Which of the following are mentioned as forces of the new growth theory that influence economic growth? I. Technology II. Research III. Innovations A) II and III only B) I only C) I, II, and III D) I and II only E) I and III only ANSWER C
Date: September 2nd, 2020
A seller who is a price taker charges: A) above the market price. B) different prices to different buyers. C) the market price. D) below the market price. ANSWER C
Date: September 2nd, 2020
Along a linear consumption function, A) the average propensity to consume rises with income, but the marginal propensity to consume falls with an increase in income. B) the marginal propensity to consume rises with an increase in income. C) the average propensity to consume falls with an increase in income. D) both the average propensity […]
Date: September 2nd, 2020
Typical goals for fiscal policy are A) running high deficits and raising consumer prices. B) high prices for consumers and low prices for businesses. C) high employment and price stability. D) increasing the money supply so the government can spend more. ANSWER C
Date: September 2nd, 2020
New growth theory supports the idea that I. economic growth can continue as long as we keep finding new ideas. II. increases in human capital can lead to greater rates of economic growth. A) I only B) II only C) Both I and II D) Neither I nor II ANSWER C
Date: September 2nd, 2020
Define free markets. Does a perfectly competitive market qualify as a free market? What will be an ideal response? ANSWER A free market can be defined as a market structure where all exchanges are voluntary. There is very little government control or coercion in the market and the government does not tell market participants […]
Date: September 2nd, 2020
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
