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
Date: September 2nd, 2020
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 […]
Date: September 2nd, 2020
A barter arrangement essentially means A) swapping goods for cash. B) buying with an I.O.U. C) a credit deal. D) a cashless transaction. ANSWER D
Date: September 2nd, 2020
In the above figure, the marginal propensity to consume (MPC) equals A) 0.9. B) 0.75. C) 0.8. D) 0.85. ANSWER A
Date: September 2nd, 2020
Which of the following is TRUE of trends in the number of new U.S. patents? A) There was a steady increase in new patents throughout the 1970s. B) The number of new patents granted each year has remained unchanged since the early 1970s. C) The number of new patents granted each year declined by more […]
Date: September 2nd, 2020
Refer to the above figure. Suppose the U.S. economy is currently operating at point C. Which of the following actions would you recommend to the president of the United States? A) Engage in contractionary fiscal policy by reducing government spending. B) Reduce taxes to stimulate investment, consumption and net exports. C) Increase government spending while […]
Date: September 2nd, 2020
Refer to the table above. What is the market demand for wine when the price is $1? A) 50 units B) 80 units C) 51 units D) 76 units ANSWER D
Date: September 2nd, 2020
According to the above figure, planned consumption and income are equal at an income level of A) Y0. B) Y1. C) Y2. D) Y3. ANSWER A
Date: September 2nd, 2020
Which of the following is a factor that determines the shape of the aggregate demand curve? A) the real-balance effect B) the wage effect C) the nominal-balance effect D) the price level effect ANSWER A
Date: September 2nd, 2020
Which of the following statements is true? A) A rational consumer makes his decisions depending on what the majority chooses. B) A trade-off refers to the exchange of goods between economic agents through a barter system or mutual exchange. C) A budget constraint is an economic tool that quantifies the trade-off between consumption of two […]
Date: September 2nd, 2020
