In a perfectly competitive market, situations of surplus or shortage of a good: A) exist till the government or any ruling authority intervenes. B) are permanent phenomena. C) can exist simultaneously. D) are self-corrected due to the competitive nature of the market. ANSWER D
Date: September 2nd, 2020
Refer to the scenario above. What is the national income of the economy? A) $7,000 B) $10,000 C) $2,000 D) $5,000 ANSWER A
Date: September 2nd, 2020
By definition, a direct expenditure offset will occur whenever A) the interest rate falls. B) the interest rate rises. C) the government increases spending in an area that competes with the private sector. D) the government increases spending for the military. ANSWER C
Date: September 2nd, 2020
Credit is: A) the loan that a debtor receives. B) the income that an employee earns. C) any good that cannot be consumed but is used for the production of other goods. D) any good that is available for free. ANSWER A
Date: September 2nd, 2020
All of the following will shift the consumption function EXCEPT A) a change in income. B) a change in wealth. C) a change in the rate of interest. D) a change in expectations concerning economic conditions. ANSWER A
Date: September 2nd, 2020
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
