Economics assumes that people consume goods and services to achieve ?

Related Mcqs:

1. S = Savings, I = domestic investment, X = exports of goods and services, and M = imports of goods and services Which of the following is true ?

   A. S – I = X = M
   B. S + I = X + M
   C. S = I – (X+M)
   D. S-I = X/M

2. Which economics doctrine opposes government regulation or interference in commerce beyond the minimum necessary for a free enterprise system to operate according to its own economics laws and non-interference in affairs of others ?

   A. Free market economy
   B. Laissez faire also Laisser faire
   C. Open market economy
   D. Liberal market economy

3. Medical care clearly enhance people’s lives. Therefore, we should consume medical care until ?

   A. everyone has as much as they would like
   B. the benefit buyers place on medical care is equal to the cost of producing it
   C. buyers receive no benefit from another unit of medical care.
   D. we must cut back on the consumption of other goods.

4. When you consume good Q, not only do you benefit form consuming the good but other people benefit from your consumption as well, if firms produce good Q where P = MC, firms will be producing ?

   A. less than the efficient level of output
   B. more than the efficient level of output
   C. so that consumer surplus is zero
   D. the efficient level of output

5. 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

6. _______ states that as real GNP per capita rises, people demand relatively more social goods and relatively fewer private goods?

   A. incomes policy
   B. Moral hazard
   C. Wagner’s law
   D. Fiscal policy

7. When an increase in government purchases increases the income of some people, and those people spend some of that increase in income on additional consumer goods, we have seen a demonstration of ?

   A. The multiplier effects
   B. supply side economics
   C. None of these answers
   D. The crowding out effect

8. The marginal propensity of consume is equal to ?

   A. Total spending / total consumption
   B. Total consumption / total income
   C. Change in consumption / change in income
   D. Change in consumption / change in savings

9. Keynes suggested that decisions to consume and save were based on ?

   A. previous decisions
   B. absolute income
   C. relative income
   D. permanent income

10. The marginal propensity to consume is equal to ?

    A. Total spending / total consumption
    B. Total consumption / total income
    C. change in consumption / change in income
    D. Change in consumption / change in savings