Levels Tought:
Elementary,Middle School,High School,College,University,PHD
Teaching Since: | Apr 2017 |
Last Sign in: | 4 Weeks Ago, 3 Days Ago |
Questions Answered: | 7559 |
Tutorials Posted: | 7341 |
BS,MBA, PHD
Adelphi University/Devry
Apr-2000 - Mar-2005
HOD ,Professor
Adelphi University
Sep-2007 - Apr-2017
1
Which statement below about producer surplus is NOT true?Â
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Producer surplus is basically the same as profit.Â
ï‚·
Producer surplus is a similar concept to consumer surplus.
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When producer surplus drops to zero, firms stop producing.Â
ï‚·
Producer surplus represents the revenue generated from sales over and above the minimum price at which sellers are willing to sell.
CONCEPT
Producer Surplus
2
If the reserve requirement for a bank is 25%, $15 in M0 will lead to which of the following amounts of money of M1?
ï‚·
$60
ï‚·
$4
ï‚·
$45
ï‚·
$15
CONCEPT
Reserve Requirement
3
Which of the statements below is true regarding ONLY fiscal policy?Â
ï‚·
It can be taken in an attempt to alter AD.
ï‚·
It increases the availability of money.
ï‚·
It causes AD to shift to the right.
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It uses government expenditures to create demand for goods and services.
CONCEPT
Monetary and Fiscal Policy
4
Government can change markets through all of the following except__________.
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awarding subsidies
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changing the tax rate
ï‚·
enacting regulations
ï‚·
awarding large business contracts
CONCEPT
Circular Flow Diagram
5
Which statement below is true regarding the increased participation of women in the workplace?
ï‚·
It is accompanied by lower birth rates, which means a higher standard of living for the next generation.
ï‚·
Gender wage gaps have been almost completely eliminated.
ï‚·
Women tend to work fewer hours than men do.
ï‚·
Most of the countries worldwide meet the new international standard for minimum duration of maternity leave.
CONCEPT
Labor Force Participation Rates by Gender
6
What does the Human Development Index measure?
ï‚·
Measures the percentage of people looking for work and able to do so
ï‚·
Measures quality of life indicators in different countries
ï‚·
Depicts the level of income inequality in a country as a graph
ï‚·
Measures the level of income inequality in a country
CONCEPT
Global Indicators of Standard of Living
7
Which statement below regarding the use of a gold standard is FALSE?
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Gold had much more practical value than as jewelry in regards to the gold standard.
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The United States currently uses the gold standard to value its currency.Â
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Paper money is more liquid than gold.
ï‚·
Banks developed as a way to store gold safely.
CONCEPT
Gold Standard
8
Which of the following make up a country's balance of payments?
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Capital account and current account
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Trade deficit and demand
ï‚·
Current account and trade deficit
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Supply and trade surplus
CONCEPT
International Trade
9
Which statement below is true regarding sustainable economic growth?Â
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It is not possible to produce at a level of production that is sustainable.
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Technological developments can increase the level of sustainable production.
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The level of production during a recession is not sustainable.
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It means that we will be able to maintain our level of production only for a short time.
CONCEPT
Sustainable Economic Growth
10
Which statement below regarding expansions is true?
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They occur during times of high rates of unemployment.
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They occur when the economy is experiencing GDP growth.
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They happen when GDP reaches its highest point.
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They happen when GDP reaches its lowest point.
CONCEPT
Business Cycles - Expansionary/Recessionary (NBER)
11
Which statement below best describes what will most likely happen, from an economic standpoint, when a music group with growing popularity goes on tour and sells out a certain venue in hours with tickets for $25 apiece?
ï‚·
The price of tickets for future concert dates will rise until it hits equilibrium.
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The group will add more performance dates with tickets at a lower cost.
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Nothing changes, since the market is already clearing.
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The group will cancel the concert and give everyone a refund.
CONCEPT
Prevailing Price
12
Select the statement below that corresponds to the business cycle.
