Question 1      

            In a discussion of economics, which of the following would exert the most influence on an individual firm's decision to hire workers?                                     

Question 2      

            What is the basic difference between macroeconomics and microeconomics?                                                           

Question 3      

            What is the basic difference between macroeconomics and microeconomics?                                                           

Question 4      

            Macroeconomics primarily examines which of the following?                                                                    

Question 5      

            Which of the following are not typically considered macroeconomic topics?                                                                       

Question 6      

            The opportunity cost of attending university is likely to include all except which of the following?                                                                    

Question 7      

            Most real-world choices aren't about getting all of one thing or another; instead, most choices involve _________________, which includes comparing the benefits and costs of choosing a little more or a little less of a good.                                                                       

Question 8      

            Scarcity implies that:                                                             

Question 9      

            The law of ____________________________ explains why people and societies rarely make all-or-nothing choices.                                                            

Question 10    

            Marginal thinking is best demonstrated by:                                      

Question 1      

            Which of the following would reduce the supply of microcomputers?                                                                    

Question 2      

            A demand curve shows the relationship between price and _________________ on a graph.                                                                  

Question 3      

            When economists talk about supply, they are referring to a relationship between price received for each unit sold and the _________________.                                                                

Question 4      

            In economics, the demand for a good refers to the amount of the good that people:                                                           

Question 5      

            A supply curve is a graphical illustration of the relationship between price, shown on the vertical axis, and ____________, shown on the horizontal axis.                                                       

Question 6      

            What is the term economists use to refer to the relationship that a higher price leads to a lower quantity demanded?                                                            

Question 7      

            The ____________ is the quantity where quantity demanded and quantity supplied are equal at a certain price.                                                             

Question 8      

            If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. What is this known as?                                                                      

Question 9      

            Which of the following is the only price where quantity demanded is equal to quantity supplied?                                                                 

Question 10    

            What is the term for the total number of units that are purchased at that price?                                               

Question 1      

            In order to determine ____________, the firm's total costs must be divided by the quantity of its output.                                                                  

Question 2      

            If a firm is experiencing _____________________, then as the quantity of output rises, the average cost of production rises.                                                    

Question 3      

            Which term describes a situation where the quantity of output rises, but the average cost of production falls?                                                      

Question 4      

            ___________ include all spending on labor, machinery, tools, and supplies purchased from other firms.                                                              

Question 5      

            In microeconomics, which of the following is synonymous with decreasing returns of scale?                                                                     

Question 6      

            In the ________, the perfectly competitive firm will react to losses by __________________________.                                                                  

Question 7      

            If a perfectly competitive firm is a price taker, then which of the following is true?                                                               

Question 8      

            Why are some producers forced to sell their products at the prevailing market price?                                                             

Question 9      

            In a free market economy, firms operating in a perfectly competitive industry are said to have only one major choice to make. Which of the following is that choice?                                                           

Question 10    

            In the _________, the perfectly competitive firm will seek out ________________________.                                                                      

Question 1      

            When a natural monopoly exists in a given industry, the per-unit costs of production will be:                                                                

Question 2      

            Which of the following is most likely to be a monopoly?                                                                

Question 3      

            When the demand for a good or service limits the quantity that can be sold to an output at which the firm experiences economies of scale,                                                           

Question 4      

            For a pure monopoly to exist, which statement must be true?                                                                      

Question 5      

            If a monopoly or a monopolistic competitor raises their prices, then:                                                                      

Question 6      

            _____________ occurs when circumstances have allowed several large firms to have all or most of the sales in an industry.                                                          

Question 7      

            If a monopolistic competitor raises its price, it _________ customers than a perfectly competitive firm, but ________________ customers compared to the number that a monopoly that raised its prices would.                                                           

Question 8      

            The application of current U.S. antitrust law                                                

Question 9      

            Antitrust law includes specific rules against restrictive practices because                                                               

Question 10    

            Splitting up a natural monopoly held by a public utility that produces and provides electricity would                                         

Question 1      

            Many states do have ____________, which impose an upper limit on the interest rate that lenders can charge.                                                             

Question 2      

            Whenever there is a shortage at a particular price, the quantity sold at that price will equal:                                                         

Question 3      

            Many cooks view butter and margarine to be substitutes. If the price of butter rises, then in the market for margarine:                                                                    

Question 4      

            Whenever there is a surplus at a particular price, the quantity sold at that price will equal:                                                      

Question 5

                        When consumers and businesses have greater confidence that they will be able to repay in the future, _______________________.                                    

