Which of the following accurately describes growth rates in the United States from
1900 to the present?
A) Growth rates rose until the 1970s and then fell until the present.
B) Growth rates have risen continuously from 1900 to the present.
C) Growth rates rose until the 1970s, slowed until the 1990s, and then rose up to the
present.
D) Growth rates have fallen continuously from 1900 to the present.
The proponents of rational expectations and monetarism think that the Federal Reserve
should adopt
A) an inflation target.
B) a monetary aggregate target.
C) a constant monetary growth rule.
D) an interest rate target.
In 2014, the average life expectancy at birth in the United Kingdom and other
high-income countries was around ________ years.
A) 60
B) 70
C) 80
D) 90
Government transfer payments include which of the following?
A) interest on the national debt
B) grants to state and local governments
C) Social Security and Medicare programs
D) national defense
China’s economy has grown tremendously from 1979 to the present. The reason for this
growth is
A) the introduction of the centrally planned economy in 1978.
B) the introduction of market-oriented reforms in 1978.
C) the introduction of the social networking site, Facebook.
D) the total lack of governmental intervention in the economy.
A currency pegged at a value below the market equilibrium exchange rate is
A) overvalued.
B) undervalued.
C) achieving purchasing power parity.
D) None of the above are correct.
Table 4-3
Refer to Table 4-3. The table above lists the marginal cost of polo shirts by Marko’s, a
firm that specializes in producing men’s clothing. If the market price of Marko’s polo
shirts is $30, Marko’s will produce
A) 0 shirts.
B) 1 shirt.
C) 3 shirts.
D) 4 shirts.
One difference between stocks and bonds is that
A) stocks are financial securities, while bonds are labor market securities.
B) stocks are usually issued in electronic form, while bonds are usually issued in paper
form.
C) stocks represent ownership in companies, while bonds represent ownership in banks.
D) stocks do not involve a promise to repay a purchaser of the stock, while bonds
represent a promise to repay the purchase price of the bond.
Concerned that its dependence on sales of microprocessors to computer firms would
make it vulnerable to sharp sales declines during the recession of 2007-2009, Intel
began to develop memory chips that could be used in portable consumer electronic
devices such as tablets and smartphones. One reason that Intel chose to branch out from
producing microprocessors for computers is that
A) sales of computers have been declining over the past decade.
B) technology with respect to microprocessor production was no longer advancing at a
rate where Intel’s new products were still wanted by computer manufacturers.
C) Intel had lost a majority of its market share in microprocessor production to foreign
competition.
D) computers are durable goods and spending on computers follows the business cycle.
The sale of Treasury securities by the Federal Reserve will, in general,
A) not change the money supply.
B) not change the quantity of reserves held by banks.
C) increase the quantity of reserves held by banks.
D) decrease the quantity of reserves held by banks.
Which of the following explains why many European countries have unemployment
rates that are higher than in the United States?
A) Technological change occurs at a faster rate in Europe, so structural unemployment
is higher in Europe.
B) European countries offer higher unemployment benefits than the United States.
C) Firms in European countries offer employees higher wages and higher benefits than
do firms in the United States.
D) The minimum wage in Europe is lower than it is in the United States.
Which of the following must a firm in a market economy do today to succeed?
A) Produce the goods and services that consumers want at a lower cost than consumers
themselves can produce.
B) Organize the factors of production into a functioning, efficient unit.
C) Have access to sufficient funds.
D) Market firms today must do all of these things.
Suppose the U.S. GDP growth rate is faster relative to other countries’ GDP growth
rates. This will
A) move the economy up along a stationary aggregate demand curve.
B) move the economy down along a stationary aggregate demand curve.
C) shift the aggregate demand curve to the left.
D) shift the aggregate demand curve to the right.
Domestically produced goods and services sold to other countries are referred to as
A) exports.
B) imports.
C) transfer payments.
D) capital outflow.