The opportunity cost of growth is ?

A. A reduction in current investment
B. A reduction in current consumption
C. A reduction in taxes
D. A reduction in current saving

Copper is an example of ?

A. A renewable natural resource
B. Physical capital
C. Technology
D. A non-renewable natural resource

Thomas Malthus argued that ?

A. None of these answers
B. An ever-increasing population is constrained only by the food supply resulting in chronic faminies
C. Technological progress will continuously generate improvement in productivity and living standards.
D. Labor is the only true factor of production

Which of the following describes an increase in technological knowledge ?

A. A farmer sends his child to agricultural college and the child returns to work on the farm
B. A farmer hires another day laborer
C. A farmer buys another tractor
D. A farmer discovers that it is better to plant in the spring rather than in the fall

Which of the following is an example of foreign portfolio investment ?

A. Toyota builds a new plant in the north of england
B. Edf of france buys shares in scottish & southern energy of the uk, and scottish & southern energy uses the proceeds to build a new hydro-electric power station in scotland
C. Deutsche bank of germany buys some new software from uk supplier
D. Jcb builds a new plant near manchester

The consumer’s optimal purchase of any two goods is the point where ?

A. The budget constraint crosses the indifference curve
B. The two highest indifference curves cross
C. The consumer reaches the highest indifference curve subject to remaining on the budget constraint
D. The consumer has reached the highest indifference curve

Suppose we measure the quantity of good X on the horizontal axis and the quantity of good Y on the vertical axis If indifference curves are bowed inward, as we move from having an abundance of good X to having an abundance of good Y, the marginal rate of substitution of good Y for good X (the slope of the indifference curve) ?

A. Rises
B. Stays the same
C. Could rise or fall depending on the relative prices of the two goods.
D. Falls

If an increase in a consumer’s income causes the consumers to decrease her quantity demanded of a good, then the good is ?

A. A substitute good
B. A normal good
C. A complementary good
D. An inferior good

Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 Suppose that the price of a pair of socks falls from €5 to €2 The substitution effect is represented by the movement from point ?

A. Z to point x
B. X to point x
C. X to point z
D. Y to point x

Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 A pair of socks is ?

A. An inferior effect
B. A geffen good
C. A normal good
D. None of these answers