Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
1)Mcq
1.the economy as whole saving must be equal to
a.expenditure
b.budget
c.public saving
d.investement
2.________ economy is one that does not interact with other economies
a.stagnant growth
b.small
c.closed
d.open
3.________ is an institution that sales shares to the public and uses the proceeds to buy a selection
a.mutual fund
b.stock
c.bank
d.central bank
4.can economy increase its real gdp per capita by
Putting more of the population to work ?
a.yes
b.no
c.depends on size of the economy
d.depends on size of the number of population
5.________ is the economist's term for knowledge and skills that workers acquire through education, training, and experience.
a.skilled labor
b.work force
c.labor
d.human capital
6.________economy interact with other economies around the world
a.closed
b.open
c.large
d.growing
7.if the real value of household assets falls the aggregate demand
a.decreases
b.increases
c.remains constant
d.no one of the above
8.if the economy in recession we would expect ?
a.increase subsidies and decrease taxes
b.decrease subsidies and increase taxes
c.the government doesn't intervene
d.increase subsidies and increase taxes
9._______ is a very deep and prolonged downturn
a.recession
b.expansion
c.conteraction
d.depression
10.the result of the difference of real and nominal gdp the interest rate is ?
a.the effect of inflation
b.the effect of deflation
c.the effect of hyperinflation
d.has no effect
2) True and false
1.if the central bank increases the quantity of money the aggregate demand increases ?
2.taxes are the most important source of income of a government ?
3.closed economy can interact with other economies?
4.if consumers and firms become more pessimistic the aggregate demand increases ?
5.monetary policy is related to central bank?
3). At equilibrium if the aggregate consumption = 200(C) and planned investment (I)= 50 calculate the Aggregate expenditure
4) write an essay about the difference between closed economy and opened economy .
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education