In the history of banking, warehouse receipts refer to receipts
a. that goldsmiths once issued acknowledging that they held a customer’s gold.
b. for storing furniture in a warehouse.
c. goldsmiths issued to each other when they borrowed gold.
d. for storing food and other perishables in a warehouse.
In a barter economy,
a. money is a medium of exchange.
b. coins are used to facilitate trade.
c. money is a store of value.
d. goods and services are traded directly for each other.
e. the money supply consists entirely of coins and currency.
Economists are fairly confident that globalization leads to a(n) _____________
standard of living based on their comparisons of countries with __________________
characteristics.
a. increased; similar
b. increased; very few similar
c. decreased; similar
d. decreased; very few similar
Exhibit 11-2
At point A, if we cut tax rates slightly, tax revenues will
a. increase.
b. decrease.
c. will not change.
d. drop to zero.
The GDP of country A may be higher than that of country B because the workers in
country A work more hours per week than workers in country B.
a. True
b. False
Public choice theory assumes that those involved in the public sector are generally
motivated by
a. public spirit.
b. altruism.
c. the desire to achieve allocative efficiency.
d. the same factors involved in the private sector.
e. a and b
A curve showing the relationship between tax rates and tax revenues is called a
__________ curve.
a. Phillips
b. Keynesian
c. Gaussian
d. Laffer
If the CPI is 100 in the base year and 108 in the current year, how much did prices rise
between the base year and the current year?
a. 8 percent
b. 108 percent
c. 1.08 percent
d. 0.08 percent
e. 80 percent
Exhibit 4-8
Suppose that wheat producerslobby the government for a price floor and receive
one.This price floor is set at PF.What has happened to the consumers’ surplus as a result
of the imposition of the price floor?
a. consumers’ surplus has gone down by (area 2 + 4)
b. consumers’ surplus has risen by (area 2 + 4)
c. consumers’ surplus has gone down by (area 3 – area 5)
d. consumers’ surplus has risen by (area 2 + 3)
The AD curve shifts to the left with a __________ in government purchases (G) or a
__________ in taxes.
a. rise; rise
b. rise; fall
c. fall; rise
d. fall; fall
A “revaluation” occurs when
a. a nation’s currency appreciates under a flexible exchange rate system.
b. the official price of a currency is lowered.
c. a nation’s currency depreciates under a flexible exchange rate system.
d. the official price of a currency is raised.
e. none of the above
Those economists who argue that the European Union is not a true optimal currency
area cite _______________ and __________________ as justifications for this
position.
a. differences in culture; decreased labor mobility
b. differences in language; culture
c. decreased labor mobility; language differences
d. none of the above