Continuous increase in investment in which of the following is most likely to cause sustained growth? A) Capital B) Technology C) Land D) Labor ANSWER B
Date: September 2nd, 2020
If the crowding-out effect is complete and the marginal propensity to save is 0.25, then an increase in government spending of $100 billion will generate how much more real GDP? A) $0 B) $400 billion C) $25 billion D) $100 billion ANSWER A
Date: September 2nd, 2020
Public debt is held as A) Treasury Bills, Treasury Notes, Treasury Bonds, and U.S. Savings Bonds. B) U.S. Notes. C) Federal Reserve Notes. D) corporate bonds and common stocks of the largest companies. ANSWER A
Date: September 2nd, 2020
The public debt can be thought of as A) the total amount the government spends for goods and services. B) the total amount consumers owe on their credit cards. C) accumulated budget deficits and surpluses. D) the total amount in taxes consumers pay to the government. ANSWER C
Date: September 2nd, 2020
Refer to the figure above. When the supply curve of flash drives is S1 and the demand curve for flash drives is D, what is the shortage in the market when the price is $5? A) 50 units B) 40 units C) 10 units D) 0 units ANSWER D
Date: September 2nd, 2020
A weakening in consumer confidence causes a A) shift of the aggregate demand curve to the right. B) movement down along the aggregate demand curve. C) shift of the aggregate demand curve to the left. D) movement up along the aggregate demand curve. ANSWER C
Date: September 2nd, 2020
If the real interest rate is equal to the nominal interest rate in an economy: A) inflation must be negative in the economy. B) inflation must be zero in the economy. C) inflation must be positive in the economy. D) the nominal interest rate must be zero. ANSWER B
Date: September 2nd, 2020
Economic models are often based on assumptions because they: A) help simplify complex real-world phenomena. B) help explain the past. C) help test models even when relevant data are unavailable. D) help predict the future with higher accuracy. A model is based on an assumption that an additional year of education increases a student’s future […]
Date: September 2nd, 2020
For barter to occur there has to be A) a commodity to serve as a medium of exchange. B) a single coincidence of wants. C) a double coincidence of wants. D) a formal market where prices are quoted. ANSWER C
Date: September 2nd, 2020
Consider two economies: A and B. The nominal interest rate is the same in both economies, but the rate of inflation is higher in economy B. Which of the following statements will then be true? A) The real interest rate will be the same in both economies. B) The real interest rate will be higher […]
Date: September 2nd, 2020
