The ________ plots the relationship between prices and the quantity that buyers are willing to purchase. A) supply curve B) isoquant C) indifference curve D) demand curve ANSWER D
Date: September 2nd, 2020
The development of a strain of wheat that will yield two crops per year rather than one crop per year is an example of economic growth resulting from A) increased gross investment. B) technological progress. C) an increase in per capita real income. D) capital accumulation. ANSWER B
Date: September 2nd, 2020
Which of the following theories predicts that current consumption increases when a person expects an increase in future income? A) the life-cycle theory of consumption B) the Keynesian theory of consumption C) the permanent income hypothesis D) all of the above ANSWER D
Date: September 2nd, 2020
In the classical model, the aggregate supply curve A) is not related to the employment rate. B) is horizontal. C) is positively sloped. D) is consistent with the natural rate of unemployment. ANSWER D
Date: September 2nd, 2020
The open economy effect suggests that A) a decrease in domestic price level will cause foreign residents to buy more domestic goods, increasing net exports. B) a rise in domestic price level will cause domestic residents to buy fewer imported goods. C) a rise in domestic price level will cause foreign residents to buy more […]
Date: September 2nd, 2020
The demand curve for most goods is normally: A) parallel to the vertical axis. B) parallel to the horizontal axis. C) upward sloping. D) downward sloping. ANSWER D
Date: September 2nd, 2020
Which of the following represent expansionary fiscal policy? A) an increase in marginal individual income tax rates B) an increase in average individual income tax rates C) a cut in corporate income tax rates D) a reduction in government spending ANSWER C
Date: September 2nd, 2020
According to new growth theory, as technology becomes more important to growth, so does A) increasing taxes. B) human capital. C) military spending. D) increasing trade barriers. ANSWER B
Date: September 2nd, 2020
In the classical model, an increase in aggregate demand will lead to an increase in wage rates while a decrease in aggregate demand will A) change the price of capital. B) leave wages unchanged since workers will not take a cut in pay. C) increase wages since business will be desperate for labor. D) decrease […]
Date: September 2nd, 2020
According to the permanent income hypothesis, a temporary increase in income that does not affect average lifetime income would A) cause no change in consumption. B) cause a decrease in consumption and saving by the same amount. C) cause an increase in consumption and saving by the same amount. D) cause a large increase in […]
Date: September 2nd, 2020
