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
Consider the above figure. Autonomous consumption, in this scenario, is equal to A) $30. B) $80. C) $60. D) $40. ANSWER D
Date: September 2nd, 2020
Which of the following factors could cause the economy to experience supply-side inflation? A) increased security about jobs and future income B) Develop new technology to increase productivity. C) government laws which say that the average work week must be reduced by one hour every year D) Increase the number of immigrants allowed into the […]
Date: September 2nd, 2020
Which of the following correctly describes a way in which deficit spending can impose a burden on future generations? I. Failure to allocate deficit spending to uses that boost future real Gross Domestic Product (GDP) will require taxing future generations at a higher rate to repay the resulting higher public debt. II. Government deficits that […]
Date: September 2nd, 2020
If the quantity of bank reserves held at the Fed increases, ________. A) the real interest rate increases B) bank deposits decrease C) the number of loans issued by banks decrease D) inflation increases ANSWER D
Date: September 2nd, 2020
