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QUIZ ASSIGNMENT
0001.
In the classical gold standard…1
 Every nation’s currency was defined as a unit of weight of gold, and therefore the
paper currency was redeemable by its issuer in the defined weight of gold coin. (Page
354)
 Every nation’s currency was defined as a unit of weight of gold, and therefore the
paper currency was redeemable by any government or central bank, around the world, in
the defined weight of gold coin.
 Every nation’s currency was defined as a unit of weight of gold or any other
precious metal, and therefore the paper currency was redeemable by its issuer in the
defined weight of gold or any other precious metal.
0002.
Quantity of money people will keep in their cash
balance is a function of the level of prices, and when the
PPM (Purchase Power of Money) is very high the demand
for cash balances is:2
 Low (Page 32)
 High
1 Murray N. Rothbard, A History of Money and Banking in the United States : The Colonial Era to World War II, Ludwig Von Mises Institute, 2002.
2 Murray N. Rothbard, The Mystery of Banking, 2nd Edition, Ludwig Von Mises Institute, 2008.
Student
Course Code
2
 No relation between PPM and demand for cash
0003.
A change in the price of a good causes3
 The demand curve for that good to shift to the right.
 The supply curve for that good to shift to the left.
 A movement along a given demand curve. (Page 75)
0004.
The GDP measures the value of 4
 All final goods and services (output) produced domestically over some given
interval of time. (Page 3)
 All final goods and services (output) produced by citizens (and their capital) over
some given interval of time.
 All final goods produced domestically over some given interval of time.
0005.
Many margin for action is5
 The marginal utility of good.
 The ability of households and firms to react to price controls. (Page 80)
 The difference between price of good and total costs of that good.
0006.
In economic terminology, demand is6
 The quantity demanded.
 The relationship between a range of prices and the quantities demanded. (Page
63)
 The equilibrium quantity.
3 Timothy Taylor, Principles of Economics, 2nd Edition. www.textbookmedia.com (June 20,2011)
4 David Andolfatto, Macro Economic Theory and Policy, Simon Fraser University, August 2005.
5 Timothy Taylor, Principles of Economics, 2nd Edition. www.textbookmedia.com (June 20,2011)
6 Idem
Student
Course Code
0007.
3
In economic terminology, opportunity cost is7
 The value of the best foregone alternative. (Page 1-4)
 The total cost of good at breakeven point.
 The cumulative value of all alternatives when a choice is mad.
0008.
If a bank is paying 14.4% and inflation is 8%,
calculate the real interest rate using the truth formula,
and round to the nearest 1%.8
 6.4%
 4.9%
 5.9% (Page 153)
0009.
The loss in total surplus that occurs when the
economy produces at an inefficient quantity is called9
 Deadweight loss. (Page 87)
 Inefficient loss.
 Inefficient equilibrium.
00010.
Equilibrium is10,
 The point where quantity demanded is equal to quantity supplied.
 The point which quantity demanded and quantity supplied are equal at a certain
price.
 The combination of price and quantity where there is no economic pressure from
surpluses or shortages that would cause price or quantity to shift. (Page 65)
7 Mcafee, Introduction to Economic Analysis, http://www.introecon.com (June 20,2011)
8 Quantum Microeconomics, Version 4.02 January 2009, http://www.smallparty.org/yoram/quantum/ (June 28,2011)
9 Timothy Taylor, Principles of Economics, 2nd Edition, www.textbookmedia.com (June 21,2011)
10 Idem
Student
Course Code
00011.
The amount banks can pyramid new deposits on
top of reserves is called11
 The multiplier. (Page 136)
 Top up amount.
 The reserve amount.
00012.
When one nation can produce a certain good with
higher productivity or fewer inputs, is called12
 Absolute advantage. (Page 162)
 Comparative advantage.
 Adverse selection.
00013.
When a nation has either the largest productivity
advantage in producing a certain good or services,
compared to other nations, or if it has no area of
productivity advantage, the smallest productivity
disadvantage in producing a certain good or services.13
 Absolute advantage.
 Comparative advantage. (Page 163)
 Adverse selection.
11 Murray N. Rothbard, The Mystery of Banking, 2nd Edition, Ludwig Von Mises Institute, 2008.
12 Timothy Taylor, Economics, 3rd Edition, The Great Courses, course guidebook, Lecture 36, A Global Economic Perspective, DVD no.6.
13 Idem, Glossary.
4
Student
Course Code
00014.
5
Elasticity refers to14,
 How much quantity demanded or supplied changes in response to a change in
price. (Page 21)
 How much quantity demanded or supplied changes in response to a change in
total cost.
 How much quantity demanded or supplied changes in response to a change in
fixed cost.
00015.
The most famous work of John Maynard Keynes,
that published in 1936, is15
 The General Theory of Employment, Interest and Money. (Page 176)
 A Monetary History of the United States, 1867-1960.
 Principles of Political Economy.
14 Idem, lecture 5, Elasticity, DVD no.1.
15 Idem, Biographical Notes.