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Select the correct statement about fiat money. Question 11 options:...

Select the correct statement about fiat money.

Question 11 options:
a. Fiat money is tied to a fixed quantity of gold and therefore protects against inflation.
b.Fiat money eliminates the need for monetary policy and the Federal Reserve?s role in managing the money supply.
c.All fiat money is a type of soft currency that trades only within the issuing country.
d.The U.S. dollar is fiat money.


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Question 12 (1 point)


Which of the following is NOT an example of a demand shift?

Question 12 options:
a. A promotion at works leads to increased spending on vacation travel.
b. A shoe store sale leads to higher demand for its shoes.
c.A safety recall of the Honda Prius leads to lower demand for the Honda Civic.
d.An increase in coffee bean prices leads to a fall in demand for lattes.


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Question 13 (1 point)


Which situation describes the increasing returns stage of the production function?

Question 13 options:
a.Hiring one more tailor results in three more suits produced per hour.
b. Hiring one more baker results in less than one oven available per baker.
c.Buying one more office computer causes there to be more computers than workers.
d.Extending the workday results in more tired and less productive workers.


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Question 14 (1 point)


Allocative efficiency means that

Question 14 options:
a.  Consumers get the most goods at the lowest prices possible.
b. Production reaches consumers on time.
c. A small number of sellers coordinate products and prices.
d. Government lowers taxes.


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Question 15 (1 point)


Which statement about the loanable funds market is NOT correct?

Question 15 options:
a.The market suppliers are the savers and the buyers are the borrowers.
b.The price of loanable funds is the real interest rate.
c. Loanable funds are provided by savers to borrowers to spend on investment goods and services.
d.The loanable funds theory describes changes in short-term interest rates.


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Question 16 (1 point)


Liquidity preference is

Question 16 options:
a is the demand for goods and services that can be easily sold for cash.
b is the demand for holding cash money rather than bonds or other assets.
c. increases when interest rates rise.
d.causes interest rates to rise when liquidity preference falls.


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Question 17 (1 point)


Demand-pull inflation is

Question 17 options:
a.caused by a shock to supply, such as a crop failure.
b.caused by price manipulation by cartels.
c. caused by an expansionary monetary policy.
d.caused by high unemployment.


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Question 18 (1 point)


Which is an example of the subsitution effect on demand?

Question 18 options:
a. the price of coffee rises, so you buy less coffee.
b.  The price of coffee rises, so you buy more coffee.
c. the price of coffee rises, so you buy more tea and less coffee.
d. the price of coffee rises, but you buy the same amount of coffee.


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Question 19 (1 point)


Which statement does NOT correctly describe bonds?

Question 19 options:
a. Municipal bonds are used by state and local governments to finance school, roads and other public projects.
b.A one-year T-bill with a face value of $1000 and offered at $900 yields an interest rate of 11.1 percent.
c.U.S. treasury notes have maturities that range from 2 to 10 years whereas U.S. treasury bonds have maturities of 30 years.
d.Corporate bonds are usually issued at a lower rate of interest than government bonds because of their lower risk of default.


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Question 20 (1 point)


All of these influence supply except

Question 20 options:
a. prices of inputs
b. expected future prices
c. extent of competition in the market
d. price of the product.


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Question 21 (1 point)


Which of the following describes the inflation-unemployment trade off?

Question 21 options:
a.Monetary policies that expand the money supply and lower interest rates will lower inflation and unemployment.
b.Monetary policies that expand the money supply and raise interest rates will lower inflation and unemployment.
c.Fiscal policies that increase government spending and lower unemployment will cause inflation.
d.Fiscal policies that increase government spending and lower unemployment will lower inflation.


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Question 22 (1 point)


Which of the following describes the short-run time production period?

Question 22 options:
Firms can vary only one of the inputs in the production process.
Firms can vary all inputs into the production process.
Firms cannot vary any of the inputs into the production process.
Firms can choose to go out of business.


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Question 23 (1 point)


Which of the following best describes the classical view of economics?

Question 23 options:
a.  Because markets are inherently efficient, government intervention is rarely needed.
b. Because unemployment can be prolonged, government intervention is needed to stimulate job growth.
c. Because markets are inherently inefficient, government intervention is needed to smooth business cycles.
d.  Because markets are inherently efficient, government intervention is needed only in the short run.


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Question 24 (1 point)


Margarine and butter can both be used as a spread on toast.  This means that they are:

Question 24 options:
a. complements.
b. substitutes.
c. inferior goods.
d. none of the above.


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Question 25 (1 point)


Which of the following is explained by the price elasticity of demand?

Question 25 options:
a.  The effect of price changes on supply.
b.  The effect of price changes on the quantity supplied.
c.  The effect of price changes on demand.
d.  The effect of price changes on the quantity demanded.


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