Which of the following statements is correct if there is an increase in the resources available within an economy?
More goods and services will be produced in the economy
The economy will be capable of producing more goods and services
The standard of living in the economy will rise
The technological efficiency of the economy will improve
What is the most likely impact of government borrowing to finance deficits that increases the demand for loan funds?
Decrease in the supply of loan funds
Decrease interest rates
Increase the ease with which businesses can borrow funds
Increase interest rates
Decreases when consumption expands
Increases when consumption expands
Indicates that a high consumption quantity is preferred to a low consumption quantity
Indicates that consumption decreases over time
Which of the following are not assumptions of classical economic theory?
Flexible interest rates allow self-correcting equilibrium of savings and investing
Flexible prices allow self-correcting of shortages and surpluses in product markets
Full employment is not necessarily an attribute of equilibrium
An increase in money leads to an increase in aggregate demand
What will be the likely result of a decline in the value of the U.S. dollar relative to the currencies of the United States’ trading partners?
The U.S. trade deficit will increase
U.S. imports will increase
U.S. exports will increase
Foreign currencies will depreciate compared to the U.S. dollar
The labor market for masons is competitive and stable. What is the likely short-term result of an attempt to increase masons’ wages?
Decreased employment levels
Decreased employer size
Increased employer size
Increased labor supplied
What increases when U.S. commercial banks increase net deposits?
Purchasing power of the U.S. dollar
Real U.S. national income
Real wealth of the U.S.
U.S. money supply
A file containing relatively long-term information used as a source of reference and periodically update with detail is termed a
The process of developing specifications for hardware, software, manpower, data resources, and information products required to develop a system is referred to as
Systems feasibility study