In a market for apples, a consumer purchases 30 pounds when the price of apples is $1 per pound and the consumer’s income is $5,000 per month. When the price of apples increases to $2 per pound, without any change in the consumer’s income, he decides to purchase only 15 pounds of apples. Suppose, after […]
Date: September 2nd, 2020
If GDP per capita in year T is represented by YT, and the GDP per capita in the following year is represented by YT+1, then the formula for calculating growth rate between these two years is ________. A) (YT+1 – YT)/YT B) (YT+1 + YT)/YT+1 C) (YT+1 + YT)/YT D) (YT+1/YT)/100 ANSWER A
Date: September 2nd, 2020
Refer to the table above. At what rate did the country grow between 2005 and 2006? A) 15.95% B) 12.45% C) 18% D) 16.33% ANSWER D
Date: September 2nd, 2020
Total planned expenditures for domestically produced goods and services consist of A) consumer spending, business spending, government spending, and net export spending. B) consumer spending, business spending, government spending, and import spending. C) consumer spending, business spending, and net export spending only D) government spending, business spending, and import spending only. ANSWER A
Date: September 2nd, 2020
When you set aside the money you have today in order to purchase goods and services later on, you are using money as a A) store of value. B) medium of exchange. C) standard of deferred payment. D) unit of accounting. ANSWER A
Date: September 2nd, 2020
According to the classical model, prices and wages A) must be set by government. B) move upward easily, but are “sticky” downward. C) are flexible. D) move downward easily, but are “sticky” upward. ANSWER C
Date: September 2nd, 2020
Which one of the following is NOT a component of aggregate demand? A) investment expenditures B) government purchases C) consumption spending D) merchandise inventories ANSWER D
Date: September 2nd, 2020
Which of the following is NOT related to fiscal policy? A) increasing government expenditures B) decreasing marginal tax rates C) passage of new securities laws D) reducing the budget deficit ANSWER C
Date: September 2nd, 2020
New growth theorists believe that A) wealth creation comes from innovation. B) inventions spread very rapidly, thereby curtailing the need for more innovations. C) wealth creation comes from saving. D) wealth creation is due to capital spending and not research and development spending since much research and development spending fails to produce an invention. […]
Date: September 2nd, 2020
If the marginal propensity to save is 0.4 and disposable income increases from $1,000 to $1,500, saving will increase A) $300. B) $200. C) $100. D) $400. ANSWER B
Date: September 2nd, 2020
