Which of the following is most likely to be an example of causation? A) A student wins money by scratching a ticket with a particular coin. He decides to scratch all tickets with the same coin in the future. B) A soccer player scores 4 goals when he wears red socks. He concludes that the […]
Date: September 2nd, 2020
The study of development economics is to understand A) the personality factors that lead people to become entrepreneurs. B) why most of the patents on record have been given to men rather than to women. C) why some countries are rich and others are poor. D) why some products are successful in the market as […]
Date: September 2nd, 2020
Which of the following statements is true of the Industrial Revolution? A) It was a gradual process. B) It started in the capital goods industry. C) It was a period of rapid disruption. D) It started in the United States. ANSWER A
Date: September 2nd, 2020
Which of the following could explain why there was a stampede at the Richmond International Raceway where 1,000 laptops were being sold at $50 each? A) Those who bought laptops at that price were those who valued laptops the most. B) The quantity of laptops demanded at $50 was higher than the quantity supplied. C) […]
Date: September 2nd, 2020
The opportunity cost of current consumption is: A) nominal wage rate. B) the inflation rate. C) real wage rate. D) the real interest rate. ANSWER D
Date: September 2nd, 2020
Something that affects the amount of money in existence will A) affect all markets. B) have no particular effect. C) have an effect only if the change in money is large. D) not affect the economy as a whole but may affect certain key markets such as the market for loans. ANSWER A
Date: September 2nd, 2020
Expansionary monetary policy ________. A) lowers tax rates B) increases interest rates C) increases tax rates D) lowers interest rates ANSWER D
Date: September 2nd, 2020
When policy makers take actions in response to or in anticipation of some change in the overall economy, there is A) passive policy making. B) rationalization policy making. C) rational expectations policy making. D) active policy making. ANSWER D
Date: September 2nd, 2020
Asset demand for money is holding money A) as a medium of exchange to make payments. B) to meet unplanned expenditures and emergencies. C) to speculate on the stock market and bonds. D) as a store of value instead of other assets. ANSWER D
Date: September 2nd, 2020
If the Fed wants to stimulate the economy, ________. A) it reduces money supply B) it lowers spending C) it increases tax rates D) it lowers short-run interest rates ANSWER D
Date: September 2nd, 2020