Question 6

                        Many economists believe that the trend toward greater wage inequality across the U.S. economy was primarily caused by _____________.                                               

Question 7      

            Improvements in the productivity of labor will tend to:                                                                   

Question 8      

            In contrast to goods and services markets, _____________ are rare in labor markets, because rules that prevent people from earning income are not politically popular.                                                          

Question 9      

            Are markets always in equilibrium?                                                             

Question 10    

            How do apple growers react to the news of medical research findings that suggest that eating apples leads to greater health benefits than were previously known?                                                                      

Question 1      

            What is the difference between nominal GDP and real GDP?                                                                      

Question 2      

            Which is now the largest single component of the supply side of GDP, representing over half of GDP?                                                                     

Question 3      

            Which of the following is not included in GDP?                                                                  

Question 4      

            Which of these scenarios would be included in GDP?                                                                      

Question 5       _______________, which can be estimated by the growth of GDP, ultimately determines the prevailing standard of living in a country.                                                          

Question 6      

            For most high-income countries of the world, GDP _________________ over time.                                                               

Question 7      

            Which of the following statements is true?                                                               

Question 8      

            Which of the following does GDP not directly include?                                                      

Question 9      

            Which of the following is included in the calculated Gross Domestic Product?                                                           

Question 10                 ___________ is about two-thirds of the demand side of GDP, but it moves relatively little over time.                                                         

Question 1      

            A college student who is enrolled in school full time and not seeking employment is considered:                                                               

Question 2      

            The definition of market equilibrium states that at the _______________, the quantity of labor demanded by employers will equal the quantity supplied.                                                           

Question 3      

            If a nation's labor force receives a significant influx of young workers:                                                      

Question 4      

            Frictional unemployment occurs when:                                                        

Question 5      

            The U.S. unemployment rate moves up and down as the economy moves in and out of recessions. But over time, the unemployment rate seems to return to a range of ____________.                                            

Question 6      

            Inflation can be calculated in terms of how the overall cost of ___________________ changes over time.                                                  

Question 7      

            Which of the following is the name used to describe the price index that consists of intermediate goods and finished goods?                                                 

Question 8      

            The effects of inflation are seen in:                                                   

Question 9      

            While one occasionally sees references to inflation over short time periods, the term typically implies a(n) _____________ in prices.                                                         

Question 10    

            With regard to the economy, the term negative inflation is synonymous with which of the following?                                            

Question 1      

            During a recession, if a government uses an expansionary fiscal policy to increase GDP, the:                                                                             

Question 2      

            What do goods like gasoline, tobacco, and alcohol typically share in common?                                               

Question 3      

            The government can use _____________ in the form of ____________________ to increase the level of aggregate demand in the economy.                                                           

Question 4      

            When the share of individual income tax collected by the government from people with higher incomes is smaller than the share of tax collected from people with lower incomes, then the tax is ____________________.                                         

Question 5      

            When inflation begins to climb to unacceptable levels in the economy, the government should:                                       

Question 6      

            A reduction in government borrowing can:                                      

Question 7      

            In the national savings and investment identity framework, an inflow of savings from abroad is, by definition, equal to:                                            

Question 8      

            When the interest rate in an economy increases, it is likely the result of either:                                                           

Question 9      

            When governments are borrowers in financial capital markets, which of the following is least likely to be a possible source of the funds from a macroeconomic point of view?                                    

Question 10    

            A ____________________________ is one economic mechanism by which government borrowing can crowd out private investment.                          

