The model used to study the earnings of resources of production is called:
a. comparative advantage theory.
b. absolute advantage theory.
c. specificfactors model.
d. production possibility frontier.
Ans: c. specificfactors model.
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If you observed that the market price of a good rose, while the quantity exchanged fell, which of the following could have caused the change? a. An increase in supply. b. A decrease in supply
c. An increase in demand. d. A decrease in demand.
Which of the following will shift the consumption function upward?
A. an increase in consumer wealth B. an increase in disposable income C. an increase in personal income taxes D. a decrease in the MPC
Attempts to bypass price rationing in the market
A. are easily administered. B. always fail. C. are costly. D. are efficient.
Comparing the effect on the monetary base between an open market purchase of government securities from a bank and the same open market operation conducted with the general public, the monetary base
A) decreases by the same amount if the general public sells the securities or if a bank sells the securities. B) does not change if it is the general public that sells the securities. C) increases by a larger amount if a bank sells the securities than if the general public sells the securities. D) increases by a larger amount if the general public sells the securities than if a bank sells the securities. E) increases by the same amount if the general public sells the securities or if a bank sells the securities.