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Economic growth can be illustrated with the use of a production possibilities curve:By a shift to the left of the curveBy a shift to the right of the curveBy a point on the inside of the curveBy a point on the outside of the curve For a rational consumer who has to choose between two goods in the context of budget constraints, the price change of one of the goods, ceteris paribus, will determine:a parallel shift of the budget line to the lefta change in the slope of the budget lineno change in the budget linea parallel shift of budget line to the right Person with a current wealth of N100,000 in Lagos who faces a 25% chance of losing his automobile worth N20,000. Then The person’s expected utility will beE(U) = 12.458E(U) = 14.496E(U) = 19.154E(U) = 11.457 General features of economic models. Except oneThe ceteris paribus (other things the same) assumptionThe supposition that economic decision makers seek to optimize something.A careful distinction between “positive” and “normative” questions.Economic decision makers seek to better of The axioms of rational choiceCompleteness: An agent has preferences between all pairs of outcomesTransitivity: Preferences must be transitive.Monotonicity: An agent prefers a larger chance of getting a better outcome than a smaller chance of getting the better outcomeNone of the answers The following are assumptions that underpin the indifference curve, except oneIndifference curves are everyplace thickIndifference curves do not intersect one anotherIndifference curves are strictly convex to the originIndifference curves do not intersect one another 1 out of 4 The following are the causes of economies of scale except one :Labor specializationManagerial specializationDiversification of skills setMore efficient capital Which of the following best define an economic goal? Price Stability Full Employment Economic Security wordbank indicator Assumptions are used to simplify the real world so that it may be rigorously analyzedTrueFalse Non-economists are no less or more likely to be biased about economics than they are about physicsTrueFalse Which of the following is not a function of money?Store of valueMeasure of worthMedium of exchangeLiquid trap Barter is a system that historically existed since the beginnings of time. Why has barter been displaced by more modern systems?Coincidence of wants makes exchange complicatedCoincidence of wants no longer exists in the world’s economyGold and silver are now in plentiful supply so that money can be usedNone of the answers 2 out of 4 Which of the following is a determinant of the price elasticity of demand?Proportion of income spent on commodityPrice of complementsNumber of consumersNone of the answers If a minimum wage were imposed below the competitive equilibrium what would we expect to observe in the affected labor markets?An excess demand for laborPeople being attracted by the higher wage cannot find jobs and some who were employed will lose their jobs, but those remaining employed will have a higher wageThere will be unemployment created by people losing jobs, but there will be no new employees attracted to this labor market.Nothing will be caused by the introduction of this minimum wage If there is an increase in demand and an increase in the quantity supplied in a product market what should be observed?Price increases, quantity exchanged is indeterminantPrice decreases, quantity exchanged is indeterminantPrice decreases, quantity exchanged decreasesPrice increases, quantity exchanged increases Which of the following is a determinant of the price elasticity of demand?Proportion of income spent on commodityPrice of complementsNumber of consumersNone of the answers Which of the following does the marginal cost curve NOT intersect at its minimum?Average variable costAverage total costAverage fixed costAverage fixed cost plus average variable cost Which of the following statements is true of an unregulated monopolist?Price is less than marginal costPrice is more than average revenuePrice is more than marginal revenuePrice is set where the monopolist chooses regardless of cost A monopolist in an otherwise competitive labor market will cause (as compared with the competitive labor market):Employment to increase, wages to decreaseEmployment to decrease, wages to decreaseEmployment to increase, wages to increaseEmployment to decrease, wages to increase Financial institutions that accept deposits and make loans are calledexchangesbanksover-the-counter marketsfinance companies 3 out of 4 Which of the following is not a financial institution?a life insurance companya pension funda credit uniona business college Money is defined asbills of exchange.anything that is generally accepted in payment for goods and services or in the repayment of debt.a risk-free repository of spending power.the unrecognized liability of governments. In graph, there is a…………. association between inflation and the growth rate of money…………………….positive; demandpositive; supplynegative; demandnegative; supply When tax revenues are greater than government expenditures, the government has a budget.crisisdeficitsurplusrevision The gross domestic product is thethe value of all wealth in an economy.the value of all goods and services sold to other nations in a year.the market value of all final goods and services produced in an economy in a year.the market value of all intermediate goods and services produced in an economy in a year. When the total value of final goods and services is calculated using current prices, the resulting measure is referred to asreal GDP.the GDP deflator.nominal GDP.the index of leading indicators 4 out of 4 Time is Up!