If an economy’s exports are $600 billion and its imports are $750 billion, its net exports
are
a. $1,550 billion
b. $150 billion
c. -$150 billion
d. 1.07.
The more institutional constraints that exist in a particular society,
a. the closer the institutional PPF will lie to the physical PPF.
b. the farther out from the origin the institutional PPF will lie.
c. the closer to the origin the institutional PPF will lie.
d. the closer to the origin the institutional PPF will lie and the farther out from the
origin the physical PPF will lie.
When the United States recovers from a recession, this tends to shift Germany’s AD
curve _________________, which _____________ Germany’s price level.
a. rightward; raises
b. rightward; lowers
c. leftward; raises
d. leftward; lowers
The point where the PPF intersects the vertical axis is
a. unattainable.
b. attainable and productive efficient.
c. attainable but productive inefficient.
d. attainable and neither productive efficient nor productive inefficient.
One of the objectives of the health-care reform bills passed in March 2010 was to bring
_____________ people into the pool of insured persons so that insurance policies
would become ________________.However, provisions in the bill are likely to make
the average cost of an insurance policy _____________ than it would have been
without reform.
a. fewer; cheaper; lower
b. fewer; more expensive; lower
c. more; cheaper; lower
d. more; cheaper; higher
e. none of the above
The president of the Federal Reserve District Bank of New York holds a permanent seat
on the Federal Open Market Committee.
a. True
b. False
A surplus will occur in a market when the price of the product is above the equilibrium
price.
a. True
b. False
The distinctive feature of a progressive tax is that the dollar value of taxes paid rises as
income rises.
a. True
b. False
As long as the maximum buying price of a good is less than the minimum selling price
of that good, an exchange will occur.
a. True
b. False
The ratio of the change in consumption to the change in disposable income is called the
a. marginal utility of consumption.
b. average utility of consumption.
c. marginal propensity to consume.
d. average propensity to consume.
If M = $5,000, P = $20, and Q = 2,000, then V is
a. 2.0.
b. 4.0.
c. 5.0
d. 6.0
e. 8.0
Fiscal policy may not work as policymakers intend it to work because of
a. crowding out.
b. lags.
c. the position of the physical production possibilities frontier.
d. a and b
e. a, b, and c
A person will become informed on a political issue if
a. it is considered an important issue to society at large.
b. he perceives the benefits of becoming informed as greater than the costs of becoming
informed.
c. it is regularly discussed on television news shows.
d. it is regularly written about in the daily newspapers.
e. none of the above
Economist Brown believes that changes in aggregate demand affect only the price level,
and economist Black believes that changes in aggregate demand affect only Real
GDP.What does the aggregate supply (AS) curve look like for each economist?
a. For economist Brown the AS curve is vertical and for economist Black the AS curve
is horizontal.
b. For economist Brown the AS curve is horizontal and for economist Black the AS
curve is vertical.
c. For economist Brown the AS curve is upward sloping and for economist Black the
AS curve is downward sloping.
d. For economist Brown the AS curve is downward sloping and for economist Black the
AS curve is upward sloping.