At a price of $1 per table, the quantity supplied of tables is 100 units whereas the quantity demanded is 70 units. Given this information, which of the following statements is true? A) $1 per table is the market clearing price. B) At $1 per table, there is a surplus in the market. C) At […]
Date: September 2nd, 2020
The scientific method refers to the process by which economists and other scientists: A) plot graphs to illustrate relationships between different economic variables. B) develop models of the world and test those models with data. C) develop models to explain the past but not to predict the future. D) collect data for further use in […]
Date: September 2nd, 2020
Which of the following statements is true? A) Non-bank institutions are also a part of the credit market. B) People who lend money are known as debtors. C) People who borrow money are known as creditors. D) Money that is lent out is considered to be a liability. ANSWER A
Date: September 2nd, 2020
If your income stays the same and the price level increases, you will buy fewer goods and services due to the A) interest rate effect. B) real-balance effect. C) open economy effect. D) aggregate balances effect. ANSWER B
Date: September 2nd, 2020
Which of the following is a TRUE statement? A) The most important source of economic growth is the rate of population growth since a growing population stimulates demand for goods and services, and provides the labor to produce the goods and services. B) The most important sources of economic growth are the new ideas generated […]
Date: September 2nd, 2020
Money provides a way to transfer wealth into the future. This function of money is known as A) medium of exchange. B) unit of accounting. C) store of value. D) standard of deferred payment. ANSWER C
Date: September 2nd, 2020
Refer to the scenario above. If the population of the economy is 200, the per capita national income is: A) $17. B) $50. C) $10. D) $35. ANSWER D
Date: September 2nd, 2020
The non-income determinants of consumption include all of the following EXCEPT A) real wealth. B) the interest rate. C) stock of assets owned by household. D) innovation. ANSWER D
Date: September 2nd, 2020
The Laffer curve shows a relationship between A) interest rates and investment spending. B) government spending and real Gross Domestic Product (GDP). C) tax rates and tax revenues. D) the price level and real Gross Domestic Product (GDP). ANSWER C
Date: September 2nd, 2020
Which of the following is a stock variable? A) money supply B) wealth C) public debt D) all of the above ANSWER D
Date: September 2nd, 2020
