All else being equal, if the rate of growth in productivity in Spain is greater than the
rate of growth in productivity in the United States, the euro
A) will decrease in value relative the U.S. dollar.
B) will increase in value relative to the U.S. dollar.
C) will nominally appreciate against the dollar, but its real value relative to the dollar
will remain unchanged.
D) will nominally depreciate against the dollar, but its real value relative to the dollar
will remain unchanged.
Figure 10-4
Refer to Figure 10-4. Which of the following is consistent with the graph depicted?
A) an increase in household income
B) an increase in transfer payments to households
C) an increase in the proportion of income after net taxes used for consumption
D) an increase in tax revenues collected by the government
Table 9-2
Refer to Table 9-2. Assume the market basket for the consumer price index has two
products € bread and milk € with the following values in 2006 and 2013 for price and
quantity: The Consumer Price Index for 2013 equals
A) 118.
B) 116.
C) 86.
D) 85.
Which of the following cause the unemployment rate as measured by the Bureau of
Labor Statistics to overstate the true extent of joblessness?
A) inflation
B) discouraged workers
C) counting people as employed who are working part time, although they would prefer
to be working full time
D) unemployed persons falsely report themselves to be actively looking for a job
Banks keep ________ of checking deposits as reserves because on a typical day
withdrawals ________ deposits.
A) more than 100%; are much greater than
B) exactly 100%; are about the same as
C) less than 100%; are about the same as
D) exactly 100%; are much greater than
E) less than 100%; are much greater than
What is human capital?
A) labor productivity
B) buildings, equipment, and machinery owned by individuals rather than firms
C) buildings, equipment, and machinery owned by firms
D) the accumulated knowledge and skills that workers acquire from education, training,
and their life experiences
If, at the current exchange rate between the dollar and the South African rand of 6.92
rand per dollar, the dollar is “undervalued,” how do you expect demand and supply in
the foreign exchange markets to respond?
A) The demand for the dollar will rise, while the supply of the rand will fall.
B) The demand for the dollar will fall, while the supply of the rand will rise.
C) The supply of the dollar will fall, while the demand for the rand will fall.
D) The supply of the dollar will fall, while the demand for the rand will rise.
Which type of businesses earns the majority of profits in the United States?
A) corporations
B) partnerships
C) sole proprietorships
D) none of these
In economics, tangible merchandise is referred to as
A) invention.
B) human capital.
C) services.
D) goods.
A decrease in cyclical unemployment will
A) shift the long-run Phillips curve to the left.
B) decrease the natural rate of unemployment.
C) shift the short-run Phillips curve to the left.
D) All of the above are correct.
E) None of the above is correct.
The PPI is the
A) price parity index.
B) prime producer index.
C) producer price index.
D) production performance indicator.
By the height of the housing bubble in 2005 and early 2006, lenders had greatly
loosened the standards for obtaining a mortgage loan, with many mortgages being
granted to ________ borrowers with flawed credit histories and ________ borrowers
who did not document their incomes.
A) sub-prime; “Alt-A”
B) adjustable rate; shadow-banking
C) “credit crunch”; black market
D) “fresh-start”; prime rate
Because knowledge capital is nonexcludable and nonrival, firms have an incentive to
________ the research and development of other firms.
A) make bids on
B) not use
C) ignore
D) free ride on