What can be said about the comparison between the unemployment benefits offered in
Europe and in the United States?
a. Unemployment benefits tend to be lower in Europe and are offered for shorter
periods than in the United States
b. Unemployment benefits tend to be higher in Europe and are offered for shorter
periods than in the United States
c. Unemployment benefits tend to be lower in Europe and are offered for longer periods
than in the United States
d. Unemployment benefits tend to be higher in Europe and are offered for longer
periods than in the United States
e. Unemployment benefits in Europe and the United States tend to be of similar
magnitude and are offered for similar periods.
Which of the following will lower the interest rate and increase investment spending?
a. An increase in the demand for loanable funds
b. A decrease in the demand for loanable funds
c. An increase in the supply of loanable funds
d. A decrease in the supply of loanable funds
e. An equal and simultaneous decrease in the demand for and supply of loanable funds
Refer to Figure 15-7. If the economy is currently at a price level of 120 and real GDP is
$6.5 trillion, an increase in government purchases will, in the short run,
a. shift the aggregate demand curve rightward, increasing both the price level and real
GDP
b. shift the aggregate demand curve leftward, decreasing both the price level and real
GDP
c. shift the aggregate supply curve upward, increasing the price level and decreasing
real GDP
d. shift the aggregate supply curve downward, decreasing the price level and increasing
real GDP
e. have no effect on aggregate demand because of crowding out
One seamstress can sew 2 dresses per day and two seamstresses can sew 5 dresses per
day. If the marginal revenue product of hiring the second seamstress is $360, then in a
competitive product market
Which of the following is not a financial asset?
If Pat can produce a good or service at a lower opportunity cost than Chris can, then
Which of the following prices is least likely to be included in the Consumer Price
Index?
a. The price of used bicycles
b. The price of a haircut
c. The price of imported South American grapes
d. The price of a steamroller
e. The price of a loaf of bread
In the classical model, the government needs to worry about total spending.
Because price and quantity demanded are inversely related,
Prejudice can generate market forces that lead to a permanent shift of an unfavored
minority into low-wage jobs when the prejudice originates with
If real income increases,
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 for money curve will shift rightward
d. the demand for money curve will shift leftward
e. there will be no movement of the demand curve for money and no movement along it
Ken’s Lawn Service Co. operates in a perfectly competitive market. Why doesn’t Ken
try to increase his revenue by lowering his price below the prevailing market price?
The money market reaches equilibrium when
a. money demand equals money supply.
b. bond prices reach zero.
c. the quantity of money demanded equals the quantity of money supplied.
d. interest rates reach zero.
e. the growth of the money supply equals the rate of growth of the budget deficit.
Since 1959, the U.S. has experienced severe recessions in which three periods?
a. 1964-65, 1981-82, and 1990-91
b. 1974-75, 1981-82, and 2008-09
c. 1960-61, 1974-75, and 2008-09
d. 1960-61, 1981-82, and 2008-09
e. 1969-70, 1981-82, and 2008-09