Resources are all of the following EXCEPT A) scarce and therefore require choices to be made. B) limited in quantity and can be used in different ways. C) unlimited and in abundance. D) the things we use to produce goods and services. ANSWER C
Date: September 2nd, 2020
The physical and mental effort people use to produce goods and services is a description of which factor of production? A) physical capital B) labor C) entrepreneurship D) human capital ANSWER B
Date: September 2nd, 2020
Which of the following will lead to an increase in the gross domestic product of a country, all other variables remaining unchanged? A) An increase in imports B) An increase in consumption expenditure C) A fall in the expenditure incurred by the government D) A fall in the expenditure on investment goods ANSWER B
Date: September 2nd, 2020
If a country increases its savings rate, the steady-state equilibrium level of: A) GDP will increase. B) investment will decrease. C) capital stock will decrease. D) efficiency units of labor will increase. Consider two economies: A and B. Both the countries have access to the same aggregate production function and have the same population and […]
Date: September 2nd, 2020
The knowledge and skills acquired by a worker through education and experience is a description of which factor of production? A) physical capital B) entrepreneurship C) labor D) human capital ANSWER D
Date: September 2nd, 2020
Which of the following is the best measure of the total amount that the federal government owes to private owners of U.S. Treasury securities? A) the government budget deficit B) the gross public debt C) government interagency borrowing D) the net public debt ANSWER D
Date: September 2nd, 2020
According to David Ricardo, an increase in government spending without any tax increase will not increase aggregate demand because A) consumers will increase their consumption proportionately more than Keynesian economists believe they will. B) consumers will save less than they otherwise would have. C) consumers will consume less and save more to prepare for increased […]
Date: September 2nd, 2020
Which of the following is likely to happen if the quantity of bank reserves held at the Fed increases? A) The stock of money in the economy increases. B) The number of loans issued by banks decrease. C) Bank deposits decrease. D) The real interest rate increases. ANSWER A
Date: September 2nd, 2020
Over the past 40 years, which of the following has the U.S. economy experienced? A) persistent inflation B) persistent deflation C) secular deflation D) hyperinflation with prices rising at over 100 percent per year ANSWER A
Date: September 2nd, 2020
Refer to the scenario above. If both economies have identical depreciation rate, then: A) economy A’s steady state equilibrium will lie to the left and above economy B’s steady state equilibrium. B) economy A’s steady state equilibrium will lie to the right and below economy B’s steady state equilibrium. C) economy A’s steady state equilibrium […]
Date: September 2nd, 2020
