1) Which of the following does not explain what backs the money supply in the United
States?
A.It is back by gold.
B.It is widely accepted in transactions.
C.It is designated “legal tender” by the Federal government.
D.It is relatively scarce.
2) The ABC Company can hire either union or nonunion workers. But any nonunion
workers who are hired must join the union in thirty days or forfeit their jobs. The ABC
Company has a(n):
A.preferential hiring agreement.
B.union shop.
C.closed shop.
D.open shop.
3)
Which of the above diagrams best portrays the effects of declines in the incomes of
U.S. trading partners?
A.A
B.B
C.C
D.D
4) In which of the following situations for a mixed open economy will the level of GDP
expand?
A.when Ig + X + G exceeds Sa + M + T
B.when Sa + T + M exceeds Ig + G + X
C.when GDP exceeds Ca + Ig + G + Xn
D.when Ig + M + T exceeds Ca + X + S
5) if you operated a small bakery, which of the following would be a variable cost in the
short run?
a.baking ovens
b.interest on business loans
c.annual lease payment for use of the building
d.baking supplies (flour, salt, etc.)
6) An inflationary expenditure gap is the amount by which:
A.equilibrium GDP falls short of the full-employment GDP.
B.aggregate expenditures exceed any given level of GDP.
C.saving exceeds investment at the full-employment GDP.
D.aggregate expenditures exceed the full-employment level of GDP.
7) Under a gold standard a balance of payments disequilibrium would be corrected
automatically by:
A.the depreciation of that country’s currency.
B.an increase in the gold content of that nation’s monetary unit.
C.the appreciation of that country’s currency.
D.an outflow or inflow of gold.
8) the economizing problem is one of deciding how to make the best use of:
a.virtually unlimited resources to satisfy virtually unlimited wants.
b.limited resources to satisfy virtually unlimited wants.
c.unlimited resources to satisfy limited wants.
d.limited resources to satisfy limited wants.
9) “macroeconomics is the part of economics concerned with individual units such as a
person, a household, a firm, or an industry.” this statement is:
a.positive, but incorrect.
b.positive and correct.
c.normative, but incorrect.
d.normative and correct.
10) Interest, rent, and corporate profits combined account for about what percentage of
the national income?
A.80 percent
B.55 percent
C.35 percent
D.20 percent
11) if a pure monopolist is producing more output than the mr = mc output:
a.the firm may, or may not, be maximizing profits.
b.it will be in the interest of the firm, but not necessarily of society, to reduce output.
c.it will be in the interest of the firm and society to increase output.
d.it will be in the interest of the firm and society to reduce output.
12) Which of the following problems will most likely occur with a system of flexible
exchange rates?
A.Macroeconomic instability as exports and imports fluctuate with the exchange rates.
B.Government favoritism toward selected importers of goods and services.
C.The emergence of black markets for foreign currency.
D.Distortions in trade patterns away from the pattern suggested by comparative
advantage.
13)
Refer to the above diagram for a specific economy. An increase in aggregate demand
will:
A.shift this curve to the right.
B.shift this curve to the left.
C.move this economy southeast along the curve.
D.move this economy northwest along the curve.