For something to serve as money, it must be A) light, durable, and common. B) convertible to gold. C) backed by the authority of the government. D) generally accepted by buyers and sellers. ANSWER D
Date: September 2nd, 2020
How might fiscal policy be used to correct a recessionary gap? A) Government spending would be adjusted to increase aggregate demand. B) Business operations would be regulated by the government to become more efficient. C) The exchange rate would be adjusted to discourage imports. D) The exchange rate would be adjusted to encourage imports. […]
Date: September 2nd, 2020
The Law of Supply states that: A) supply creates its own demand. B) the quantity supplied of a good will always equal the quantity of the good demanded. C) the quantity supplied of a good rises when the price rises. D) at the equilibrium price, there is always some excess supply in the market. […]
Date: September 2nd, 2020
The average propensity to consume is the A) percentage of total disposable income consumed. B) ratio of changes in planned consumption to changes in real disposable income. C) rate at which real disposable income changes as planned consumption changes. D) slope of the consumption function. ANSWER A
Date: September 2nd, 2020
The aggregate demand curve shows the relationship between planned purchases of A) all final goods and services and the price level. B) all final goods and services and interest rates. C) all final goods and services and total planned production. D) all final goods and services and nominal GDP. ANSWER A
Date: September 2nd, 2020
According to classical economists, the credit market reaches an equilibrium when A) desired investment equals desired saving. B) desired investment equals planned changes in aggregate supply. C) desired investment equals planned investment. D) planned investment equals government expenditures. ANSWER A
Date: September 2nd, 2020
According to Romer A) capital drives economic growth. B) invention drives economic growth. C) government drives economic growth. D) ideas drive economic growth. ANSWER D
Date: September 2nd, 2020
The process by which a quantity grows at a constant proportion in every time period is referred to as: A) logarithmic growth. B) linear growth. C) vector growth. D) exponential growth. ANSWER D
Date: September 2nd, 2020
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
