1)
refer to the above diagram. the movement from point b to point c can be achieved by:
a.increasing taxes and increasing government spending.
b.increasing taxes and decreasing government spending.
c.decreasing taxes and increasing government spending.
d.decreasing taxes and decreasing government spending.
2) A major advantage of the built-in or automatic stabilizers is that they:
A.simultaneously stabilize the economy and reduce the absolute size of the public debt.
B.automatically produce surpluses during recessions and deficits during inflations.
C.require no legislative action by Congress to be made effective.
D.guarantee that the Federal budget will be balanced over the course of the business
cycle.
3) the type of unemployment associated with recessions is called:
a.frictional unemployment.
b.structural unemployment.
c.cyclical unemployment.
d.seasonal unemployment.
4)
Refer to the above diagram. From society’s perspective, if MB2 and MC1 are relevant:
A.Q4 represents too little pollution abatement.
B.Q1 represents too little pollution abatement.
C.Q3 represents an optimal amount of pollution abatement.
D.Q2 represents too little pollution abatement.
5) gdp excludes:
a.the market value of unpaid work in the home.
b.the production of services.
c.the production of nondurable goods.
d.positive changes in inventories.
6) the lowest point on a purely competitive firm’s short-run supply curve corresponds
to:
a.the minimum point on its atc curve.
b.the minimum point on its avc curve.
c.the minimum point on its afc curve.
d.the minimum point on its mc curve.
7) suppose that when your income increases from $28,000 to $30,000 per year, your
purchases of x increase from 4 to 5 units because of that income increase. thus:
a.x is an inferior good.
b.x is a substitute good.
c.the income effect exceeds the substitution effect.
d.the demand for x is elastic with respect to income.
8) all of the following could immediately or eventually lead to an inward shift of a
nation’s production possibilities curve, except:
a.emigration of skilled workers from the nation.
b.a decline in the birth rate.
c.an increase in the average skill level of all occupational groups.
d.depletion and reduced availability of major energy resources.
9)
refer to the above data. alpha is a(n):
a.increasing cost economy, whereas omega is a constant cost economy.
b.constant cost economy, whereas omega is an increasing cost economy.
c.increasing cost economy, as is omega.
d.constant cost economy, as is omega.
10) Which is an example of a nontariff barrier (NTB)?
A.an export subsidy
B.an excise tax on the physical volume of imported goods
C.box-by-box inspection requirements for imported fruit
D.an excise tax on the dollar value of imported goods