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Happens between recessions and expansions
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Shows only the periods of economic decline
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The process of expansion and contraction of the GDP
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Happens between expansions and recessions
CONCEPT
Business Cycles - Expansionary/Recessionary (NBER)
13
The producer or supplier will bear more of the burden of a tax than the consumer if demand is which of the following?
ï‚·
Elastic
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Inelastic
ï‚·
Perfectly inelastic
ï‚·
Greater than supply
CONCEPT
Tax/Subsidy
14
Which statement below regarding reasons for studying macroeconomics is false?
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Understanding macroeconomics helps one become a better citizen.
ï‚·
Macroeconomics helps us understand the economic situation of the United States but has little application for other countries.Â
ï‚·
Macroeconomics is the basis for discussions of economics in the media.
ï‚·
Macroeconomics can help you understand the limitations of monetary and fiscal policy but not individual decision-making.
CONCEPT
Why Study Macroeconomics?
15
If one dollar can purchase 0.74 euros, what is the exchange rate when using U.S. dollars as the base currency?
ï‚·
0.65
ï‚·
1.35
ï‚·
1.25
ï‚·
0.85
CONCEPT
Foreign Exchange and Currency
16
The terms M0, M1, M2 classify money according to which of the following?
ï‚·
Reserve requirement
ï‚·
Unit of account
ï‚·
Adherence to the gold standard
ï‚·
Level of liquidity
CONCEPT
M0, M1, M2
17
If we look only at the domestic market, GDP is calculated using which equation below?
ï‚·
I = Y - C - G
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Y = C + I + G (X - M)
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S = (Y - (C + T) + (T - G))
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Y = C + I + G
CONCEPT
Expenditure and Income Equations
18
Which of the following definitions corresponds to economic growth?
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The quantity of one type of money that corresponds to another
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The cost of money
ï‚·
The difference between tax revenue and government expenditures
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Percent change in value of the sum of a country's goods and services
CONCEPT
Economic Growth
19
Which of the following factors would increase if the standard of living were increasing?
ï‚·
Literacy rate
ï‚·
Gender bias toward educational attainment level
ï‚·
Ethnic bias toward employment
ï‚·
Population growth
CONCEPT
Global Indicators of Standard of Living
20
Which of the following is an example of the function of money as a unit of account?
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As the use of gold evolved, people would list prices for products in gold.
ï‚·
During the Great Depression, Americans hoarded gold.
ï‚·
Gold became a popular form of money because it could be stored for long periods of time without tarnishing or rusting.
ï‚·
Pieces of gold were easy to transport and trade for other items.
CONCEPT
History of Money
21
The discount rate represents which of the following?
ï‚·
It is the rate that banks charge to one another to meet the reserve requirement.
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It is the rate that banks charge when they lend out money.
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It is the same as the fed funds rate.
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It is the rate that the Fed charges member banks in order to satisfy liquidity needs.
CONCEPT
Discount Rate
22
Which graph below correctly illustrates a scenario in which the regular price for a set of four tires is $250, but Erin finds a store that has the tires she needs on sale for $175?
ï‚·
ï‚·
ï‚·
ï‚·
CONCEPT
Shifts in Demand
23
Which description below corresponds to the United Nations Intergovernmental Panel on Climate Change?
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A nonprofit organization that employs a panel of leading economists to conduct cost/benefit analysis on policies intended to address global problems
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A governing body that includes U.N. members who signed the Kyoto Protocol in 1997
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An organization devoted to taking regulatory action to reduce the negative effect of externalities produced by businesses
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A global organization comprised of 2,000 scientists and researchers that is focused on the impact of climate change
CONCEPT
International Regulatory Environment
24
Select the statement below that is true of BOTH price ceilings AND price floors.
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This is a form of government policy that alters the market.
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When this is binding, it can cause a surplus.
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To be effective it has to be below equilibrium.
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Nothing happens if it is placed above equilibrium.
CONCEPT
Binding & Non-Binding Constraints
25
Select the TRUE statement below regarding aggregate supply in the short and long run.
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In the long run, there is a close relationship between price level and RGDP.
