Macroeconomics Answers

“EU countries that are not member of the euro area do not fulfil the EMU accession

criteria.” Is this true?

Can mergers with small firms be problematic under the perspective of EU competition

policy?

Is the following correct: “Mergers of companies are prohibited in the EU because they

raise profits at the expense of consumers.”?

What is multi factor productivity?

Discuss the welfare effects of a customs union.

“The negative consequences of a real estate bubble can be particularly severe in a

currency union.” Discuss the statement

Suppose that a country’s annual growth rates were 5, 3, 4, -1, -2, 2, 3, 4, 6, and 3 in yearly 

sequence over a 10-year period. What was the country’s trend rate of growth over this 

period? Which set of years most clearly demonstrates an expansionary phase of the 

business cycle? Which set of years best illustrates a recessionary phase of the business 

cycle? 

Based on the above article, is the expected increase in residential property prices caused by demand or supply factors? Explain and illustrate your answer.

An individual consumes only two baskets, x and y. Which of the following expressions represents the utility-maximising market basket?

A.   MRS of x for y is at a maximum.

B.   P_x/P_y = money income.

C.   MRS of x for y = money income.

D.   MU_x/MU_y = P_x/P_y.

E.    All of the above.

A downward-sloping demand curve exists for:

A.   A monopolist, but not for a perfectly competitive firm.

B.   A perfectly competitive firm, but not for a monopolist.

C.   Both a monopolist and a perfectly competitive firm.

D.   Either a monopolist or a perfectly competitive firm depending on the cost of production.

E.    Oligopoly.