In response to accounting scandals in 2002, the federal government passed legislation
requiring that corporate directors have a certain level of expertise with financial
information and mandating that chief executive officers personally certify the accuracy
of financial statements. What is the name of this legislation?
A) the Accountant Reliability Act
B) the 24th amendment to the Constitution
C) the Kennedy-Lott Act
D) the Sarbanes-Oxley Act
A student who just graduated from college but has not found a job would most likely be
A) frictionally unemployed.
B) structurally unemployed.
C) cyclically unemployed.
D) seasonally unemployed.
Consumption spending is $16 million, planned investment spending is $4 million,
unplanned investment spending is $2 million, government purchases are $6 million, and
net export spending is $1 million. What is aggregate expenditure?
A) $22 million
B) $26 million
C) $27 million
D) $29 million
Figure 3-7
Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and
supply curves for mustard and that bratwurst and mustard are complements. What panel
describes what happens in this market when the price of bratwurst falls?
A) Panel (a)
B) Panel (b)
C) Panel (c)
D) Panel (d)
The business cycle ________ on FedEx since the company’s inception over 40 years
ago.
A) has had virtually no effect
B) has always had a negative effect
C) has had a large effect
D) has always had a positive effect
The study of economics arises due to
A) money.
B) scarcity.
C) greed.
D) resources.
Which of the following would decrease net exports in the United States?
A) An American party planner purchases 350 pi±atas from Mexico.
B) The government of Mexico purchases 2,000 Dell laptop computers from the United
States.
C) A Mexican citizen purchases 100 shares of stock in IBM.
D) The U.S. government donates $25 million to Mexico to help victims of a hurricane
in Mexico.
The recession of 2007-2009 would most likely be represented in a production
possibilities frontier graph by
A) a point inside the frontier.
B) a point outside the frontier.
C) a point on the frontier.
D) an intercept on either the vertical or the horizontal axis.
The percent increase in the CPI from one year to the next is a measure of the
A) GDP deflator.
B) unemployment rate.
C) real interest rate.
D) inflation rate.
Table 7-6
Production and
Consumption Production
Without Trade With Trade
Estonia and Morocco can produce both swords and belts. Table 7-6 shows the
production and consumption quantities without trade, and the production numbers with
trade.
Refer to Table 7-6. All of the following are terms of trade that could possibly benefit
both countries except
A) 1 belt : 1.33 swords
B) 1 belt : 1.5 swords
C) 1 belt : 1.75 swords
D) 1 belt : 2.25 swords
When the United States sends money to the Philippines to help typhoon survivors, the
transaction is recorded in
A) the capital account.
B) the current account.
C) the financial account.
D) the foreign exchange account.
Which of the following is a positive economic statement?
A) People should not buy imported fruits and vegetables.
B) The government should subsidize solar power for homeowners.
C) The minimum wage law causes unemployment.
D) The number of work visas should not be limited by the government.