One of the benefits of money as a medium of exchange is that A) it allows individuals to compare the relative value of goods. B) it allows for specialization that leads to economic efficiencies. C) over time it will become more valuable so that individuals can purchase more goods and services. D) it allows for […]
Date: September 2nd, 2020
Which of the following factors are considered under “new growth theory”? A) research B) technology C) innovation D) All of the above are correct. ANSWER D
Date: September 2nd, 2020
Which of the following statements is true? A) Exponential growth refers to growth by the same amount in every time period. B) To depict variables that have exponential growth, it is more convenient to use an axis with a proportional scale. C) Linear growth refers to growth by the same proportion in every time period. […]
Date: September 2nd, 2020
Which of the following is true of equilibrium? A) Equilibrium refers to a situation where an economic agent can be made better off without making anyone else worse off. B) Equilibrium refers to a situation where the government allocates resources among economic agents. C) Equilibrium refers to a situation where all economic agents are making […]
Date: September 2nd, 2020
Refer to the table above. Assuming that the market consists of only these three sellers, what is the market supply when the price is $2? A) 39 units B) 52 units C) 89 units D) 41 units ANSWER A
Date: September 2nd, 2020
One of the implications of new growth theory is that economic growth arises from A) financial safety nets for the poor, such as Medicaid. B) investments in knowledge. C) reductions in the birth rate. D) limits on international trade. ANSWER B
Date: September 2nd, 2020
Government spending conducted for the purpose of achieving full employment, price stability, or economic growth is an example of A) fiscal policy. B) monetary policy. C) interest-rate policy. D) exchange-rate policy. ANSWER A
Date: September 2nd, 2020
Refer to the scenario above. What will be the GDP per capita of country A at the beginning of year 2012? A) $2,410.26 B) $2,800 C) $2,760.24 D) $2,546.16 ANSWER D
Date: September 2nd, 2020
New growth theorists conclude that A) invention is more important than innovation in spurring economic growth. B) economic growth can continue as long as we keep coming up with new ideas. C) rates of global economic growth are limited by the amount of raw materials available. D) the amount of technological innovation in an economy […]
Date: September 2nd, 2020
The marginal propensity to consume (MPC) can best be defined as that fraction of A) real disposable income that is not consumed. B) a change in real disposable income that is spent. C) a change in real disposable income that is saved. D) real disposable income that is consumed. ANSWER B
Date: September 2nd, 2020
