The Setrite Corporation produce chairs. An economist working for the firm predicts that if people’s incomes rise next year, then the demand for our chairs will for our chairs will increase ceteris paribus The accuracy of the economist’s prediction depends on whether the chairs Setrite Produce ?

Related Mcqs:

1. If the exchange rate between the UK and Japan changes from £1 = 100 yen to £1 = 150 yen then ceteris paribus, the price of UK goods in Japan ?

   A. will remain the same
   B. will decrease
   C. will increase
   D. could either increase of decrease

2. Barro and Lee find that ceteris paribus, IMF lending has ?

   A. negative effect on economic growth during the simultaneous five-year period but has a significantly positive effect on growth in the subsequent five years
   B. no effect on economic growth during the simultaneous five-year period but has a significantly negative effect on growth in the subsequent five years
   C. a significantly positive effect on growth in the subsequent five years
   D. an exponentially negative effect on growth ten years

3. 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

4. If an increase in consumer incomes leads to a decrease in the demand for camping equipment, then camping equipment is ?

   A. a normal good
   B. none of these answers
   C. an inferior good
   D. a substitute good

5. When an increase in government purchases raises incomes shifts money demand to the right raises the interest rate, and lowers investment we have seen a demonstration of ?

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

6. 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.

7. If, in the long run, people adjust their price expectations so that all prices and incomes move proportionately to an increase in the price level then the long-run Phillips curve ?

   A. is vertical
   B. is negatively sloped
   C. has a slope that is determined by how fast people adjust their price expectations
   D. is positively sloped

8. Because people’s income vary other the life cycle and because there are transitory shocks to people’s incomes the standard measures of income distribution ?

   A. exaggerate the inequality of living standards
   B. could exaggerate or understate the inequality of living standards depending on whether the transitory shocks are positive or negative
   C. understate the inequality of living standards
   D. accurately represent the true inequality of living standards

9. The Phillips curve is an extension of the model of aggregate supply and aggregate demand because, in the short run, an increase in aggregate demand increase price and ?

   A. decreases unemployment
   B. decrease growth
   C. increases unemployment
   D. decreases inflation

10. Suppose there is an increase in the both the supply and demand for personal computers Further, suppose the supply of personal computer increase more than demand for personal computers In the market for personal computers i the market for personal computers, we would expect ?

    A. the change in the equilibrium quantity to be ambiguous and the equilibrium price to fall.
    B. the equilibrium quantity to rise and the equilibrium price to rise
    C. the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous
    D. the equilibrium quantity to rise and the equilibrium price to fall
    E. the equilibrium quantity to rise and the equilibrium price to remain constant