The cross-price elasticity of demand can tell us whether goods are:

• Elastic or inelastic.
• Complements or substitutes.
• Normal or inferior.
• Luxuries or necessities.

The demand for a good is determined by

• Those who sell the good or service
• Those who buy the good or service
• Both buyers and sellers
• The government

The demand for a good or service is determined by

• Those who supply the raw materials used in the production of the good or service.
• The producers who create the good or service.
• Those who buy the good or service.
• The government.

The dictator of a certain country requires that companies planning to open or expand must pay a large fee to file an application one year prior to building new factories or expanding existing ones. Other things the same, in the long run this requirement would

• None of the above is correct.
• Reduce productivity but not real GDP per person.
• Reduce real GDP per person and productivity.
• Reduce real GDP per person but not productivity.

The equation for GDP using the expenditure approach is

• GDP = C + I + G + M - X.
• GDP = C + I + G + X - M.
• GDP = C + I + G - X - M.
• GDP = C + I + G + X + M.

The equilibrium price is the price at which the quantity

• Demanded equals the quantity sold.
• Sold equals the quantity bought.
• Demanded equals the quantity supplied.
• Supplied equals the quantity bought.

The famous observation that households and firms interacting in markets act as if they are guided by an "invisible hand" that leads them to desirable market outcomes comes from whose 1776 book?

• David Ricardo
• Thorstein Veblen
• Adam Smith
• John Maynard Keynes

The federal funds rate refers to the interest rate at which

• The Fed charges Congress for loans.
• Banks charge one another for loans.
• Banks charge the Fed for loans.
• The Fed charges banks for loans.

The field of economics is traditionally divided into two broad subfields,

• Microeconomics and macroeconomics.
• Consumer economics and producer economics.
• National economics and international economics.
• Private sector economics and public sector economics.

The GDP of the France in 2010 was around $30 trillion. Which is following statement NOT correct?

• The total value of France’s output in 2010, including overseas, was around $30 trillion.
• The value of output in France in 2010 was around $30 trillion.
• Total spending on final goods and services in France in 2010 was around $30 trillion.
• Total income in the France in 2010 was around $30 trillion.