Recall Application 1, “Don’t Forget the Costs of Time and Invested Funds,” to
answer the following questions.
From the Application, the opportunity cost of your invested capital is:
A) the interest you could get if you invested in in a bond.
B) zero.
C) the revenue you could get once the capital is used.
D) the sum of the value of all your equipment.
Economics is the study of:
A) how to invest in the stock market.
B) how society uses limited resources.
C) the role of money in markets.
D) how government officials decide which goods and services are produced.
Table 5.4
Refer to Table 5.4. Suppose this economy produces only the two goods X and Y. If year
1 is the base year, Real GDP in year 2 is:
A) $296.
B) $328.
C) $404.
D) $528.
When the government provides its citizens an unemployment insurance program, it is:
A) trying to reduce economic uncertainty.
B) trying to create new jobs for the unemployed.
C) trying to increase economic uncertainty.
D) encouraging workers to look for jobs in the government sector.
Table 11.3 Refer to Table 11.3. The equilibrium level of aggregate output equals:
A) $2,000 million.
B) $2,500 million.
C) $3,000 million.
D) $3,500 million.
Slope is calculated as the
A) change in the vertical variable divided by the change in the horizontal variable.
B) change in the horizontal variable divided by the change in the vertical variable.
C) the vertical axis divided by the horizontal axis.
D) change in the vertical variable.
Recall Application 3, “The Links Between Self-Reported Happiness and GDP,” to
answer the following questions:
According to the Application 3, self-reported levels of happiness among individuals in
the U.S. have:
A) increased with increasing per capita incomes over the past 30 years.
B) tended to decrease incomes increased at any point in time.
C) been higher among African Americans than among whites.
D) decreased with increasing per capita incomes over the past 30 years.
If the dollar depreciates against the yen, U.S. goods sold in ________ would become
less expensive and Japanese goods sold in ________ would become more expensive.
A) the United States; the United States
B) the United States; Japan
C) Japan; Japan
D) Japan; the United States
If the consumption function is C = 200 + 0.8Y and there is a $10 million increase in
investment spending, then the aggregate demand curve will shift horizontally to the
right by:
A) $50 million.
B) $8 million.
C) $12.5 million.
D) $2 million.
The U.S. experienced a severe depression during:
A) the 1973-1975 period.
B) the 1929-1933 period.
C) the March 2001 to November 2001 period.
D) all of the above.