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bigt246823 bigt246823
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4 years ago
If households in the economy decide to take money out of checking account deposits and hold it as currency, this will initially
 
  A) decrease M1 and not change M2. B) not change M1 and not change M2.
  C) not change M1 and increase M2. D) decrease M1 and decrease M2.



Ques. 2

When firms price their products by adding a percentage markup to their average costs of production, this is called
 
  A) cost-plus pricing. B) rounding up.
  C) break-even pricing. D) average cost pricing.



Ques. 3

The person or firm that pays a tax bears the burden of the tax.
 
  Indicate whether the statement is true or false



Ques. 4

The marginal propensity to consume is defined as
 
  A) the change in consumption divided by the change in disposable income.
  B) the change in disposable income divided by the change in consumption.
  C) consumption divided by disposable income.
  D) disposable income divided by consumption.



Ques. 5

Compensating differentials are associated most closely with which of the following?
 
  A) comparable worth B) economic discrimination
  C) differences in education D) hazardous jobs



Ques. 6

According to the World Bank, Albania does one of the worst jobs as a country enforcing the rule of law. The consequence of a weak rule of law is
 
  A) strong property rights enforcement leading to greater investment.
  B) more risk taking on the part of entrepreneurs and greater economic investment.
  C) a decrease in cash transactions and increased efficiency.
  D) difficulty in attracting investment and low economic growth.



Ques. 7

Refer to Table 20-7. Suppose that the data in the table above reflect price levels in the economy. What is the inflation rate between 2015 and 2016?
 
  A) 2.9 B) 3.5 C) 4.6 D) 5 E) 7.5



Ques. 8

The actual division of a tax between buyers and sellers in a market is the excess burden of the tax.
 
  Indicate whether the statement is true or false



Ques. 9

Many firms use odd pricingcharging prices such as .99 instead of 1.00 and 9.99 instead of 10.00.
 
  One reason for this pricing strategy is that consumers will somehow believe that the difference in price appears to be greater than it actually is. Researchers conducted consumer surveys to determine whether this is actually the case. What was the result of these surveys?
  A) The survey results were inconclusive because most consumers gave unreliable responses to the survey questions.
  B) Although the results were not conclusive, there is some evidence that odd pricing makes economic sense.
  C) The surveys found indifference regarding this strategy among most consumers, but hostility among other consumers. The latter group resented what they viewed as an attempt to fool them into buying products with odd prices. Researchers concluded that odd pricing is counterproductive.
  D) The surveys found that small differences in price cause small differences in quantity demanded. There is no evidence that odd pricing makes economic sense.



Ques. 10

The change in consumption divided by the change in disposable income is equal to
 
  A) real GDP. B) household saving.
  C) the slope of the consumption function. D) aggregate expenditure.
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Answer verified by a subject expert
renaatvdwrenaatvdw
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Posts: 335
Rep: 4 0
4 years ago
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(Answer to Q. 1)  B

(Answer to Q. 2)  A

(Answer to Q. 3)  FALSE

(Answer to Q. 4)  A

(Answer to Q. 5)  D

(Answer to Q. 6)  D

(Answer to Q. 7)  A

(Answer to Q. 8)  FALSE

(Answer to Q. 9)  B

(Answer to Q. 10)  C
1

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bigt246823 Author
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4 years ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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This calls for a celebration Person Raising Both Hands in Celebration
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2 hours ago
Brilliant
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