The difference between savings and saving A) is nonexistent. B) is that savings is measured in real terms while saving is measured in nominal terms. C) is that savings is a stock concept and saving is a flow concept. D) is that savings occurs when consumption does not and saving is used to purchase consumption […]
Date: September 2nd, 2020
The approach to understanding the determination of real GDP and the price level that emphasizes flexible wages and prices and competitive markets is A) the Keynesian model. B) the classical model. C) Adam Smith’s Law. D) the aggregate demand model. ANSWER B
Date: September 2nd, 2020
The sum of all planned expenditures for the entire economy at each possible price level is A) aggregate demand. B) effective demand. C) aggregate supply. D) actual expenditures by consumers. ANSWER A
Date: September 2nd, 2020
Investment is A) spending by businesses on things which can be used to produce goods and services in the future. B) the production of goods for immediate satisfaction. C) the purchasing of stocks and mutual funds. D) goods bought by households. ANSWER A
Date: September 2nd, 2020
According to Say’s law, A) desired expenditures cannot be compared with actual expenditures. B) desired expenditures are always less than actual expenditures. C) desired expenditures are always equal to actual expenditures. D) desired expenditures are always more than actual expenditures. ANSWER C
Date: September 2nd, 2020
Economic reasoning implies that economic agents will make decisions: A) by random selection. B) by comparing the costs and benefits of various options. C) solely on the basis of tastes and preferences for various options. D) by replicating the choices made by other economic agents. ANSWER B
Date: September 2nd, 2020
The rate of economic growth will be faster if A) the rate of growth of the population is higher. B) consumption spending is greater. C) the rate of saving is higher. D) the rate of growth of the money supply is higher. ANSWER C
Date: September 2nd, 2020
Which of the following is a flow variable? A) consumption B) savings C) wealth D) population ANSWER A
Date: September 2nd, 2020
All of the following are flow variables EXCEPT A) saving. B) capital goods. C) consumption. D) investment. ANSWER B
Date: September 2nd, 2020
The aggregate demand curve plots A) total expenditures against the level of employment. B) desired expenditures against production. C) employment against the price level. D) planned expenditures against the price level. ANSWER D
Date: September 2nd, 2020
