What does ceteris paribus mean in the context of demand and supply?
Everything else stays the same / all other things being equal
100
If government revenue exceeds government spending in a certain year, what is that called?
Budget surplus
100
If the European consumers increase their demand for British goods, what happens to the exchange of the euro versus the pound?
It depreciates
100
Is economic growth both sufficient and necessary for economic development?
Neither sufficient nor necessary
100
One day, the price of margarine increases drastically. What happens to the demand curve of butter?
It shifts right
200
On a very cold day, what happens to the demand curve of the market for ice-cream?
It shifts left
200
If the government decides to decrease spending in order to fix a budget deficit, what will happened to the AD curve?
Shift left
200
If the interest rate in the UK increases, what happens to the exchange rate of the pound versus the dollar?
It appreciates
200
By when are the Millennium Development Goals (MDGs) supposed to be achieved?
2015
200
What is the role of the WTO?
Promote free trade
300
If the price of rubber increases, what happens to the supply curve of the car tire (tyre) market?
Shifts left
300
What will happen in the short-run if the government allows corporation tax cuts in key areas of the economy?
An increase in AD
300
If the demand for a fixed currency increases, how does the government intervene to keep the exchange rate constant?
It sells the domestic currency
300
If a multinational company starts a huge factory in a LEDC, what indicator of development will increase?
GDP per capita
300
What trade bloc allows for free movement of the factors of production?
Common market
400
What is true about the equilibrium price of a good with negative externalities of production?
It's too low
400
The government decides to reduce trade union power in order to make the labour market more flexible. Why would it do this?
To reduce unemployment
400
If I am French and working in the UK, under what category of the balance of payments will my remittances (sending money back to my family) be recorded?
Current account
400
What countries tend to have higher GDP per capita than GNI per capita?
LEDCs
400
What is an inward-oriented growth strategy?
When a country aims at being self-sufficient
500
8 units of a good are sold at USD 2 and 4 are sold if the price is USD 4. What is the value of the price elasticity of demand (PED)?
0.5
500
In a Keynesian perspective, what would be the effect of running a loose monetary policy on the perfectly elastic portion of the LRAS curve?
Increased real output (no inflation)
500
What do we call a trade block where members trade freely between each other, but have individual protectionist measures against non-members?
A free trade area
500
Why do agricultural subsidies in the US and the EU hinder the economic development of LEDCs in Africa?
It makes it harder for LEDCs to access international markets
500
If UK firms increase their foreign direct investment in Canada, what happens to the exchange rate of the pound versus the Canadian dollar?