Which of the following is not a transfer payment?
A) Social Security benefits
B) corporate dividends
C) Medicaid
D) government welfare payments
Arguments against the balanced budget amendment include which of the following?
A) A balanced budget amendment would exert fiscal discipline on the federal
government.
B) A balanced budget amendment would increase capital formation.
C) A balanced budget amendment would reduce the taxation burden on future
generations.
D) A balanced budget amendment would limit Congress’ ability to use fiscal policy
during a recession.
Which of the following is the least likely complement for hamburgers?
A) beef
B) cheese
C) hamburger buns
D) soda
Table 5.1
Refer to Table 5.1. Assume that this economy produces only two goods: Good X and
Good Y. If year 1 is the base year, the value for this economy’s GDP Deflator in year 1
is:
A) 100.0.
B) 119.3.
C) 133.3.
D) 150.0.
Which of the following is not considered a fiscal policy?
A) the $787 billion economic stimulus package in 2009
B) the Troubled Assets Relief Program (TARP) in 2008
C) the 2001 economic stimulus package in 2001
D) All of the above are fiscal policies.
You have an hour between your economics and math classes. What is the opportunity
cost of that time if you use it to do math homework?
A) It depends on what you would do if you had no math homework.
B) It depends on how much you like math.
C) zero, because an hour isn’t long enough to go to a paying job
D) zero, because it doesn’t cost any money to do your math homework
Scenario 1: Imagine that an economy produces two goods, flashlights and fishing lures.
In 2011, the economy produced 70 flashlights and 40 fishing lures, and the prices of
flashlights and fishing lures were $5 and $12, respectively. In 2012, the economy
produced 85 flashlights and 50 fishing lures, and the prices of flashlights and fishing
lures were $7 and $15, respectively.Based on the information in Scenario 1, real GDP in
2012 (in 2011 dollars) in this economy was
A) $830.
B) $1,025.
C) $1,090.
D) $1,345.
Suppose that a market for a product is in equilibrium at a price of $5 per unit. At any
price below $5 per unit:
A) there will be an excess demand for the product.
B) there will be an excess supply of the product.
C) the quantity supplied of the product will be greater than the quantity demanded of
that product.
D) both B and C.
Induced innovations are:
A) technologies sponsored by the government, like the early Internet.
B) inventive activities designed specifically to reduce cost.
C) random instances of technological progress.
D) impossible to support through research and development efforts.
What is the largest component of the federal budget?
A) discretionary spending
B) entitlements and mandatory spending
C) net interest
D) defense spending
If the government imposes a price ceiling that is below the equilibrium price, then the
market will experience:
A) an equilibrium.
B) a shortage.
C) an excess supply.
D) no scarcity.
Which of the following is an example of an intermediate good?
A) the dough that you buy to fix yourself a pizza for dinner
B) the chocolate that you buy to make yourself some cookies
C) the pizza sauce that you purchase to make pizzas to sell for a fund-raiser for an
organization that you belong to
D) None of the above are examples of intermediate goods.
What is the fundamental principle that economists use when evaluating the costs and
benefits of production?
A) supply and demand principle
B) marginal principle
C) cost of goods principle
D) production principle
The four components of the aggregate demand curve are the same as the:
A) components of real GDP.
B) components of aggregate supply.
C) components of investment.
D) components of market demand.
From the Application, we can infer that the wine lakes will disappear if:
A) the government set the price at the equilibrium.
B) the government set minimum prices below the equilibrium.
C) the government set maximum prices above the equilibrium.
D) All of the above are correct.
What is the nominal value of money?
A) what can be purchased with the money
B) discounts taken by multiple purchases
C) savings by shopping on specific days of the week
D) its actual face value