Which of the following is the best definition of a spot market?
a. A market in which a good is bought or sold with the idea that the price will increase
in the future
b. A market in which a good is bought or sold with the hope that the price will decrease
in the future
c. A market in which prices do not fluctuate up or down very easily
d. A market in which a good is bought or sold for immediate delivery or consumption
e. A market in which the good being traded is used to remove spots on clothes
Macroeconomics is the study of
a. how the price of gasoline is determined
b. large objects
c. the economic behavior of individual decision makers
d. the behavior of the economy as a whole
e. the economic behavior of individual firms
An increase in the discount rate will lead to a decrease in the money supply.
If there is a decrease in the price level,
a. there will be a rightward movement along a stationary money demand curve
b. there will be a leftward movement along a stationary money demand curve
c. the demand curve for money will shift rightward
d. the demand curve for money will shift leftward
e. there will be no movement of the demand curve for money and no movement along it
Which of the following is an injection in an open economy?
a. Saving
b. Imports
c. Exports
d. Taxes
e. Money
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
The consumption function
a. illustrates the relationship between real disposable income and real consumption
spending
b. illustrates the relationship between the price level and real consumption spending
c. is the relationship between productivity and real consumption spending
d. shows how real consumption increases when real disposable income decreases
e. illustrates the relationship between real consumption spending and employment
Because of the history of banking panics in the U.S., one of the Fed’s primary functions
is to
a. dispel rumors about bank problems
b. act as a lender of last resort
c. hold banks accountable for their actions
d. call in loans
e. increase the profit that each bank makes
If the dollars per pound exchange rate falls, there is a(n)
a. rightward movement along a single supply of pounds curve
b. leftward movement along a single supply of pounds curve
c. leftward shift of the supply of pounds curve
d. rightward shift of the U.S. supply of pounds curve
e. tendency for the U.S. supply of pounds curve to become steeper
In analyzing the market for a particular good, the most appropriate size of the market to
consider
a. is the global market
b. is a local market
c. is a national market
d. is a state-wide market
e. depends on the purpose of the analysis
One of the three Key Steps of economic analysis is
a. describing the conditions necessary for equilibrium and a method for determining
that equilibrium
b. determining who are the suppliers and a method for counting the number of suppliers
c. determining who are the demanders and a method for counting the number of
demanders
d. pairing up each demander with a particular supplier
e. pairing up each suppliers with a particular demander
Specialization and exchange
a. generally leads to increased production of some goods at the cost of decreased
production of other goods
b. causes the production possibilities frontier to shift inward
c. increases total production of every good only if the total amount of resources also
increases
d. alters the allocation of production among individuals or nations, but does not alter
total production levels
e. allows greater total production of every good without an increase in the total amount
of resources
When represented graphically, the government’s demand for funds curve is
a. downward sloping
b. upward sloping
c. vertical
d. initially downward sloping, then upward sloping
e. initially rightward sloping, then downward sloping
Price ceilings are primarily targeted to help __________, while price floors generally
benefit __________.
a. producers; no one
b. increase tax revenue for governments; producers
c. increase tax revenue for governments; consumers
d. producers; consumers
e. consumers; producers
When a payment is indexed to inflation and the price index understates inflation,
a. the real payment decreases over time
b. the real payment increases over time
c. the nominal payment decreases over time
d. in unemployment rate will increase
e. the level of unemployment will increase
Which of the following would encourage the development of new technologies?
a. Rising interest rates
b. Reduced government subsidies for research and development
c. Falling wages
d. Increased tax rates on corporate profits
e. Increased patent protection for inventions