Traditionally, economists regarded improvements in technology as A) unrelated to economic growth in any systematic way. B) the most important factor that helped explain economic growth, and basically the only factor that would cause economic growth. C) an important factor in explaining economic growth that was due to economic forces that also could easily be […]
According to the above figure, at an income level of Y1, A) the economy saves an amount equal to BD. B) the economy dissaves an amount equal to BD. C) the average propensity to save is greater than one. D) the marginal propensity to save is falling. ANSWER B
A barter arrangement simply means A) the government has paid for the goods. B) a promise to pay in the future. C) that gold must be offered from one party. D) a direct exchange of goods without the use of money. ANSWER D
Which of the following factors will NOT cause a shift in the demand for a good? A) A change in consumer incomes B) A change in the market price of the good C) A change in the number of consumers D) A change in tastes and preferences ANSWER B
Recently economists have added what factor as a major explanation of economic growth? A) the growth rate of labor B) the growth rate in labor and capital productivity C) technology D) the growth rate of capital ANSWER C
If you have $5000 and the GDP deflator decreases from 100 to 80 A) the $5000 will buy 20 percent more of the goods and services produced by society. B) the value of the $5000 remains constant. C) the $5000 will buy 20 percent less of the goods and services produced by society. D) the […]
Money functions as a(n) A) medium of exchange. B) unit of account. C) store of value. D) all of the above. ANSWER D
________ is a calculation that adds up costs and benefits using a common unit of measurement, like dollar values. A) Expenditure-income analysis B) Budget constraint analysis C) Revenue-income analysis D) Cost-benefit analysis ANSWER D
At the break-even point for the consumption function A) saving is positive. B) saving is zero. C) saving is negative. D) the marginal propensity to consume equals l. ANSWER B
Which one of the following statements is NOT true? A) The classical model assumes that people suffer from money illusion. B) The classical model assumes that no single seller of a commodity can affect its price. C) The classical model assumes that pure competition exists. D) The classical model assumes that people are motivated by […]
