Q. An “Inflationary Gap” can be eliminated by increasing Government purchases and reducing taxes.
Answer: False
Q. A good indicator of economic growth is the relationship between gross investment and depreciation.
Answer: True
Q. The circular flow model shows how the prices of goods and services are determined.
Answer: False
Q. If goods were not scarce they would be free.
Answer: True
Q. The Soviet Union represents a good example of mixed economy since it produces both industrial and agricultural goods.
Answer: False
Q. In a consumption function C = a + bY, Y is called independent variable.
Answer: True
Q. Progressive tax rates means a larger fraction of income is taken in the form of taxes as income increases.
Answer: True
Q. A market demand curve can always be found by adding horizontally the demand curves of all buyers.
Answer: True
Q. Goods are scarce because society’s desire for them exceeds society’s ability to produce them.
Answer: True
Q. Specialization of labour means that?
Answer: Different tasks are allocated to different people
Honestly, This showed up while I was looking into something unrelated, which surprised me a bit. this actually helped more than I thought and it feels more natural than most blogs. this could be useful later.