Exhibit 3-9
A wave of immigrants who love to consume X enters the country. An economist would
expect a movement in the market for X from
a. S1 to S2.
b. D2 to D1.
c. D1 to D2.
d. S2 to S1.
Exhibit 9-7
Which point is representative of the economy experiencing labor market surpluses?
a. A
b. B
c. C
d. D
e. E
In 1973 and 1979, the U.S. federal government imposed price ceilings on gasoline
which resulted in surpluses of gasoline.
a. True
b. False
Which of the following statements is true?
a. Economists are fairly certain that globalization leads to an increased standard of
living.
b. During the 1990s, the annual percentage change in output per person was negative in
globalized developing countries, but positive in less globablized countries.
c. When it comes to globalization it is generally easier to see the benefits than to see the
costs.
d. The benefits of globalization are more visible than the costs, since they tend to be
concentrated on a relatively smaller group of people.
The Taylor Rule provides policymakers with a target for
a. the federal funds rate.
b. the discount rate.
c. the inflation rate.
d. the unemployment rate.
e. c and d
Exhibit 1-2
According to the data provided in this table, what is the slope of the line between points
A and B, if these data were graphed with X on the horizontal axis and Y on the vertical
axis?
a. -2.00
b. -0.50
c. 2.00
d. 0.50
Exhibit 16-4
The economy is initially at point A, in long run equilibrium. A real business cycle
would be represented by the following sequence of curve shifts:
a. SRAS1 to SRAS2, then LRAS1 to LRAS2.
b. AD1 to AD2, then LRAS1 to LRAS2.
c. LRAS1 to LRAS2, then AD1 to AD2.
d. LRAS1 to LRAS2, then SRAS1 to SRAS2.
e. none of the above
It is a fact that the government spending multiplier is always greater than the tax
multiplier.
a. True
b. False
Securitization is the process by which financial institutions
a. pool together a group of loans and then issue securities backed by the pool.
b. determine the composition of their assets that will yield the optimal amount of
security for their financial health.
c. borrow funds from the Federal Reserve and then use those funds to make loans to
their customers.
d. determine sub-prime mortgage rates.
You turn to the bond market page of a newspaper and look under the column headed
“Bonds” and see that it says, “Gemco 5 3/4 13” this indicates that
a. the coupon rate on this bond is 5.75 percent.
b. this bond will mature 13 years from the date that it was first issued.
c. the current yield on this bond is 5.75 percent.
d. a and b
e. all of the above
If a supply curve shifts rightward, this means
a. suppliers are willing and able to offer less of the good for sale at every price.
b. suppliers are willing and able to offer more of the good for sale at every price.
c. quantity supplied is greater at every price.
d. suppliers are willing and able to offer more of the good for sale only at a particular
price.
e. b and c
Exhibit 39-1
Given the target price of PT, farmers will receive a total income equal to
a. 0PTBQ2.
b. 0P1CQ2.
c. 0PTAQ3.
d. 0P2EQ1.