The curve that displays total planned real spending on goods and services at each price level by households, businesses, the government, and foreign residents is called A) the employment curve. B) the aggregate demand curve. C) the price level curve. D) the aggregate supply curve. ANSWER B
Date: September 2nd, 2020
An expected increase in the market price of oil in the coming year is likely to: A) shift the supply curve of oil to the right in the current year. B) shift the demand curve for oil to the left in the current year. C) cause no changes in the demand and supply curves of […]
Date: September 2nd, 2020
The marginal propensity to consume is calculated by A) dividing the change in income by the change in consumption. B) dividing income by consumption. C) dividing consumption by income. D) dividing the change in consumption by the change in income. ANSWER D
Date: September 2nd, 2020
A measure by which prices are expressed is a(n) A) standard of deferred payment. B) unit of accounting. C) medium of exchange. D) store of value. ANSWER B
Date: September 2nd, 2020
Sustained growth refers to a growth process: A) where growth in GDP per capita is attributed primarily to public sector firms and enterprises. B) where GDP per capita grows at a positive and steady rate for long periods of time. C) where growth in GDP per capita is translated into equal increase in welfare for […]
Date: September 2nd, 2020
According to the Keynesian model, the short-run aggregate supply (SRAS) curve is horizontal when A) prices react to an aggregate demand shock but real Gross Domestic Product (GDP) does not. B) there are no unemployed resources and wages do not change when prices change. C) there are unemployed resources and prices do not fall when […]
Date: September 2nd, 2020
The reason that the government offers inventors exclusive rights to their product for a period of time is to A) promote innovation. B) increase profits of certain companies. C) maximize consumer utility. D) reduce market concentration. ANSWER A
Date: September 2nd, 2020
The arithmetic value of (1 – MPC) equals A) MPS. B) APS. C) APC. D) NDP. ANSWER A
Date: September 2nd, 2020
When a market is in equilibrium, both buyers and sellers do not perceive a benefit from changing their behavior. Why? What will be an ideal response? ANSWER In most economic situations, an economic agent is not optimizing individually. His decision is influenced by the decisions taken by other economic agents. In equilibrium, each and […]
Date: September 2nd, 2020
Define marginal cost. Is it different from the concept of willingness to accept? What will be an ideal response? ANSWER Marginal cost in production refers to the extra cost incurred in producing an additional unit of a commodity. Willingness to accept is the lowest price that a firm is willing to receive to sell […]
Date: September 2nd, 2020
