Explore BrainMass

Explore BrainMass

    Multiple choice question

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Could someone please help with the following multiple choice questions. Your help is GREATLY appreciated!

    1. The real wage
    a. equals the amount of goods and services that can be bought.
    b. is the amount of money received per unit of time.
    c. is not adjusted for changes in the price level.
    d. will rise faster than the money wage as the price level rises.
    e. is the same as the money wage.

    2. Economic resources have a price above zero because
    a. there are no other uses for them.
    b. they cannot be easily moved from place to place.
    c. otherwise they would not be able to satisfy human wants.
    d. they are relatively scarce.
    e. they are unlimited in supply

    3. The banking system creates money in the sense that it
    a. prints money
    b. creates excess reserves from loans
    c. creates loans from excess reserves
    d. creates required reserves from loans
    e. creates loans form required reserves

    4. A production possibilities curve illustrates.
    a. opportunity costs.
    b. a market
    c. principles of taxation.
    d. income distribution.

    5. Interest rates
    a. help ensure that only those projects with the greatest expected productivity will be undertaken.
    b. are not really needed in modern planned economy.
    c. arise solely because investment projects entail risk.
    d. vary directly with the capitalized value of an asset.
    e. are synonymous with money wage

    © BrainMass Inc. brainmass.com October 9, 2019, 8:44 pm ad1c9bdddf

    Solution Preview

    1. The real wage is the income of an individual, organization, or country, after taking into consideration the effects of inflation. So real wages will fall as prices go up. Therefore a is the only answer that will work.

    2. Economic resources have a price above ...