Questions from General Economics

Q: If a crime prevention mechanism works initially, but increasing it further

If a crime prevention mechanism works initially, but increasing it further has no additional impact that is an example of a) diminishing returns. b) downward sloping demand. c) the division of lab...

Q: Inflation is measured using _________ in a price index. a

Inflation is measured using _________ in a price index. a) the absolute increase b) a multiyear weighted average increase c) the percentage year-to-year increase d) logarithm-adjusted absolute i...

Q: When evaluating whether or not to make an investment one should focus

When evaluating whether or not to make an investment one should focus on the _____ because doing so takes into account anticipated inflation. a) nominal interest rate b) real interest rate c) excha...

Q: The most precise tool of monetary policy is a) the

The most precise tool of monetary policy is a) the adjustment of the federal funds target. b) the adjustment of the discount rate. c) the adjustment of the reserve requirement. d) the use of open-...

Q: Gasoline prices _______ in late 2007 through mid-2008.

Gasoline prices _______ in late 2007 through mid-2008. a) spiked b) increased relatively slowly c) remained constant d) plunged

Q: Gasoline prices in early 2007 were above $2.25.

Gasoline prices in early 2007 were above $2.25. They were a) the highest nominal prices and highest inflation-adjusted prices in American history. b) the highest nominal prices but were not the high...

Q: Using a higher rate of discount a) makes no difference

Using a higher rate of discount a) makes no difference when calculating the present value of future liabilities. b) raises the present value of future liabilities. c) lowers the present value of fu...

Q: Theoretically speaking, all trade is based on a) comparative

Theoretically speaking, all trade is based on a) comparative advantage. b) absolute advantage. c) numerical advantage. d) political advantage.

Q: The dollar to yuan exchange rate will equal a) the

The dollar to yuan exchange rate will equal a) the yuan to dollar exchange rate. b) the reciprocal of the yuan to dollar exchange rate. c) the yuan to euro exchange rate. d) the square of the yuan...

Q: In order to sustain economic growth in a developed economy, it

In order to sustain economic growth in a developed economy, it is important for a) taxes to continuously decrease. b) government spending to continuously increase. c) worker productivity to increas...