Question

1 Fiat money has value when

A it is backed up by gold

B people are willing to accept it as payment for goods

C It can be divided into smaller units

D It can be used for another purpose apart from monetary value

2 Health care reforms that improve the health and therefore, human capital of the us labor force can be best illustrated by

A shifting outward of the the AS curve

B shifting inward of the AS curve

C shifting outward of the AD curve

D shifting inward of the AD curve

3 If the minimum wage were to be increased above the rate of $15/hr

A more workers would file for public assistance

B more firms would hire workers

C more workers would enter the labor force

D the average household income in the US would rise dramatically

4 If a customer purchases a Sony TV (Japanese company) for her home, this transaction will add to

A. U.S aggregate demad

B U.S. aggregate supply

C Japanese imports

D Japanese Exports

Answer 1

a) "B" people are ready to accept as the currency or payment for goods.

b) "A" shift outward of the AS curve.

c) "C" more workers will enter the labor force.

d) "A" transaction will add to net exports which is a part of the Aggregate demand.