AP (Advanced Placement) Macroeconomics: Questions 90 - 92 of 750

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Question 90

Appeared in Year: 2013 (NET)

Question

MCQ▾

Put the following in chronological order based on development:

i. Law of Demand

ii. Revealed Preference Analysis

iii. Indifference Curve Analysis

iv. Law of Diminishing Marginal Utility (December)

Choices

Choice (5)Response

a.

i iii iv ii

b.

i iii ii iv

c.

i ii iv iii

d.

i iv iii ii

e.

Question does not provide sufficient data or is vague

Question 91

Appeared in Year: 2017 (NET)

Question

MCQ▾

Which one of the following is not an assumption of permanent income hypothesis?

Choices

Choice (5)Response

a.

Permanent Income depends on human and non-human wealth.

b.

Transitory Income can be both positive and negative.

c.

Average propensity to consume is greater than marginal propensity to consume.

d.

Transitory consumption can be both positive and negative.

e.

Question does not provide sufficient data or is vague

Question 92

Appeared in Year: 2013 (NET)

Question

MCQ▾

It is often true that as the economy begins to recover from a recession, the unemployment rate rises because (December)

Choices

Choice (5)Response

a.

as the economy begins to recover from a recession because of the errors in the way the data are collected.

b.

as the economy begins to recover from a recession, workers who were previously discouraged about their chances of finding a job begin to look for work again.

c.

as the economy initially recovers from a recession, firms do not immediately increase the number of workers they hire. Firms wait to hire more individuals until they are convinced that the recovery is strong.

d.

as the economy initially recovers from a recession the demand for goods and services falls, so the demand for workers falls.

e.

All of the above

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