QUESTION 8 Which of the following is held constant in defini

QUESTION 8

Which of the following is held constant in defining the Law of Demand:

population

technology

price of inputs

price of related goods

2 points   

QUESTION 9

Scalping and black marketing happen because of

price floor

price ceiling

minimum wage

abundant supply

2 points   

QUESTION 10

Say\'s Law implies

equilibrium in goods market

full employment

1 only

both 1 and 2

2 points   

QUESTION 11

Producer\'s surplus is

the triangle above the equilibrium price

the big triangle between demand price and supply price

the triangle below the market price

none of the above

2 points   

QUESTION 12

Assume inflation rate is 3% and nominal GDP goes up by 3%. Real GDP growth will be

higher than nominal GDP

lower than nominal GDP

same as nominal GDP

none of the above

2 points   

QUESTION 13

Assume unemployment rate is reported to be 8.2%. A survey conducted by a reputable institution shows nearly one hundred thousand people quit looking for job. The reported unemployment rate of 8.2% is

accurate

overstated

understated

all of the above depending on how you look at it

2 points   

QUESTION 14

Money is used as a unit of account. This means money

cannot store value for use in the future.

is used to measure the exchange value and costs of goods, services, assets, and resources.

has little or no intrinsic value.

is dependent of the quantity of gold held by the Federal Reserve.

2 points   

QUESTION 15

Which of the following is true?

In addition to the M1 money supply, the M2 money supply measure includes a number of highly liquid savings deposits.

The M1 money supply is larger than the M2 money supply.

Currency is the only component of the M1 money supply.

Outstanding credit card balances are included in the M2 money supply, but not the M1 figures.

2 points   

QUESTION 16

Which of the following assets can a commercial bank count as reserves?

its holding of U.S. Treasury bills.

its vault cash and deposits with the Fed.

its outstanding loans.

the savings accounts of its depositors.

	1.	population
	2.	technology
	3.	price of inputs
	4.	price of related goods

Solution

8. price of related goods

9. price ceiling

10. both 1 and 2

11. none of the above   (PS is the triangle below the market price above the supply price.)

12.none of the above (there will be no change in Real gdp)

13. understated

14. is used to measure the exchange value and costs of goods, services, assets, and resources.

15. In addition to the M1 money supply, the M2 money supply measure includes a number of highly liquid savings deposits.

16.its vault cash and deposits with the Fed.