The new growth theory of economic growth examines the interaction of A) regulations and capital expansion. B) technology, research, and innovation. C) resources and labor productivity. D) labor and population. ANSWER B
Date: September 2nd, 2020
Singapore had a GDP per capita of $395 in 1960, and $52,918 in 2013. The U.S had a GDP per capita of $2,881 in 1960 and $52,839 in 2013. Such a growth is referred to as: A) instant growth. B) disguised growth. C) catch-up growth. D) sustained growth. ANSWER C
Date: September 2nd, 2020
An increase in U.S. prices relative to Japanese prices will A) decrease both U.S. exports and imports. B) increase total planned spending on U.S. goods and services. C) increase U.S. imports and decrease U.S. exports. D) decrease U.S. imports and increase U.S. exports. ANSWER C
Date: September 2nd, 2020
The real-balance effect indicates that at higher price levels A) the real value of money holdings increase, resulting in increased saving. B) the purchasing power of money will increase. C) the real value of money holdings fall, resulting in decreased spending. D) the value of the dollar will increase. ANSWER C
Date: September 2nd, 2020
Refer to the above figure. If the relevant aggregate demand curve is AD1, then the economy is experiencing A) full employment. B) an inflationary ga ANSWER A
Date: September 2nd, 2020
A fall in the price of flour, used in making cakes, is likely to: A) increase the supply of cakes. B) decrease the quantity supplied of cakes. C) increase the quantity supplied of cakes. D) decrease the supply of cakes. ANSWER A
Date: September 2nd, 2020
Why did the classical economists think that large-scale unemployment was not possible in a market economy? What will be an ideal response? ANSWER The classical economists accepted Say’s law, which indicated that desired expenditures will equal actual expenditures. The act of producing indicates one wants to buy other goods. A surplus or shortage in […]
Date: September 2nd, 2020
Which of the following is likely to lead to an increase in the quantity supplied of steel? A) An expected increase in the demand for steel in the future B) A rise in the market price of steel C) A fall in the wage rate of labor employed in the steel industry D) An increase […]
Date: September 2nd, 2020
The function of money that allows individuals a method to compare the relative value of goods and services is A) liquidity. B) medium of exchange. C) store of value. D) unit of accounting. ANSWER D
Date: September 2nd, 2020
What is Say’s law and what does it mean? What will be an ideal response? ANSWER Say’s law is: Supply creates its own demand. It means that a general glut or overproduction is not possible. The very process of producing specific goods is proof that other goods are desired. The income received from selling […]
Date: September 2nd, 2020
