Evidence seems to indicate that the demand for many agricultural products
a. has increased much more than supply over the years.
b. is relatively elastic.
c. is relatively inelastic.
d. is relatively income elastic.
e. b and d
With respect to the stock market, the acronym IPO stands for
a. investment proposal option.
b. immediate public offering.
c. internal public offering
d. initial public offering.
Which of the following is not one of the four broad categories of resources?
a. labor
b. government
c. capital
d. entrepreneurship
e. land
An unanticipated decrease in aggregate demand will cause an upward shift in the
short-run Phillips curve.
a. True
b. False
If the Fed ______________________, the money supply will ultimately __________.
a. raises the required reserve ratio from 8 percent to 10 percent; decrease
b. lowers the required reserve ratio from 10 percent to 8 percent; increase
c. lowers the required reserve ratio from 10 percent to 8 percent; decrease
d. raises the required reserve ratio from 8 percent to 10 percent; increase
e. a and b
The store of value function of money refers to the ability of money to
a. facilitate the exchange of goods and services.
b. maintain its value over time.
c. express relative scarcity.
d. earn interest over time.
e. increase its value over time.
If consumption is greater than disposable income, it follows that
a. interest rates are rising.
b. the budget deficit is shrinking.
c. saving is negative.
d. the multiplier is inoperative.
e. none of the above
Alexander Hamilton used the infant-industry argument to support trade restrictions.
a. True
b. False
Which of the following statements is true?
a. Velocity equals the money supply.
b. GDP is larger than the money supply if velocity is greater than 1.
c. The money supply must be equal to GDP.
d. GDP is always twice the money supply.
Raquel, who earns $900 a week, bought a television set and gained $70 consumers’
surplus. What price did she pay for the good?
a. $40
b. $830
c. $160
d. $5
e. There is not enough information to answer the question.
Consider a setting in which there is a negative externality, but no positive
externality.The market outcome is __________________; government can bring about
the ___________________ outcome if it sets a tax equal to the __________________.
a. efficient; inefficient;
b. efficient; inefficient; MEC
c. inefficient; efficient; MEC
d. inefficient; efficient; MPC
e. inefficient; efficient; MSB
During the Great Recession, the growth rate of Real GDP _________________ and the
inflation rate ___________________.
a. increased; declined
b. declined; increased
c. declined; also declined
d. increased; also increased
Which statement is consistent with what Keynes believed about consumption and
disposable income?
a. Consumption depends upon disposable income and falls as disposable income rises.
b. Consumption rises by the same amount as disposable income rises.
c. Consumption rises by less than disposable income rises.
d. Disposable income depends upon consumption.
Exhibit 34-9
For country Y, the opportunity cost of producing one unit of good A is __________
unit(s) of good B.
a. 1.5
b. 2
c. 1/2
d. 2/3
e. 10
Exhibit 35-4
Under a fixed exchange rate system, at the exchange rate of E1, the peso is __________
and there is a __________.
a. overvalued; surplus of dollars
b. undervalued; shortage of pesos
c. overvalued; shortage of dollars
d. undervalued; surplus of pesos
Supply-restricting policies are intended to shift the
a. supply curve to the left.
b. supply curve to the right.
c. demand curve to the left.
d. demand curve to the right.
e. b and d