Test 9: Module 3, Part 3: Inflation and Unemployment
1. Last year, Tealandia produced 50,000 bags of green tea. This was Tealandias only production.
Each bag sold at 4units each of Tealandia's currency-the Leaf. Tealandia's money supply was
10,000. What w
Test 7: Module 3, Part 1: Fiscal Policy
1. An increase in government spending initially and primarily shifts
a. aggregate demand right.
b. aggregate demand left.
c. aggregate supply right.
d. neither aggregate demand nor aggregate supply.
2. The governmen
Test 6: Module 2, Part 6: Money Market
1. Mia puts money into a piggy bank so she can spend it later. What function of money does this
a. store of value
b. medium of exchange
c. unit of account
d. None of the above is correct.
2. The opportuni
Test 2: Module 1, Part 2: Measurement
1. In the equation Y = C + I + G + NX,
a. Y represents the economys total expenditure.
b. C represents household expenditures on services and durable goods.
c. All of the variables are always positive numbers.
Test 4: Module 2, Parts 3 & 4: Exchange Rate Market & The Financial System and Market for
1. Exchange rates are 120 yen per dong, 0.8 euro per dong, and 10 pesos per dong. A bottle of beer in
Saigon costs 6 dollars, 1,200 yen in Tokyo, 7.2
Test 5: Module 2, Part 4: Product Market
1. A recession is a period during which
a. Nominal GDP declines for about two consecutive quarters.
b. Nominal GDP declines for about four consecutive quarters.
c. Real GDP declines for about two consecutive quarte
Test 8: Module 3, Part 2: Monetary Policy
1. If the interest rate is below the Central Bank's target, the Central Bank would
a. buy bonds to increase the money supply.
b. buy bonds to decrease the money supply.
c. sell bonds to increase the money supply.
Test 3: Module 2, Parts 1 & 2: Pricing Mechanism & Labour Market
1. In a market economy,
a. supply determines demand and, in turn, demand determines prices.
b. demand determines supply and, in turn, supply determines prices.
c. the allocation of scarce re
Test 1: Module 1, Part 1: Economic Methodology and the Economising Problem
1. The phenomenon of scarcity stems from the fact that
a. Most economies production methods are not very good.
b. In most economies, wealthy people consume disproportionate quantit