Kahoot 1

1. In a competitive labour market, the demand curve for labour is given by the:

Marginal revenue product

2. A monopsony type of market failure is said to occur for which one of the following?

Buyers of labour have market power.

(monopsony - employers have market power)

3. Which condition is the most likely to lead to rise in union bargaining power?

A sustained rise In GDP

4. … represents employees of MNC in the EU in discussions with management on

transnational issues

The European Works Council (Directive)

5. A state of the labour market which is often linked to a lower wage for those employed:

Monopsony

6. When the return to the factor is greater than is needed for it to supply itself:

Economic rent

7. In a/an ….. the marginal cost of labour curve lie above the average cost of labour curve:

Monopsony

8. In a perfectly competitive labour market, firms are wage takers and the marginal cost of
labour equals:

The average cost of labour

9. The addition to total revenue from employing the last person:

marginal revenue product

10. That return to the factor just sufficient to cause it to supply itself:

Transfer earnings

 Kahoot 2

1. Which reason is often used to support a policy to nationalise certain industries?

Easier to consider gap between private and social cost.

2. Which reason is often used to support a policy to privatise certain industries?

Firms exposed to market forces are more efficient

3. Which one of the following comes closets to being a ‘pure’ pure good?

Electricity, health service, postal service - can be private.

Military defence - pure public good

4. When the min efficient for firms output is greater than the output of the industry?

Natural monopoly.

5. The optimum level of economic activity and associated pollution from society’s point of
use?

MSB=MSC

marginal social benefits=marginal social cost

6. Which of the following is a problem which often confronts regulators of particular

industries?

Setting a price cap

(competition is good)

7. A situation in which buyers are less able to appreciate its quality than the suppliers

Asymmetric information (to parties have different amount of information - asymmetric)

8. Marginal social costs can be defined in which one of the following ways:

MARGINAL PRIVATE COST + MARGINAL EXTERNAL COST

9. The Coase theorem suggests which of the following regarding markets with
externalities?

Efficient agreements can be reached through private trades

10. Which is a challenge to using Pigouvian taxes to counteract a negative externality?

It is difficult to set the tax to perfectly offset the ext.

(On every product we have a tax)

 Kahoot 3

1. Which of the following is likely to raise the value of national output/income?

Rise in withdrawals falling short of the rise in injections

2. Which of thre following is likely to reduce the value of national output/income?

Rise in withdrawals exceeding the rise in injections

3. National output of residents located in the country, before depreciation / including taxes
+ subsidies

GDP at market prices

(gross and we look in the market prices)

4. National output of residents, located home or overseas, after depreciation /excluding

taxes subsidies

NNP at factor cost

5. Which represents the difference between GNP at market prices and GDP at market
prices?

Net property income from abroad

6. Exogenous variables

Are determined outside the model and „independent variables“

7. Which of the following is a widely used measure of the standard of living

Real output (income) per head of population

8. What increases the rate of inflation when the economy is already at full capacity
(everybody has a job)?

A reduction in rates of income tax

9. Increases in which would be likely policies trying to close a „deflationary gap“?

Consumer spendings (opposite - savings)

10. Increases in which would be likely policies trying to eliminate a „inflationary gap“

Taxes (if taxes increase, withdrawals would increase)

 Kahoot 4

1. Which of the following is consistent with the idea of automatic fiscal stabilisers

Government spending fall during boom times as unemployment falls.

2. Unemployment tape if the coal industry in the UK collapses due to a switch to green
energy?

Structural unemployment

3.Which of the following situations is most likely to result in „demand pull“ inflation?

Rise in investments/government spendings (no change in productivity)

4. A fall in the Euro exchange rate against the US dollar would have the following impacts?

German exports to USA become cheaper (in dollars)

5. A rise in the dollar exchange rate agains the euro would have the following effect?

US imports romFrance become cheaper (in Dollar)

6. Which of the following government policy measures is likely to reduce frictional

unemployment?

More efficient and better informed job centres

7. Which would be most favourable (other things equal) for US exporters to Eurozone?

A strengthening of the Euro against Dollar

8. If the economy experiences inflations, then aggregate…

… demand increases faster than aggregate supply

9. Off the following sequences of price levels, which correctly represents a 5% inflation

rate?

100, 105, 110.24, 115.76 increases)

10. The Philips curve says:

The higher the inflation, the lower the unemployment.