The classical economists assumed that A) wages and prices were inflexible, especially downward. B) government intervention in the economic system was necessary and helpful. C) monopoly was widespread in the economy. D) wages and prices were flexible. ANSWER D
Date: September 2nd, 2020
________ is the study of how individuals, households, governments, and firms make choices and how those choices affect prices, the allocation of resources, and the well-being of other agents. A) Macroeconomics B) Monetary economics C) Microeconomics D) Growth theory ANSWER C
Date: September 2nd, 2020
________ economics prescribes what an individual or society ought to do. A) Normative B) Behavioral C) Positive D) Negative ANSWER A
Date: September 2nd, 2020
Which of the following is NOT true according to Say’s law? A) Producing goods and services generates the means and the willingness to purchase other goods and services. B) Desired expenditures will always be higher than actual expenditures. C) Supply creates its own demand. D) No overproduction is possible in a market economy in the […]
Date: September 2nd, 2020
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
