Practice Quiz

Praxis II: Economics Content Knowledge Exam Prep - Question List

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56. In 2007, the nominal Gross Domestic Product (GDP) of a small Asian country was 5% and the real GDP growth was 2%. What was the rate of inflation for this country?
  1. -3%
  2. 10%
  3. 3%
  4. 7%
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57. The medium run aggregate supply (MRAS) is affected by labor, capital availability, technological capability, and wage rate.
  1. True
  2. False
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58.

What happens if the demand for oranges increases, but the supply of oranges decreases?

  1. The price and quantity will both increase
  2. The price and quantity will both decrease
  3. The price will increase, but the quantity will decrease
  4. The price will increase, but it cannot be determined what will happen to the quantity
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59. During the 1990s and due to a civil war, Nigeria experienced capital flight, especially by foreign investors. Capital flight is a significant and sudden reduction in the _______ within a country.
  1. Insurance against fraud
  2. Loanable funds
  3. Supply assets
  4. Demand for assets
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60. With the introduction of government-funded health programs for the elderly and the poor, private health insurers have lost a substantial portion of their insured clients to these programs. The introduction of government-sponsored spending that curbs private investment is referred to as:
  1. Squeezing-out
  2. Crowding-in
  3. Crowding-out
  4. Squeezing-in
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