If property rights are poorly defined
The amount of a commodity that buyers in the market would like to purchase at a
particular price is
A firm’s total revenue
A short-run decrease in real GDP will
a. increase the price of non-labor inputs, increase input requirements per unit of output,
and increase the price level
b. increase the price of non-labor inputs, decrease input requirements per unit of output,
and decrease the price level
c. decrease the price of non-labor inputs, decrease input requirements per unit of output,
and decrease the price level
d. increase the price of non-labor inputs, decrease input requirements per unit of output,
and increase the price level
e. decrease the price of non-labor inputs, increase input requirements per unit of output,
and increase the price level
Managed floats are
a. generally used in the very short run to prevent large, sudden changes in exchange
rates
b. used most often in the long run to maintain equilibrium exchange rates
c. used most often in the short run to keep a country’s currency from depreciating
d. considered unnecessary by most free market economies
e. most often used by the central banks of European countries to prevent depreciation of
their currencies
Using the following information on a hypothetical economy in equilibrium, calculate
total output for 2008.
Total output for 2008 is
a. $5.2 trillion
b. $5.7 trillion
c. $8.4 trillion
d. $8.7 trillion
e. $13.9 trillion
One way for a less-developed country to break its cycle of poverty is to target the
wealthy.
Microeconomics is the branch of economics that concerns
Whether an excise tax is imposed on a demander or supplier is irrelevant because
The national debt
a. exists because of past government budget deficits
b. is the difference between the government’s spending and revenue in a given year
c. is the amount households owe on credit cards, mortgages and other loans
d. is a flow variable
e. is the same as the government’s budget deficit
Macroeconomics studies the behavior of individual decision makers while
microeconomics studies the overall economy.
The wage rate is constant along a firm’s labor demand curve.
The graph shown in Figure 11-4 shows
a. equilibrium in the short-run macro model
b. when inventories will accumulate and when they will shrink
c. how an increase in GDP will increase government tax revenues
d. how an increase in aggregate expenditure will increase GDP
e. every point at which aggregate expenditure equals GDP
Refer to Figure 15-15. Suppose the economy is producing Y1and a supply shock moves
the economy from AS1to AS2. In the long run, we would expect
a. falling wages to shift aggregate supply back to AS1
b. rising wages to cause a further upward shift of the aggregate supply curve
c. the decrease in real GDP to shift the aggregate demand curve to the left
d. the increase in the price level to decrease aggregate demand
e. output to remain at the new equilibrium
If income changes, that leads to a movement along the money demand curve.
The change in total output when one additional unit of labor is hired is known as the
Which of the following real-world phenomena does the classical model ignore?
a. Frictional unemployment
b. Inflation
c. Real output growth
d. Cyclical unemployment
e. Structural unemployment
If the government increases its spending or reduces its taxes in order to influence the
level of economic activity, it is engaging in
a. regulatory policy
b. antitrust policy
c. monetary policy
d. fiscal policy
e. supply-management policy
The supply of a good is more price elastic
Consider the following three bonds, Bond F, Bond J and Bond P. Bonds F and P mature
in 1 year while Bond J matures in 2 years. Bond F and J have a face value of $10,000
while Bond P has a face value of $12,000. If the interest rate is 15%, rank the three
bonds from highest present value to lowest present value.