With _______ prices rise in the first sector, remain the same in the second and increase overall?

Related Mcqs:

1. Engineers for the All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases?

   A. average costs to remain constant
   B. average costs to decrease
   C. average costs to increase
   D. marginal costs to increase

2. Micheal Roemer’s three-sector model shows that growth in the booming export sector I- reduces the price of foreign exchange II- retards other sectors’ growth by reducing incentives to export other commodities III- reduces incentives to replace domestic goods for imports IV- raises factor and input prices for non-booming sectors ?

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

3. 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

4. A company’s compensation plan should reflect its overall marketing strategy For example if the overall strategy is to grow rapidly and gain market share the compensation plan should reward ?

   A. loyalty and perseverance
   B. spot selling and old product rejuvenation
   C. high sales performance and encourage capturing new accounts
   D. high pressure situations and competitive reaction

5. Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?

   XA. wages and rents should fall in Country A
   B. wages and rents should rise in Country A
   C. wages should rise and rents should fall in Country A
   D. wages should fall and rents should raise in Country A

6. As prices rise, there will be costs of constantly changing price-tags and reprinting price-lists This is called ?

   A. real balance effect
   B. menu costs of inflation
   C. money illusion.
   D. cost-push inflation.

7. As prices rise. People will want to keep more money as cash and in bank accounts This is called ?

   A. real balance effect.
   B. cash ratio.
   C. money illusion.
   D. menu costs of inflation.

8. A number of relating prices of a group of commodities to their prices during an arbitrarily chosen based period is called ?

   A. Price index
   B. Price indexing
   C. Price fixing
   D. Price choosing

9. 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

10. Real GDP is measured in __________ prices while nominal GDP is measured in _________ prices?

    A. foreign; domestic
    B. current year; base year
    C. domestic; foreign
    D. base year; current year
    E. intermediate; final