1. Over a period of years a difference between nominal/money GDP and real GDP may arise because: A:an increasing amount of what is produced consists of virtual goods; B:The total quantity of goods produced may change over the years; C:The average level of prices may change over the years; D:the first includes services activities, the second excludes these; 2.The Uk GDP at market prices for 2007 may best be defined as: A:the total value-added produced by UK firms in 2007 B: the total gross output produced in the UK in 2007 C:GNP plus net income from abroad; D: the total value-added produced in the UK in 2007 3.The sum of all expenditures on final goods & services is equivalent to: A: the total income paid in wages & salaries B: the total amount spent by households on goods & services; C:the total value added of all goods & services produced D: all of the above. * 2 hours ago * - 3 days left to answer. Additional Details 2 hours ago 4.the following activity is not counter in GDP: A: the production of 'waste' products B: the purchase of a 18th century painting C:the production of a car that remains unsold; d:the hiring of a ladder to carry out repair work on a house 5.'Aggregate demand' is: A: the total intended spending by households, firms, gov. agencies and foreign buyers on domestically-produced output B:the total intended spending by households, firms, gov. agencies and foreign buyers C: the total amount spent on domestically-produced output D: all of the above. 6.IN THE CIRCULAR OF FLOW whis is not an injection? A: intended spending on plant & machinery B: intended spending on stocks of finished goods c: intended spending housing construction; D: intended spending on financial assets, such as bonds and shares 7. which one of the following would cause an increase in Aggregate demand? A: an increase in the prospensity to import B: a fall in the prospensity to save C: an increase in the rate of the income tax 2 hours ago D: a reduction in gov. spendings 19 minutes ago 15. Which of the following statements is NOT correct? A. in a modern economy, bank deposits are the most important form of money; B. an asset's liquidity is the ease with which it can be converted into money without loss; C. cheques and credit cards are money; D. the monetary base (M0) is the total notes & coins in circulation outside the central bank. 16. Which of the following is a liability in the balans sheet of a commercial bank? A. bonds putchased by the bank; B. loans made by the bank to individuals; C. deposits in the bank; D. all of the above. 17. Which of the following statements is NOT correct? A. bank create money by lending; B. a bank's reserve ratio is the ratio of its cash & balances with the central bank to its liabilities; C. an increase in lending by banks will reduce their reserve ratio; D. it is prudent for a bank to operate below a minimum reserve ratio; 19 minutes ago 18. Assuming a required minimum reserve ratio of 10%, if cash held by the manking system is reduced by $1m, then the banks: A. must reduce their loans by $1m; B. must reduce their loans by $10m; C. can increase their loans by $1m; D. can increase their loans by $10m. 19. If more people decide to settle their debts using cash rather than by transferring bank deposits, then, when the banking system has fully adjusted, this will tend to: A. increase the total money supply; B. reduce the total money supply; C. increase the demand of money; D. leave the demand and supply of money unchanged. 20. Open market purchases by the central bank can lead to: A. an increase in the money supply; B. a reduction in the money supply; C. a redustion in leading by the banks; D. a reductions in bank deposits. 18 minutes ago 21. The focal point of microeconomic analysis is? A. Individual choice B. The value of the dollar C. Business ethics D. The stock market 22. Which one of the following would cause the production possibilities curve to move inwards? A. A reduction in the level of unemployment B. A fall in the rate of investment C. A rise in the price of one factor of production D. An increase in the level of unemployment 23. Which one of the following will cause an inward shift of the demand curve for tea? A. A fall in the price of coffee B. An increase in the price of milk C. A successful marketing campaign to promote the healthy attributes of tea D. Consumers' expectations that the price of tea is going to increase soon 24. The Long Run Average Cost Curve is otherwise known as 'the envelope curve' because: A. It looks like an envelope B. Of constant ecenomies of scale C. Diminishing marginal raturns set it 18 minutes ago D. It summarises all the possible short run average cost curves 25. Economists typically depict the production possibilities frontier as a bowed curve rather than as a straight line in order to show that: A. The opportunity cost of producing a good rises as more is produced B. Opportunity cost is always present C. The opportunity cost of producing a good decline as more is produced D. Resourses used in production of one good cannot be used in production of another 26. Which cost curve is continually sloping upward? A. The marginal cost curve B. The total cost curve C. The average total cost curve D. The average variable cost curve 27. In what way does the spreding effect change average total cost as quantity rises? A. The spreading effect increases ATC, because it reflects the fact that firms are less efficient when they operate on large scale B. The spreading effect increases ATC, because it reflects the fact that workers are 17 minutes ago spread out across more tasks when output/quantity increases. C. The spreading effect reduces ATC, because a given foxed cost can be spread across more units of output/quantity D. The spreading effect reduces ATC, because a firm's total fixed cost will decline as more is produced 28. John own a coffee shop that has monthly variable costs equal to $8560. If John sells 11000 cups of coffee each month, what is the average variable cost per cup of coffee? A. $0.85 B. $0.78 C. $1.30 D. $0.99 29. Which of the following statements is TRUE: A. Whenever marginal cost (MC) curve is above the average total cost (ATC) curve, MC is decreasing B. Whenever marginal cost (MC) curve is below the average total cost (ATC) curve, MC is decreasing C. Whenever marginal cost (MC) curve is above the average total cost (ATC) curve, MC is increasing D. Whenever marginal cost (MC) equal average total cost (ATC) curve, MC is minimised. 16 minutes ago 30. A firm producing in the short run uses two inputs, capital and labour. The quantity of capital is fixed and generates a monthly cost of $6000. The quantity of labour can be varied, and the wage rate per hour of labour is $20. If 400 hours of labour are hired for a month, and 140 units of output are produced, what is the firm's average total cost for the month? A. $100.00 B. $2.80 C. $123.00 D. $43.00 31. In the case of elastic price elasticity of demand, an increase in the price of good x will result into: A. A reduction in the total revenue for good x B. An increase in the total revenue for good x C. Total revenue for good x will remain the same D. We cannot give an answer because we do not have information regarding the demand for product x 16 minutes ago 32. Which of the following statements is TRUE: A. In the long run, price elasticity of supply is very inelastic B. Goods that require long time to produce have a more elastic supply curve C. Goods in joint supply in the long run, have a more elastic supply curve as compared to substitude goods D. Screws have a price elasticity of supply that is greater than 1. 33. The ceteris paribus condition is responsible for: A. The existence of fixed costs in the short run B. The scarcity of financial resources C. The appearances of diminishing marginal returns D. The movements and shifts in the demand and supply curves 34. The law of demand occures for two reasons: A. The income and the spreading effects B. The spreading and diminishing returns effects C. The spreading and the diminishing marginal returns effect D. The substitution and income effects 15 minutes ago I WOULD BE GRATEFUL IF SOMEBODY CAN HELP ME...I KNOW SUM BUT I WANT TO MAKE SURE :)