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
Suppose a country has no trade with other countries and people can borrow as many funds as they want at the current interest rate. An increase in the price level will generate A) a decrease in total planned real expenditures because of the real-balance effect. B) a decrease in total planned real expenditures because the […]
Date: September 2nd, 2020
Real GDP refers to GDP adjusted: A) for changes in ruling political party. B) for changes in tax rates. C) for changes in net imports. D) for changes in prices. ANSWER D
Date: September 2nd, 2020
When money provides a yardstick that allows individuals to compare the relative values of goods and services, it is functioning as a A) standard of deferred payment. B) medium of exchange. C) unit of accounting. D) store of value. ANSWER C
Date: September 2nd, 2020
The advantage of using real GDP over nominal GDP is that: A) it can be compared over time. B) it takes into account the distribution of income. C) it takes into account changes in ruling political party. D) it is easier to calculate. ANSWER A
Date: September 2nd, 2020
The following table shows the demand for notebooks of four consumers. Price ($/unit) Consumer 1 Demand (units) Consumer 2 Demand (units) Consumer 3 Demand (units) Consumer 4 Demand (units) $8 8 6 9 10 $6 16 10 15 18 $4 20 13 21 24 $1 22 17 24 27 Define the term “market demand.” If […]
Date: September 2nd, 2020
The changing of government expenditures or taxes to achieve national economic goals is A) inflationary fiscal policy. B) automatic fiscal policy. C) recessionary fiscal policy. D) discretionary fiscal policy. ANSWER D
Date: September 2nd, 2020
Discretionary fiscal policy is so named because it A) is undertaken at the order of the nation’s central bank. B) involves specific changes in taxes and government spending undertaken by Congress and the president. C) occurs automatically as the nation’s level of GDP changes. D) involves secret advice given by the Council of Economic Advisers […]
Date: September 2nd, 2020