Question 1      

            When the Central Bank decides it will sell bonds using open market operations:                                         

Question 2      

            When a Central Bank takes action to decrease the money supply and increase the interest rate, it is following:                                            

Question 3      

            When the Central Bank acts in a way that causes the money supply to increase while aggregate demand remains unchanged, it is:                                       

Question 4      

            A Central Bank that wants to increase the quantity of money in the economy will:                                                   

Question 5      

            If a Central Bank desires to reduce the quantity of money in the economy, it can:                                                    

Question 6      

            Which of the following is a traditional tool used by the Fed during recessions?                                               

Question 7      

            Which of the following institutions oversees the safety and stability of the U.S. banking system?                                                        

Question 8      

            What term is used to describe the interest rate charged by the Central Bank when it makes loans to commercial banks?                                                  

Question 9      

            When banks hold excess reserves because they don't see good lending opportunities:                                                

Question 10    

            Which of the following terms is used to describe the proportion of deposits that banks are legally required to deposit with the Central Bank?                            

Question 1      

            If exports ______________, then the economy is said to have a trade surplus.                                                           

Question 2      

            If imports ______________, then the economy is said to have a trade deficit.                                                           

Question 3      

            Trade surpluses and trade deficits can be __________________ for an economy in certain circumstances.                                                   

Question 4      

            If exports and imports:                                              

Question 5      

            Which term is used to describe what those in one country buy from those in other countries?                                             

Question 6      

            The idea behind comparative advantage reflects the possibility that one party:                                               

Question 7      

            According to international trade theory, a country should:                                      

Question 8      

            When one nation can produce a product at lower cost relative to another nation, it is said to have a(n) __________________ in producing that product.                                          

Question 9      

            The idea behind comparative advantage reflects the possibility that one party:                                               

Question 10    

            The reasons that nations trade include the fact that:                         

Question 1      

            Macroeconomics primarily examines which of the following?                                                                    

Question 2      

            Which of the following are not typically considered macroeconomic topics?                                               

  Question 3    

            Which of the following best describes macroeconomics?                                                    

  Question 4    

            In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:                                                        

  Question 5    

            What is the basic difference between macroeconomics and microeconomics?                                                           

  Question 6    

            Attending college is a case where the ________________ exceeds the monetary cost.                                               

  Question 7    

            Also called the opportunity set—a diagram which shows what choices are possible—which of the following is the model that economists use to illustrate the process of individual choice in a situation of scarcity?                                                        

  Question 8    

            Which of the following best describes the opportunity cost of an action?                                                   

  Question 9    

            The law of ____________________________ explains why people and societies rarely make all-or-nothing choices.                                                

  Question 10  

            Forgetting about the money that's irretrievably gone and instead focusing on the marginal costs and benefits of future options, is the lesson of which of the following?                                         

  Question 1    

            The ____________ is the quantity where quantity demanded and quantity supplied are equal at a certain price.                                     

  Question 2    

            According to the law of supply:                                            

  Question 3    

            What is the term economists use to refer to the relationship that a higher price leads to a lower quantity demanded?                                    

  Question 4    

            The nature of demand indicates that as the price of a good increases:                                                         

  Question 5    

            If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. What is this known as?                                                          

  Question 6    

            What is enacted when discontented sellers, feeling that prices are too low, appeal to legislators to keep prices from falling?                                                     

  Question 7    

            If a firm faces ________________________, while the prices for the output the firm produces remain unchanged, a firm's profits will increase.                                                

  Question 8    

            Which of the following would reduce the supply of microcomputers?                                                        

  Question 9    

            Which of the following is the only price where quantity demanded is equal to quantity supplied?                                                     

  Question 10  

            In economics, the demand for a good refers to the amount of the good that people:                                               

  Question 1    

            In microeconomics, which of the following is synonymous with economies of scale?                                                 

  Question 2    

            In microeconomics, which of the following is synonymous with decreasing returns of scale?                                                         

  Question 3    

            In order to determine ____________, the firm's total costs must be divided by the quantity of its output.                                                      

  Question 4    

            If a firm is experiencing _____________________, then as the quantity of output rises, the average cost of production rises.                                                    

  Question 5    

            Which of the following are all of the costs of production that increase with the quantity produced?                                                    

  Question 6    

            Why are some producers forced to sell their products at the prevailing market price?                                     

