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Recall the Application about the time involved in including cell phones in the
calculation of the CPI to answer the following question.
According to this Application, the failure of including cell phones in a timely manner
when calculating the CPI caused the telecommunications component of the price index
A) to be biased downward.
B) to be biased upward.
C) to actually register no perceptible bias.
D) to become negative.
Figure 19.2
Referring to Figure 19.2, the effect of an increase in Japanese interest rates is
represented by a movement from point
A) c to d.
B) to a.
C) d to c.
D) d to a.
Figure 9.1
Refer to Figure 9.1. When the price level drops and causes a higher net exports, it is
illustrated as:
A) an aggregate demand curve shift from to .
B) an aggregate demand curve shift from to .
C) a move from Point A to Point B, but not a shift of the aggregate demand curve.
D) a move from Point B to Point A, but not shift of the aggregate demand curve.
In 1999, the U.S. population 16 years old or older was 207.8 million, the number
employed was 133.5 million, the number unemployed was 5.9 million, and the labor
force was 139.4 million. The unemployment rate in 1999 was ________ %.
A) 4.2
B) 5.9
C) 4.5
D) 3.2
Recall the Application about how the process of securitization in financial markets led
to a rise in the rate of home ownership in the U.S. housing market to answer the
following question(s).Recall the Application about how the process of securitization in
financial markets led to a rise in the rate of home ownership in the U.S. housing market
to answer the following question(s).Recall the Application. The loans made to
borrowers who have a limited ability to actually repay their mortgages are known as
A) bankruptcy loans.
B) stimulus loans.
C) no-fault loans.
D) subprime loans.
The slope of a straight line
A) is constant.
B) is negative.
C) is zero.
D) changes along the curve.
Suppose that for a given year money growth is 11 percent, real GDP growth is 6
percent, and the inflation rate is 3 percent. According to the growth version of the
quantity equation, velocity growth would be
A) -2 percent.
B) 0.6 percent.
C) 1.67 percent.
D) 5 percent.
The ability of one person or nation to produce a good at a lower absolute cost than
another is called a(n)
A) market advantage.
B) comparative advantage.
C) absolute advantage.
D) specialization advantage.
About 46 percent of M1 is composed of
A) demand deposits.
B) savings deposits.
C) money market mutual funds.
D) currency held by the public.
Recall the Application about the study done about the perceptions and behavior of
the unemployed in Great Britain to answer the following question.
According to this Application, the more unhappy unemployed individuals were,
A) the more likely they were to remain unemployed.
B) the more aggressive they would be to try to find a job.
C) the more they congregated around others who were unemployed.
D) the longer they collected unemployment benefits.
Scarcity can best be defined as a situation in which
A) there are no buyers willing to purchase what sellers have produced.
B) there are not enough goods to satisfy all of the buyers' demand.
C) the resources we use to produce goods and services are limited.
D) there is more than enough money to satisfy consumers' wants.
Recall the Application about the government of Mexico City repainting highway
lane lines to transform a 4-lane highway into a 6-lane highway to answer the
following question. If you work 4 extra hours, and the slope of the curve showing the
relationship between your income and work hours is 8, your income will increase by
A) $2.
B) $4.
C) $12.
D) $32.
The principle of diminishing returns implies that as one input increases while the other
inputs are held fixed, output
A) increases at an increasing rate.
B) increases at a decreasing rate.
C) decreases at a decreasing rate.
D) decreases at an increasing rate.
