The monetarists emphasize the a. importance of fiscal policy for determining GDP. b. the instability of the money supply. c. the stability of velocity. d. need to “fine tune” the level of economic activity. e. both b and c. ANSWER E
Date: September 10th, 2020
With a fixed exchange rate, an increase in the domestic price level will, for a constant foreign price level, a. increase exports and decrease imports. b. make foreign goods relatively more expensive to U.S. citizens but U.S. exports will be relatively cheaper to foreigner buyers. c. increase both exports and imports. d. make foreign goods […]
Date: September 10th, 2020
Which group came out of World War I (1914–18) better off? (a) Industrial and agricultural workers (b) Creditors (c) Individuals depending on investment (d) People living on fixed incomes ANSWER (a)
Date: September 10th, 2020
Which of the following revenue-raising options did the “colonial” government select to secure the resources needed to revolt? (a) Printing money and borrowing from other countries (b) Printing money and confiscating property (c) Taxing and borrowing from other countries (d) Taxing and reducing non-military government spending ANSWER (b)
Date: September 10th, 2020
Supply-side economists argue that taxing of nominal gains and interest earnings during inflationary periods a. results in an increased effective tax rate on real returns but will not retard saving. b. will retard saving but will not increase the effective tax rate on real returns. c. will increase the effective tax rate on real returns […]
Date: September 10th, 2020
The current account in a nation’s balance of payments accounts includes a. exports of U.S. computers b. imports of German automobiles. c. purchases of foreign stocks. d. Both a and b e. All of the above ANSWER D
Date: September 10th, 2020
U.S. demand for tertiary labor increases when (a) the wage rate rises. (b) urbanization proceeds. (c) demand for goods and services decreases. (d) price of output declines. ANSWER (b)
Date: September 10th, 2020
English mercantilism recognized the law of comparative advantage, thus permitting individuals to specialize in producing those goods and services which they could produce at relatively low opportunity costs and trading those items for those which they could not. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The command economy of World War I (1914–18) possessed which of the following traits? (a) Decentralized decision-making in the markets (b) The creation of many state agencies (c) Volunteers for the armed forces (d) Centralized decision making by bureaucrats ANSWER (d)
Date: September 10th, 2020
Compared to the 19th century, the population of the 20th century (a) was largely urbanized. (b) was 3.7 times larger in number. (c) experienced a 63 percent increase in life expectancy at birth. (d) can be described by all of the above. ANSWER (d)
Date: September 10th, 2020
