Suppose that Good X and Good Y are complements in consumption. If the market price of Good X increases, then: Select one alternative: 0 the quantity demanded of Good Y increases, ceteris paribus. O the quantity demanded of Good Y decreases, ceteris paribus. O the market price of Good Y will increase. 0 the quantity demanded of Good Y will remain unchanged because Good X and Good Y are unrelated. Suppose John is willing to pay $15 for one unit of Good X, Paul is willing to pay $10, George is willing to pay $9 and Ringo is willing to pay $5. When they arrive at the marketplace, they nd that the seller is charging $8 for each unit of Good X. This implies that: Select one alternative: 0 John will buy and get a consumer surplus of $5. 0 George will buy and get a consumer surplus of $1. 0 Ringo will buy and get a consumer surplus of $3. 0 Paul will buy and get a consumer surplus of $3. In recent times, the market price of fresh salmon has increased, while the equilibrium quantity traded of salmon has decreased. Which of the following explains this change in price and quantity traded? Select one alternative: 0 Supply of fresh salmon has increased while demand has remained unchanged. 0 Demand for fresh salmon has decreased while supply has remained unchanged. 0 Supply of fresh salmon has decreased while demand has remained unchanged. 0 Demand for fresh salmon has increased while supply has remained unchanged. If the number of sellers producing Good A increases and the number of buyers of Good A increases, then what happens to equilibrium price and quantity traded of Good A? Select one alternative: O Both price and quantity traded definitely rise/increase. O Price falls, but we cannot be certain about how quantity traded changes without more information. O Both price and quantity traded definitely fall/decrease. O Quantity traded increases, but we cannot be certain about how price changes without more information.Which of the following statements is true? Select one alternative: 0 For a single-price monopoly, price is typically equal to marginal revenue (P = MR). 0 For a single-price monopoly, price is typically greater than marginal revenue (P > MR). 0 For a perfectly competitive producer, price is typically less than marginal revenue (P MR). Which of the following statements would be true in most cases? Select one alternative: There are more firms in a perfectly competitive market compared to an oligopoly, and an oligopoly has more firms than in a monopolistically competitive market. O There are more firms in a perfectly competitive market compared to an oligopoly, and an oligopoly has the same number of firms as a monopoly. O There are more firms in an oligopoly compared to a perfectly competitive market, and a perfectly competitive market has more firms than a monopoly. O There are less firms in a monopoly compared to an oligopoly, and an oligopoly has less firms than in a perfectly competitive market.Which of the following statements is true? Select one alternative: 0 Monopolies, like perfectly competitive markets. do not generate a deadweight loss. 0 Compared to monopolies. perfectly competitive markets generate much smaller consumer surplus. 0 Compared to perfectly competitive markets, monopolies generate much larger consumer surplus. 0 Compared to monopolies, perfectly competitive markets generate much larger consumer surplus. If the price elasticity of demand for a good is 2.0, then a 15 percent increase in price would result in a: Select one alternative: 0 30 percent increase in the quantity demanded. O 30 percent decrease in the quantity demanded. O 7.5 percent decrease in the quantity demanded. O 40 percent decrease in the quantity demanded. When demand is , a price cut total revenue. Select one alternative: 0 elastic; decreases O inelastic; increases 0 unit elastic; increases 0 elastic; increases With respect to the model of a minimum wage (price or wage oor) we looked at in BUSINESS 115 (B115), which of the following best describes the resultant effects when compared to a competitive labour market? Select one alternative: 0 Firms' surplus is smaller; workers' surplus is larger; resources are lost in job search activity. and a deadweight loss occurs. 0 Firms' surplus is smaller; workers' surplus is smaller; resources are lost in job search activity, and a deadweight loss occurs. 0 Firms' surplus is larger; workers' surplus is smaller; resources are lost in job search activity. and a deadweight loss occurs. 0 Firms' surplus is smaller; workers' surplus is larger; no resources are lost in job search activity, and a deadweight loss occurs. Which of the following best defines gross domestic product (GDP)? Select one alternative: O GDP is the market value of all final goods and services sold by a country's citizens over a given time period. O GDP is the market value of all final goods and services produced within a country over a given time period. GDP is the market value of all final and intermediate goods and services produced within a country over a given time period. O GDP is the market value of all final goods and services produced by a country's citizens, regardless of where they live in the world, over a given time period.Joe takes a university teaching job as an assistant professor in 2001 at a salary of $70,000. By 2021, he has been promoted to full professor, with a salary of $175,000. The price index in 2001 was 500, and the price index in 2021 is 1250. Is Joe better off, worse off, or equally well off in 2021 compared to 2001 and why? Select one alternative: 0 Joe is equally well off in 2021 because between 2001 and 2021 his salary and the price index both increased by a factor of 2.5, leaving him equally well off. 0 Joe is equally well off in 2021 because between 2001 and 2021 his salary and the price index both increased by a factor of 2.25, leaving him equally well off. 0 Joe is better off in 2021 because between 2001 and 2021 his salary increased by a factor of 2.5, but the price index only increased by a factor of 1.5, leaving him better off. 0 Joe is worse off in 2021 because between 2001 and 2021 his salary increased by a factor of 2.5, but the price index increased by a factor of 3, leaving him worse off. For years after the base year, nominal GDP is real GDP if prices generally over time. Select one alternative: 0 less than; rise 0 greater than; stay the same 0 less than; fall 0 greater than; fall If reserve requirements are decreased, the reserve ratio: Select one alternative: 0 increases, the money multiplier decreases and the money supply increases. 