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The LRAS curve can move over time.
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In the long run, there are no limits on production.
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The relationship between price level and RGDP is negative in the short run.
CONCEPT
Aggregate Supply
Â
1
Economically speaking, which of the kinds of change below would be caused when an executive at a petroleum company develops a new way to extract petroleum from the ground?
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Shift in the demand curve
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Shift in the supply curve
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No change in supply or demand
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Movement along the supply curve
CONCEPT
Law of Supply
Shifts in Supply
2
Determine which statement below about economics is true.
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As a field of study, economics is pretty much the same around the world.
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Macroeconomics studies the decisions of individual consumers and firms.
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Economics predicts what the market will do in the future.
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Economics studies decision-making processes.
CONCEPT
What is Economics?
3
Which of the following is FALSE concerning using GDP to compare countries?
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GDP cannot measure consumption-led growth well.
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GDP cannot adequately measure leisure time.
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GDP cannot measure non-market activities.
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GDP cannot measure gains to all economic classes.
CONCEPT
Real GDP
4
Which statement below will be true if demand for a product is inelastic and a tax is imposed on it?
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Both consumers and producers will bear the burden of the tax equally.
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Producers will not be able to raise the price to cover most of the tax.
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Producers will have to bear most of the burden of the tax.
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Consumers cannot easily find substitutes.
CONCEPT
Taxes and Subsidies
5
In which of the following ways does deflation create problems for the economy?
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It can destroy the value of the currency.
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It can force people to revert back to a barter economy.
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The decline in prices can increase the real value of debt.
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Unstable prices discourage people from holding onto money.
CONCEPT
Goals of Monetary Policy
6
The record of all monetary transactions that flow across a country's borders is known as which of the following?
ï‚·
Balance of payment
ï‚·
Current account
ï‚·
National income accounting
ï‚·
Capital account
CONCEPT
Role of International Trade
7
Which statement below is true of BOTH aggregate supply and aggregate demand?
ï‚·
The intersection of this with the SRAS curve shows the current level of RGDP.
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Price level and GDP are on the two axes of the graph.
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It gives the perception that wealth has increased, resulting in an increase in consumption, C.
ï‚·
This represents the amount the economy can produce at different price levels.
CONCEPT
Aggregate Supply and Aggregate Demand
8
The president gives his annual State of the Union speech on television and discusses the loss of manufacturing jobs to China and the need for the United States to create more jobs in order to make up for this.
Â
This describes which of the following types of unemployment?
ï‚·
Cyclical
ï‚·
Frictional
ï‚·
Structural
ï‚·
Seasonal
CONCEPT
Unemployment/Full Employment - Frictional / Structural / Cyclical
9
Which of the following is an example of the function of money as a unit of account?
ï‚·
Pieces of gold were easy to transport and trade for other items.
ï‚·
Gold became a popular form of money because it could be stored for long periods of time without tarnishing or rusting.
ï‚·
During the Great Depression, Americans hoarded gold.
ï‚·
As the use of gold evolved, people would list prices for products in gold.
CONCEPT
History of Money
10
Select the statement below that is true for BOTH supply AND demand.
ï‚·
Considers the economy from the producer's point of view
ï‚·
Usually depicted as an upward sloping curve
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Considers price and quantity combinations, with everything else held constant
ï‚·
Considers the economy from the consumer's point of view
CONCEPT
Supply and Demand
11
Which of the following was an advantage associated with the free banking system in place in the United States during the 19th century prior to the development of the Central Bank?
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Currency traders could make a living trading currency between cities.
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The banking system created a very stable form of currency.
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If a bank in one city went bankrupt, people in other cities would not hear about it for several weeks.
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Individuals had difficulty judging the value of a note printed by an unknown bank.
CONCEPT
History of the Central Bank
12
Which statement below regarding reasons for studying macroeconomics is false?
ï‚·
Macroeconomics is the basis for discussions of economics in the media.
ï‚·
Macroeconomics can help you understand the limitations of monetary and fiscal policy but not individual decision-making.
