If the Phillips curve represents a “________ relationship,” then the trade-off between
unemployment and inflation is permanent.
A) structural
B) frictional
C) cyclical
D) dynamic
An increase in the demand for peanuts due to changes in consumer tastes, accompanied
by an increase in the supply of peanuts as a result of favorable growing conditions, will
result in
A) an increase in the equilibrium quantity of peanuts and no change in the equilibrium
price.
B) an increase in the equilibrium price of peanuts and no change in the equilibrium
quantity.
C) an increase in the equilibrium price of peanuts; the equilibrium quantity may
increase or decrease.
D) an increase in the equilibrium quantity of peanuts; the equilibrium price may
increase or decrease.
Dividing the dividend payment by the stock’s closing market price determines the
A) coupon payment.
B) dividend yield.
C) price-earnings ratio.
D) selling price of the stock.
Figure 15-4
Refer to Figure 15-4. In the figure above, a movement from point A to point B would
be caused by
A) a decrease in real GDP.
B) an increase in the price level.
C) a decrease in the price level.
D) an increase in the interest rate.
Given the equations for C, I, G, and NX below, what is the marginal propensity to save?
C = 1,000 + 0.8Y
I = 1,500
G=1,250
NX = 100
A) 0.2
B) 0.8
C) 1.8
D) 10
Table 7-3
Mateo and Celeste produce custom saddles and spurs. Table 7-3 lists the number of
saddles and pairs of spurs Mateo and Celeste can each produce in one month.
Refer to Table 7-3. Select the statement that accurately interprets the data in the table.
A) Mateo has an absolute advantage in making saddles and spurs.
B) Celeste has an absolute advantage in making saddles and spurs.
C) Neither Mateo nor Celeste has an absolute advantage in making saddles.
D) Neither Mateo nor Celeste has an absolute advantage in making spurs.
Crowding out refers to a decline in ________ as a result of an increase in ________.
A) tax revenues; unemployment
B) government purchases; tax rates
C) government purchases; private expenditures
D) private expenditures; government purchases
David Myers, former controller for WorldCom, pleaded guilty to falsely reported costs
for WorldCom that were ________ than they actually were, resulting in reported
accounting profits for WorldCom that were ________ than their actual level.
A) higher; higher
B) lower; higher
C) lower; lower
D) higher; lower
For the last few decades, the labor force participation rates of men have ________, and
the labor force participation rates of women have ________.
A) risen; risen
B) fallen; fallen
C) risen; fallen
D) fallen; risen
According to Marx, which of the following factors of production did not contribute
anything of value to production?
A) labor
B) capital
C) natural resources
D) entrepreneurship
If taxes are less than transfers plus government spending, then
A) there is positive saving.
B) there is a balanced budget.
C) there is a budget surplus.
D) there is public dissaving.
If consumers decide to be more frugal and save more out of their income, then this will
cause
A) a shift in the supply curve for loanable funds to the right.
B) a shift in the supply curve for loanable funds to the left.
C) a movement to the right along the supply curve for loanable funds.
D) a movement to the left along the supply curve for loanable funds.
Figure 3-8
Refer to Figure 3-8. The graph in this figure illustrates an initial competitive
equilibrium in the market for motorcycles at the intersection of D2 and S2 (point E). If
the technology to produce motorcycles improves and the number of buyers increases,
how will the equilibrium point change?
A) The equilibrium point will move from E to A.
B) The equilibrium point will move from E to B.
C) The equilibrium point will move from E to C.
D) The equilibrium point will remain at E.
The invention of the integrated circuit by Jack Kilby of Texas Instruments gave rise to
the information age. What did this technological change do the short-run supply curve?
A) It shifted the short-run aggregate supply curve to the left.
B) It shifted the short-run aggregate supply curve to the right.
C) It moved the economy up along a stationary short-run aggregate supply curve.
D) It moved the economy down along a stationary short-run aggregate supply curve.
Most economic growth in the world occurred between 1,000,000 B.C. and 1300 A.D.
Figure 13-2
Refer to Figure 13-2. Ceteris paribus, an increase in the capital stock would be
represented by a movement from
A) SRAS1 to SRAS2.
B) SRAS2 to SRAS1.
C) point A to point B.
D) point B to point A.
All of the following are reasons why China is unlikely to maintain high enough rates of
productivity growth to catch-up with the standard of living in the United States except
A) the United States invests more in research and development. than does China.
B) much of China’s growth is likely due to the transition from a centrally-planned
economy to a market economy.
C) because of the low birth rate in China, the labor force will soon decline.
D) the Chinese migration of rural workers to more productive urban jobs.
In the United States in 2012, a majority of people received health care through
A) Medicare.
B) Medicaid.
C) their employers.
D) individually purchased insurance policies.
Describe what has happened to state obesity rates in the United States since 1994.
Explain the relationships between a corporation’s shareholders, its board of directors,
and its top managers.
Define a corporation.
What is the formula for the multiplier? Explain why this formula is considered to be too
simple.
How can a firm have a negative valued added, as supposedly some state-owned
businesses did in the former Soviet Union? What has to be true for value added to be
negative?
Over the last 50 years, has the ratio of household production to gross domestic product
in the United States increased or decreased? Consider the effect of the increased
number of women working outside the home, and the effect of advances in technology
in household production such as microwaves, coffee makers, power tools, etc.
If the required reserve ratio is 100 percent, could the Federal Reserve still change the
money supply with open market operations? Explain whether they could or could not.
What are the five most important variables that shift the market supply curve?