Economics quiz part 4
Total Questions : 25 Scoring System: Correct Answer : +1 points Incorrect Answer : -1 point Not Answered : 0 point The final result will appear at the end. All The Best.
- The Condition In Which Market Supply Matches Market Demand Is Called
- The Statement "Supply Creates Its Own Demand" Is Given By
- Zero Price Elasticity Of Demand Means
- The Law Of Demand States That:
- A Situation Where The Expenditure Of The Government Exceeds Its Revenue Is Called ______.
- Jevan Compares The Unit Price Of Chocolate Bars In Order To Get The "Best Buy". This Represents Using Money As
- The Real Demand For Money Is
- Monetary Validation
- Under A System Of Flexible Exchange Rates, A Nation Which Uses A Tight Money Policy During A Period Of Worldwide Inflation Would Be Likely To Experience
- If The Economy Is Currently In Monetary Equilibrium, An Increase In The Money Supply Will
- Stable Growth In The Money Supply Rule Will Contribute To
- With Respect To The Balance Of Payments,
- Suppose That In Canada We Experience A Rise In The Canadian Dollar Price Of Foreign Exchange. In This Circumstance, The Dollar Will Have ________ And The Exchange Rate Will Have ________.
- The Difference Between The Government's Debt And Deficit Is That The Debt Is The
- In The Case Of Frictional Unemployment,
- A Decrease In The Money Supply Is Most Likely To
- When The Price Level Increases It Causes Households And Business Firms To Try To
- When Metal Coins, Such As Gold And Silver Were Used As Money, A Technique Which Made Them Easy To Recognize And Which Did Not Reduce Their Value Was
- The Main Cause Of Cyclical Unemployment Is That
- "Foreign Exchange" Refers To
- Publicly Subsidized Education And Retraining Schemes Are
- Which One Of The Following Statements Correctly Describes The Transmission Mechanism?
- If All The Banks In The Banking System Collectively Have $20 Million In Cash Reserves And Have A Desired Reserve Ratio Of 20 Percent, The Maximum Amount Of Demand Deposits The Banking System Can Support Is
- One Implication Of An Increase In The Cash Drain To The Public Is That The
- A Rise In The Price Level, Given No Change In The Supply Of Money, Will
Normalisation
Equalisation
Equilibrium
J.B. Say
Thomas Jefferson
David Ricardo
for a small change in price, there is a small change in demand
whatever the change in price, there is absolutely no change in demand
for a large change in price, there is a small change in demand
as the demand rises, the price rises
as the price rises, the demand rises
as the price rises, the demand falls
Default Revenue
Budget Deficit
Default Financing
a store of value.
a unit of account.
a unit of deferred payment.
the nominal demand for money divided by the price level.
equal to the nominal demand for money as long as inflation is fully anticipated.
equal to the supply of money at all times.
causes a supply shock.
increases unemployment.
can perpetuate inflation.
an appreciation of its currency.
a loss in international reserves.
a fall in the value of its currency.
cause a reduction in the demand for money, leading to a higher rate of interest.
lead to a movement down the money demand curve to a lower rate of interest.
cause an increase in the demand for money, leading to a lower rate of interest.
increased ability for the Bank of Canada to "fine tune" the economy.
stability of the price level.
destabilization if the demand for money fluctuates.
if the current account is in deficit, the capital account must also be in deficit.
total payments must equal total receipts.
the current account balance must be zero.
appreciated; risen
depreciated; fallen
depreciated; risen
amount the government pays interest payments whereas the deficit has not yet incurred interest charges.
accumulation of past deficits minus surpluses whereas the deficit is the annual shortfall between revenues and disbursements.
amount owed by the Bank of Canada to the commercial banks where as the deficit is the amount owed by the Government of Canada to the Bank of Canada.
the unemployed workers and the employers with available job vacancies have not yet found each other.
there is a mismatch between the needs of employers with job vacancies and the unemployed workers.
the only possible cure comes from shifting the aggregate demand curve to the left.
raise interest rates, lower investment, and lower aggregate expenditures.
lower interest rates, investment, and aggregate expenditures.
raise interest rates and investment, and lower aggregate expenditures.
reduce money balances, which drives interest rates up.
reduce money balances, which drives national income up.
increase money balances, which drives interest rates up.
re-minting.
sweating.
milling
workers often voluntarily quit a job to look for a better job.
the level of overall economic activity fluctuates.
some individuals skills do not have marketable skills for the jobs that do exist.
the actual transaction that occurs as currencies are traded.
foreign currency or various claims on it.
the price at which purchases and sales of foreign goods take place.
aimed at reducing structural unemployment.
ways of resisting adjustment to technological change.
aimed at reducing cyclical unemployment.
An increase in personal consumption leads to an upward shift in the AE curve and thereby increases real GDP.
An decrease in imports causes the AE curve to shift upwards, leading to a higher interest rate.
An increase in the money supply leads to a lower interest rate, higher investment, an upward shift in the AE curve and a higher GDP.
$40 million.
$80 million.
$100 million.
banking system's ability to create new money following a new deposit is reduced.
desired ratio is reduced.
desired reserve ratio is increased.
decrease the demand for money and decrease aggregate demand.
increase the demand for money and decrease aggregate expenditure.
increase the demand for money and increase aggregate expenditure.