According to classical theory, total employment and real Gross Domestic Product (GDP) are A) inversely related. B) negatively related. C) positively related. D) unrelated. ANSWER C
Date: September 2nd, 2020
Which of the following is considered investment? A) Johnny buys a new car for his wife as an anniversary gift. B) James purchases a new car to replace an old car in his cab business. C) Maina purchases a new car for commuting to and from work. D) Jane purchases a new car for commuting […]
Date: September 2nd, 2020
In the classical model, the aggregate supply curve is A) horizontal. B) vertical. C) upward sloping. D) downward sloping. ANSWER B
Date: September 2nd, 2020
Economic growth can be shown by A) a rightward shift in the aggregate supply curve. B) a leftward shift in the aggregate supply curve. C) a leftward shift in the production possibilities curve. D) no change in the aggregate supply curve. ANSWER A
Date: September 2nd, 2020
Labor productivity measures A) the growth of real output. B) real output per labor hour. C) the growth in the quantity of labor. D) the growth of per capita real GDP. ANSWER B
Date: September 2nd, 2020
In the classical model, real Gross Domestic Product (GDP) per year is A) determined by supply and demand conditions together. B) supply determined. C) demand determined. D) due to supply conditions plus the extent of government intervention in the economy. ANSWER B
Date: September 2nd, 2020
Economic growth is demonstrated by the LRAS as it A) becomes more vertical. B) shifts to the left. C) becomes more horizontal. D) shifts to the right. ANSWER D
Date: September 2nd, 2020
Saving differs from savings in that A) saving is a flow while savings is a stock. B) saving is both a flow and a stock while savings is a stock. C) saving is a stock while savings is a flow. D) saving is a stock while savings is both a flow and a stock. […]
Date: September 2nd, 2020
Consumption expenditures include all of the following EXCEPT A) going to a concert. B) having your house cleaned by Klean Maids. C) buying a pizza. D) purchasing a share of stock. ANSWER D
Date: September 2nd, 2020
Consumption goods A) include spending on machines and buildings so that goods can be produced in the future. B) are goods that are used to make other goods. C) include goods such as DVDs that firms hold in inventory. D) are only the goods bought by households for immediate satisfaction. ANSWER D
Date: September 2nd, 2020
