Which point in Figure 2-3 is not possible for this society to produce?
Figure 2-3
a. A
b. B
c. C
d. D
e. E
Suppose that the market for DVDs is initially at point A on demand curve D2 in Figure
3-7. If there is a decrease in the price of DVDs,
Figure 3-7
a. the demand curve will shift to D2
b. equilibrium will move to point B on demand curve D1
c. equilibrium will move to point C on demand curve D1
d. there will be no change from point A
e. the demand curve will shift to D3
Use the table below to determine autonomous consumption spending.
a. $0
b. $100
c. $180
d. $200
e. $1,000
In the aftermath of the 2008 financial crisis, everyone agreed that lower leverage ratios
would be a good thing.
If we look at governmental budgets over time using nominal figures, we
a. have a clearer understanding of the real size of the budget
b. are able to focus on the real impact of government spending on potential GNP
c. tend to overestimate the size of the budgetary growth
d. usually underestimate the size of the burden of the debt
e. are ignoring what we can learn from nominal data
The supply of labor
a. varies inversely with the price level
b. does not vary with the real wage rate
c. does not vary with the price level
d. varies directly with the price level
e. varies inversely with the nominal wage rate
The classical model does a poor job of explaining the __________ because it assumes
that the __________ always clears.
a. long run; labor market.
b. long run; financial market.
c. short run; labor market.
d. short run; financial market.
e. short run; housing market.
The CPI’s approach is to
a. track the cost of the CPI market basket, which is the collection of goods and services
that the typical consumer buys.
b. track the cost of the CPI market basket, which is the collection of every good and
service that is for sale in the U.S.
c. track the cost of housing, and food and beverage expenditures.
d. track the cost of the CPI market basket, which is the collection of every good that is
for sale in the U.S.
e. track the cost of the CPI market basket, which is the collection of goods that the
typical consumer buys.
In examining consumer behavior, one of the constraints faced by consumers is
a. happiness
b. quantities consumed
c. tastes and preferences
d. entrepreneurial ability
e. income
Which of the following is counted as money?
a. Bonds
b. Credit card payments
c. Credit card limits
d. Currency
e. Corporate stock
Say’s Law
a. is valid only in a simple economy without financial markets
b. led economists during the 1920s to encourage the government to adopt flawed
economic policies that led to the Great Depression
c. assures us that in the aggregate, firms are able to sell their output so that full
employment can be sustained
d. tells us that in the long run, markets clear
e. tell us that firms must carefully monitor consumer spending and saving in order not
to produce more than consumers are willing to purchase
What is a good historical example of when the Fed created a recession to reduce
inflation expectations?
a. In the early 1980s
b. In the early 1960s
c. During the Great Depression
d. In the late 1920s
e. During World War II.