FREE Bachelor of Social Science Economics Questions and Answers

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To impress a business associate, John wants to compute the Gross Domestic Product (GDP). Which item would this calculation's relevance be?

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The total economic output produced inside a nation's borders over a given time period, often a year, is measured by the gross domestic product (GDP). It is employed to assess a nation's overall economic development and performance

Which one of the following IS an injection?

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Any augmentation of spending into the revolving stream of revenue is referred to in macroeconomics as a "injection". Leakages and injections are the two primary sources of spending in the circular flow model.

Having accomplished her aim of being able to set aside money each month to buy investment tools like stocks and bonds, a young professional is pleased with herself. What type of financial demand does her circumstances BEST illustrate?

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The example provided shows the idea of "speculative demand for money," where a young professional sets aside money each month to buy investment instruments like stocks and bonds.

At his bank, John bought an investment tool that is a contractual promise that, after two years, he will be able to extract monetary value. This device is most likely categorized as:

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The investment instrument that John purchased from his bank is most likely referred to as a "financial asset" because it has a contractual guarantee to take money after two years.

What does each transaction's financial gain entail?

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Every transaction's financial gain is often referred to as "profit." The term "profit" refers to the amount that is left over after all costs associated with producing a good or service have been paid. Profit is the amount of money left over after all costs, such as labor, raw materials, taxes, and overhead, have been subtracted from sales revenue.

What aspect of comparative advantage theory is crucial?

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Specialization and producing goods where there is a lower opportunity cost are key components of the comparative advantage theory.

The host of your preferred business network explains a scenario in which unemployment and inflation are high and economic growth is stalled. What word would be appropriate in this circumstance?

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Stagflation is the perfect word to characterize the scenario that the host of the business network explained.

A report containing the total value of production, adjusted for inflation, is given to an economist. What value are they Probably looking at?

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An economist is probably looking at the "real output" of the economy when they receive a report that includes the entire value of production that has been adjusted for inflation.

The lowest sustained unemployment rate for an extended period of time is thought to be .

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The lowest amount of unemployment that an economy can maintain over time without escalating inflation is referred to as the "natural rate of unemployment." The terms "full employment rate" and "non-accelerating inflation rate of unemployment" are also occasionally used to describe it (NAIRU).

The following would be taken into account while describing the vehicle assembly line equipment:

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The physical capital used in the manufacturing process would be highlighted when discussing the automobile assembly line equipment. The actual assets and instruments utilized in the creation of commodities and services are referred to as physical capital, sometimes known as "capital goods" or "real capital."

Which of the following is true regarding the production possibilities model's fundamental premise?

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Compared to country Y, country X has a lower opportunity cost for manufacturing computers, while country Y has a lower opportunity cost for manufacturing wine. What ought they to create in accordance with the comparative advantage theory?

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The comparative advantage argument states that nations should focus on manufacturing goods and services in areas where they have a lower opportunity cost than other nations. According to this scenario, manufacturing computers in country X has a lower opportunity cost than manufacturing wine in country Y.

What economic instrument shows how inflation and unemployment relate to one another, indicating that it is unlikely to have both low inflation and low unemployment at the same time?

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The "Phillips Curve" is a tool used in economics that depicts how inflation and unemployment are related to one another and indicates that it is unlikely to have both low inflation and low unemployment at the same time.

The business cycle's peak and trough phases represent the ups and downs of the economy. What is the other set of often used descriptors for this cycle?

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A pattern of economic expansion and contraction over time is known as the business cycle. It is characterized by alternating expansionary and deflationary phases. These phases illustrate the economy's ups and downs as it experiences expansionary and contractionary stages.

A computer programmer who received his training during the early 2000s tech boom has not advanced in his skill set and is having trouble obtaining employment. He is most likely to encounter what kind of unemployment.

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"Structural unemployment" is likely to affect the computer programmer who was trained during the early 2000s tech boom but who has not developed his skill set and is having problems finding job.

What constitutes a research and development example?

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Research and development (R&D) is the process of developing and putting into practice novel ideas, technologies, or innovations that have the potential to enhance goods, procedures, or services. In many industries, innovation and competitiveness are fueled by R&D initiatives.

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