QUESTION 1

When Jill decides not to go to a football game, but goes to the gym instead, she is:

*This question is being used for an exam. It is copyrighted. It is illegal and against school academic honesty policies to post this question or its answers to the internet or other public forums* (a) making an economic decision

(b) at least implicitly recognizing that the opportunity cost of going to the gym is the football game she is giving up

(c) realizing that her time is a scarce resource that she has to allocate

(d) doing all of the above

(e) doing choices (a) and (b) only

QUESTION 2

What do economists describe as the fundamental problem of economics?

*This question is being used for an exam. It is copyrighted. It is illegal and against school academic honesty policies to post this question or its answers to the internet or other public forums*

(a) preventing imports from being greater than exports

(b) putting scarce resources to their best use

(c) preventing government expenditures from being greater than income

(d) saving money in order to reduce the government's debt

remo

QUESTION 3

Which of the following would contribute to a leftward shift in the aggregate demand curve?

*This question is being used for an exam. It is copyrighted. It is illegal and against school academic honesty policies to post this question or its answers to the internet or other public forums*

(a) free-trade agreements with another country

(b) recession in another country.

(c) an increase in the money supply in this country

(d) none of the above

QUESTION 4

move

Of the following economic events, which is most likely to cause decreases in the level of both unemployment and inflation?

*This question is being used for an exam. It is copyrighted. It is illegal and against school academic honesty policies to post this question or its answers to the internet or other public forums*

(a) government spending for pandemic relief

(b) higher tax rates on income

(c) a fall in the price of oil being imported

(d) a drought that decreases farm output

QUESTION 5

As an economy gets close to full employment, an "expansionary" fiscal policy is likely to cause:

*This question's being used for an exam. It is copyrighted. It is illegal and against school academic honesty policies to post this question or its answers to the internet or other public forums*

(a) a fall in interest rates

(b) a recession

(c) increased rates of inflation

(d) a big increase in levels of real GDP

QUESTION 6

Which of the following government actions are most likely to reduce high inflation?

*This question is being used for an exam. It is copyrighted. It is illegal and against school academic honesty plicies to post this question or its answers to the internet or other public foruins*

(a) an increase in both spending and the money supply

(b) a decrease in both spending and the money supply

(c) a decrease in spending and an increase in the money supply

(d) an increase in spending and an increase in the money supply

Give proper explanation