The reason we are willing to accept money with no intrinsic value is that A) the money supply is backed by an equal amount of gold and silver. B) we have a fiduciary monetary system in which currency has both acceptability and predictability of value. C) the value of the money varies directly with changes […]
Date: September 2nd, 2020
Which of the following statements is true? A) The demographic transition of the 19th century led to a decrease in life expectancy across the Western world. B) Until the demographic transition in the 19th century, they were recurrent Malthusian cycles. C) The demographic transition of the 19th century led to an increase in fertility across […]
Date: September 2nd, 2020
Assume that the market for cell phones comprises two buyers and two sellers. The following table shows the demand and supply of cell phones at different prices. Using the information in the table, determine the market equilibrium price and quantity. Price ($) Cell Phones Demanded (Buyer 1 ) Cell Phones Demanded (Buyer 2 ) 10 […]
Date: September 2nd, 2020
Savers are willing to lend out money because: A) they prefer to spend money in the future rather than today. B) the rate of inflation in an economy is normally positive. C) of altruism. D) the rate of inflation in an economy is normally negative. ANSWER A
Date: September 2nd, 2020
Supply-side economics A) promotes increasing taxes to create additional revenue for government spending. B) promotes expansionary fiscal policy by increasing government spending. C) is based on the Ricardian equivalence theorem. D) promotes reducing taxes to create incentives to increase productivity. ANSWER D
Date: September 2nd, 2020
In a fiduciary monetary system, the value of the money issued by a government is based on A) the ability to convert it to some asset of value, like silver. B) the gold held in that government’s vaults. C) public confidence in that currency’s acceptability and predictability of value. D) its being made out of […]
Date: September 2nd, 2020
An economic model suggests that an additional year of education increases a student’s future wages by 15 percent. Using this model, answer the following questions: a) Gary completes 8 years of education, and John completes 9 years of education. If Gary earns $20 per hour, how much is John expected to earn? b) John completes […]
Date: September 2nd, 2020
Which of the following identifies correct reasons for the sustained growth in the Western world post 19th century? A) Demographic transition and the American civil war B) The American civil war and the Industrial Revolution C) The Agricultural Revolution and the Industrial Revolution D) Demographic transition and the Industrial Revolution ANSWER D
Date: September 2nd, 2020
If the government adopts expansionary monetary policy during a recession, ________. A) tax rates increase B) government spending falls C) access to credit increases D) interest rates increase ANSWER C
Date: September 2nd, 2020
Supply-side inflation is caused by A) an increase in aggregate demand and no change in aggregate supply. B) a decrease in aggregate supply and no change in aggregate demand. C) a decrease in aggregate demand and no change in aggregate supply. D) an increase in aggregate supply and no change in aggregate demand. ANSWER […]
Date: September 2nd, 2020