ï‚·
Macroeconomics helps us understand the economic situation of the United States but has little application for other countries.Â
ï‚·
Understanding macroeconomics helps one become a better citizen.
CONCEPT
Why Study Macroeconomics?
13
If college tuition for one year cost $2,500 in 1976 and $11,000 in 2007, the price has increased by which of the following factors?
ï‚·
-44
ï‚·
4.4
ï‚·
44
ï‚·
-4.4
CONCEPT
Nominal GDP versus Real GDP
14
Select the event below that will NOT cause a shift in demand.
ï‚·
The fad for beanbag animals comes to an end.
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The unemployment rate increases, so people can purchase less.
ï‚·
The number of people who consume butter increases.
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The market price for four tires increases to $300.
CONCEPT
Shifts in Demand
15
Â
Â
Based on the graph above, if market price is $19 per unit, what is happening at that market price?
ï‚·
The price is too low so suppliers want to produce less than consumers want.
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The price is too high, so suppliers want to produce less than consumers want.
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The price is too high, so suppliers want to produce more than consumers want.
ï‚·
Price is at equilibrium.
CONCEPT
Prevailing Price
16
Select the statement below that is FALSE regarding the history of the development of central banks.
ï‚·
Banks store paper money, known as reserves, in the vault.
ï‚·
Today, banks prefer people to deposit gold instead of paper currency.
ï‚·
Banks have developed ways to prevent future panics and runs from happening.
ï‚·
Banks record entries in people's deposit accounts, allowing them to write checks based on money in reserves.
CONCEPT
Central Banks
17
If we look only at the domestic market, GDP is calculated using which equation below?
ï‚·
I = Y - C - G
ï‚·
Y = C + I + G (X - M)
ï‚·
S = (Y - (C + T) + (T - G))
ï‚·
Y = C + I + G
CONCEPT
Expenditure and Income Equations
18
Which statement below regarding monetary and fiscal policy is FALSE?
ï‚·
The situation where unemployment is high and inflation is high is stagflation.
ï‚·
Expansionary policy causes AD to shift to the left.
ï‚·
The inverse relationship between inflation and unemployment is known as the Phillips Curve.
ï‚·
If AD increases too much, prices will increase and AD will return to equilibrium.
CONCEPT
Monetary and Fiscal Policy
19
What does the Human Development Index measure?
ï‚·
Measures quality of life indicators in different countries
ï‚·
Depicts the level of income inequality in a country as a graph
ï‚·
Measures the percentage of people looking for work and able to do so
ï‚·
Measures the level of income inequality in a country
CONCEPT
Global Indicators of Standard of Living
20
Which of the following is true about exchange rates?
ï‚·
They often change as a result of changing economic conditions in one country compared to another.
ï‚·
A country's exchange rate will depend on how much supply and demand exist for its currency.
ï‚·
Exchange rates matter when making international purchases or traveling abroad.
ï‚·
All of the above are true regarding exchange rates.
CONCEPT
Foreign Exchange and Currency
21
Which of the following is generated if market price exceeds the price at which producers are willing to sell?
ï‚·
Deadweight loss
ï‚·
Consumer surplus
ï‚·
Producer surplus
ï‚·
LRAS
CONCEPT
Producer Surplus
22
Which of the following is NOT one of the reasons why it is difficult to determine whether a business practice is sustainable or unsustainable?
ï‚·
Business owners have a clear incentive to only use practices that take into consideration long term consequences.
ï‚·
Unsustainable levels of production could be positive in the short term and negative in the long term.
ï‚·
We cannot objectively say whether a policy is negative or positive.
ï‚·
The costs and benefits of policy accrue differently to different stakeholders.
CONCEPT
Sustainable Economic Growth
23
Which of the following are NOT ways that budget deficits can have a negative effect on future economic growth?
ï‚·
When they are financed with an increase in taxes.
ï‚·
When interest payments are made to foreigners.
ï‚·
When they are financed with foreign-held treasury debt.
ï‚·
When the debt is held domestically.
