Question

1.

QUESTION 9.1 POINT Which of the following is not an example of an economic model Select the correct answer below: the production possibilities frontier O the demand and supply framework o the market price of a good o the flow of payments in the economy FEEDBACK

2.

3.

4.

5.

Answer 1

1. The answer is c) market price of a good

(Market price is the outcome of an economic model and not necessarily the model/framework as shown by ther options)

2. The answer is d) all of the above

(A financial intermediary is an entity which performs the duty of amiddleman between two parties in a financial transaction)

3. The answer is b) raise inflationary pressure

(Due to stimulus the economy will achieve above full employment level which will create inflationary pressure due to higher demand than supply)

4. The answer is c) the discount rate

(The discount rate is higher than the primary credit rate)

5. The answer is c) commodity money'

(Here all goods are sold in terms of a commodity, viz cigarette)