If government spending exceeds the amount of taxes collected from households and businesses, the government simply finances the difference by printing more money. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The marginal propensity to save is defined as: A) ΔC/ΔYd. B) ΔS/ΔYd. C) ΔYd/ΔC. D) ΔYd/ΔS. ANSWER B
Date: September 10th, 2020
Which of the following would make it easier to maintain an effective collusive agreement in a cartel? A) An increase in the number of potential entrants into the industry. B) A decrease in the elasticity of demand for the cartel’s product. C) An increase in the number of substitutes for the product produced by the […]
Date: September 10th, 2020
If the cross-price elasticity of demand between two goods is positive, we can assume that the two goods in question are: A) complements. B) substitutes. C) inferior goods. D) totally unrelated to one another. ANSWER B
Date: September 10th, 2020
As we move down a linear demand curve, the absolute value of the price elasticity of demand: A) increases. B) stays the same. C) decreases. D) cannot be determined without more information. ANSWER C
Date: September 10th, 2020
Measuring expenditures and income with the price level held constant, so that any changes in these values represent changes in the actual amount of goods, services, and income is denoted in ________ terms. A) nominal B) real C) constant dollar D) all of the above ANSWER B
Date: September 10th, 2020
Economies of scale are illustrated by: A) a downward sloping long-run average cost curve. B) a flat long-run average cost curve. C) an upward-sloping long-run average cost curve. D) a downward-sloping short-run average total cost curve. ANSWER A
Date: September 10th, 2020
Assume the marginal revenue from each additional unit of a good sold is 0. In this case, we can conclude that demand for the good is: A) unit elastic B) perfectly elastic. C) perfectly inelastic. D) relatively inelastic. ANSWER B
Date: September 10th, 2020
In which of the following situations would each of the members be responsible for producing an equal share of the total amount of output sold by the cartel engaged in joint profit maximization? A) When the amount of revenue generated by each member of the cartel is the same. B) When there are no economies […]
Date: September 10th, 2020
The vital link between the real and monetary sectors of the economy is the: A) price level. B) interest rate. C) balance of payments. D) budget deficit. ANSWER B
Date: September 10th, 2020
