As real disposable income increases, we expect the average propensity to consume (APC) A) to always be below MPC. B) to increase. C) to remain unchanged. D) to decrease. ANSWER D
Date: September 2nd, 2020
When current growth builds on past growth, growth is: A) logarithmic. B) exponential. C) linear. D) negative. ANSWER B
Date: September 2nd, 2020
a) Sam pays $600 for 30 days of guitar classes. He attends an hour-long class every day. If, instead of attending class, he works at a part-time job, he would be paid $5 an hour. Or, he could work at a fast-food outlet and earn $9 per hour. Once he has already paid a nonrefundable […]
Date: September 2nd, 2020
The aggregate demand curve shows the A) total amount of nominal goods that the participants in the economy want to purchase. B) amount of goods producers will produce as production costs fall. C) total amount of real goods that foreigners want to purchase. D) total amount of planned expenditures on goods and services at each […]
Date: September 2nd, 2020
Which of the following statements is NOT true about money? A) Money can only be coins and paper. B) Anything that serves as a medium of exchange, as a unit of accounting, as a store of value, and as a standard of deferred payment can be called money. C) Money is any medium that is […]
Date: September 2nd, 2020
When the average propensity to save (APS) is 0.20, then this means A) people are spending 60 percent of their disposable income and investing the remaining 20 percent. B) people are spending 20 percent of their disposable income. C) people are spending 80 percent of their disposable income. D) people are saving $0.20 of the […]
Date: September 2nd, 2020
Exponential growth implies that: A) relatively large differences in growth rates will translate into small differences in the level of a quantity after many years of growing. B) growth rates will alternate between positive and negative values in every consecutive time period. C) relatively small differences in growth rates translates into large differences in the […]
Date: September 2nd, 2020
According to the new growth theory A) technology should be considered as a factor of production. B) technology is a natural by-product of invention. C) technology plays a minor role in economic development. D) technology provides few rewards to the society. ANSWER A
Date: September 2nd, 2020
If the average propensity to consume is 0.8, then the average propensity to save is A) 0. B) 0.2. C) 0.8. D) 1. ANSWER B
Date: September 2nd, 2020
The downward slope of the aggregate demand curve shows that A) a higher price level will cause planned purchase rates for final goods and services to be higher. B) an increase in aggregate demand reduces the long-run aggregate supply. C) a lower price level will cause planned purchase rates for final goods and services to […]
Date: September 2nd, 2020
