Principles of Economics
Tan Khay Boon
The Scarcity Principle
Economics: The study of how
people make choices under scarcity
and the results of these choices for
24) Investment is financed by which of the following?
I. Government spending.
II. Household saving.
III. Borrowing from the rest of the world.
A) I, II, and III.
B) I and III only.
C) II and III only.
D) I and II only.
E) None of the above.
Topic: The Mar
University of Lethbridge Department of Economics
ECON 1012 Introduction to Macroeconomics
Instructor: Michael G. Lanyi
CH 23 Finance Saving Investment
1) Capital is
A) the tools, instruments, machines, buildings, and other items that have been produced in
18) In 2008, Tim's Gyms needs to finance the building of a new gym. Suppose Tim secures this financing from a bank, and
the bank receives ownership if Tim fails to make payments. This type of funding is
A) a stock issued in the bond market.
B) a stock iss
Refer to the figure below to answer the following questions.
49) Refer to Figure 23.2.2. In Figure 23.2.2, a decrease in the real interest rate will result in a movement from point E to
A) point F.
B) point G.
C) point I.
D) either point G o
46) A decrease in the demand for loanable funds occurs when
A) the government raises taxes.
B) expected profit decreases.
C) expected profit increases.
D) the real interest rate rises.
E) the government cuts taxes.
Topic: The Market for Loanable Funds
The Loanable Funds Market
Real Interest rate
saved this year will not buy as much next year. The real
interest rate is the nominal interest rate minus the expected inflation rate. A saver may earn a 6% nominal interest rate on a bond, b