Spending by businesses on things such as machines and buildings which can be used to produce goods and services in the future is A) investment. B) savings. C) consumption. D) consumption goods. ANSWER A
Date: September 2nd, 2020
Saving is an example of A) a stock concept. B) a flow concept. C) a depreciation concept. D) an investment concept. ANSWER B
Date: September 2nd, 2020
The aggregate demand curve shows that, if other factors are held constant A) higher price levels will result in higher total planned spending. B) higher price levels will result in lower total planned spending. C) lower price levels will result in inflationary conditions. D) higher price levels will result in lower interest rates. ANSWER […]
Date: September 2nd, 2020
Other things held constant, higher saving rates lead to A) increases in the number of hours workers work. B) decreases in real per capita GDP. C) a lower standard of living. D) higher living standards. ANSWER D
Date: September 2nd, 2020
According to the classical economists, an economy producing $15 trillion in goods and services A) may be producing too much since the needs of people may not be this great. B) could experience a permanent glut if no one has estimated the demand for goods and services in the economy. C) simultaneously generates the income […]
Date: September 2nd, 2020
Saving is important for economic growth because A) a higher saving rate will decrease the standard of living in the future. B) a higher saving rate increases investment spending. C) more saving increases consumption immediately. D) a higher saving rate reduces investment spending. ANSWER B
Date: September 2nd, 2020
A reduction in a country’s saving rate will tend to cause which of the following in the long run? A) an increase in labor productivity B) an increase in the standard of living C) a reduction in economic growth D) an increase in per capita real GDP ANSWER C
Date: September 2nd, 2020
Which of the following statements is true? A) Normative statements depend on personal preferences. B) Normative economic statements can be confirmed or disproven. C) Positive economics recommends what people ought to do. D) Positive economics deals with issues that are subjective. ANSWER A
Date: September 2nd, 2020
If all income is consumed in a year, then A) income next year will increase. B) investment spending will be zero. C) any investment spending will be done by the government. D) investment spending will increase. ANSWER B
Date: September 2nd, 2020
Which of the following statements is NOT true about Say’s law? A) Markets would be regularly hit by severe shortages and surpluses. B) People produce more goods than they want for their own use only if they seek to trade them for other goods. C) Desired expenditures will equal actual expenditures. D) Surpluses will be […]
Date: September 2nd, 2020
