Which of the following is NOT a method for promoting global economic growth?
A) reliance on private markets to direct capital goods toward their best use
B) Count on the world's governments to develop policies that promote economic growth in developing nations.
C) Encourage population growth so that developing nations' labor supply increases.
D) market based approach
Ques. 2The asset demand for money is
A) greater at high interest rates as investors can earn more on their investments.
B) greater at low interest rates, because the opportunity cost of holding money is low.
C) greater at low interest rates, because the opportunity cost of holding money is high.
D) lower at low interest rates, because the opportunity cost of holding money is high.
Ques. 3Keynesian economists argue that
A) equilibrium real GDP is demand-determined.
B) equilibrium real GDP is supply-determined.
C) equilibrium real GDP can be reached only in a theoretical economy.
D) reaching equilibrium real GDP always results in inflation.
Ques. 4Considering the relevant market structures, which is an INCORRECT statement?
A) In a perfectly competitive situation, there is an extremely large number of firms.
B) In pure monopoly, there is only one firm.
C) In monopolistic competition, there is a large number of firms.
D) In any market situation, the number of firms is not very important.
Ques. 5In the above figure, which of the following statements is FALSE if the firm is operating at output level Q2?
A) The output is equivalent to an unregulated monopolist.
B) Economic profits are positive.
C) The price is lower than at an equivalent firm forced by regulators to charge ATC pricing.
D) Average costs would be lowered by expanding output.
Ques. 6Whenever a society forgoes current consumption to invest in capital goods,
A) it will have less to consume next year.
B) it will be easier for that society to consume less in the future because people will become accustomed to less.
C) that society can consume more in the future.
D) it will be forced to produce fewer capital goods in the future.
Ques. 7Which of the following would be classified as a public good?
A) state lotteries
B) telephone service
C) cable TV programming
D) national defense
Ques. 8The outputs of an oligopolistic industry
A) can be homogeneous or differentiated.
B) must cost above 100 on the market.
C) always have excise taxes imposed on them.
D) have no substitutes on the market.
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