Where the consumption function intersects the 45-degree line A) consumption will equal only autonomous consumption. B) the average propensity to consume is 0.5. C) savings will be negative. D) saving will be zero. ANSWER D
Date: September 2nd, 2020
How would the following events affect the market demand for laser printers? a) A recession in the economy leading to a fall in income levels b) A five-fold increase in the price of printing paper What will be an ideal response? ANSWER a) A recession in the economy that causes a fall in income […]
Date: September 2nd, 2020
Suppose the economy has a high level of unemployment. This would imply A) that the economy is operating on the SRAS curve and that government spending could be decreased to reduce unemployment. B) that the government should engage in expansionary fiscal policy and increase the tax rate. C) that fiscal policy has been ineffective and […]
Date: September 2nd, 2020
In economics, the term “autonomous” means A) disposable income. B) non-economic related. C) existing independently. D) cash payments. ANSWER C
Date: September 2nd, 2020
The benefits from research and development activities A) spill over to others, including foreign residents. B) are limited to the firms investing in similar research and development projects. C) are limited to the nation in which the research and development is taking place. D) are limited to the firm winning a patent. ANSWER A
Date: September 2nd, 2020
________ is defined as the change in quantity between two dates. A) Growth rate B) Improvement ratio C) Development ratio D) Progress index ANSWER A
Date: September 2nd, 2020
A price tag of $400 for a tablet device is an example of money as A) a store of value. B) a time deposit. C) a unit of accounting. D) a medium of exchange. ANSWER C
Date: September 2nd, 2020
To be accepted as money, an item must perform all of the following functions EXCEPT A) be a medium of exchange. B) serve as a store of value. C) be easily reproduced. D) serve as a standard of deferred payment. ANSWER C
Date: September 2nd, 2020
Which of the following is likely to shift the market demand curve for school textbooks to the right? A) A fall in the price of school textbooks B) An increase in school tuition fees C) A fall in the total income of all consumers D) An increase in the enrollment rates in high schools […]
Date: September 2nd, 2020
Fiscal policy A) uses the tool of interest rates to stimulate private savings. B) uses the tools of taxation and spending in an effort to address inflation and unemployment. C) uses the tool of the exchange rate to discourage imports. D) uses the tool of business regulation to increase economic efficiency. ANSWER B
Date: September 2nd, 2020
