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Increased productivity in the agricultural sector has __________ the output and
__________ the prices of agricultural goods.
a. increased; reduced
b. increased; increased
c. decreased; reduced
d. decreased; increased
e. had no impact on; had no impact on
Which set of changes is definitely predicted to raise Real GDP in the short run?
a. Wealth increases and there is an adverse supply shock.
b. Individuals expect higher (future) incomes and wage rates fall.
c. Business taxes rise and wage rates fall.
d. The U.S. dollar appreciates and there is a beneficial supply shock.
e. none of the above
Exhibit 34-1
The opportunity cost of one unit of Y in country A is
a. 1 unit of X.
b. 0.75 units of X.
c. 2 units of X.
d. 10 units of X.
The two major curves or lines in the TE-TP diagram are:
a. the total expenditure curve and the 45-degree line.
b. the supply and demand curves.
c. the total expenditures and national income curves.
d. the total production and national income curves.
In the burglary crime model presented in the textbook, as the anguish cost of
committing a burglary rises, the prediction is that
a. more people will commit burglary.
b. the same number of people will commit burglary.
c. fewer people will commit burglary.
d. There is not enough information to answer this question.
Exhibit 3-11
Fill in blanks (A) and (B) respectively with "Exchange" or "No Exchange" to indicate
whether or not exchange would take place at the given prices.
a. Exchange; Exchange
b. Exchange; No Exchange
c. No Exchange; Exchange
d. No Exchange; No Exchange
Exhibit 6-2
How many persons are unemployed in year 2?
a. 200 million
b. 50 million
c. 75 million
d. 175 million
e. 100 million
Exhibit 3-13 -----------------------------Quantity
Demanded-------------------------------------
Assume that Jose, Kaitlyn, Leah, and Maria are the only buyers in this market. Fill in
blanks (C) and (D) respectively with the market quantity demanded at each given price.
a. 18.5; 15.5
b. 74; 62
c. 75; 64
d. 50; 43
e. none of the above
According to the Taylor Rule, if the inflation rate is 3 percent and the GDP gap is 2
percent, what does the federal funds rate target equal?
a. 8.5 percent
b. 5.5 percent
c. 3.5 percent
d. 6.5 percent
Equilibrium in the money market exists when the quantity demanded of money equals
the quantity supplied of money.
a. True
b. False
Keynes argued that
a. monopolistic elements in the economy will prevent an immediate sharp fall in prices
as a result of decreasing demand.
b. wages and prices are not flexible in a downward direction.
c. a and b
d. none of the above
