Suppose a developing country experiences a reduction in machinery and capital equipment as foreign entrepreneurs decrease the amount of investment in the economy. As a result,

Question 7 options:

the economy will move up along the long-run aggregate supply curve.

the economy will move down along the long-run aggregate supply curve.

the long-run aggregate supply curve will shift to the left.

the long-run aggregate supply curve will shift to the right.

Which of the following is one of the most important benefits of money in an economy?

Question 8 options:

Money encourages people to produce all of their own goods (self-sufficiency) and therefore increases economic stability.

Money allows for the exchange of goods and services.

Money makes exchange easier, leading to more specialization and higher productivity.

Money allows for the accumulation of wealth.

There is a federal budget deficit when

Question 9 options:

the government spends the same amount it collects in taxes.

taxes are too high.

the government spends less that it collects in taxes.

the government spends more that it collects in taxes.

If provinces decide to cover part of the price of voluntary laser eye surgery and more doctors decide to enter the field of laser eye surgery, what will happen in the market for laser eye surgery as a result of these two factors?

Question 13 options:

Demand will increase and supply will decrease.

Supply will increase, but these two factors will not shift the demand curve.

Demand and supply will both increase.

Demand will increase, but these two factors will not shift the supply curve.

In the circular flow diagram, ________ supply the factors of production and ________ goods and services.

Question 14 options:

households; buy

firms; sell

firms; buy

households; sell

The bank rate is

Question 15 options:

the interest rate consumers pay when they borrow from the bank.

the interest the Bank of Canada charges to lend to financial institutions

amount adjusted to control the money supply

the rate at which banks are taxed on their profits

The largest and fastest-growing category of federal government expenditures is

Question 16 options:

grants to state and local governments

national park spending

interest on the national debt

transfer payments