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Which is not a way in which the federal government can finance its expenditure?
A) issuing bonds
B) creating money
C) buying federal government securities
D) tax revenues
A White House proposal to increase infrastructure spending on roads, rail lines and
runways is an example of
A) expansionary fiscal policy.
B) contractionary fiscal policy.
C) automatic stabilization.
D) insourcing policies.
Corn is used to produce tortillas. If the price of corn increases,
A) the demand for tortillas increases.
B) the demand for tortillas decreases.
C) the supply of tortillas increases.
D) the supply of tortillas decreases.
Which of the following are examples of "mediums of exchange"?
A) money used to buy goods
B) goods used to obtain other goods
C) pigs used to obtain chickens
D) all of the above
Suppose the nation of Alphonia was charged with dumping electric lawnmowers in the
nation of Omegalon. The result of Omegalon imposing anti-dumping tariffs on electric
lawnmowers manufactured in Alphonia would most likely be
A) an increased market share for Alphonian-manufactured electric lawnmowers in
Omegalon.
B) higher selling prices on electric lawnmowers in Omegalon.
C) lower selling prices on electric lawnmowers in Alphonia.
D) increased exports of electric lawnmowers from Alphonia.
One of the most obvious clues to the relative scarcity of a product in a market economy
is:
A) the variations in available sizes.
B) its current market price.
C) the limited selection of colors.
D) none of the above.
Refer to Figure 15.1. The short-run equilibrium occurs at point
A) a.
B) .
C) c.
D) yF.
As the number of transactions in the economy decreases:
A) the supply of money increases.
B) the supply of money decreases.
C) the demand for money increases.
D) the demand for money decreases.
Recall Application 1, "Energy Price Uncertainty Reduces Investment Spending," to
answer the following questions:
According to the application, uncertainty in future oil prices usually cause firms to:
A) delay investment until uncertainty is removed.
B) hasten investments to take advantage of low energy prices.
C) never make investment choices in the energy sector.
D) increase investment in oil exploration.
Recall the Application about the time it took to recover from the recession of
2007-2009 to answer the following question(s).
According to this Application, GDP did not return to its pre-recession peak until
A) the third quarter of 2009.
B) the first quarter of 2010.
C) the second quarter of 2011.
D) the fourth quarter of 2012.
Figure 4.2 In Figure 4.2, which of the panels depicts a market in which there is an
excess supply of a product?
A) Panel A
B) Panel B
C) Panel C
D) None of the panels depicts a market in which there is an excess supply of a product.
Figure 7.3 Refer to Figure 7.3. The classical economists argued the wage rate will
________ from ________ if the demand for labor changes from D' to D.
A) not change; $12
B) fall; $12 to $10
C) not change; $10
D) rise; $10 to $12
If the rate of unemployment is equal to the natural rate, the rate of inflation will
A) fall by 1 percent per year
B) rise by 1/2 percent per year.
C) fall by 1/2 percent per year.
D) not change.
