Economics detailed question

Q: match each consumer protection agency with its objective

Ans: Food and drug administration- protect the people /public’s health by securing the safety of the drugs and food products.

Federal Communications Commission- ensures continuous promotion and progress of broadband services and resources for the same.

Federal Trade Commission- safeguards people from dishonest trade and business activities

National Highway Traffic Safety Administration – help in reducing deaths and wounds caused by road accidents

Q: assume that candle wax is traded in a perfectly

Ans: a) Maximum willingness to pay exceeds minimum acceptable price- the total output should be increased

b) MC> MB- the total output should be decreased

c) Total surplus is at a maximum- the total output should be kept the same and should neither increased or decreased

d) The current quality produced exceeds the market equilibrium quantity- the total output should be decreased

Q: the linkage leverage learning hypothesis explains

Ans: the evolution of Transnational Business (TNC) from the progressing/developing countries.

Q: localization of an industry

Ans: a) definition of industry- An industry is a group of businesses or aggregate of manufacturing or technically productive firms/enterprises in a particular field and mostly they produce similar goods/products.

b) The location of an industry means choosing the location/site for the company and various factors like economic, social, and political are considered in depth before finalizing a location for a firm/company.  Whereas, Localization of industries or firms is known as the grouping of industries that produce the same goods or different kind of goods in one particular region/ locality.

c) disadvantages of manpower are- fear of unemployment becomes more and eventually there is also a fear of facing economic difficulties, only a particular group of people experience exponential growth, depending and trusting the industry alone for their income as a simple depression in the particular industry is bound cost people their jobs and labors get struck to that particular locality/location and cannot move to another location and explore for other job options due to the fear of uncertainty.

Q: the price of pork may increase as a result of which has                                                                                                                                                                                                                                     

Ans: as a result of an increase in the cost of producing beef

2) Which of the statement is true?

If price decreases, then the demand curve will shift to the left- True

If demand decreases, the price will decrease- True

If price increases, then the demand curve will shift to left – True

If demand increases, then price will decrease- False.

a seller’s reservation price is generally equal to

Ans: Marginal cost because it would be the smallest amount for which the seller would be willing to sell an additional item/commodity and that is usually equal to marginal cost.

production order processing is an example of a

Ans: Option B- Batch level activity

when backed by buying power wants become demands. True or False

Ans: True because in marketing, value is referred to as needs which is usually influenced and affected by the personality of the person. So when wants are backed by buying power, wants tend to become demands.

Economists warn that the nation is heading for a recession

Ans: when the economy of a country faces recession, John Maynard Keynes developed a theory of economics where he argues that the recession facing government should increase their spending even if it means increased debts or means deficit for the government.  So, based on this theory of John Maynard Keynes the correct option would be to increase funds for civic projects to put people to work.  

the forces of supply and demand assure that

Ans: The price of the commodity will ultimately increase as a response to an increase in demand for that commodity/good.

customer satisfaction is an important focus for marketers because

Ans: The monetary value of a fulfilled, happy and faithful consumer over the time can be important and powerful.

the group of three economists appointed by the president

Ans: .The group of three economists appointed by the president to provide fiscal policy recommendations is the:

Council of Economic Advisers

Discretionary fiscal policy refers to:

Intentional changes in taxes and government expenditures made by Congress to stabilize the economy

Countercyclical discretionary fiscal policy calls for

Deficits during recessions and surpluses during periods of demand-pull inflation.

Fiscal policy refers to the:

Deliberate changes in government spending and taxes to stabilize domestic output, employment, and the price level

Discretionary fiscal policy is so named because it:

It means intentional changes in taxes and government expenditures made by Congress to stabilize the economy.

Expansionary fiscal policy is so named because it:

Is designed to expand the real GDP

Contractionary fiscal policy is so named because it:

Is aimed at reducing aggregate demand and thus achieving price stability

An economist who favors smaller government would recommend:

Tax cuts during recession and reductions in government spending during inflation.

If the MPS in an economy is .1, government could shift the aggregate demand curve rightward by $40 billion by

Increasing government spending by $4 billion.

If the MPC in an economy is .8, government could shift the aggregate demand curve rightward by $100 billion by:

decreasing taxes by $25 billion

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