Which of the following statements is true of data? A) Anecdotes work as good substitutes for data. B) Data help in verifying causal relationships. C) Data are not important to evaluate theories. D) The less the available data, the better the analysis. ANSWER B
Date: September 2nd, 2020
Cigarettes served as money in some prisoner of war (POW) camps during World War II. Given this, we would expect to observe A) no one ever smoking a cigarette. B) prices of other goods expressed in terms of cigarettes. C) only government-issued cigarettes being accepted as money. D) people usually resorting to barter rather than […]
Date: September 2nd, 2020
What is measured on the vertical axis of the aggregate demand graph? A) unemployment B) nominal income C) the price level D) real GDP per year ANSWER C
Date: September 2nd, 2020
Country A’s GDP per capita in the beginning of 2005 was $22,150. In the beginning of 2006, it increased to $27,600. Calculate country A’s growth rate of GDP per capita between 2005 and 2006. What will be an ideal response? ANSWER In this case, the growth rate of GDP per capita of country A […]
Date: September 2nd, 2020
According to the above table, as the level of real disposable income increases A) the APS increases. B) the APC increases. C) the marginal propensity to save declines. D) the marginal propensity to consume increases. ANSWER A
Date: September 2nd, 2020
Empiricism refers to the process of: A) making choices using values and beliefs. B) measuring variables. C) testing ideas using data. D) collecting and organizing data. ANSWER C
Date: September 2nd, 2020
Which of the following is most likely to reduce the rate of economic growth? A) investment in human capital B) a high domestic saving rate C) subsidies for R&D activities D) slow technological progress ANSWER D
Date: September 2nd, 2020
Which one of the following is an example of discretionary fiscal policy used to correct an inflationary gap? A) an increase in government expenditures approved by Congress B) decrease in the money supply by the Federal Reserve C) a tax increase passed into law by Congress D) an agreement among major banks to lower interest […]
Date: September 2nd, 2020
Which of the following statements correctly describes perfectly competitive market equilibrium? A) There is always excess supply or excess demand when the market is in equilibrium. B) Multiple equilibriums are possible for a given set of demand and supply curves. C) Government intervention is necessary for the market to reach equilibrium. D) Any deviation from […]
Date: September 2nd, 2020
Which characteristic of economic growth is responsible for the large differences in GDP per capita across countries? What will be an ideal response? ANSWER Economic growth is exponential in nature and this in one of the major reasons for the large differences in GDP per capita across countries. When an economy grows exponentially, new […]
Date: September 2nd, 2020
