The ability to produce a good at a lower opportunity cost than others is called a(n)
__________ advantage.
a. complementary
b. comparative
c. natural
d. indigenous
Starting from short-run equilibrium, the following occurs: the U.S. dollar depreciates
and wage rates rise. Moreover, the effect on the economy from the dollar depreciating is
stronger than the effect on the economy from rising wage rates.What is the effect on the
price level and Real GDP in the short run?
a. The price level falls and Real GDP falls.
b. The price level rises and Real GDP falls.
c. The price level falls and Real GDP rises.
d. The price level rises and Real GDP rises.
e. none of the above
A bank with a leverage ratio of 6.5 to 1 has
a. $6.50 in assets for every $1 in liabilities.
b. $6.50 in assets for every $1 in capital.
c. $1 in assets for every$6.50 in capital.
d. $1 in assets for every $6.50 in liabilities.
Exhibit 10-1
At Q1, there is a tendency for Real GDP to
a. rise.
b. fall.
c. remain unchanged.
d. There is not enough information to answer this question.
Exhibit 16-1
According to new classical macroeconomists, if increases in aggregate demand are
correctly anticipated, then the economy will move from point A to
a. point B.
b. point C.
c. some point on SRPC2, above C.
d. some point on SRPC1, below A.
Exhibit 8-1
If we assume that Real GDP and the unemployment rate are inversely related, which of
the points on this graph is most likely representative of the highest unemployment rate?
a. A
b. B
c. C
d. D
The United States SRAS curve may shift to the right if we ____________________
Malaysia and the dollar ________________ against the Malaysian ringgit.
a. buy raw materials from; appreciates
b. buy raw materials from; depreciates
c. sell finished goods to; appreciates
d. sell finished goods to; depreciates
If the income of U.S. citizens falls relative to the income of Japanese citizens, the dollar
will __________ in terms of the yen, and the yen will __________ in terms of the
dollar.
a. appreciate; depreciate
b. appreciate; remain unaffected
c. depreciate; appreciate
d. depreciate; remain unaffected
e. remain unaffected; appreciate
John Maynard Keynes was a very famous economist from
a. the United States.
b. England.
c. Germany.
d. Ireland.
Suppose that the bond market and the money market both start out in equilibrium, then
the Federal Reserve increases the money supply.The result will be a ______________
in the money market and a _________________ in the bond market, which will push
bond prices _________________ and interest rates will ___________________ until a
new equilibrium is reached.
a. surplus; shortage; up; fall
b. shortage; surplus; down; rise
c. surplus; shortage; down; rise
d. shortage; surplus; down; fall
Public choice theory predicts candidates will
a. speak in specific instead of general terms.
b. modify their positions to become more like their opponent, if polls show they are not
doing as well as their opponent.
c. call themselves right-wingers or left-wingers, not middle-of-the-roaders.
d. label their opponents as too middle-of-the-road.
e. all of the above
In 1820 the country with the highest per capita GDP was ______________________.In
1900 the country that ranked #1 in terms of per capita GDP was ___________________
and fifty years later the top ranking was held by _________________________.
a. the Netherlands; New Zealand; the United States.
b. the Netherlands; Australia; Switzerland.
c. the United States; the United States; the United States.
d. Austria; Australia; New Zealand.
Autonomous consumption is
a. the change in consumption that results as a person’s (or nation’s) income increases or
decreases.
b. that portion of total consumption that is dependent upon the level of income.
c. the steady increase in the consumption of goods and services that automatically
occurs as a person grows from a child to an adult.
d. that portion of total consumption that is independent of the level of income.
If wages are ‘sticky”, a decline in the price level will
a. raise the real wage and lower the quantity demanded of labor.
b. lower the real wage and lower the quantity supplied of labor.
c. raise the real wage and lower the quantity supplied of labor.
d. a and b
e. none of the above