Using the aggregate demand-aggregate supply model, predict what happens in the short run when the federal government lowers the capital gains tax to stimulate investment.
The aggregate demand curve shifts right; the aggregate supply curve is not affected; price level and real GDP increase.
Using the aggregate demand-aggregate supply model, predict what happens in the short run when the federal government enacts a cut in the personal income tax rates.
The aggregate demand curve shifts right; the aggregate supply curve is not affected; price level and real GDP increase.
Dashboard / My courses / ECON 1580-01 - AY2023-T April - 26 April / Graded Quiz Unit 3
Question 1
Not yet answered
Marked out of 1.00
In the 1970s, the Organization of Petroleum Exporting Countries (OPEC) tripled the price of petroleum, causing automobile
manufacturers to look for ways to produce more fuel-efficient cars by substituting aluminum and plastic for steel. This was primarily a
response to the economic question of:
Select one:
a. When will each good be produced?
b. For whom shall the goods be produced?
c. What goods and services should a society produce?
d. How should goods and services be produced?
Clear my choice
Question 2
Not yet answered
Marked out of 1.00
Any point inside a production possibilities curve indicates:
Select one:
a. unemployment and/or inefficiency.
b. that the law of increasing opportunity costs is no longer valid.
c. that society doesn't want more of either good.
d. that economic growth is no longer possible.
Clear my choice
,Question 3
Not yet answered
Marked out of 1.00
The Case in Point on campus parking suggested that giving students lower fares for taking public transportation was what kind of
factor in the demand for parking spaces?
Select one:
a. supply shifter
b. demand shifter
c. false prophet
d. spoiler
Clear my choice
Question 4
Not yet answered
Marked out of 1.00
If, for a particular consumer, the marginal utility of ties is greater than the marginal utility of shirts, this consumer should:
Select one:
a. buy more ties and fewer shirts.
b. buy more shirts and fewer ties.
c. buy the same amount of each.
d. not do anything until more information is available.
Clear my choice
,Question 5
Not yet answered
Marked out of 1.00
The income effect refers to:
Select one:
a. changes in income because of changes in business investment.
b. changes in money or nominal income because of changes in wages.
c. a change in the quantity demanded of a good because of an implicit change in the buyer's income caused by a change in
the price of a good or service.
d. a change in the quantity demanded of a good because of a change in the buyer's money income.
Clear my choice
Question 6
Not yet answered
Marked out of 1.00
John Smedley, a careful maximizer of utility, consumes only two goods, peanut butter and ice cream. He had just achieved the utility-
maximizing solution in his consumption of the two goods when the price of ice cream fell. As he adjusts to this event, he will consume:
Select one:
a. more peanut butter and more ice cream.
b. less peanut butter and less ice cream.
c. more peanut butter and less ice cream.
d. less peanut butter and more ice cream.
Clear my choice
, Question 7
Not yet answered
Marked out of 1.00
After graduation from college you will receive a substantial increase in your income from a new job. If you decide that you will
purchase more T-bone steak and less hamburger, then for you hamburger would be considered a/an:
Select one:
a. normal good.
b. substitute good.
c. complementary good.
d. inferior good.
Clear my choice
Question 8
Not yet answered
Marked out of 1.00
If an increase in income leads to an increase in the demand for a good, then the good is said to be:
Select one:
a. normal.
b. a luxury.
c. inferior.
d. a staple or necessity.
Clear my choice
The aggregate demand curve shifts right; the aggregate supply curve is not affected; price level and real GDP increase.
Using the aggregate demand-aggregate supply model, predict what happens in the short run when the federal government enacts a cut in the personal income tax rates.
The aggregate demand curve shifts right; the aggregate supply curve is not affected; price level and real GDP increase.
Dashboard / My courses / ECON 1580-01 - AY2023-T April - 26 April / Graded Quiz Unit 3
Question 1
Not yet answered
Marked out of 1.00
In the 1970s, the Organization of Petroleum Exporting Countries (OPEC) tripled the price of petroleum, causing automobile
manufacturers to look for ways to produce more fuel-efficient cars by substituting aluminum and plastic for steel. This was primarily a
response to the economic question of:
Select one:
a. When will each good be produced?
b. For whom shall the goods be produced?
c. What goods and services should a society produce?
d. How should goods and services be produced?
Clear my choice
Question 2
Not yet answered
Marked out of 1.00
Any point inside a production possibilities curve indicates:
Select one:
a. unemployment and/or inefficiency.
b. that the law of increasing opportunity costs is no longer valid.
c. that society doesn't want more of either good.
d. that economic growth is no longer possible.
Clear my choice
,Question 3
Not yet answered
Marked out of 1.00
The Case in Point on campus parking suggested that giving students lower fares for taking public transportation was what kind of
factor in the demand for parking spaces?
Select one:
a. supply shifter
b. demand shifter
c. false prophet
d. spoiler
Clear my choice
Question 4
Not yet answered
Marked out of 1.00
If, for a particular consumer, the marginal utility of ties is greater than the marginal utility of shirts, this consumer should:
Select one:
a. buy more ties and fewer shirts.
b. buy more shirts and fewer ties.
c. buy the same amount of each.
d. not do anything until more information is available.
Clear my choice
,Question 5
Not yet answered
Marked out of 1.00
The income effect refers to:
Select one:
a. changes in income because of changes in business investment.
b. changes in money or nominal income because of changes in wages.
c. a change in the quantity demanded of a good because of an implicit change in the buyer's income caused by a change in
the price of a good or service.
d. a change in the quantity demanded of a good because of a change in the buyer's money income.
Clear my choice
Question 6
Not yet answered
Marked out of 1.00
John Smedley, a careful maximizer of utility, consumes only two goods, peanut butter and ice cream. He had just achieved the utility-
maximizing solution in his consumption of the two goods when the price of ice cream fell. As he adjusts to this event, he will consume:
Select one:
a. more peanut butter and more ice cream.
b. less peanut butter and less ice cream.
c. more peanut butter and less ice cream.
d. less peanut butter and more ice cream.
Clear my choice
, Question 7
Not yet answered
Marked out of 1.00
After graduation from college you will receive a substantial increase in your income from a new job. If you decide that you will
purchase more T-bone steak and less hamburger, then for you hamburger would be considered a/an:
Select one:
a. normal good.
b. substitute good.
c. complementary good.
d. inferior good.
Clear my choice
Question 8
Not yet answered
Marked out of 1.00
If an increase in income leads to an increase in the demand for a good, then the good is said to be:
Select one:
a. normal.
b. a luxury.
c. inferior.
d. a staple or necessity.
Clear my choice
