Question

1. Inflation is (select the best answer): Select one:

a. Kind of like deflation except opposite

b. A measure of measuring rising heat in the atmosphere relating to continuous pollution in the air

c. An antiquated measure of how government wastes financial resources.

3. Price Elasticity of Demand (select the best answer):

a. Is an economic tool used to determine how to shift your demand curve

b. Measures consumer response to a change in price

c. Measures prices that are tracked to determine inflation

d. is an economic concept managers often use to determine the best way to shift their demand curve

d. A measure of tracking prices, to see if prices are rising

2. Fiscal Policy is (Select the TWO best answers):

a. A form of government intervention such as by increasing or decreasing taxes

b. A form of government intervention such as by buying or selling goverment bonds

c.A form of government intervention such as by increasing or decreasing government spending

d. A form of government intervention such as by increasing or decreasing interest rates

Answer 1

1. Ans: Kind of like deflation except opposite

Explanation:

Inflation is a situation of rise in the general price level and fall in value of money. Inflation is opposite of deflation.

Thus, option [a] is correct answer.

3. Ans: Measures consumer response to a change in price

Explanation:

Price Elasticity of Demand is defined as the degree of responsiveness of quantity demanded of a good due to a change in it's price.

Thus, option [b] is correct answer.

2. Ans:

• A form of government intervention such as by increasing or decreasing taxes.
• A form of government intervention such as by increasing or decreasing government spending.

Explanation:

The fiscal policy includes two tools: Taxes and Government spending

Thus, option [a & c] is correct answer.