  Question 7    

            If a perfectly competitive firm is a price taker, then which of the following is true?                                       

  Question 8    

            In the _________, the perfectly competitive firm will seek out ________________________.                                                          

  Question 9    

            In the _________, if profits are not possible, the perfectly competitive firm will seek out the quantity of output where _____________________.                                                        

  Question 10  

            In a free market economy, firms operating in a perfectly competitive industry are said to have only one major choice to make. Which of the following is that choice?                                                           

  Question 1    

            Which of the following will be least concerning to a firm that has a monopoly over a particular industry?                                                    

  Question 2    

            When a natural monopoly exists in a given industry, the per-unit costs of production will be:                                                    

  Question 3    

            The use of sharp, temporary price cuts as a form of _________________ would enable traditional U.S. automakers to discourage new competition from smaller electric car manufacturers.                                                    

  Question 4    

            When the demand for a good or service limits the quantity that can be sold to an output at which the firm experiences economies of scale,                                               

  Question 5    

            In a monopolistic competitive industry, firms can try to differentiate their products by                                        

  Question 6    

            _____________ occurs when circumstances have allowed several large firms to have all or most of the sales in an industry.                                              

  Question 7

            A monopolistically competitive firm may earn abnormally high profits in the                                               

  Question 8    

            What role does the U.S. government play with respect to market competition?                                               

  Question 9    

            Which of the following poses a difficult challenge for U.S. competition policy?                                   

  Question 10  

            Government policy-makers often must decide how to balance the potential benefits of ______________ against the potential benefits of _____________ .                                         

  Question 1

            The "law of supply" functions in labor markets; that is, a higher __________ for labor leads to a higher quantity of labor supplied.                                              

  Question 2    

            A straightforward example of a _______________, often used for simplicity, is the interest rate.                                         

  Question 3    

            Many economists believe that the trend toward greater wage inequality across the U.S. economy was primarily caused by _____________.                                              

  Question 4    

            If the demand for software engineers __________ slower than does supply, then wages of software engineers will __________.                                    

  Question 5

            Many states do have ____________, which impose an upper limit on the interest rate that lenders can charge.                                     

  Question 6

            As the __________ substitute for low-skill labor becomes available, the demand curve for low-skill labor will shift to the left.                                             

  Question 7    

            Many cooks view butter and margarine to be substitutes. If the price of butter rises, then in the market for margarine:                                            

  Question 8

            When consumers and businesses have greater confidence that they will be able to repay in the future, _______________________.                                                

  Question 9

            Are markets always in equilibrium?                                     

  Question 10

            Whenever there is a surplus at a particular price, the quantity sold at that price will equal:                                                      

  Question 1    

            On the demand side of GDP, consumption by _____________ is the largest component of GDP, accounting for about two-thirds of the GDP in any year.                                                        

  Question 2    

            Consumption is the purchase of goods and services by:                                                       

  Question 3    

            Economists would most likely classify which of the following as consumer durable goods?                                   

  Question 4

            For most high-income countries of the world, GDP _________________ over time.                                       

  Question 5    

            Which is now the largest single component of the supply side of GDP, representing over half of GDP?                                                         

  Question 6    

            Which of the following is included in the calculated Gross Domestic Product?                                               

  Question 7    

            Which of these scenarios would be included in GDP?                                                          

  Question 8    

            What is the difference between nominal GDP and real GDP?                                                          

  Question 9    

            ___________ is about two-thirds of the demand side of GDP, but it moves relatively little over time.                                          

  Question 10

            The nominal value of any economic statistic refers to the number that is actually announced at that time, while the ________________ refers to the statistic after it has been adjusted for inflation.                                             

  Question 1    

            A college student who is enrolled in school full time and not seeking employment is considered:                                       

  Question 2    

            The type of unemployment that occurs because of a recession is called:                                                     

  Question 3    

            Frictional unemployment occurs when:                                                        

  Question 4    

            The definition of market equilibrium states that at the _______________, the quantity of labor demanded by employers will equal the quantity supplied.                                               

  Question 5    

            The unemployment rate measures:                                                   

  Question 6    

            Which of the following is the name used to describe the price index that consists of intermediate goods and finished goods?                                     

  Question 7    

            What name is given to the index based on the prices of exported or imported merchandise?                                     

