Quiz 3

Quiz 3 - ECN 111 SLN 76868 Macroeconomic Principles...

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ECN 111 SLN 76868 Quiz 3 Professor Happel Macroeconomic Principles Spring 2006 9:15-10:30 MW 1. According to class discussions, which of the following statements is false ? a. The What to Produce, How Much to Produce, and How to Produce questions are referred to collectively as the Production Question. b. The Political Process refers to government command solving economic problems. c. All countries in the world today use a combination of the Social Process, Political Process, and Market Process to solve economic problems. d. Pure Capitalism means that all property is privately owned and the Market Process solves all economic problems. e. Pure Communism as an economic system means that the social process solves all economic problems and all property is publicly owned. 2. In a circular flow diagram for a complex economy, which of the following is false ? a. There are real flows and financial flows. b. Firms represent the demand side of labor markets. c. Households represent the demand side of product (goods) markets. d. Government purchases and investment are injections. e. Imports are an injection. 3. According to our discussions about inflation, unemployment, and growth, which of the following is true ? a. Inflation is an increase in an overall (absolute) price index (like the CPI), and it necessarily means that all prices are going up at the same time. b. Unanticipated inflation helps creditors and savers.
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This note was uploaded on 04/10/2008 for the course ECN 111 taught by Professor Gooding during the Fall '04 term at ASU.

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Quiz 3 - ECN 111 SLN 76868 Macroeconomic Principles...

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