________ is the study of an economy as a whole. A) Game theory B) Microeconomics C) Behavioral economics D) Macroeconomics ANSWER D
Date: September 2nd, 2020
Investment includes spending on A) capital goods, buildings, and changes in business savings. B) capital goods, buildings, and changes in business inventories. C) capital goods, buildings, and consumer durable goods. D) capital goods, consumer durable goods, and changes in business inventories. ANSWER B
Date: September 2nd, 2020
Which formula is correct? A) S = Yd – C B) Yd + S = C C) Yd + C = S D) Yd × S = C ANSWER A
Date: September 2nd, 2020
When the government deliberately alters its level of spending and/or taxes in order to achieve specific national economic goals, it is exercising A) a laissez-faire policy. B) discretionary fiscal policy. C) monetary policy. D) a Ricardian policy. ANSWER B
Date: September 2nd, 2020
Which of the following is an example of a topic studied by macroeconomists? A) Utility maximization by a consumer B) Decision making by a producer C) Aggregate demand in an economy D) Price determination by a firm ANSWER C
Date: September 2nd, 2020
Your real disposable income is your real income after you have paid A) consumption expenses. B) rent and food expenses. C) net taxes. D) medical expenses. ANSWER C
Date: September 2nd, 2020
Which of the following is an example of fiscal policy? A) a reduction in the money supply. B) a reduction in the federal funds rate. C) a reduction in lump-sum taxes. D) an increase in the physical stock of capital. ANSWER C
Date: September 2nd, 2020
Keynesian theory is based on the hypothesis that A) full employment is automatically attained in any economy. B) saving is influenced primarily by the interest rate. C) saving and consumption are influenced primarily by real current disposable income. D) planned savings equal planned investment only at full employment. ANSWER C
Date: September 2nd, 2020
If other factors are held constant, an increase in the price level A) causes desired net export spending to rise. B) causes the real value of the money to increase. C) causes desired net export spending to fall. D) induces people to spend their money faster. ANSWER C
Date: September 2nd, 2020
Which of the following statements is true? A) Macroeconomics studies how individuals make choices. B) Microeconomics is the study of an economy as a whole. C) The study of the inflation rate is covered under microeconomics. D) The study of the unemployment rate is covered under macroeconomics. ANSWER D
Date: September 2nd, 2020
