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The labor supply curve is based on the decision of:
A) workers on how many hours to work and how much to enjoy as leisure.
B) firms on how many workers to hire.
C) firms on how many goods and services to produce.
D) workers on how much income to spend.
Payments received from the government upon becoming unemployed is called:
A) unemployment insurance.
B) social security.
C) welfare.
D) unemployment salary.
In the short run when prices don't have enough time to change, the Federal Reserve
A) can influence the level of interest rates in the economy.
B) cannot influence the level of interest rates in the economy.
C) can influence the level of interest rates in the economy but generally will not
because it would be destabilizing.
D) can only affect the amount of money in the economy.
Based on the model of the money market, if the Federal Reserve increases the reserve
requirement, the equilibrium interest rate should
A) stay the same.
B) increase.
C) decrease.
D) increase to the same extent that the demand for money increases.
Which of the following is a bank asset?
A) demand deposits
B) savings account deposits
C) certificates of deposit held by the public
D) loans made to customers
When a government has a budget deficit and has reduced its spending, what other step
can be taken to generate more revenue, besides issuing government bonds?
A) reduce unemployment
B) raise interest rates
C) increasing exports
D) raise taxes
Table 5.3
Refer to Table 5.3. Suppose this economy produces only the two goods:X and Y.
Nominal GDP in year 1 is:
A) $100.
B) $160.
C) $200.
D) $280.
During the U.S. savings and loan crisis in the 1980s, depositors were saved at the
expense of taxpayers because:
A) taxpayers were required to keep their accounts with the S&Ls.
B) taxpayers had to foot the bill of bailing out the the S&Ls.
C) the depositors were the tax payers anyway.
D) the depositors were required to pay higher taxes on their deposit incomes.
Table 3.2
Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table
3.2 shows how much of each good Jesse and April can paint in one hour. Which of the
following is true?
A) Jesse has an absolute advantage in painting kites but not snowboards.
B) Jesse has an absolute advantage in painting snowboards but not kites.
C) Jesse has an absolute advantage in painting both goods.
D) Jesse has an absolute advantage in painting neither good.
The natural rate of unemployment
A) can vary over time and will differ across countries.
B) can vary over time but tends to be the same across countries.
C) tends to remain constant over time but at different levels for different countries.
D) tends to remain constant over time and is the same across countries.
Table 2.1
Kaitlyn and Larissa have formed a dog bathing and grooming business business. The
number of dogs they can bathe or groom in any given day is depicted in Table 2.1. The
opportunity cost of grooming the first dog in a day is bathing ________ dog(s).
A) 1
B) 2
C) 24
D) 25
If the required reserve ratio is 10% but the money multiplier is only 7, then:
A) the banks held excess reserves.
B) the banks held reserves less than the required reserves.
C) the banks have zero excess reserves.
D) the bank is bankrupt.
If net investment is zero, then:
A) gross investment is greater than depreciation.
B) gross investment is less than depreciation.
C) gross investment equals depreciation.
D) depreciation is zero.
