Practice Quiz

FSOT Full Test Bank - Question List

Select how would you like to study

Study Mode Free Daily Question Test Mode
66. What is a liquidity trap?
  1. When a company grows slowly because it focuses too much on liquidity
  2. When apparent assets actually are a drain on the company, creating a cash flow problem
  3. When there is not enough liquidity in a system, creating instability
  4. When people with cash won’t invest because they expect prices to fall
See answer
67. Which is the best explanation of stagflation?
  1. A stagnant economy with high inflation
  2. Prices that aren’t changing; neither inflation nor deflation
  3. A combination of low job growth and low inflation
  4. Extremely high deflation, the opposite of hyperinflation
See answer
68. How does the government measure inflation?
  1. It polls prominent economists.
  2. It measures changes in the value of the US dollar and Treasury bonds.
  3. It measures the change in value of a long list of values.
  4. It measures the change in value of a long list of wages and salaries.
See answer
69. Is it possible for per capita income to go up while median income is going down?
  1. Yes, this is a sign of growing unemployment.
  2. Yes, this is a sign of growing inequality.
  3. No, when per capita income goes up median income must as well.
  4. Yes, these two measures are not related to each other.
See answer
70. A plant that produces 1000 units of some item decides to make 1001 units instead. What is the cost of this additional unit called?
  1. Cost of growth
  2. Overhead cost
  3. Marginal cost
  4. Per unit expenditure
See answer

Select how would you like to study

Study Mode Free Daily Question Test Mode