Which of the following statements is consistent with an increase in supply?
A) The price of labor input has increased.
B) There has been an advance in technology.
C) Consumers' incomes have increased.
D) The market price has decreased.
Ques. 2If a country's production possibilities curve gets more bowed out over time, it is an indication that
A) technological change has taken place.
B) society is learning to use its resources more efficiently.
C) the quantity of labor and capital have increased.
D) resources have become more highly specialized.
Ques. 3Which of the following is NOT a function of rental prices?
A) to stimulate the construction of new housing
B) to ration the existing housing stock
C) to provide housing to individuals below market value
D) to allocate existing scarce housing among different people
Ques. 4The slope of a line is the
A) change in the values along the x-axis divided by the change in the values along the y-axis.
B) values on the x-axis divided by the values on the y-axis.
C) change in the values along the y-axis divided by the change in the values along the x-axis.
D) values on the y-axis divided by the values on the x-axis.
Ques. 5Money payments made by governments to individuals for which no services or goods are concurrently rendered are known as
A) transfer payments.
B) government-sponsored payments.
C) government-inhibited payments.
D) black market payments.
Ques. 6Which of the following price indexes is designed to measure changes in the prices of goods and services purchased by a typical individual?
A) Producer Price Index
B) Gross Domestic Product (GDP) Deflator
C) Index of Leading Economic Indicators
D) Consumer Price Index
Ques. 7One result of a contractionary monetary policy would be
A) a decline in the price level.
B) an increase in the money supply.
C) an increase in business investment.
D) lower interest rates.
Ques. 8Compared to a barter economy, an economy that uses money will
A) be greedier.
B) be poorer.
C) have more corruption.
D) have more output.
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