Assuming constant returns to scale, the equation, Y = A(t)F(K,N) can be rewritten as a. Y/N = A(t)ƒ(K/N). b. q = A(t)ƒ(k). c. Y/N = A(t)ƒ(K N). d. Both a and b e. Both b and c ANSWER D
Date: September 10th, 2020
Increased specialization in the computer industry is evidenced by (a) the types of government policies implemented to aid the computer industry. (b) the growth of the software industry. (c) the growth of the manufacturing industry. (d) the growth of agriculture. ANSWER (b)
Date: September 10th, 2020
What did automobiles and government subsidized highways increase the net benefits of? (a) Investing privately in highway development (b) Rapid expansion of new cities and towns and revitalization in old cities and towns (c) Development of suburban and exurban areas (d) All of the above ANSWER (c)
Date: September 10th, 2020
According to Kuznets (1954), competition will (a) unfairly destroy leading industries and impede overall economic growth across industries. (b) require government intervention. (c) push efficient industries into leadership roles and pull the backward and forward industrial links to these leaders with them. (d) contract consumer market opportunities. ANSWER (c)
Date: September 10th, 2020
According to the early Keynesians, a. the money demand function was unstable; the interest elasticity of money demand was extremely high; and, as a consequence, changes in the quantity of money did not have important predictable effects on the level of economic activity. b. the money demand function was stable; the interest elasticity of money […]
Date: September 10th, 2020
According to the neoclassical growth model, economic growth occurs because of a. increasing returns to scale. b. exogenous increases in technology. c. international trade that can increase knowledge. d. government policy which encourages savings. e. all of the above. ANSWER E
Date: September 10th, 2020
The American Revolution and Constitution represented the transition to “modern liberalism,” or (a) a strong emphasis on the role of government in providing for the welfare of the people and the regulation of business activities. (b) an emphasis on free enterprise and competitive individualism and a limited role for government. (c) an emphasis on public […]
Date: September 10th, 2020
In answer to the question, “Could they see the Great Depression coming?”, Hughes and Cain (2011) respond: (a) No—Many people firmly believed that markets would self-correct and eventually recover with no government intervention (b) No—many people seemed to believe that the prosperity of the 1920s would continue indefinitely because they believed that the economy was […]
Date: September 10th, 2020
In a floating exchange rate system, an appreciation of the exchange rate could be caused by a. a cut in taxes. b. a decrease in government spending. c. an increase in the domestic money supply. d. a decrease in the foreign demand for U.S. goods. ANSWER A
Date: September 10th, 2020
In the U.S. balance of payments, exports to Europe are recorded as a a. a use of funds in the current account. b. negative item in the current account. c. capital inflow item. d. capital outflow item. e. None of the above ANSWER E
Date: September 10th, 2020
