Assessment: Lesson 7 Preview Questions Instructions You have completed the Lesson 7 Preview Questions. Assessment Score Attempt Score: 8. 00 out of a possible 10. 00 (80. 0%) Assessment Score: 8. 00 out of a possible 10. 00 (80. 0%) Assessment Time: 2462 minutes Question 1: Economics began as a field of study in 1776 with the publication of An Inquiry into the Wealth of Nations by Points awarded: 1. 00/ 1. 00 .
Type: Multiple Choice Your answer(s): Adam Smith Correct answer(s): Jean-Baptists Say John Maynard Keynes Your Professor Adam Smith Question 2: According to Says Law: If production is created then there e sufficient funds from this creation to purchase everything that is produced. Type: Multiple Choice Your answer(s): will Correct answer(s): will not will sometimes will none of the above Question 3: According to Theory, an economy is assumed to always be at full employment (or very quickly returning to that level).
Type: Multiple Choice Your answer(s): Classical Correct answer(s): Keynesian Smithsonian Classical Traditional Question 4: In the Classical Theory, if Households decrease their spending then Businesses will reduce product prices, but will also Your answer(s): decrease wages increase interest rates
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Keynesian Economics and Multiple Choice Points By Karl increase replacement inventories increase investment Question 5: Classical Theory assumes that the economy is capable of adjusting itself to full employment without Your answer(s): government price flexibility wage flexibility interest rate flexibility government Question 6: In the Classical stage of the figure below, a decrease in Aggregate Demand will only result in a movement along the Aggregate Supply line with a corresponding change in prices.
Type: Multiple Choice Points awarded: 0. 00 / 1. 00 Your answer(s): leftward rightward leftward downward upward Question 7: In the sass's Classical Theory was unable to explain the continuing reductions in economic activity since that activity was supposed to be restored through interest rates, wages and prices.
Type: Multiple Choice flexible Your answer(s): rigid flexible fixed Question 8: A Bathtub model of the start of the Great Depression would show the water level becoming lower with Investment inflow being less than Savings leakage and, therefore, quantity of AD being Your answer(s): less than Correct answer(s): less than quantity of AS. The same as Question 9: In this example of the Classical adjustment process, a recession seems to e starting with Business Investment spending declining by billion dollars because of pessimism regarding profit opportunities in the short run.
Points awarded: 0. 00/ 1. 00 Your answer(s): 400 Correct answer(s): 100 200 Question 10: In this example of the Classical adjustment process, the recession is avoided when is increased by $100 billion which effectively offsets the decline in Business Investment spending. Your answer(s): Consumption spending by Households Correct answer(s): deficit spending by Government import spending by Foreign Markets Consumption spending by Households Saving by Households
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