The following are impediments to economic growth EXCEPT
A) dead capital.
B) increased education.
C) lack of economic freedom.
D) bureaucratic inefficiency.
Ques. 2The demand for money is infinite since everyone wants more money. Do you agree or disagree with this statement? Why?
What will be an ideal response?
Ques. 3Suppose the economy is initially experiencing a recessionary gap. A reduction in the size of the budget deficit will cause which of the following in the short run?
A) a reduction in the size of the recessionary gap and increase in real GDP.
B) an increase in the size of the recessionary gap and decrease in real GDP.
C) an increase in inflation and increase in aggregate supply.
D) an inflationary gap.
Ques. 4When comparing across countries, the higher the rate of saving
A) the lower the level of per capita real Gross Domestic Product (GDP).
B) the higher the level of per capita real Gross Domestic Product (GDP).
C) the less industrialized the country.
D) the lower the productivity rates.
Ques. 5Keynes suggested that the short-run aggregate supply (SRAS) curve
A) is vertical.
B) is horizontal.
C) slopes downward.
D) is not a relevant concept.
Ques. 6While economic regulation applies to ________ industries, social regulation applies to ________ firms.
A) particular; individual
B) particular; all
C) all; individual
D) utility; healthcare
Ques. 7Should the government wish to lower the price of gasoline to the consumer, one approach might be
A) to raise the gasoline excise tax.
B) to reduce the gasoline excise tax.
C) to take action to shift the supply curve of gasoline to the left.
D) to lower taxes on automobiles.
Ques. 8A government agency charged with enforcing antitrust laws is
A) the Federal Reserve Board.
B) the National Labor Relations Board.
C) the Council of Economic Advisors.
D) the Federal Trade Commission.
Ques. 9Which of the following is an example of the law of supply?
A) The price of gum has increased so producers are making more gum.
B) The price of labor has increased and producers decrease supply.
C) The amount of a good purchased increases when the price decreases.
D) Producers provide less of a good when the price increases.
Ques. 10In the above figure, the opportunity cost of moving from point A to point C is
A) 50 guitars.
B) 0 guitars.
C) 25 guitars.
D) 50 ukuleles.
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