5) if consumers are willing to pay a higher price than previously for each level of
output, we can say that, the following has occurred:
a.a decrease in demand.
b.an increase in demand.
c.a decrease in supply.
d.an increase in supply.
6) (Last Word) In 1995 Microsoft released its Windows 95 operating system which was
a far better system than the Microsoft system it replaced. Microsoft’s Window 95 best
illustrates:
A.innovation.
B.scientific determinism.
C.venture capitalism.
D.creative destruction.
7) A resource’s present value is:
A.greater than its value in the future.
B.less than its value in the future.
C.is the same as its value in the future.
D.should be extracted as slowly as possible.
8) When a bank has a check drawn and cleared against it:
A.excess reserves in the banking system decline.
B.the nation’s total money supply falls.
C.the bank’s balance sheet does not change.
D.the amount of required reserves the bank must have will fall.
9) The traditional Phillips Curve suggests a tradeoff between:
A.price level stability and income equality.
B.the level of unemployment and price level stability.
C.unemployment and income equality.
D.economic growth and full employment.