyers compete to buy goods. What this theory is called in economics?

   A. Cost push theory
   B. Supply and Demand theory
   C. Fundamental theory
   D. Ricardo’s theory

9. The total quantity of goods and services produced (or supplied) in an economy in a given period is ?

   A. aggregate investment
   B. aggregate expenditure
   C. aggregate demand
   D. aggregate output

10. If your income doubles and the prices of the goods you buy double then your demand for these goods will likely?

    A. increase
    B. not change
    C. decrease
    D. shift