According to the new growth theory, economic growth will continue with A) an increased focus on labor-intensive jobs. B) increases in population growth. C) the development of new ideas. D) increases in interest rates. ANSWER C
Date: September 2nd, 2020
a) A recent news report stated that the unemployment rate in the country Lithasia had increased from 10.2% to 18.2% from 2003 to 2013 and that the government has adopted strict fiscal measures to expand employment. Would this report be considered microeconomic or macroeconomic analysis? b) Students in a class are discussing how a monopolist […]
Date: September 2nd, 2020
What are scarce resources? Why are economic agents concerned with the allocation of these resources? What will be an ideal response? ANSWER Scarce resources are resources for which the quantity that people want exceeds the quantity that is freely available. Economic agents need to satisfy their unlimited wants in a world of limited resources. […]
Date: September 2nd, 2020
Fiscal policy to solve short-run economic problems supports the Keynesian notion of A) there being no government role in the economy. B) the need for autocratic rule. C) an active government role in the economy. D) the long-run nature of the economy. ANSWER C
Date: September 2nd, 2020
According to Keynes, planned consumption A) decreases as disposable income increases. B) is positively related to real disposable income. C) is unstable and fluctuates widely with changes in disposable income. D) is indirectly related to the interest rate. ANSWER B
Date: September 2nd, 2020
The quantity demanded of a good is: A) the amount of a good that sellers are willing to supply at a given market price. B) determined independent of the market price. C) always determined by government intervention. D) the amount of a good that buyers are willing to purchase at a given market price. […]
Date: September 2nd, 2020
At higher rates of interest A) businesses demand more investment because there are more funds available to invest. B) businesses demand more investment because future profitability is likely to be greater. C) households save more because they get a greater return on their savings. D) households save less because it is more expensive to save. […]
Date: September 2nd, 2020
How does aggregate demand curve (AD) differ from an individual demand curve (D)? A) AD is generally vertical while D is usually downward sloping. B) D represents the price-quantity relationship for a single good or service while AD looks at the entire economic system. C) AD is generally a downward sloping curve while D usually […]
Date: September 2nd, 2020
Fiscal policy is defined as A) the discretionary changing of government expenditures and/or taxes to achieve national economic goals. B) the design of a tax system to transfer income from the rich to the poor. C) the use of the taxing power of the government to redistribute wealth in a socially acceptable manner. D) the […]
Date: September 2nd, 2020
Empiricism is analysis that uses ________ to test theories. A) data B) illustrations C) value judgments D) philosophy ANSWER A
Date: September 2nd, 2020
