Economics

Which of the following statements is true? A) Out of two loans, the i

Which of the following statements is true? A) Out of two loans, the interest accumulated after the end of a year will be more on the one that is a larger principal. B) Banks are the only financial institutions that lend money and do not accept deposits. C) Out of two loans, the interest accumulated […]

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Date: September 2nd, 2020

What is the economic role of a patent? What will be an ideal response

What is the economic role of a patent? What will be an ideal response?   ANSWER A patent grants the inventor the exclusive right to make, use, or sell an invention for 20 years. This gives the inventor property rights on the invention, which enables the inventor to profit from the invention. The number of […]

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Date: September 2nd, 2020

Which of the following statements is true? A) In a closed economy, go

Which of the following statements is true? A) In a closed economy, government spending equals zero. B) A nation with a high savings rate will accumulate capital rapidly. C) A nation with a high savings rate will accumulate capital slowly. D) In a closed economy, aggregate consumption equals zero.   ANSWER B

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Date: September 2nd, 2020

If the government began providing free textbooks to college students w

If the government began providing free textbooks to college students who would otherwise have bought their books from the private sector, the government’s action would result in A) a Ricardian dilemma. B) a direct expenditure offset. C) an increase in real Gross Domestic Product (GDP). D) a reduction of the government deficit.   ANSWER B

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Date: September 2nd, 2020

Which of the following statements is true? A) Models help economists

Which of the following statements is true? A) Models help economists to explain the past, but do not help in predicting the future. B) The scientific method used by economists is based on idealism and not empiricism. C) Testing with data enables economists to distinguish between good models and bad models. D) Models that economists […]

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Date: September 2nd, 2020

An aggregate demand curve A) shifts to the right when the price level

An aggregate demand curve A) shifts to the right when the price level increases and to the left when the price level falls. B) shifts to the right when population decreases and shifts to the left when population increases. C) does not shift, unlike individual or market demand curves. D) shifts to the right when […]

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Date: September 2nd, 2020