0 decreases, the money multiplier increases and the money supply increases. 0 decreases, the money multiplier increases and the money supply decreases. 0 decreases, the money multiplier decreases and the money supply decreases. When the money market is drawn with the value of money on the left-hand-side vertical axis and the price level on the right-hand-side vertical axis, a decrease in the money supply, ceteris paribus: Select one alternative: 0 decreases the value of money and decreases the price level. 0 decreases the value of money and increases the price level. 0 increases the value of money and decreases the price level. 0 increases the value of money and increases the price level. According to the quantity theory of money or quantity equation (MV = PY), if M = 500 and V = 3, which of the following pairs could P and Y be? Select one alternative: 0 5, 275. O 6, 300. O 5, 295. O 6, 250. Suppose a closed economy has gross domestic product (GDP) of $10,000, Taxes of $3,000, Consumption of $6,000, and Government expenditures of $1 .500. How much is private saving; public saving; national saving, respectively? Select one alternative: 0 $4,000; $1,500; $5,500 0 $1,000; $1,500; $2,500 0 $1,000; $1,000; $2,000 0 $1,000; -$1,500; -$500 What would happen in the market for loanable funds if the government were to decrease the tax on income earned from interest paid on savings, ceteris pan'bus? Select one alternative: 0 The supply of loanable funds would shift to the left and the equilibrium real interest rate would rise. 0 The demand for loanable funds would shift to the right and the equilibrium real interest rate would fall. 0 The supply of loanable funds would shift to the right and the equilibrium real interest rate would fall. 0 The supply of loanable funds would shift to the right and the equilibrium real interest rate would rise. Suppose New Zealand has a real exchange rate (RER) of 1.35 vis-a-vis the British pound, and the price index in New Zealand is 1,765 and the price index in Britain is 1,000. What's the nominal exchange rate (NER) in UK pounds per NZ dollar (UKE/NZ$)? Select one alternative: 0 0.76 O 0.63 O 0.42 O 1.31Assume that the New Zealand Government imposes an investment tax which decreases the demand for loanable funds. Which of the following best explains what happens in the (3-panel) open-economy model, ceten's pan'bus? The real interest rate ; net capital outow (NCO) ; the supply of NZ dollars ; the NZ dollar real exchange rate ; net exports (NX) Select one alternative: 0 falls; increases; increases; depreciates; falls 0 falls; increases; increases; depreciates; rises 0 falls; increases; increases; appreciates; falls 0 rises; decreases; decreases; appreciates; falls Which of the following is an example of fiscal policy? Select one alternative: O The Reserve Bank of New Zealand (RBNZ) raises the official cash rate (OCR). O The Reserve Bank of New Zealand (RBNZ) stipulates the minimum reserve ratio for trading banks. O The Government decides to run large budget deficits. O The Reserve Bank of New Zealand (RBNZ) engages in open-market operations.Afavourable (positive) shock to aggregate demand (AD), ceten's paribus, will typically result in and while a favourable (positive) shock to short-run aggregate supply (SRAS), ceteris paribus, will typically result in and Select one alternative: 0 lower prices; lower output; lower prices; higher output 0 lower prices; lower output; higher prices; lower output 0 higher prices; higher output; lower prices; higher output 0 higher prices; higher output; higher prices; lower output Suppose the marginal propensity to consume is 0.75. If government expenditure goes up by $65 billion, then you can reasonably expect that, ceteris paribus: Select one alternative: O Real GDP (Y) will remain unchanged. O Real GDP (Y) will increase by $86.67 billion. O Real GDP (Y) will increase by $260 billion. O Real GDP (Y) will increase by $100 billion.Which of the following statements is true? Select one alternative: If the marginal propensity to consume (MPC) rises, the marginal propensity to save (MPS) falls, and the O multiplier decreases, meaning an initial increase in aggregate demand (AD) has a larger overall positive effect on national income (Y). If the marginal propensity to consume (MPC) rises, the marginal propensity to save (MPS) falls, and the O multiplier increases, meaning an initial increase in aggregate demand (AD) has a larger overall positive effect on national income (Y). If the marginal propensity to consume (MPC) rises, the marginal propensity to save (MPS) falls, and the O multiplier increases, meaning an initial decrease in aggregate demand (AD) has a larger overall positive effect on national income (Y). If the marginal propensity to consume (MPC) rises, the marginal propensity to save (MPS) rises. and the O multiplier increases, meaning an initial increase in aggregate demand (AD) has a larger overall positive effect on national income (Y)