Which of the following is NOT one of the functions of money? A) protection from increases in prices of goods and services B) store of value C) medium of exchange D) unit of accounting ANSWER A
Date: September 2nd, 2020
Which of the following examples best describes the Law of Supply? A) When the cost of production of cotton increased, all suppliers’ willingness to accept decreased. B) When the market price of pens increased, sellers started supplying more pens. C) When the cost of production of cotton fell, the market price of cotton also fell. […]
Date: September 2nd, 2020
The ________ nature of economic growth is one of the major reasons why there are large differences in GDP per capita across countries. A) linear B) quadratic C) exponential D) logarithmic ANSWER C
Date: September 2nd, 2020
The function of money as a store of value diminishes if A) money is no longer backed by gold. B) prices of goods and services increase. C) people begin to barter. D) interest rates increase. ANSWER B
Date: September 2nd, 2020
A seller’s willingness to accept is the same as his: A) total cost of production. B) marginal cost of production. C) fixed cost of production. D) average cost of production. ANSWER B
Date: September 2nd, 2020
A consumer has a monthly income of $100 that he wants to spend on two goods: rugs priced at $10 and chairs priced at $5. What is the consumer’s opportunity cost of buying a rug? What is his opportunity cost of buying a chair? Use a table to represent the consumer’s budget constraint. ANSWER […]
Date: September 2nd, 2020
Refer to the table above. If country X is expected to grow by 19% between the years 2007 and 2008, what is the expected GDP per capita for the year 2008? A) $2,439.50 B) $3,015 C) $2,763.90 D) $1,882 ANSWER A
Date: September 2nd, 2020
According to new growth theorists, more technological improvements can be brought about by A) the government taking a more active role in regulating industries. B) government policies that lead to increases in human capital. C) tougher immigration laws. D) a government policy that encourages increased consumption. ANSWER B
Date: September 2nd, 2020
Which one of the following is TRUE about the effects of fiscal policy? A) A decrease in government spending will decrease aggregate demand. B) A tax change does not have any direct or indirect effects on aggregate demand. C) A decrease government spending will increase aggregate supply. D) An increase in government spending will reduce […]
Date: September 2nd, 2020
If the effects of growth in a variable compound are approximately constant, then growth is likely to be: A) exponential. B) vector. C) logarithmic. D) linear. ANSWER A
Date: September 2nd, 2020
