The most important function of money is when money is used as a A) medium of exchange. B) unit of accounting. C) standard of deferred payment. D) store of value. ANSWER A
Date: September 2nd, 2020
Which of the following statements is true of the U.S. economy in the last 200 years? A) The growth rate of GDP has been more than 10% per year. B) The GDP per capita has decreased. C) The GDP per capita has increased. D) There has been no contraction in the economy. ANSWER C
Date: September 2nd, 2020
The ________ plots the relationship between prices and the quantity producers are willing to sell. A) isoquant B) indifference curve C) demand curve D) supply curve ANSWER D
Date: September 2nd, 2020
In economics, money is A) a financial instrument backed by some precious metal such as gold or silver. B) whatever the government defines it to be. C) anything that people generally accept in exchange for goods and services. D) another term for income. ANSWER C
Date: September 2nd, 2020
If consumption is $750 when real disposable income is $1,000, the average propensity to consume is A) 0.50. B) 0.25. C) 0.80. D) 0.75. ANSWER D
Date: September 2nd, 2020
According to the text, an open economy is likely to have all the following EXCEPT A) relatively more rapid spread of ideas. B) relatively more trade barriers. C) high technological progress. D) high economic growth. ANSWER B
Date: September 2nd, 2020
Paul Romer’s theory of economic growth differs from traditional theories in that A) Romer argues an investment-knowledge cycle can exist, but requires constant increases in investment rates, while traditional theories argue that investment rates can be constant. B) Romer argues that investment in human capital always occurs before investment in physical capital, while traditional theories […]
Date: September 2nd, 2020
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
