Questions
1. Inflation is the result of:
a-an overall decline in the price level.
b-an increase in the number of manufactured goods during a given year by domestic companies.
c-a decrease in the purchasing power of money.
2* If everything else remains constant, when the price of a product rises
a-the quantity demanded falls.
b-the quantity demanded rises.
c-the amount offered goes down.
3*When the demand for a product rises
a-the price and the amount of equilibrium go down.
b-the price and quantity of equilibrium rise.
c-the equilibrium price falls and the equilibrium quantity rises.
4* In free and competitive markets, shortages (or shortages) always result in
a-lower prices.
b-higher prices.
c-no change in prices.
5* Recessions usually cause
a-inflation.
b-lower supply of money.
c-unemployment.
6*The largest component of a country's GDP is
a-private investment.
b-the trade deficit.
c-private consumption.
7*If more workers join the labor force of a country, the unemployment rate tends to
a-increase.
b-remain the same.
c-none of the above
8*If the US central bank increases the money supply at a higher rate
a-aggregate spending may increase.
b-prices may go up.
c-all previous.
9*If interest rate income taxes decrease
a-the savings would decrease.
b-the savings would increase.
c-the demand for credit would increase.
10*Suppose the price of a pair of Lee jeans costs $ 40 in the United States and $ 400 pesos in Mexico. What is the nominal exchange rate under the assumption of purchasing power parity?
a-$ 1 is changed for 4 pesos.
b-$ 1 is changed for 10 pesos.
c-$ 1 is changed for 25 pesos.
11*When economists do research:
a-they can not do experiments like those that are frequently done in Physics and Chemistry.
b-must use any data the world can give them.
c-All previous
Questions
1. Inflation is the result of:
a-an overall decline in the price level.
b-an increase in the number of manufactured goods during a given year by domestic companies.
c-a decrease in the purchasing power of money.
2* If everything else remains constant, when the price of a product rises
a-the quantity demanded falls.
b-the quantity demanded rises.
c-the amount offered goes down.
3*When the demand for a product rises
a-the price and the amount of equilibrium go down.
b-the price and quantity of equilibrium rise.
c-the equilibrium price falls and the equilibrium quantity rises.
4* In free and competitive markets, shortages (or shortages) always result in
a-lower prices.
b-higher prices.
c-no change in prices.
5* Recessions usually cause
a-inflation.
b-lower supply of money.
c-unemployment.
6*The largest component of a country's GDP is
a-private investment.
b-the trade deficit.
c-private consumption.
7*If more workers join the labor force of a country, the unemployment rate tends to
a-increase.
b-remain the same.
c-none of the above
8*If the US central bank increases the money supply at a higher rate
a-aggregate spending may increase.
b-prices may go up.
c-all previous.
9*If interest rate income taxes decrease
a-the savings would decrease.
b-the savings would increase.
c-the demand for credit would increase.
10*Suppose the price of a pair of Lee jeans costs $ 40 in the United States and $ 400 pesos in Mexico. What is the nominal exchange rate under the assumption of purchasing power parity?
a-$ 1 is changed for 4 pesos.
b-$ 1 is changed for 10 pesos.
c-$ 1 is changed for 25 pesos.
11*When economists do research:
a-they can not do experiments like those that are frequently done in Physics and Chemistry.
b-must use any data the world can give them.
c-All previous
