Question 1

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Which of the following make up a country's balance of payments?

• Supply andtrade surplus
• Trade deficit anddemand
• Current account and trade deficit
• Capital account andcurrent account

Question 2

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Which statement below is NOTtrue regarding government intervention in the economy?

• Progressive income tax is a form of automatic stabilizer.
• Unemployment insurance is an automatic economic stabilizer.
• If the economy is doing badly, the government should cut spending to improve it.
• Most suggest that government should promote macroeconomic stability.

Question 3

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If a new car cost $1,250in 1950 and is $30,000 in 2013, prices haveincreased by a factor of which of the following?

• 20
• 12
• 24
• 48

Question 4

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Select the statement that corresponds to a shift in the supply curve.

• Occurs when the price for a certain good changes and influences the quantity supplied
• The amount of goods and services that may be purchased at a certain moment in time at a specific income level
• The amount of goods and services that are available at different prices at a certain moment in time
• A movement that occurs due to factors such as firms having more or less access to resources

Question 5

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Government can change markets through all of the following except__________.

• awarding large business contracts
• enacting regulations
• changing the tax rate
• awarding subsidies

Question 6

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If demand is __________, the seller will bear more of the burden of a tax than the consumer.

• perfectly inelastic
• unit elastic
• inelastic
• elastic

Question 7

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Which of the following is the point in the business cycle that marks the lowest period of growth in GDP for a specific period?

• Peak
• Trough
• Expansion
• Recession