An increase in the government budget deficit will shift the ________ curve for loanable
funds to the ________ and the equilibrium real interest rate will ________.
A) supply; right; fall
B) supply; left; rise
C) demand; right; rise
D) demand; left; fall
A Big Mac costs $4.56 in the United States and 9.2 zlotys in Poland. If the exchange
rate is 3 zlotys per dollar, what is the dollar cost of a Big Mac in Poland?
A) $1.52
B) $2.02
C) $3.07
D) $4.64
Labor productivity is
A) the quantity of output produced in one hour by several workers.
B) the quantity of capital one worker can produce in one day.
C) the quantity of output produced by one worker or by one hour of work.
D) the quantity of output produced in one hour by one machine.
Eighty-five percent of all firms employ ________ workers.
A) only one or two
B) fewer than 20
C) 50 or more
D) over 100
Under the Bretton Woods system, U.S. dollars were redeemable for ________ only if
the dollars were presented by a foreign central bank.
A) silver
B) foreign currency
C) gold
D) U.S. Treasury bonds
Contractionary monetary policy will result in
A) higher interest rates.
B) increased rates of inflation.
C) an upward shift in the short-run Phillips curve.
D) a leftward shift in the long-run Phillips curve.
An economic principle that explains why people pursue different occupations is
A) absolute advantage.
B) international trade.
C) comparative advantage.
D) NAFTA.
An economy that has interactions in trade or finance with other economies is referred to
as
A) an open economy.
B) a closed economy.
C) a trade-balanced economy.
D) a net foreign investment economy.
Which of the following would not be included in the expenditure category called
investment expenditures?
A) spending on new houses
B) a purchase of shares of preferred stock
C) a purchase of a copy machine by FedEx Office
D) the cars held in inventory on a local Ford dealer’s lot
What would happen in the market for knee replacement surgery if insurance companies
started to cover a smaller portion of the cost of the surgery, and fewer doctors decide to
enter the field of joint replacement surgery?
A) Demand will decrease, but this will not shift the supply curve.
B) Supply will decrease, but this will not shift the demand curve.
C) Demand and supply will both decrease.
D) Demand will decrease and supply will increase.
The most liquid measure of money supply is
A) M0.
B) M1.
C) M2.
D) M3.
Figure 4-4
Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that
this is a competitive market. If the price of iced tea is $3
A) the quantity supplied is greater than the economically efficient quantity.
B) the quantity demanded is economically efficient but the quantity supplied is
economically inefficient.
C) economic surplus is maximized.
D) too many consumers want to buy iced tea.