Consider two countries: A and B. In country A, the annual growth rate of GDP per capita is 2%, while in country B the annual growth rate of GDP per capita is 6%. At present, country B’s GDP per capita is higher than country A’s GDP per capita. Which of the following statements will then […]
Date: September 2nd, 2020
The average propensity to consume (APC) equals A) the change in consumption expenditures divided by the change in real disposable income. B) real disposable income divided by consumption expenditures. C) the change in real disposable income divided by the change in consumption expenditures. D) consumption expenditures divided by real disposable income. ANSWER D
Date: September 2nd, 2020
Refer to the table above. If at a price of $3 per loaf, the market supply of bread is 45 loaves, Seller 3’s supply is: A) 15 units. B) 24 units. C) 18 units. D) 20 units. ANSWER C
Date: September 2nd, 2020
Which statement best characterizes the classical economists’ view of saving and investment? A) Saving exceeds investment. B) Saving is less than investment. C) Saving equals investment. D) Saving and investment are not related to one another. ANSWER C
Date: September 2nd, 2020
Tax policy conducted for the purpose of achieving full employment, price stability, or economic growth is an example of A) discretionary fiscal policy. B) interest-rate policy. C) monetary policy. D) exchange-rate policy. ANSWER A
Date: September 2nd, 2020
Which of the following will hold true if the market for cameras is in equilibrium at a price of $40? A) The quantity of cameras produced will equal the quantity of cameras bought in the market. B) Sellers of cameras will have an incentive to charge a price higher than $40. C) Buyers of cameras […]
Date: September 2nd, 2020
The open economy effect and interest rate effect are two of the reasons why A) higher price levels increase long-run aggregate supply. B) growth of the labor force does not contribute to economic growth in wealthy countries. C) capital formation does not contribute to economic growth in poor countries. D) the aggregate demand curve slopes […]
Date: September 2nd, 2020
A government protection for an inventor that provides the inventor with the right to make use of her invention in any way she desires is A) a trademark. B) an innovation. C) a patent. D) a copyright. ANSWER C
Date: September 2nd, 2020
Q: How many economists does it take to screw in a light bulb? A: None. If the light bulb really needed changing, market forces would have already caused it to happen. This joke represents the view of A) Keynesian economists. B) classical economists. C) economists who conclude that wages and prices are inflexible. D) economists […]
Date: September 2nd, 2020
Without an accepted medium of exchange A) people would have to rely on gold or silver in order to exchange goods and services. B) goods and services would be exchanged by barter. C) prices are very difficult to determine. D) there would be no trade. ANSWER B
Date: September 2nd, 2020
