IVY SOFTWARE MBA PREPWORKS FUNDAMENTALS OF
ECONOMICS PRACTICE EXAM 2026-2027 NEWEST!!
ACTUAL COMPLETE 300 REAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+|| BRAND NEW!
The following is called the national income identity: C + I + G + NX
= Aggregate Expenditure = Real GDP (true or false)
ANSWERS: False = Nominal GDP
The unemployment rate is defined as all those who are
employed divided by those looking for work (T/F)
ANSWERS: False. = have been looking for work divided by labor
force (employed + have been looking for work)
The largest component of the U.S. real GDP is
ANSWERS: consumption
Trade deficit
ANSWERS: if the country's imports are greater than its exports
,trade surplus
ANSWERS: when a country exports more than it imports
the measure of the economic value of all final goods and
services sold inside the boundaries of the country, adjusted for
changes in the price level is called
ANSWERS: Real GDP
the measure of the economic value of all final goods and
services sold inside the boundaries of the country, not adjusted
for changes in the price level is called
ANSWERS: nominal GDP
Money
ANSWERS: is any asset that may be used to carry out a transaction
between a buyer and a seller.
solves the transaction cost problem in a barter economy
, Three basic functions of money
ANSWERS:
1) a medium of exchange
2) a store of value
3) a unit-of-account
medium of exchange
ANSWERS: money is a medium of exchange because it makes
exchange easier.
barter economy
ANSWERS: an economy with no money
store of value
ANSWERS: money is a store of value because people will hold
money only if they believe it will continue to have some value,
so money can operate as a medium of exchange only if it
serves as a store of value.
unit of account
ANSWERS: money is a convenient and widely recognized
measure for accounting and transactions; it is a yardstick for
measuring the value of all goods and services.
, fiat money
ANSWERS: is paper money that derives its status as money from
the power of the state or by fiat. it is money because the
government says it is money, otherwise it has no real value.
commodity money
ANSWERS: exists when some intrinsically valuable good also
serves as money. Gold is an example of commodity money
because it has value even if it were not used as money
money supply
ANSWERS: quantity of money. currency is not the only asset that
you can use to
purchase goods and services. The Federal Reserve system, the
central bank of the U.S., classifies several alternative definitions
of money. One of the FR's definitions of money supply is called
M1 and the other is M2 consists of more than the value of the
currency. the determination of the actual money supply depends
on the behavior of the commercial banks and their depositors.
since bank reserves are not circulated among the public they
are not counted as part of the money supply
measured as the sum of checkable deposits and currency in
circulation
ECONOMICS PRACTICE EXAM 2026-2027 NEWEST!!
ACTUAL COMPLETE 300 REAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+|| BRAND NEW!
The following is called the national income identity: C + I + G + NX
= Aggregate Expenditure = Real GDP (true or false)
ANSWERS: False = Nominal GDP
The unemployment rate is defined as all those who are
employed divided by those looking for work (T/F)
ANSWERS: False. = have been looking for work divided by labor
force (employed + have been looking for work)
The largest component of the U.S. real GDP is
ANSWERS: consumption
Trade deficit
ANSWERS: if the country's imports are greater than its exports
,trade surplus
ANSWERS: when a country exports more than it imports
the measure of the economic value of all final goods and
services sold inside the boundaries of the country, adjusted for
changes in the price level is called
ANSWERS: Real GDP
the measure of the economic value of all final goods and
services sold inside the boundaries of the country, not adjusted
for changes in the price level is called
ANSWERS: nominal GDP
Money
ANSWERS: is any asset that may be used to carry out a transaction
between a buyer and a seller.
solves the transaction cost problem in a barter economy
, Three basic functions of money
ANSWERS:
1) a medium of exchange
2) a store of value
3) a unit-of-account
medium of exchange
ANSWERS: money is a medium of exchange because it makes
exchange easier.
barter economy
ANSWERS: an economy with no money
store of value
ANSWERS: money is a store of value because people will hold
money only if they believe it will continue to have some value,
so money can operate as a medium of exchange only if it
serves as a store of value.
unit of account
ANSWERS: money is a convenient and widely recognized
measure for accounting and transactions; it is a yardstick for
measuring the value of all goods and services.
, fiat money
ANSWERS: is paper money that derives its status as money from
the power of the state or by fiat. it is money because the
government says it is money, otherwise it has no real value.
commodity money
ANSWERS: exists when some intrinsically valuable good also
serves as money. Gold is an example of commodity money
because it has value even if it were not used as money
money supply
ANSWERS: quantity of money. currency is not the only asset that
you can use to
purchase goods and services. The Federal Reserve system, the
central bank of the U.S., classifies several alternative definitions
of money. One of the FR's definitions of money supply is called
M1 and the other is M2 consists of more than the value of the
currency. the determination of the actual money supply depends
on the behavior of the commercial banks and their depositors.
since bank reserves are not circulated among the public they
are not counted as part of the money supply
measured as the sum of checkable deposits and currency in
circulation
