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If the number of wine producers decreases,
A) the demand for wine increases.
B) the demand for wine decreases.
C) the supply of wine increases.
D) the supply of wine decreases.
Capital gains are the profit earned from the sale of
A) stocks.
B) bonds.
C) real estate.
D) all of the above.
According to the real business cycle model, if negative technology shocks were
responsible for the origin and severity of the Great Depression, output would be
expected to ________ and real income would be expected to ________.
A) decline; decline
B) decline; rise
C) rise; decline
D) rise; rise
Recall the Application about the Fed increasing bank reserves during the financial crisis
in 2008 to answer the following question(s). During the height of the financial crisis in
September 2008, The Fed injected large amounts of reserves into banks, and in the next
month, they started paying interest to banks on these reserves. Prior to this time, banks
earned no interest on either required or excess reserves.
According to this Application, the Fed started paying interest to banks on reserves. All
else equal, this would tend to ________ on a bank's balance sheet.
A) increase loans
B) increase deposits
C) increase reserves
D) all of the above
A multilateral real exchange rate is the
A) adjusted exchange rate.
B) government exchange rate.
C) index based on the average of the real exchange rates with all U.S. trading partners.
D) index based on the average of the real exchange rates with all other countries in the
world.
If a project costs $800 today and pays a return of $864 next year, what is the highest
interest rate at which the project should be undertaken?
A) 6.4 percent
B) 7 percent
C) 8 percent
D) 8.64 percent
Figure 19.4 Refer to Figure 19.4. Which of the following will shift the supply of
pounds from to ?
A) an increase in U.S. income
B) an increase in the British price level
C) a decrease in the British price level
D) a decrease in British income
What is one specific economic situation that a balanced budget amendment would
create?
A) It would forbid budget surpluses.
B) It would prevent deficits during peacetime.
C) It would prevent a recession.
D) It would curtail inflation.
The balanced-budget multiplier is equal to the
A) government spending multiplier plus the tax multiplier.
B) the autonomous spending multiplier.
C) simple multiplier minus the tax multiplier.
D) government spending multiplier plus the simple multiplier.
If there was an adverse technological shock which decreased the demand for labor, then
A) GDP would increase.
B) GDP would decrease.
C) Imports would increase.
D) Imports would decrease.
Bananas and apples are substitutes. When the price of bananas falls, and a technological
advance in apple production occurs at the same time
A) the equilibrium price of apples rises and the equilibrium quantity of apples falls.
B) the equilibrium price of apples rises and the equilibrium quantity of apples rises.
C) the equilibrium price of apples rises and the equilibrium quantity of apples might
rise or fall.
D) the equilibrium price of apples falls and the equilibrium quantity of apples might
rise or fall.
Macroeconomics
A) studies the behavior of individual consumers, firms and markets.
B) studies the behavior of the economy as a whole.
C) involves the interaction between different countries in specific markets.
D) studies how computer automation has changed economics.
A nation that cannot borrow money but creates a large budget deficit is likely to
experience
A) hyperinflation.
B) disinflation.
C) deflation.
D) stagflation.
Figure 4.4
Figure 4.4 illustrates the demand for guitars. A decrease in price of guitars would bring
about a movement from:
A) point B to point C.
B) point B to point A.
C) D1 to D0.
D) D1 to D2.
Suppose that 50 percent of the part-time workers of Metropolis are looking for full-time
jobs. Given the data in Table 6.1, if these workers were counted as not employed and
looking for work, the unemployment rate of Metropolis would be approximately
A) 6 percent.
B) 13 percent.
C) 16 percent.
D) 21 percent.
Figure 2.4 Joe runs a business and needs to decide how many hours to stay open.
Figure 2.4 illustrates his marginal benefit of staying open for each additional hour.
Suppose that we observe Joe staying open 5 hours per day. If he is following the
marginal principle, what must his marginal cost be?
A) $16
B) $24
C) $32
D) $40
Janie graduated from college a month ago and is now without work. She accepted a job
that will start next month. Today, Janie is:
A) not in the labor force.
B) employed.
C) unemployed.
D) a discouraged worker.
Recall Application 4, "Intangible Capital," to answer the following questions:
Based on the information presented in the Application, which of the following
contributed most to economic growth in the United States?
A) intangible capital
B) tangible capital
C) technological progress
D) All of the above have equal effects on economic growth.
