1.Which one of the following will not lead to a decrease in the supply of precast concrete walls, illustrated by a leftward shift of the supply curve?

A.A decrease in the price of precast concrete walls.

B.An increase in wage rates in the industry.

C.An increase in the price of concrete stone.

D.An increase in the price of cement.

1.In the circular flow of income and spending, ie the basic flow of income and spending between households and firms supplemented by the foreign, financial and government sectors:

1. investment is a leakage from the circular flow.
2. savings are injections into the circular flow.
3. imports are injections into the circular flow.

taxes are leakages from the circular flow

1.Which one of the following statements is false?

A.Total spending in the economy consists of consumption spending by households plus investment spending by firms plus government spending plus net spending by the foreign sector (ie exports minus imports).

B.From a macroeconomic point of view, total income in the economy is equal to the total value of production.

C.Total income in the economy consists of the total remuneration of the various factors of production.

D.Total spending in the economy is equal to the total value of injections minus the total value of withdrawals (leakages).

1.Which one of the following statements is correct?

A.Equilibrium is often observed in our daily lives.

B.A market is in equilibrium when the quantity demanded is equal to the quantity supplied.

C.A market is in equilibrium when demand is equal to supply.

D.At any price above the equilibrium price there will be an excess demand for the product.