Which of the following factors may lead to an underestimation of the significance of
unemployment when evaluating the overall unemployment rate?
a. Involuntary full-time employment
b. An increase in the number of military personnel
c. Discouraged workers
d. An increase in the number of people under the age of 16
e. A decrease in the number of institutionalized people
The introduction of new technology causes
a. the production function to shift upward
b. real output to decrease
c. a decrease in the standard of living
d. decreases in capital stock
e. productivity to decrease
In the dollar-pound market, the equilibrium price of the pound will change
a. only when there is a shift of the demand curve for pounds
b. only when there is a shift of the supply curve for pounds
c. only when there are shifts of both the supply for pounds and demand for pounds
curves
d. whenever there is a shift of either the supply or demand curves for pounds
e. whenever there is movement along either the supply or the demand for pounds curves
The events of September 11, 2001 had a major direct impact on the economy’s GDP.
In the long run,
a. a larger budget deficit means a larger money supply
b. lower investment spending means slower growth of the standard of living
c. a larger budget deficit means lower consumption spending
d. a larger budget surplus means a smaller capital stock
e. government spending has no effect on the budget deficit or surplus.
Human capital is the equipment and machinery used directly by workers.
A negative demand shock decreases the price level in the short run.
Which of the following would not be included in the consumption component of GDP?
a. Movie ticket sales
b. Purchase of a new home
c. Medical bills
d. Clothing purchases
e. Home electricity bills
Which of the following statements is true about the behavior of the CPI?
a. It has risen steadily since 1960.
b. It has fallen steadily since 1960.
c. It fell during the 1960s and has risen ever since.
d. It rose sharply in the 1970s and then declined in the 1980s.
e. It has risen and fallen with roughly equal frequency since 1960.
Using the table below, calculate GDP for a particular year.
Based on the above information, GDP in this year was
a. $4,100
b. $4,300
c. $4,400
d. $4,600
e. $4,900
What trade-off must be considered when deciding how much of your wealth is to be
held as money relative to bonds?
a. Bonds pay more interest and are easier to use for payment.
b. Bonds pay less interest but are less convenient.
c. Bonds pay more interest but are less convenient relative to money.
d. Money pays less interest and is less convenient to use.
e. Money pays more interest and is less convenient to use.
Assuming the most typical shapes of the demand and supply curves, which of the
following could lead to an increase in the current equilibrium price for personal
computers?
a. a decrease is the price of computer chips
b. a decrease in buyers’ incomes, assuming that computers are a normal good
c. a technological improvement that reduces manufacturing costs
d. expectations of a higher future price
e. an increase in the price of computer software
If the price of ground beef falls, the demand for hamburger buns will
a. increase because the two goods are substitutes
b. decrease because the two goods are complements
c. decrease because the two goods are substitutes
d. increase because the two goods are complements
e. not change unless the price of hamburger buns also changes