CONCEPT
Economic Growth
24
Which of the following is a clear example of sustainable economic growth?
ï‚·
An energy company develops new drilling technology that makes it possible to access petroleum even deeper than what is currently possible.Â
ï‚·
A lumber company invents a new machine that can harvest trees even faster than before.Â
ï‚·
A machine is developed that can harvest fruits and vegetables at double the speed.
ï‚·
Hydroponic technology makes it possible to grow more fruits and vegetables on a smaller piece of land.Â
CONCEPT
Sustainable Economic Growth
25
Which of the following is NOT a form of treasury security?
ï‚·
Bonds
ï‚·
Notes
ï‚·
Bills
ï‚·
Yield
CONCEPT
Funding Fiscal Policy
Â
1
Which of the following is an example of expansionary fiscal policy?Â
ï‚·
Increasing interest rates
ï‚·
Decreasing the reserve requirement
ï‚·
Reducing taxes
ï‚·
If tax revenues exceed government expenditures
CONCEPT
Expansionary Policy
2
Using the expenditure approach and the information shown here, which of the following is the calculated GDP?
Individual Purchases: $32 billion
Government purchases: $200 billion
Business investments: $150 billion
Imports: $50 billionÂ
Exports: $75 billion
ï‚·
$532 billion
ï‚·
$407 billion
ï‚·
$357Â billionÂ
ï‚·
$382 billion
CONCEPT
Expenditure and Income Equations
3
When is GDP roughly the same as GNP?
ï‚·
For countries with a large amount of foreign direct investment and return of profits to country of origin
ï‚·
For countries that rely on production owned by nationals located overseas that is not offset by foreign investment
ï‚·
For countries that have a higher growth trajectory than others
ï‚·
For countries where nationals’ offshore production is countered by domestic production by foreigners
CONCEPT
International Comparisons
4
If we look only at the domestic market, GDP is calculated using which equation below?
ï‚·
I = Y - C - G
ï‚·
Y = C + I + G (X - M)
ï‚·
S = (Y - (C + T) + (T - G))
ï‚·
Y = C + I + G
CONCEPT
Expenditure and Income Equations
5
If the reserve requirement of a bank is 33%, then $100 of M0 will lead to how much of M1?Â
ï‚·
$330
ï‚·
$300
ï‚·
$33
ï‚·
$1000
CONCEPT
Reserve Requirement
6
Â
If a company was forced to adhere to minimum wage laws, the wage that would represent a binding constraint would be represented by which line in the graph shown here?
ï‚·
B
ï‚·
C
ï‚·
D
ï‚·
A
CONCEPT
Binding & Non-Binding Constraints
7
Suppose Venezuela can produce petroleum at a lower opportunity cost because of its natural resources, and China can produce clothing at a low opportunity cost because of its population and level of industrial development.
Â
Which statement below regarding comparative advantage is NOT true?
ï‚·
China can produce petroleum at high opportunity cost.
ï‚·
Venezuela can produce clothing at low opportunity cost.
ï‚·
Venezuela has a comparative advantage in petroleum production.
ï‚·
China has a comparative advantage in clothing production.
CONCEPT
Rationale: Comparative Advantage
8
What does the Human Development Index measure?
ï‚·
Measures quality of life indicators in different countries
ï‚·
Depicts the level of income inequality in a country as a graph
ï‚·
Measures the level of income inequality in a country
ï‚·
Measures the percentage of people looking for work and able to do so
CONCEPT
Global Indicators of Standard of Living
9
Which of the following factors would increase if the standard of living were increasing?
ï‚·
Literacy rate
ï‚·
Gender bias toward educational attainment level
ï‚·
Ethnic bias toward employment
ï‚·
Population growth
CONCEPT
Global Indicators of Standard of Living
10
Â
Â
Using the image shown here, which of the following flows from the government to firms?  Â
ï‚·
Taxes
ï‚·
Imports
ï‚·
Purchases of goods and servicesÂ
ï‚·
Wages, interest and transfer payments
CONCEPT
Circular Flow Diagram
11
A late-season frost kills most of Florida's orange crop and significantly reduces the availability of oranges.Â
Â
Which of the following best describes how this change would look?
