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To a bank, checkable deposits are classified as a liability.
a. True
b. False
Why would a candidate for political office speak in general instead of specific terms?
a. Because he or she believes voters want to hear generalities, not specifics.
b. Because he or she believes voters are too busy to listen to specifics.
c. Because he or she believes that specifics are too likely to label him or her as a
member of an extreme-wing, and politically this would be undesirable.
d. Because it is cheaper to get the message out if it is worded in general instead of
specific terms.
If M = $1,200 billion and V = 4, then total spending is _______________billion.Then
velocity falls to 2 and M rises to $2,000 billion, so that total spending is now
_______________ billion, and GDP has _________________.
a. $4,800; $4,000; declined
b. $300; $1,000; risen
c. $4,800; $4,000; risen
d. $1,204; $2,002; risen
Good X sold for $40 in 1957. The CPI in 1957 was 27.6 and the CPI in 2014 was
244.537. What was the price of good X in 2014 dollars?
a. $514.60
b. $270.92
c. $1,201.60
d. $310.92
e. $354.40
New growth theory holds that technology is __________ and that the more resources
that go to develop technology, the __________ technology that is produced.
a. exogenous; more and better
b. exogenous; less
c. endogenous; more and better
d. endogenous; less
If the equilibrium exchange rate between U.S. dollars and Japanese yen is $0.008 = 1
yen, but currently the exchange rate is $0.007 = 1 yen, then with flexible exchange rates
the dollar price of a yen will __________, and the dollar will __________.
a. increase; appreciate
b. decrease; appreciate
c. increase; depreciate
d. decrease; depreciate
Which of the following statements is true?
a. Government purchases is the largest component of GDP.
b. Net exports are equal to exports plus imports.
c. U.S. imports refer to the physical quantity of foreign-produced goods that are
purchased by residents of the United States.
d. Government purchases includes the spending on goods and services by all levels of
government (federal, state, and local).
e. c and d
One implication of the median voter model is that a candidate is likely to label himself
__________ and his or her opponent as __________.
a. moderate; too far right or too far left (whichever makes more sense)
b. a member of one of the political wings; moderate or mainstream
c. as a member of the political right; moderate
d. as a member of the political left; moderate
e. none of the above
Exhibit 5-1
which shows supply and demand for freeway space at both 8 a.m. and 11 p.m. A toll of
P2 creates __________ at 8 a.m. and __________ at 11 p.m.
a. a shortage; a surplus
b. a surplus; a shortage
c. equilibrium; a surplus
d. a shortage; equilibrium
Suppose the economy is in a recessionary gap.If government expenditures are currently
$1.4 trillion and tax revenues are currently $1 trillion, the (total) budget deficit is
_____________.Assume that economists estimate that if the economy were operating at
full employment,government expenditures would be $1.2 trillion and tax revenues
would be $1.1 trillion.The structural deficit is_________________ and the cyclical
deficit is_______________.
a. $2.4 trillion; $2.2 trillion; $200 billion
b. $400 billion; $300 billion; $100 billion
c. $400 billion; $100 billion; $300 billion
d. $300 billion; $100 billion; $400 billion
