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
Other things being equal, a reduction in taxes will A) lead to a corresponding reduction in interest rates increasing the crowding out effect. B) influence the short run aggregate supply curve but not the aggregate demand curve. C) cause an increase in aggregate demand due to increases in consumption, investment, or net exports. D) lead […]
Date: September 2nd, 2020
For barter to occur there must be A) two people willing to pay with credit. B) a double coincidence of wants for each good to be exchanged. C) one person who pays cash. D) hyperinflation. ANSWER B
Date: September 2nd, 2020
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 […]
Date: September 2nd, 2020
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
Date: September 2nd, 2020
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
Date: September 2nd, 2020
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
Date: September 2nd, 2020