ï‚·
ï‚·
ï‚·
ï‚·
CONCEPT
Shifts in Supply
12
GDP is useful in evaluating which of the following?
ï‚·
Increases in domestic consumptionÂ
ï‚·
The production of firms that are owned by domestic nationals but located overseas
ï‚·
An economy of a country producing a significant amount abroad
ï‚·
The quality of life or the well-being of a population
CONCEPT
Real GDP
13
Which statement below is NOT a reason why the aggregate demand curve slopes downward?
ï‚·
As the domestic exchange rate falls, foreigners purchase more domestic goods and services.
ï‚·
As the price level falls, consumption and investment increase.
ï‚·
As the price level falls, consumption increases.
ï‚·
As the price level falls, consumption and investment decrease.
CONCEPT
Aggregate Demand
14
Which of the following is an example of medium of exchange?
ï‚·
People in the Pacific Islands used cowrie shells as a form of payment for the things they wanted.Â
ï‚·
People invest in gold because it stays stable over time and does not tarnish, rust or deteriorate.Â
ï‚·
A chicken farmer who wants a cow needs to find a cattle farmer who wants some chickens.
ï‚·
A restaurant lists a price for dinner in gold coins.
CONCEPT
History of Money
15
Which statement below regarding the circular flow diagram is FALSE?
ï‚·
The circular flow diagram shows how the main parties in the economy interact.
ï‚·
The government influences the economy through taxes, subsidies and regulations.
ï‚·
The circular flow diagram provides a big picture view of the economy.
ï‚·
Firms purchase final goods and services from households.
CONCEPT
Circular Flow Diagram
16
Which of the following is false about budget deficits?
ï‚·
They are financed with tax revenue or new debt.
ï‚·
They can affect long run RGDP.
ï‚·
They represent the difference between tax revenue and government expenditures.
ï‚·
They typically happen when using contractionary fiscal policy.
CONCEPT
Economic Growth
17
Which term below refers to investment and financial flows that have the ability to appreciate or depreciate currency?
ï‚·
Current account
ï‚·
Trade deficit
ï‚·
Balance of payments
ï‚·
Capital account
CONCEPT
International Trade
18
Which of the following could cause a shift in the demand curve?Â
ï‚·
A major shift in supply
ï‚·
A change in income
ï‚·
A change in quantity
ï‚·
A change in production capacity
CONCEPT
Supply and Demand
19
Determine which scenario would NOT call for the Fed to intervene.
ï‚·
Prices are decreasing quickly; real value of the currency is rising.
ï‚·
Annual inflation is around 2%.
ï‚·
Prices are increasing rapidly; real value of the currency is falling.
ï‚·
The economy is reaching hyperinflation.
CONCEPT
Goals of Monetary Policy
20
When will the deadweight loss be created?
ï‚·
When a binding price constraint is implemented
ï‚·
When surplus is shifted from consumer to producer
ï‚·
When the market is clearing
ï‚·
When consumer and producer surplus are maximized
CONCEPT
Deadweight Loss
21
Which statement below is NOTÂ true regarding government intervention in the economy?
ï‚·
Unemployment insurance is an automatic economic stabilizer.
ï‚·
Progressive income tax is a form of automatic stabilizer.
ï‚·
If the economy is doing badly, the government should cut spending to improve it.
ï‚·
Most suggest that government should promote macroeconomic stability.
CONCEPT
Role of the Government/Government Spending/Transfer Payments
22
Â
Â
Assuming ceteris paribus, what principle behind the law of demand is this graph is illustrating?
ï‚·
Barring special circumstances, a decrease in price will have no effect on an increase or decrease in quantity.
ï‚·
Barring special circumstances, an increase in price will always lead to a decrease in quantity.
ï‚·
Barring special circumstances, an decrease in price will always lead to a decrease in quantity.
ï‚·
Barring special circumstances, an increase in price will always lead to an increase in quantity.