  Question 8    

            With regard to the economy, the term negative inflation is synonymous with which of the following?                                            

  Question 9    

            The most commonly cited measure of inflation in the United States is:                                          

  Question 10  

            The Producer Price Index is based on prices paid for supplies and inputs by:                                                           

  Question 1    

            A typical ____________________________ fiscal policy allows government to decrease the level of aggregate demand, through increases in taxes.                                           

  Question 2    

            When inflation begins to climb to unacceptable levels in the economy, the government should:                                       

  Question 3    

            A(n) __________________________ policy will cause a greater share of income to be collected from those with high incomes than from those with lower incomes.                                            

  Question 4    

            Which of the following terms is used to describe the set of policies that relate to government spending, taxation, and borrowing?                                      

  Question 5    

            During a recession, if a government uses an expansionary fiscal policy to increase GDP, the:                                         

  Question 6    

            From a macroeconomic point of view, which of the following is a source of demand for financial capital?                        

  Question 7    

            A reduction in government borrowing can:                                      

  Question 8    

            In the national savings and investment identity framework, an inflow of savings from abroad is, by definition, equal to:                                            

  Question 9    

            When governments are borrowers in financial capital markets, which of the following is least likely to be a possible source of the funds from a macroeconomic point of view?                                    

  Question 10  

            The U.S. economy has two main sources for financial capital: _______________________ and ____________________________.                                            

  Question 1

            Regardless of the outcome in the long run, ______________________ always has the effect of stimulating the economy in the short run.                                      

  Question 2

            Which of the following is a traditional tool used by the Fed during recessions?                                   

  Question 3

            When a Central Bank takes action to decrease the money supply and increase the interest rate, it is following:                                            

  Question 4

            Which of the following events would cause interest rates to increase?                                            

  Question 5

            If a Central Bank desires to reduce the quantity of money in the economy, it can:                                        

  Question 6

            What term is used to describe the interest rate charged by the Central Bank when it makes loans to commercial banks?                                      

  Question 7    

            Atlantic Bank is required to hold 10% of deposits as reserves. If the Central Bank increases the discount rate, how would Atlantic Bank respond?                                             

  Question 8

            Which of the following terms is used to describe the proportion of deposits that banks are legally required to deposit with the Central Bank?                                        

  Question 9    

            Which of the following institutions determines the quantity of money in the economy as its most important task?                                    

  Question 10  

            When the Federal Reserve announces that it is implementing a new interest rate policy, the ____________________ will be affected.                                       

  Question 1    

            A series of macroeconomic events has led an economy into a deep recession. Which of the following factors is most likely to have initiated this series of events?                                               

  Question 2    

            The term _____________ describes circumstances where a country's imports exceed its exports.                                         

  Question 3    

            If imports ______________, then the economy is said to have a trade deficit.                                               

  Question 4    

            What is the name for goods and services produced in one country that are then sold in other countries?                                             

  Question 5    

            If exports ______________, then the economy is said to have a trade surplus.                                               

  Question 6    

            According to international trade theory, a country should:                          

  Question 7    

            Which of the following is true?                                             

  Question 8    

            When nations increase production in their area of _________________ and trade with each other, both sides can benefit.                                   

  Question 9    

            The idea behind comparative advantage reflects the possibility that one party:                                               

  Question 10  

            The idea behind comparative advantage reflects the possibility that one party:                                   

Question 1      

            Which of the following are not typically considered macroeconomic topics?                                               

Question 2      

            Which of the following is most likely a topic of discussion in macroeconomics?                                          

Question 3      

            Which of the following statements most likely lies within the realm of macroeconomics?                                          

Question 4      

            In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:                                            

Question 5      

            In a discussion of economics, which of the following would exert the most influence on an individual firm's decision to hire workers?                                     

Question 6      

            Scarcity implies that:                                     

Question 7      

            The opportunity cost of attending university is likely to include all except which of the following?                                

Question 8      

            As a person receives more of a good, the _______________ from each additional unit of the good declines.                                     

Question 9      

            Most real-world choices aren't about getting all of one thing or another; instead, most choices involve _________________, which includes comparing the benefits and costs of choosing a little more or a little less of a good.                                               

Question 10    

            The law of ____________________________ explains why people and societies rarely make all-or-nothing choices.                                    

Question 1      

            What is the term economists use to refer to the relationship that a higher price leads to a lower quantity demanded?                                    

