Which of the following would be categorized as land?
A) timber
B) human capital
C) buildings
D) entrepreneurship
Ques. 2Which of the following is an aggregate?
A) the number of shoes in one man's closet
B) the bushels of apples one farmer sells
C) the price of a particular textbook
D) the total production of all goods and services
Ques. 3What are the terms of exchange and how are these terms related to the price?
What will be an ideal response?
Ques. 4The price of a phone call at a pay phone was 5 cents in 1950 and the price of a first-class stamp was 3 cents. In 2014, the pay phone costs 50 cents for a call and a first-class stamp costs 49 cents. We know that
A) both the nominal and the relative price of phone calls increased from 1950 to 2014.
B) both the nominal prices of phone calls and first-class stamps increased from 1950 to 2014, but the relative price of stamps increased and the relative price of phone calls decreased from 1950 to 2014.
C) all prices increased from 1950 to 2014: Nominal prices of phone calls, first-class stamps, and the relative prices of phone calls and first-class stamps.
D) both the nominal prices of phone calls and first-class stamps increased from 1950 to 2014, but we can't tell if the relative prices increased or decreased without more information.
Ques. 5Which of the following topics is a macroeconomic subject?
A) a proposed merger between two companies
B) the level of sales at a particular department store
C) increases in the overall price level of the United States
D) the decision of an automobile manufacturer
Ques. 6The price of a first-class stamp in 1957 was 3 cents, and it is 49 cents in 2014. From this we know that
A) both the relative and the absolute price of first-class stamps increased from 1957 to 2014.
B) the money price of first-class stamps increased from 1957 to 2014 but the absolute price of first-class stamps stayed constant.
C) the money price of first-class stamps increased from 1957 to 2014 and the relative price of first-class stamps decreased.
D) the money price of first-class stamps increased from 1957 to 2014, but we can't tell if the relative price of first-class stamps increased or decreased without more information.
Ques. 7What are transaction costs? What are some ways in which society reduces transaction costs?
What will be an ideal response?
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