Economics(12 Multiple Choice)

posted by .

1. John Maynard Keynes said business investment is determined mainly by
a. the state of business confidence
b. expectations about the future
c. psychological perceptions about the economy
d. all of the above
2. Assume that the Canada experiences higher inflation that the U.S. If other economic factors remain constant, one could predict that
a. net exports in Canada will increase
b. net exports in U.S will increase
c. net export will remain unchanged in Canada but will increase in the U.S
d. net export will remain unchanged in the U.S but will decrease in the Canada
e. net exports will be unchanged in both U.S and Canada
3. Government Stabilization policy
a. cannot influence investment spending
b. can stimulate aggregate demand and thereby induce business to invest, although the precise amount may be hard to predict
c. can stimulate aggregate demand, but investment spending will not be affected unless interest rtes fall
d. can stimulate aggregate demand in the long run, but short-run changes in aggregate demand are impossible to achieve with government stabilization policy
4. If C = 100+.75Y, I = 500 and (X-IM) = -200 then the equilibrium level of real GDP is
a. 400
b. 800
c. 1600
d.3200
5. If businesses spend an additional $400 billion on investment projects and the national income increases by $1,000 billion, what is the value of the multiplier?
a. 4
b. 3 1/3
c. 2 ½
d. 2
e. 1 ½
6. which of the following could initiate an upward shift in the consumption function?
a. increase in the natural income
b. decrease in the price level
c. increase in the income tax rate
d. stock market crash
7. If GDP rises in a strong economy, what will happen to net exports?
a. they will fall
b. they will increase
c. they will not change
d. it is not possible to predict
8. If the nation experiences a technological breakthrough in the production process, then
a. business cost will rise, profits will fall, and production will decrease.
b. business cost will fall, but profits also will fall; production will remain at the pro-breakthrough level
c. business cost will decline, improving profitability, and production will increase
d. firms will make higher profits but will not increase production unless the nation’s labor supply and capital stock also increase.
9. traditionally, government has used_________to influence_____________.
a. taxing and spending, the demand side of the economy
b. spending, the supply side of the economy
c. supply management, the supply side of the economy
d. micromanagement, the demand side of the economy
10. when taxes are increased, disposable, income, and hence consumption
a. increase
b. decrease
c. stays the same
d. may change in some unpredictable fashion
11. An active stabilization policy designed to limit the size of government would
a. raise G to eliminate a recessionary gap and lower taxes to eliminate an inflationary gap
b. raise G to eliminate a recessionary gap and raise taxes to eliminate an inflationary gap
c. reduce taxes to eliminate a recessionary gap and reduce G to eliminate an inflationary gap
d. reduce taxes to eliminate a recessionary gap and raise G to eliminate an inflationary gap
12. If the government sought to remove an inflationary gap, which of the following would be an appropriate policy?
a. decrease transfer payments
b. increase transfer payments
c. decrease taxes
d. increase government spending
e. increase transfer payments and decrease taxes

  • Economics(12 Multiple Choice) -

    11. D.

  • Economics(12 Multiple Choice) -

    uy

  • Economics(12 Multiple Choice) -

    put in the answers please

  • Economics(12 Multiple Choice) -

    1. b

  • Economics(12 Multiple Choice) -

    Wieners

  • Economics(12 Multiple Choice) -

    1.C
    2.C
    3.C
    4.B
    5.D
    6.B
    7.A
    8.C
    9.A
    10.B
    11.C
    12.B

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics

    What do most economists believe about the future of business cycles?
  2. Economics

    Could you please check these thanks. Directions match each item with the correct statement. Not all terms are USED. Here are the words to fill in the blanks. business planning demand curve complements elastic demand expensive goods …
  3. economics

    what does most economists believe about the future of business cycles?
  4. history

    I don't understand what is meant when a question asks you for the "term" Historical significance. for example:john maynard keynes. I know everything about him and his economic ideas but, if i was asked to write a short paragraph of …
  5. US history

    Who was the economist whose ideas provided a theoretical justification of the New Deal?
  6. US history HELP

    Who was the economist whose ideas provided a theoretical justification of the New Deal?
  7. US history

    Who was the economist whose ideas provided a theoretical justification of the New Deal?
  8. Economics

    i have to write a 5 page economics research paper about 3-4 economists and entrepreneurs. I was thinking about writing about Bill Gate (the obvious) Oprah (another obvious) and Steve Jobs. I have to give biographical information about …
  9. Math

    1.The principal is $50,000. This is P. 2.Research the annual interest rate for your investment. This is r. 3.State the time in years for the investment (as in when the new grandchild will be attending college). This is t. 4.State the …
  10. U.S. and Global Economics

    An online store that has been successfully growing on its initial angel investment and revenues wants to invest $5 million to expand the business. The bank is willing to lend the business this money at a 10 percent interest rate over …

More Similar Questions