The Fed’s goal is
a. moderate and stable inflation
b. zero inflation
c. a low price level
d. an inflation rate that diminishes over time
e. low and stable inflation
Rent control is an example of a price ceiling. Which of the following problems must be
addressed under a rent control program?
Suppose that the Department of Transportation is compiling data on traffic accidents
and it wants to present the data in the form of an index. If there were 2,000 accidents in
the base year, 2007, and 2,100 accidents in 2008, what is the value of the index for
2008?
a. 95.2
b. 100
c. 105
d. 200
e. 210
Economists began carefully calculating GDP
a. simply because the data was available
b. to determine the contribution of specific firms to the economy
c. as a result of the problems during the Great Depression
d. to make sure that firms were being productive
e. to gain insight into the causes of unemployment
Microeconomic topics include the overall unemployment rate in the United States and
the rate of inflation.
Last month, Sally spent $3,000 in repairing her old car. Now her car requires an
additional $2,000 in repairs. She could get a comparable car for $2,500. She should
Output per worker tends to be higher in countries with
The unemployment rate is usually zero except during recessions.
If the U.S. government decides to distribute surplus cheese to food banks for the
homeless, the government is addressing the question of
The additional output produced when one additional worker is hired is referred to as the
__________ of labor.
The institution charged with creating and regulating the U.S. money supply is the
a. U.S. Treasury
b. Federal Reserve System
c. Department of Commerce
d. Department of Weights and Measures
e. U.S. Mint
The most recent economic expansion started in
a. 2005
b. 2003
c. 2005
d. 2007
e. 1998
Which of the following is held constant in the short-run macro model?
a. GDP
b. Prices
c. Investment spending
d. Consumption
e. The money supply
Suppose a report on the internet indicates that job prospects for graduates are bright
because full employment is achieved automatically. Economists are likely to
a. be disappointed in the degree of economic understanding possessed by the author of
the report
b. be excited about the earning potential of new entrants into the labor market
c. be anxious about inflationary indicators
d. anticipate a recession
e. encourage a tax cut to stimulate the economy