In year one, the GDP deflator is 100 and in year two 110. If nominal GDP in year two is $300 billion, what is real GDP for year two? A) $200 billion. B) $100 billion. C) $272.73 billion. D) $220 billion. ANSWER C
Date: September 10th, 2020
Which of the following is not a determinant of a firm’s cost functions? A) The production function. B) The price of labor. C) The productivity of the firm’s capital stock. D) The price of the firm’s output. ANSWER D
Date: September 10th, 2020
If an individual moves money from a demand deposit account to a money market deposit account A) M1 decreases and M2 stays the same. B) M1 stays the same and M2 increases. C) M1 stays the same and M2 stays the same. D) M1 increases and M2 decreases. ANSWER A
Date: September 10th, 2020
The difference between personal income and disposable income is: A) corporate taxes B) personal taxes C) savings D) none of the above ANSWER B
Date: September 10th, 2020
If an individual moves money from a savings deposit account to a money market deposit account A) M1 decreases and M2 stays the same. B) M1 stays the same and M2 increases. C) M1 stays the same and M2 stays the same. D) M1 increases and M2 decreases. ANSWER C
Date: September 10th, 2020
Assume there is a decrease in the supply of a product produced in a perfectly competitive market. All else constant, in the short run this will cause the profits of firms that produce substitutes for the good in question to increase. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
If an individual redeems a U.S. savings bond for currency A) M1 stays the same and M2 decreases. B) M1 increases and M2 increases. C) M1 increases and M2 stays the same. D) M1 stays the same and M2 stays the same. ANSWER B
Date: September 10th, 2020
All else constant, an increase in productivity has the effect of causing: A) the marginal product of labor to increase and no effect on the average product of labor. B) the average product of labor to increase and no effect on the marginal product of labor. C) the marginal product of labor to increase and […]
Date: September 10th, 2020
Increases in both labor and capital productivity will result in: A) downward shift of the average and marginal product curves and upward shift of the average cost curves. B) downward shift of the average and marginal product curves and downward shift of the average cost curves. C) upward shift of the average and marginal product […]
Date: September 10th, 2020
Open market sale of government securities by the Fed decreases the federal funds rate. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
