Written Module Seven
Answers of exercises 1, 4, 6, 7 and 8 on page 407.
Answer 1: Globalization involves an increased cross border flow of goods, services and
financial assert along with increased international mobility of te
Written Module Six
Answer of the exercises 1, 2, 6, 7, and 15 letters A - C on pages 367 and 368.
Answer 1: Economics growth is an increase in real GDP as more goods as service are
produced. Real GDP increases and people are
Module Five Written Assignment.
Monetary policy is the macroeconomic policy laid down by the central bank. It involves
management of money supply and interest rate and is the demand side economic policy used
Page no 33 Answers from Chapter 2
Answer 2: It means in reality there is nothing in the world anyone could achieve for free. I mean many
things that are appear to be free but paid in some way by someone. There is always some
Answer 4: A) Yes, government can do two methods I suppose that work for frictional unemployment:
-Increasing knowledge of local vacancies thro
Answer exercises 1, and 4 on page 221
The equilibrium level of GDP is obtained at a point where aggregate expenditure equals
Real GDP. In this regard, there are two situations:
1. When aggregate expenditure goes abo
Answers for the exercises 2, 3, 4, and 5 Letters A and B on page 79.
Answer 2: The Household sector spends the most and the Business sector stands second. The
International sector comes at least. The business sector has the m
Extra Credit Question
Question: The State of Illinois is at a budget impasse for nearly a year. Bills are not getting paid,
students are not getting grant awards, and colleges are in budget crisis. If you were the Governor
Extra Credit Module Five:
The problem is trying to indicate impact of money supply on the economy. In
other words I have to decide on the monetary policy for keeping GDP at high level.
In monetary policy government will introduce n
Chapter 20 World Trade Equilibrium
1. Nations trade what they produce in excess of their own consumption to:
a. generate jobs for the domestic economy.
b. earn good will from the World Bank.
c. prevent chronic surpluses from driving down d
Chapter 21 International Trade Restrictions
1. Commercial policy is government policy that influences:
a. the operation of commercial banks.
b. domestic trade flows.
c. domestic private corporations.
d. international trade flows.
e. the op
Chapter 15 The Labor Market
1. Which of the following is a true statement about leisure?
a. When the salary of a low income earner increases, it often becomes possible to increase
both labor and leisure.
b. Standing in line at the bank is
Chapter 22 Exchange Rates and Financial Links Between Countries
1. If $1 was equivalent to 120 Japanese yen in 2008 and 125 Japanese yen in 2010, it implies in 2010,
a. a depreciation of the dollar against the yen.
b. a deprecia
Chapter 18 Aging, Social Security and Health Care
1. One of the major impacts of the aging of the population is:
a. increase in the production of necessary goods in the economy.
b. increase in government revenue generation.
c. increase in
Chapter 10 Monopoly
1. Perfect competition provides one model in which there are many firms with no barriers to entry. If
perfect competition as a model lies on one extreme, the model that lies on the opposite extreme is:
a. monopolistic c
Chapter 19 Income Distribution, Poverty and Government Policy
1. In a market system, incomes are distributed according to the:
a. principle of equality.
b. directions of a central authority.
c. needs of the people.
d. ownership of resource
Chapter 14 Resource Markets
1. The buyers and sellers in a resource market are:
a. household and firms respectively.
b. banks and farmers respectively.
c. households and land owners respectively.
d. firms and household respectively.
Chapter 09 Perfect Competition
1. Many agricultural products, such as wheat, are produced by thousands of different producers that grow
essentially the same product. The market structure model that would best characterize such a market is:
Chapter 16 Capital Markets
1. A firm decides to hire more equipments if:
a. the average revenue it earns by selling its output is equal to its average cost.
b. its total revenue is greater than the total cost of hiring the equipments.
Chapter 13 Market Failures, Government Failures, and Rent Seeking
1. Higher the economic freedom in a country:
a. lower is the standard of living of the people.
b. higher is the life expectancy.
c. greater is the bureaucratic freedom and r
Chapter 17 The Land Market and Natural Resources
1. The category of resources economists call land refers to all of the following, except:
a. nonrenewable natural resources.
b. renewable natural resources.
Chapter 11 Monopolistic Competition and Oligopoly
1. A monopolistically competitive market is characterized by:
a. one firm selling a homogeneous product.
b. many firms selling identical products.
c. many firms selling similar but differen
Chapter 08 Profit Maximization
1. In economic theory, we assume that the goal of the firm is to:
a. maximize sales revenue.
b. maximize market share.
c. maximize the benefits it provides to its customers.
d. maximize the profit.
Chapter 12 Antitrust and Regulation
1. Which of the following is true of Antitrust policy?
a. Antitrust policy prohibits agreements that allow free trade.
b. Antitrust policy restricts abusive behavior by a firm dominating a market.
Chapter 03 Markets, Demand and Supply, and the Price System
1. Given that resources can be allocated by the government, the market, a random process, or on a firstcome first-serve basis, which of the following statements is true?
a. The ma
Chapter 07 Supply: The Costs of Doing Business
1. As I add more workers to the factory line, the additional output produced by each additional worker
seems to decline. Eventually, the workers just get in each others way.
This statement by
Chapter 02 Choice, Opportunity Costs, and Specialization
1. Shirley can choose between peanut butter pretzels and caramel coated popcorns for her evening snack.
According to economists, her _ cost of consuming caramel coated popcorns would
Chapter 04 The Market System and the Private and Public Sector
1. In a market system, who ultimately determines what is produced?
b. Business managers
d. The government
Chapter 06 Consumer Choice
1. Utility is most closely defined as _.
a. the purchasing power of individuals
b. welfare maximization
c. a medium of exchange
e. an opportunity cost
NAT: Reflective Thi
Chapter 05 Elasticity: Demand and Supply
1. Which of the following is explained by the price elasticity of demand?
a. The effect of price changes on supply.
b. The effect of quantity changes on supply.
c. The effect of quantity changes on