TEST ECO4ESO 503 - Created by Antonio Ginés

What do high interest rates do?
1. Discourage borrowing
2. Encourage borrowing
3. The other answers are correct
What happens to prices if the demand for goods and services increases?
1. They decrease
2. They increase
3. The other answers are correct
What causes hyperinflation?
1. Fluctuations in real demand for goods and services, or changes in available supplies, in addition to the growth of the money supply
2. Excessive growth in the money supply
3. Fluctuation in real demand for goods and services or changes in available supplies
Who claims that the empirical study of monetary history shows that inflation has always been a monetary phenomenom?
1. The Classics
2. They Keynesians
3. The Monetarists
For whom are there three main types of inflation: demand inflation, cost inflation, and self-built inflation
1. For Monetarists
2. For Classics
3. For Keynesians
What produces excess demand?
1. Stimulates investment
2. Disincentives investment
3. The other answers are correct
What inflation can be caused by the drop in potential production?
1. The cost inflation
2. The demand inflation
3. The supply inflation
How will producers pass the increased oil prices on to consumers?
1. In the form of decreased prices
2. In the form of increased prices
3. The other answers are correct
What type of inflation is based on the assumption that workers try to keep their wages above inflation?
1. The demand inflation
2. The cost inflation
3. The self-built inflation
What does the Consumer Price Index measure?
1. The prices of a selection of goods and services
2. The prices of a good or service
3. None of the other answers is correct
What type of unemployment occurs when a worker changes from one job to another?
1. The classic
2. The frictional
3. The cyclical
When is frictional unemployment present in an economy?
1. In expansions
2. Forever
3. In recessions
What is real wage unemployment also called?
1. Cyclic
2. Keynesian
3. Classic
What does the minimum wage produce?
1. That increases the cost of low-skill workers above market equilibrium
2. That decreases the cost of low-skill workers below market equilibrium
3. The other answers are correct
Who suggest that even social taboos can prevent wages from falling to the agreed level (Minimum wage)
1. Andy Murray
2. Murray Rothbard
3. Murray Wyatt
What type of unemployment occurs when there isn't enough aggregate demand in the economy?
1. The seasonal
2. The cyclical
3. The classic
Who says structural unemployment could be permanent in modern society?
1. John Maynard Keynes
2. Milton Friedman
3. André Gorz
What type of unemployment in attributed to the decisions of individuals?
1. The voluntary
2. The involuntary
3. The other answers are correct
Who are the job suppliers?
1. The entrepreneurs
2. The active population
3. The other answers are correct
What has happened to the economic, social and political importance of international trade in recent centuries?
1. The other answers are correct
2. That has decreased
3. That has increased
Which theory refers to the ability of a person or a country to produce a particular good at a lower absolute cost than another?
1. The one with the absolute advantage
2. The one with the total advantage
3. The one with the comparative advantage
Are countries with higher costs than Morocco able to export their products to African countries?
1. No
2. Yes
3. The other answers are correct
What are the net benefits of the result of the comparative advantage theory called?
1. International benefit
2. International revenue
3. Gains for trade