CONCEPT
Law of Demand
23
An increase in which of the following will cause a rightward shift of AD?
ï‚·
Float
ï‚·
Exports
ï‚·
Peg
ï‚·
Imports
CONCEPT
International Trade and Aggregate Demand
24
Which of the following terms is the sum of all final goods and services purchased in an economy?
ï‚·
Factor market
ï‚·
Resource cost/Income approach
ï‚·
GDP growth
ï‚·
Expenditure approach
CONCEPT
Economic Growth (GDP)
25
If the price of a gallon of gasoline in California was $0.99 in 1997 and is currently $3.69, prices have increased by which factor below?
ï‚·
3.73
ï‚·
.72
ï‚·
-3.73
ï‚·
.27
CONCEPT
Nominal GDP versus Real GDP
Â
Which of the following has NOT influenced global poverty rates?
ï‚·
Gini coefficient
ï‚·
Increasing population
ï‚·
Income polarity
ï‚·
Differential access to health care
Â
Which of the following is true about a market at equilibrium price?
ï‚·
The market does not clear.
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At the prevailing price, there is no market basis for the price to change.
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There tend to be shortages because the price is so low.
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Demand is low because the price is so high.
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Which statement below is true of ONLY fiscal policy?
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Used to alter AD
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A policy typically set by a banking authority
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Increases the availability of money
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Uses government expenditures to create demand
If college tuition for one year cost $2,500 in 1976 and $11,000 in 2007, the price has increased by which of the following factors?
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-44
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-4.4
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4.4
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44
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Which statement below regarding the stagflation of the late 1970s/early 1980s is true?
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Expansionary fiscal policy led to double digit inflation.
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Disruptions in the oil supply caused the LRAS curve to move to the left.
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The Phillips curve represented the state of the economy at the time.
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Expansionary fiscal policies succeeded in lowering the unemployment rate.
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U.S. dollars (USD) are the base currency and Bahraini dinar (BHD) are the price currency.Â
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If one U.S. dollar can purchase 0.56Â Bahraini dinar, what is the exchange rate?
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1.79
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1.12
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0.44
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3.51
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Select the statement that corresponds to a shift in the supply curve.
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Occurs when the price for a certain good changes and influences the quantity supplied
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A movement that occurs due to factors such as firms having more or less access to resources
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The amount of goods and services that may be purchased at a certain moment in time at a specific income level
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The amount of goods and services that are available at different prices at a certain moment in time
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Select the statement below that is FALSE regarding the history of the development of central banks.
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Banks record entries in people's deposit accounts, allowing them to write checks based on money in reserves.
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Banks have developed ways to prevent future panics and runs from happening.
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Banks store paper money, known as reserves, in the vault.
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Today, banks prefer people to deposit gold instead of paper currency.
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Which statement below regarding the use of a gold standard is FALSE?
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Gold had much more practical value than as jewelry in regards to the gold standard.
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Paper money is more liquid than gold.
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The United States currently uses the gold standard to value its currency.Â
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Banks developed as a way to store gold safely.
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Determine which statement below regarding economic indicators is FALSE.
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Building permits are an example of leading indicators.
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CPI measures inflation from the perspective of a consumer.
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Consumer confidence can be volatile and inconsistent over time.
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Retail sales measure the current outlook for the economy.Â
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What does the expression Y - (C + T) represent?
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Public savings
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Government savings
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Investments
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GDP
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Which of the following has NOT influenced global poverty rates?
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Differential access to health care
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Income polarity
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Increasing population
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Gini coefficient
Which of the following could cause a shift in the demand curve?Â
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A change in quantity
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A major shift in supply
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A change in production capacity
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A change in income
Which of the following is NOT part of the expenditure approach to calculating GDP?
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Exports
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Business investments
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Labor income
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Imports
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Select the TRUE statement below regarding banking during the 19th century.
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Trade across long distances was difficult.
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Currency traders did not make a lot of money.
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Judging the value of currency from an unknown bank was not difficult.
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There was not much need for a central banking system.
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