A. To address the impact to taxes on income distribution an economist assumes that everyone earns the same income.
B. To address the impact of money growth on inflation, an economist assumes that money is strictly coins.
C. To model the benefits of trade. an economist assumes that there are two people and two goods
D. To estimate the speed at which a beach ball falls, a physicist assumes that if falls in a vacuum.
Related Mcqs:
- A reasonable measure of the standard of living in a country is ?
A. real GDP per person
B. nominal GDP per person.
C. Real GDP
D. The growth rate of nominal GDP per person - Which of the following is not an assumption of Schumpeter’s stationary state ?
A. Perfect competition
B. An economy below full employment
C. No savings or technical change
D. No entrepreneurial function is required - The regarding the new classical macroeconomics is hoe realistic is the assumption ?
A. that monetary policy affects aggregates demand
B. that markets do not clear quickly
C. that fiscal policy affects aggregate demand
D. of rational expectations. - The classical view of the labor market is basically consistent with the assumption of _________ aggregate supply curve?
A. a vertical (or almost vertical)
B. a downward sloping
C. a horizontal (or almost horizontal)
D. an upward sloping - If a company (considering its options on the product/market expansion grid) chooses to move into different unrelated fields (from what it ha ever done before) with new products as a means to stimulate growth the company would be following which of the following general strategies ?
A. market penetrations
B. market development
C. product development
D. diversification - Which of the following statements regarding the circular-flow diagram is true ?
A. If Susan works for BAe Systems and receives a salary payment, the transaction takes place in the market for good and services.
B. If BAe Systems sells a military aircraft, the transaction takes place in the market for factors for production
C. None of these
D. The factors of production are owned by households - In making which of the following statements is an economist acting more like a scientist ?
A. A reduction in unemployment benefits will reduce the unemployment benefits will reduce the unemployment rate.
B. The rate of inflation should be reduced because it robs the elderly of their savings.
C. The unemployment rate should be reduced because unemployment robs individuals of their dignity.
D. The state should increase subsidies to universities because the future of our country depends on education. - Which of the following statements about microeconomics and macroeconomics is not true ?
A. The study of very large industries is a topic within macroeconomics
B. Macroeconomics is concerned with economy-wide phenomena
C. Microeconomics is a building block for macroeconomics
D. Microeconomics and macroeconomics cannot be entirely separated - Which of the following statements is normative ?
A. Large government deficits cause an economy to grow more slowly
B. People work harder if the wage is higher
C. The unemployment rate should be lower
D. Printing too much money causes inflation - Which of the following issues is related to microeconomics ?
A. the impact of oil prices on car production
B. The impact of money on inflation
C. The impact of technology on economics growth
D. The impact of the deficit on saving
