Which one of the following is most likely to accompany a reduction in aggregate demand?
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3 .When markets are perfectly competitive, consumers.
A Have goods and services produced at the lowest cost in the long run. B Must choose the brands they buy solely on the basis of informational advertising. C Must search for the lowest price for the products they buy. D Do not receive any consumer surplus unless producers choose to overproduce.
4 .Patents are granted in order to encourage firms to invest in the research and development of new products. Patents are an example of.
A Market concentration. B Collusion. C Exclusionary practices. D Barriers to entry.
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A Inferior goods. B Substitute goods. C Complementary goods. D Independent goods.
7 .If an economy is currently experiencing both full employment and price stability, a major tax reduction will probably cause.
A An acceleration in the inflation rate, unless government expenditures are also reduced. B A decrease in consumption. C An increase in the unemployment rate. D No change in real GDP or the price level.
8 .If, in a competitive market, a price ceiling is imposed establishing a maximum price below the market equilibrium price, this price ceiling would result in.
A Shortages because the quantity demanded would exceed the quantity supplied. B No effect on the quantity supplied or demanded. C Surpluses because the supply curve would shift to the right. D Surpluses because the quantity supplied would exceed the quantity demanded.
9 .Jan Corp. amended its defined benefit pension plan on January 1. Granting a total credit of USD 100,000 to four employees for services rendered prior to the plan’s adoption. The employees, A,B,C and D, are expected to retire from company as follows.A will retire after three years B and C will retire after five yearsD will retire after seven years
A USD 0 B USD 20,000 C USD 25,000 D USD 5,000
10 .What type of unemployment is shown when individuals do not have the qualifications or skills necessary to fill available jobs?
A Natural. B Cyclical. C Structural. D Frictional.
