As more economic development occurs A) the population growth rate increases. B) technological progress slows. C) capital accumulation decreases. D) the population growth rate decreases. ANSWER D
Date: September 2nd, 2020
The minimum level of income per person that is generally necessary for the individual to obtain enough calories, shelter, and clothing to survive is referred to as: A) safety level of income. B) survival wage rate. C) subsistence level of income. D) minimum wage rate. ANSWER C
Date: September 2nd, 2020
Which of the following statements is true? A) Using fewer observations will strengthen the force of an empirical argument. B) The number of observations used does not affect the strength of an empirical argument. C) Empirical arguments can be supported without the use of data. D) Using a large data set will strengthen the force […]
Date: September 2nd, 2020
When was the last year the United States had a budget surplus? A) 2001 B) 1993 C) 2014 D) 1984 ANSWER A
Date: September 2nd, 2020
When households choose to hold money as a store of value, rather than holding assets such as certificates of deposit, stocks, and bonds, ________ demand for money results. A) liquidity B) asset C) transactions D) precautionary ANSWER B
Date: September 2nd, 2020
Which of the following economic variables is affected when the central bank adopts countercyclical monetary policy? A) Interest rates B) Personal income tax rates C) Government spending D) Corporate tax rates ANSWER A
Date: September 2nd, 2020
Assuming all else equal, if the real interest rate decreases, it will lead to: A) a decrease in the quantity of credit demanded by a firm. B) the credit demand curve of a firm to shift to the right. C) an increase in the quantity of credit demanded by a firm. D) the credit demand […]
Date: September 2nd, 2020
What are the three forces that cause the aggregate demand curve to slope down? Explain. What will be an ideal response? ANSWER The three forces are the real-balance effect, the interest rate effect, and the open-economy effect. An increase in the price level causes the purchasing power of money balances to fall, interest rates […]
Date: September 2nd, 2020
The study of factors that contribute to the economic development of a country is A) development economics. B) the theory of technological advancements. C) population growth economics. D) the new technology theory. ANSWER A
Date: September 2nd, 2020
The break-even point refers to A) the amount of autonomous consumption. B) a point at which planned real consumption is for greater than real disposable income. C) the point at which planned real consumption equals real disposable income. D) the maximum amount of dissaving a person can experience. ANSWER C
Date: September 2nd, 2020
