Questions from General Economics


Q: From one country’s perspective a strong currency is a) always

From one country’s perspective a strong currency is a) always good. b) always bad. c) good for some people and bad for others.

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Q: The proximate cause of the Spanish problem was a) vast

The proximate cause of the Spanish problem was a) vast overspending during the previous decade. b) lax tax collections during the previous decade. c) a burst housing bubble. d) Both a & b.

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Q: An industry in which there are a very limited number of large

An industry in which there are a very limited number of large firms is likely to be characterized by a) monopoly. b) oligopoly. c) monopolistic competition. d) perfect competition.

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Q: When compared to people of your grandparents’ generation, you can expect

When compared to people of your grandparents’ generation, you can expect the net present value of Social Security to be a) much better. b) about the same. c) slightly worse. d) much worse.

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Q: A change in the price of eggs will impact a)

A change in the price of eggs will impact a) the demand for eggs. b) the supply of eggs. c) the quantity demanded and the quantity supplied of eggs but neither demand nor supply. d) both the suppl...

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Q: When an economics student draws a supply and demand diagram to model

When an economics student draws a supply and demand diagram to model an increase in the income, she is assuming this change happens a) semper fidelis. b) ceteris paribus. c) ipso facto. d) defacto...

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Q: Suppose you observe that minor changes in supply seem to cause dramatic

Suppose you observe that minor changes in supply seem to cause dramatic changes in price, you would conclude that a) demand is unit elastic. b) demand is elastic. c) demand is inelastic. d) demand...

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Q: Owing to its usefulness and relative simplicity, the supply and demand

Owing to its usefulness and relative simplicity, the supply and demand model is often used a) because nearly every major industry in the United States is governed by perfect competition. b) because...

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Q: Use the aggregate supply-aggregate demand model to determine which of

Use the aggregate supply-aggregate demand model to determine which of the following will lead to higher aggregate output. a) A tax increase b) A spike in world oil prices c) A cut in interest rates...

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Q: Discretionary fiscal policy is the purview of a) Congress only

Discretionary fiscal policy is the purview of a) Congress only. b) the president only. c) Congress and the president collectively through law. d) the Federal Reserve.

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