According to the World Bank and the International Monetary Fund, which of the following countries has shown the greatest rate of economic growth in the past two decades?
A) China
B) Germany
C) United States
D) Mexico
Ques. 2Rationing occurs for goods
A) that have a positive price.
B) that have a zero price.
C) that have a negative price.
D) that are not manufactured.
Ques. 3When an economy is operating efficiently, which is TRUE?
A) All resources are fully employed.
B) It would be possible to increase the output of 1 good without decreasing the output of the other.
C) Resources are not fully employed or current technology is not being fully utilized.
D) This economy is operating to the right of its production possibilities curve (PPC).
Ques. 4A merger between firms that are in the same industry is called a
A) conglomerate merger.
B) horizontal merger.
C) vertical merger.
D) none of the above.
Ques. 5The demand for money refers to the desire to
A) hold a good that yields utility when it is consumed.
B) a high income.
C) spend money because money is used in all transactions.
D) hold money because money is used in all non-barter transactions.
Ques. 6In the classical model, changes in interest rates will always ensure that
A) consumption equals production.
B) saving equals investment.
C) consumption equals investment.
D) consumption equals income.
Ques. 7If the government wishes to maximize its tax revenue, it should
A) recognize that too high of a tax rate can decrease the tax base.
B) engage in static tax analysis.
C) recognize that an increase in the tax rate will lead to an increase in tax revenues.
D) use only flat taxes.
Quick Reply
