Refer to the table above. If, at a price of $4 per loaf, the market supply of bread is 75 loaves, Seller 2’s supply is: A) 30 units. B) 35 units. C) 55 units. D) 20 units. ANSWER D
Date: September 2nd, 2020
“Supply creates its own demand” implies that A) the very act of supplying a particular level of goods and services will not necessarily equal the level of goods and services demanded. B) the very act of demanding a particular level of goods and services necessarily equals the level of goods and services supplied. C) the […]
Date: September 2nd, 2020
In the classical view, if desired saving exceeds desired investment A) the interest rate would increase. B) government spending must rise. C) government spending must fall. D) the interest rate would decline. ANSWER D
Date: September 2nd, 2020
The marginal propensity to consume (MPC) A) shows the percentage of real disposable income consumed at each level of income. B) shows how much of an extra dollar of real disposable income is spent. C) shows how much real disposable income changes when consumption falls. D) is greater than 1 only if the marginal propensity […]
Date: September 2nd, 2020
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
