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
The total of all planned real expenditures in the economy is called A) aggregate consumption. B) aggregate demand. C) aggregate spending. D) aggregate GDP. ANSWER B
Date: September 2nd, 2020
Which one of the following helps preserve incentives to develop new technologies? A) patents B) tariffs C) income taxes D) quantity restrictions on imports ANSWER A
Date: September 2nd, 2020
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