Question 2      

            According to the law of supply:                                

Question 3      

            A demand curve shows the relationship between price and _________________ on a graph.                                          

Question 4      

            Which of the following is the only price where quantity demanded is equal to quantity supplied?                                         

Question 5      

            If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. What is this known as?                                              

Question 6      

            When economists talk about supply, they are referring to a relationship between price received for each unit sold and the _________________.                                        

Question 7      

            Which of the following would reduce the supply of microcomputers?                                            

Question 8      

            If a firm faces ________________________, while the prices for the output the firm produces remain unchanged, a firm's profits will increase.                                                

Question 9      

            The ____________ is the quantity where quantity demanded and quantity supplied are equal at a certain price.                                                 

Question 10    

            What is enacted when discontented sellers, feeling that prices are too low, appeal to legislators to keep prices from falling?                                         

Question 1      

            ___________ include all spending on labor, machinery, tools, and supplies purchased from other firms.                                      

Question 2      

            In microeconomics, which of the following is synonymous with economies of scale?                                     

Question 3

            Which of the following are all of the costs of production that increase with the quantity produced?                                        

Question 4

            In microeconomics, which of the following is synonymous with decreasing returns of scale?                                             

Question 5

            In order to determine the average variable cost, the firm's variable costs are divided by _______________________.                                          

Question 6

            In a free market economy, firms operating in a perfectly competitive industry are said to have only one major choice to make. Which of the following is that choice?                                   

Question 7      

            In the ________, the perfectly competitive firm will react to losses by __________________________.                                          

Question 8      

            In the ________, the perfectly competitive firm will react to profits by __________________________.                                          

Question 9      

            Why are some producers forced to sell their products at the prevailing market price?                                                 

Question 10    

            In the _________, if profits are not possible, the perfectly competitive firm will seek out the quantity of output where _____________________.                                            

Question 1

            When the demand for a good or service limits the quantity that can be sold to an output at which the firm experiences economies of scale,                                   

Question 2

            If monopolists are able to produce fewer goods and sell them at a higher price than they could under perfect competition, what will the result be?                                    

Question 3

            For a pure monopoly to exist, which statement must be true?                                              

Question 4

            For a monopolistic firm, which of the following would be the ideal conditions for barriers to entry?                                      

Question 5

            Shopping malls typically lease retail space to many clothing stores. When these retailers compete to sell similar but not completely identical products, they engage in which of the following?                                        

Question 6      

            A monopolistically competitive firm may earn abnormally high profits in the                                               

Question 7

            In the highly competitive setting in which oligopoly firms operate, which of the following are considered to be typical temptations for firms?                                       

Question 8

            The fundamental belief behind the market-oriented US economy is that firms are in the best position to know if their actions will                                     

Question 9

            Which of the following poses a difficult challenge for U.S. competition policy?                                               

Question 10    

            The application of current U.S. antitrust law                                    

Question 1

            A straightforward example of a _______________, often used for simplicity, is the interest rate.                                         

Question 2

            Improvements in the productivity of labor will tend to:                                                       

Question 3

            How do apple growers react to the news of medical research findings that suggest that eating apples leads to greater health benefits than were previously known?                                              

Question 4      

            If the demand for software engineers __________ slower than does supply, then wages of software engineers will __________.                                    

Question 5      

            In contrast to goods and services markets, _____________ are rare in labor markets, because rules that prevent people from earning income are not politically popular.                                                                                  

Question 7      

            When consumers and businesses have greater confidence that they will be able to repay in the future, _______________________.                                    

Question 8      

            Since Baltimore passed the first _______________ in 1994, several dozen cities enacted similar laws in the late 1990s and into the 2000s.                                          

Question 9      

            Whenever there is a shortage at a particular price, the quantity sold at that price will equal:                                             

Question 10    

            Many cooks view butter and margarine to be substitutes. If the price of butter rises, then in the market for margarine:                                            

Question 1      

            Consumption is the purchase of goods and services by:                               

Question 2

            Which of the following is included in GDP calculations?                                        

Question 3      

            Economists would most likely classify which of the following as consumer durable goods?                                               

Question 4      

            Which of the following does GDP not directly include?                                          

Question 5      

            Which is the best description GDP?                                      

Question 6      

            Which of the following is included in Investment (I)?                                             

Question 7

            Which of these scenarios would be included in GDP?                                              

Question 8      

            For most high-income countries of the world, GDP _________________ over time.                                       

Question 9      

            The nominal value of any economic statistic refers to the number that is actually announced at that time, while the ________________ refers to the statistic after it has been adjusted for inflation.                                             

Question 10    

            Which of the following statements is true?                                       

Question 1      

            The unemployment rate measures:                           

Question 2      

            The rise in unemployment that occurs because of a recession is known as cyclical unemployment, because it is closely tied to the ______________.                                     

