The average price of ten commodities is $330. If an eleventh commodity whose price is $600 is included in the calculation, the new average is: A) $330.35. B) $450.25. C) $354.54. D) $254.54. ANSWER C
Date: September 2nd, 2020
Z is a normal good. The equilibrium price and equilibrium quantity of Z in the year 2011 was $25 and 60 units, respectively. In 2014, the equilibrium price of Z had decreased to $15 and the equilibrium quantity had also decreased to 50 units. Other things remaining the same, which of the following could explain […]
Date: September 2nd, 2020
If the government has no debt initially, but then has annual revenues of $10 billion per year for 4 years and annual expenditures of $10.5 billion per year for 4 years, then the government has A) a budget surplus of $0.5 billion per year and a debt of $2 billion at the end of the […]
Date: September 2nd, 2020
Expansionary fiscal policy falls short of its goal. Some economists claim it is due to indirect crowding out. What evidence would be consistent with this claim? A) The interest rate increased. B) The price level decreased. C) Saving decreased. D) An increase in consumer spending occurred. ANSWER A
Date: September 2nd, 2020
Economists have determined that there are four factors that seem to strongly affect a nation’s rate of economic development. Which is NOT one of these four factors? A) supporting current industries and the jobs they provide instead of adopting new technology that brings disruptive social changes B) developing an educated population C) establishing a system […]
Date: September 2nd, 2020
The degree to which an asset can be acquired or disposed of without much loss of nominal value or transaction costs is known as A) fiducia. B) credit. C) fiat money. D) liquidity. ANSWER D
Date: September 2nd, 2020
The transactions demand for money refers to A) the demand to hold money for use in planned purchases. B) the demand to hold money as a long-term store of value. C) the desire for income. D) the desire for wealth. ANSWER A
Date: September 2nd, 2020
Three candidates for political office disagree over the benefits of enlarging the federal budget deficit. Candidate C says the stimulation package is needed to increase employment and real GDP; Candidate D says it will only cause higher prices; and Candidate F says it will have no effect on either real GDP or the price level. […]
Date: September 2nd, 2020
The study of factors that contribute to the economic growth of a country is known as A) savings economics. B) entrepreneurial economics. C) natural resource economics. D) development economics. ANSWER D
Date: September 2nd, 2020
Along the 45° reference line A) the average propensity to consume is represented. B) planned real expenditures equal real disposable income. C) consumption expenditures equal saving. D) the relationship between consumption and income is represented. ANSWER B
Date: September 2nd, 2020
