A full-time student who is not working is categorized as
A) unemployed.
B) employed.
C) not in the labor force.
D) a discouraged worker.
E) frictionally unemployed.
The increase in government spending on unemployment insurance payments to workers
who lose their jobs during a recession and the decrease in government spending on
unemployment insurance payments to workers during an expansion is an example of
A) automatic stabilizers.
B) discretionary fiscal policy.
C) discretionary monetary policy.
D) automatic monetary policy.
When you buy newly-issued shares of Facebook stock, this transaction takes place in
the
A) primary market.
B) bond market.
C) secondary market.
D) bear market.
Which of the following did not contributed to the overall decline in death rates in the
United States since 1981?
A) a decline in smoking
B) the decline in the population
C) the availability of new prescription drugs
D) new surgical techniques
Suppose that real GDP for 2012 was $10,000 billion and real GDP for 2013 was $9,500
billion. What is the rate of growth of real GDP between 2012 and 2013?
A) -10%
B) -5%
C) -2%
D) -1%
Brett buys a new cell phone for $100. He receives consumer surplus of $80 from the
purchase. How much does Brett value his cell phone?
A) $180
B) $100
C) $80
D) $20
Figure 10-5
Refer to Figure 10-5. “Crowding out” of firm investment as a result of a budget deficit
is illustrated by the movement from ________ in the graph above.
A) A to B
B) B to A
C) B to C
D) C to A
Based on the following information, what is the balance on the current account?
Exports of goods and services = $5 billion
Imports of goods and services= $3 billion
Net income on investments = -$2 billion
Net transfers = -$2 billion
Increase in foreign holdings of assets in the United States = $4 billion
Increase in U.S. holdings of assets in foreign countries = -$1 billion
A) -$2 billion
B) $1 billion
C) $3 billion
D) $4 billion
The portion of ________ that a bank does not loan out or spend on securities is known
as ________.
A) loans; reserves
B) deposits; reserves
C) deposits; securities
D) loans; securities
Figure 3-5
Refer to Figure 3-5. In a free market such as that depicted above, a shortage is
eliminated by
A) a price increase, increasing the supply and decreasing the demand.
B) a price decrease, decreasing the supply and increasing the demand.
C) a price decrease, decreasing the quantity supplied and increasing the quantity
demanded.
D) a price increase, increasing the quantity supplied and decreasing the quantity
demanded.
At the end of World War II in 1945, many economists and business managers expected
that the U.S. economy would enter a severe recession. At that time, Sears and
Montgomery Ward were the two largest department store chains in the country. Sears
CEO Robert Wood expected continuing prosperity and opened new stores. Montgomery
Ward CEO Sewell Avery expected falling incomes and rising unemployment and closed
a number of existing stores. The results of their actions were seen during the late 1940s,
when
A) Sears declared bankruptcy and was purchased by Montgomery Ward.
B) Montgomery Ward weathered the economic downturn in better financial shape than
Sears.
C) Sears rapidly gained market share at Montgomery Ward’s expense.
D) Sears had to close many of the new stores it had opened following the end of the
war.
Figure 15-7
Refer to Figure 15-7. Suppose the Fed sells Treasury Bills in pursuit of contractionary
monetary policy. Using the static AD–AS model in the figure above, this situation would
be depicted as a movement from
A) A to B.
B) B to D.
C) C to B.
D) B to C.
E) C to D.
To offset the effect of households and firms deciding to hold more of their money in
checking account deposits and less in currency, the Federal Reserve could
A) raise bank taxes.
B) sell Treasury securities.
C) raise government spending.
D) lower the required reserve ratio.
If actual inflation is less than expected inflation, actual real wages will be ________
expected real wages and unemployment will ________.
A) greater than; rise
B) greater than; fall
C) less than; rise
D) less than; fall
Substantial co-payments are typically not required as a part of the health care system in
A) Canada and the United Kingdom.
B) Japan and Canada.
C) the United States and Japan.
D) Japan and the United Kingdom.
If, in a competitive market, marginal benefit is greater than marginal cost
A) the net benefit to consumers from participating in the market is greater than the net
benefit to producers.
B) the government must force producers to lower price in order to achieve economic
efficiency.
C) the quantity sold is greater than the equilibrium quantity.
D) the quantity sold is less than the equilibrium quantity.
What must balance on a balance sheet?
A) Total assets must equal total liabilities plus equity.
B) Revenues must equal costs.
C) Retained earnings plus dividends paid must equal earnings per share.
D) All of these must balance.
When Americans increase their demand for Japanese goods,
A) the demand for dollars will rise, and the demand for yen will rise.
B) the demand for dollars will fall, and the demand for yen will rise.
C) the supply of dollars will rise, and the demand for yen will rise.
D) the supply of dollars will fall, and the demand for yen will fall.
Deflation occurs when
A) there is a sustained increase in the price level.
B) there is a one-time increase in the price level.
C) there is a decline in the price level.
D) there is a decrease in the expected rate of inflation.