Question 3      

            A college student who is enrolled in school full time and not seeking employment is considered:                                       

Question 4      

            If the unemployment rate is 8 percent, then this means:                                           

Question 5

            The most significant real economic cost of high unemployment is:                                     

Question 6      

            The effects of inflation are seen in:                                                   

Question 7      

            The situation where the buying power of money in terms of goods and services increases is called:                                       

Question 8      

            Inflation implies that the level of all prices _____________________.                                           

Question 9      

            The Producer Price Index is based on prices paid for supplies and inputs by:                                               

Question 10    

            With regard to the economy, the term negative inflation is synonymous with which of the following?                                            

Question 1

            When the share of individual income tax collected by the government from people with higher incomes is smaller than the share of tax collected from people with lower incomes, then the tax is ____________________.                                                     

Question 2      

            What do goods like gasoline, tobacco, and alcohol typically share in common?                                               

Question 3                   _____________________ are a form of tax and spending rules that can affect aggregate demand in the economy without any additional change in legislation.                                         

Question 4      

            The government can use _____________ in the form of ____________________ to increase the level of aggregate demand in the economy.                                                           

Question 5      

            During a recession, if a government uses an expansionary fiscal policy to increase GDP, the:                                         

Question 6      

            A ____________________________ is one economic mechanism by which government borrowing can crowd out private investment.                                      

Question 7      

            A __________________ often results in an outflow of financial capital leaving the domestic economy and being invested in the global economy.                                                 

Question 8      

            If the government initiates an expansionary monetary policy at the same time that its budget deficit decreases, then the interest rate will ______________________.                                                           

Question 9      

            When governments are borrowers in financial capital markets, which of the following is least likely to be a possible source of the funds from a macroeconomic point of view?                                    

Question 10    

            A reduction in government borrowing can:                                      

Question 1      

            Which of the following institutions determines the quantity of money in the economy as its most important task?                                                

Question 2      

            How are the specific interest rates for the lending and borrowing markets determined?                                                   

Question 3      

            Regardless of the outcome in the long run, ______________________ always has the effect of stimulating the economy in the short run.                                      

Question 4      

            Which of the following institutions oversees the safety and stability of the U.S. banking system?                                            

Question 5      

            Which of the following is considered to be a relatively weak tool of monetary policy?                       

Question 6

            When a Central Bank takes action to decrease the money supply and increase the interest rate, it is following:                                

Question 7      

            The ___________________ is the institution designed to control the quantity of money in the economy and also to oversee the _____________.                                     

Question 8

            When the Central Bank decides it will sell bonds using open market operations:                                         

Question 9

            When the Central Bank decides to increase the discount rate, the:                                      

Question 10    

            What term is used to describe the interest rate charged by the Central Bank when it makes loans to commercial banks?                                      

Question 1

            If exports and imports:                                              

Question 2      

            If exports ______________, then the economy is said to have a trade surplus.                                               

Question 3      

            Which term is used to describe what those in one country buy from those in other countries?                                             

Question 4      

            What is the name for goods and services produced in one country that are then sold in other countries?                                             

Question 5

            If imports ______________, then the economy is said to have a trade deficit.                                               

Question 6

            Colombia produces coffee with less labor and land than any other country; it therefore necessarily has:                                          

Question 7      

            When nations increase production in their area of _________________ and trade with each other, both sides can benefit.                                   

Question 8

            The idea behind comparative advantage reflects the possibility that one party:                                               

Question 9

            Which of the following is true?                                             

Question 10    

            When one nation can produce a product at lower cost relative to another nation, it is said to have a(n) __________________ in producing that product.                              

           

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Status NEW Posted 16 Apr 2020 07:04 AM My Price 20.00

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