An increase in national income is ?

A. Likely in increase exports
B. Likely to decrease savings
C. Likely to decrease investment
D. Likely to increase spending on imports

An increase in national income is likely to ?

A. Decrease tax receipts
B. Worsen the balance of trade
C. Automatically cause an increase in government spending
D. Causes an increase in injections into the economy

If injections are greater than withdrawals ?

A. National income will increase
B. National income will decrease
C. National income will stay in equilibrium
D. Price will fall

For equilibrium in an open four sector economy ?

A. Actual injections = actual withdrawals
B. Planned injections = planned withdrawals
C. Savings = investment
D. Government spending = tax revenue

A reflationary policy ?

A. Increase injections
B. Reducing taxation rates
C. Reducing interest rates
D. Reducing government spending

Economic growth can be measured by ?

A. The cpi
B. The cbi
C. Gdp
D. Mpc

Barriers to entry ?

A. Enable abnormal profits to be made in the long run
B. Enable losses to be made in the long run
C. Enable abnormal profits to be made in the short run only
D. Occur in perfect competition

To maximise sales revenue a firm should produce where ?

A. Marginal cost is zero
B. Marginal revenue is maximised
C. Marginal revenue is zero
D. Marginal revenue equals marginal cost

Profit is measured by ?

A. Revenue – fixed costs
B. Fixed cost + revenue
C. Revenue – sales
D. Revenue – total costs

To be allocatively efficient a firm must produce where ?

A. The total cost equals demand
B. The average revenue equals the marginal revenue
C. The price equals the average cost
D. The price equals the marginal cost