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COLA is an acronym that stands for:
A) Cost of Living Adjustment.
B) Cost of Living Annually.
C) Cost of Living Alone.
D) Cost of Living Account.
Table 6.3 Refer to Table 6.3. The
number of people not in the labor force equals:
A) 5.9.
B) 68.4.
C) 74.3.
D) 201.9.
Which of the following is an example of a firm that received protection from the
government because the government wants the domestic firm to establish a monopoly
in the world market?
A) Airbus
B) Apple
C) Harley Davidson
D) Ford
Which of the following is not a factor of production?
A) money
B) human capital
C) physical capital
D) labor
Refer to Figure 15.2. A movement from point a to point would be the result of the
A) unemployment rate exceeding the natural rate, causing wages to rise.
B) unemployment rate exceeding the natural rate, causing wages to fall.
C) natural rate exceeding the unemployment rate, causing wages to rise.
D) natural rate exceeding the unemployment rate, causing wages to fall.
You rent a DVD of The Dark Knight Rises. The rental is for seven days and you watch
the movie on the first day. You tell a friend about the film and your friend asks to come
over and watch the movie with you before it is due back. What is your opportunity cost
if you decide to watch the movie a second time instead of going to a football game?
A) the entire cost of the movie rental, since you have already watched the movie
B) one half the rental cost, because you have already watched the movie one time
C) The answer depends on how much you liked the movie in the first place.
D) the football game you forego by watching the movie again
If the tradeoff between the two goods is constant, the production possibilities curve is
A) a negatively-sloped straight line.
B) a positively-sloped straight line.
C) a negatively-sloped curve which is bowed outward.
D) a negatively-sloped curve which is bowed inward.
The slope of a straight line is:
A) constant.
B) increasing.
C) increasing if the line is upward sloping.
D) increasing if the line is downward sloping.
Recall the Application about the use of fertilizer and its impact on crop yields to
answer the following question(s). The table is taken from this Application. Fertilizer
and Corn Yield
Refer to the table above. The farmer began to experience diminishing returns after
applying how many bags of fertilizer?
A) 1
B) 2
C) 3
D) 4
In macroeconomics, the term "classical" refers to a school of economics that believed
that:
A) over a short period of time, wages and prices will adjust to bring the economy back
to full employment.
B) over along period of time, wages and prices will adjust to bring the economy back to
full employment.
C) the economy is never at full employment.
D) over a short period of time, wages alone and not prices, will adjust to bring the
economy back to full employment.
Unemployment that naturally occurs during the normal workings of an economy as
people change jobs and move across the country is called
A) natural unemployment.
B) frictional unemployment.
C) structural unemployment.
D) cyclical unemployment.
The seven members of the Board of Governors are appointed to ________ terms by the
President.
A) 14-year
B) 5-year
C) 4-year
D) 3-year
If national income is $645 billion, indirect taxes are $20 billion, and subsidies are $15
billion, then net national product is:
A) $167 billion.
B) $645 billion.
C) $650 billion.
D) $685 billion.
According to the growth version of the quantity equation, if the money supply increases
by 10 percent while velocity stays constant and real GDP increased by 12 percent, then:
A) the economy experienced a deflation.
B) the economy experienced a recession.
C) the economy experienced hyperinflation.
D) the unemployment rate increased by 2 percent.
John transfers $1,000 from his checking account to his savings account. This
transaction will:
A) decrease both M1 and M2.
B) not change M1 and decrease M2.
C) decrease M1 and not change M2.
D) increase both M1 and M2.
A reduction in the British interest rate relative to the U.S. interest rate will cause a(n):
A) appreciation of the dollar and an appreciation of the British pound.
B) appreciation of the dollar and a depreciation of the British pound.
C) depreciation of the dollar and an appreciation of the British pound.
D) depreciation of the dollar and a depreciation of the British pound.
In a modern market economy, most of the answers to the questions of what to produce,
how to produce it, and who should get the production are made by:
A) governments.
B) individuals.
C) firms.
D) both B and C
A reduction in the U.S. interest rate relative to the British interest rate will cause a(an):
A) appreciation of the dollar and an appreciation of the British pound.
B) appreciation of the dollar and a depreciation of the British pound.
C) depreciation of the dollar and an appreciation of the British pound.
D) depreciation of the dollar and a depreciation of the British pound.
The multiplier-accelerator model was developed by
A) John Maynard Keynes.
B) Paul Samuelson.
C) classical economists.
D) Walter Heller.
