If the base year for an index is 2005 and the value of the index in 2008 is 165.1, by
what percent has the measure grown over those 3 years?
a. 165.1 percent
b. 100.0 percent
c. 6.51 percent
d. 0 percent
e. 65.1 percent
Whether a subsidy for a certain good is given to a demander or supplier is irrelevant
because
a. in either case, the price that the demander has to pay will decrease; while the price
the supplier receives will increase
b. in either case, the price that the demander has to pay will increase; while the price the
supplier receives will decrease
c. either situation will create excess demand
d. either situation will create excess supply
e. none of these are correct
The demand deposit multiplier is always less than 10.
To maintain an interest rate target the Fed must make adjustments to the money supply.
The basic problem of economics arises when there are unlimited resources available to
fulfill society’s limited wants.
The unemployment rate is usually zero except during recessions.
Economists widely agree that the Consumer Price Index (CPI) understates the true U.S.
inflation rate.
Figure 2-1 illustrates the trade-off for a particular student between time spent studying
per week and income per week from working part-time. What is the opportunity cost
for this person of moving from point b to point a?
Figure 2-1
a. $5 of income per week
b. $10 of income per week
c. two hours of studying per week
d. $10 per hour of studying per week
e. $20 of income per week
An increase in the price of a good results in a(n)
a. decrease in demand
b. increase in demand
c. increase in quantity demanded
d. decrease in quantity demanded
e. increase in supply
In 2008, the Ace Card Company produced $10 million worth of playing cards. Because
of strong consumer demand for their product in 2008, Ace sold $12 million worth of
cards, reducing their inventories by $2 million. How much value did Ace add to GDP in
2008?
a. $2 million
b. $8 million
c. $10 million
d. $12 million
e. $14 million
Microeconomics
a. addresses scarcity from a global perspective
b. examines how individuals, households, and firms make economic decisions
c. is purely theoretical and has little value in explaining real-world phenomena
d. focuses on what is happening in the economy as a whole
e. answers the fundamental economic questions of how, when, where, and why
If money demand falls on its own (i.e., not in response to a spending shock), what must
the Fed do to stabilize GDP?
a. Increase the money supply
b. Decrease the money supply
c. Leave the money supply and money demand unchanged
d. Increase money demand
e. Decrease money demand.
References in the newspaper to the bond market are usually references to
a. the primary bond market
b. the commodities market
c. the secondary bond market
d. the stock market
e. the futures market