The sum of consumption and investment is:
a. total production.
b. aggregate supply.
c. aggregate disposable demand.
d. aggregate expenditures.
QUESTION 2Credit cards are:
a. M1 money.
b. M2 money.
c. near money.
d. not money.
QUESTION 3The economic system that answers the What, How and For Whom questions by central authority is a:
a. market economy. b. command economy
c. traditional economy. d. any of these
QUESTION 4The consumption function is drawn on a graph with disposable income on the horizontal axis without including investment. Assume investment is autonomous and is added to the consumption function. The effect is:
a. an upward adjustment in the vertical intercept.
b. no change in the adjustment in the vertical intercept.
c. an increase in the slope of the consumption schedule.
d. a decrease in the slope of the planned expenditure schedule.
QUESTION 5If something is a unit of account, then it:
a. serves as a yardstick for measuring the relative value of other goods
b. is a means of holding wealth for the future
c. is fairly stable
d. is durable and portable
e. is accepted as payment for any purchase
QUESTION 6The economic system that answers the What, How and For Whom questions the way they have always been answered is a:
a. market economy. b. command economy
c. soviet economy. d. traditional economy.
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