1) Tax revenues automatically increase during economic expansions and decrease
during recessions.
2) A firm should undertake all the R&D activity that it can afford.
3) Industrial unions are more likely to increase wage rates by restricting the supply of
labor than are craft unions.
4) The U.S. poverty rate was considerably lower in 2006 than in 1960.
5) illegal immigration always has a negative impact on the wages of domestic-born
workers.
6) when there are negative externalities involved in the production of a good, fewer
resources are allocated to its production than if all costs were internalized.
7) Unions prefer agency shops to open shops.
8) Cyclical unemployment in the United States is essentially the consequence of:
A.procyclical fiscal policies.
B.a deficient level of aggregate expenditures.
C.rapid technological progress.
D.the geographic immobility of the labor force.
9) the following cost data for a purely competitive seller:
the above data are for:
a.the long run.
b.the short run.
c.both the short run and the long run.
d.the intermediate market period only.
10)
Refer to the above table. The value of the dollar in year 4 is:
A.$1.25.
B.$.33.
C.$.50.
D.$2.00.
11) tennis rackets and ballpoint pens are:
a.substitute goods.
b.complementary goods.
c.inferior goods.
d.independent goods.
12) Which of the following actions can a country take in order to maintain fixed
exchange rate?
A.Currency interventions using official reserves.
B.Altering tariffs and quotas.
C.Implement exchange controls and rationing.
D.All of these.
13)
refer to the above diagram. if euro zone nations decide to import more agricultural
products from the united states, we would expect:
a.the demand for euros to increase, and the euro to appreciate.
b.the demand for euros to increase, and the dollar to appreciate.
c.the supply of euros to increase, and the euro to depreciate.
d.the supply of euros to decrease, and the dollar to depreciate.
14) If you place a part of your summer earnings in a savings account, you are using
money primarily as a:
A.medium of exchange.
B.store of value.
C.unit of account.
D.standard of value.
15) a demand curve which is parallel to the horizontal axis is:
a.perfectly inelastic.
b.perfectly elastic.
c.relatively inelastic.
d.relatively elastic.
16) the largest component of total expenditures in the united states is:
a.net exports.
b.government purchases.
c.consumption.
d.gross investment.
17)
refer to the above diagram, in which solid arrows reflect real flows; broken arrows are
monetary flows. flow (3) might represent:
a.government salaries paid to school teachers.
b.property tax payments.
c.a state university’s purchase of computers.
d.social security payments to retirees.
18) The following 2008 balance of payments statement for Transylvania. All figures are
in billions of dollars.
Refer to the above data. In 2008, Transylvania imported more products than it exported.
19)
Refer to the above diagram. Assume that the natural rate of unemployment is 5 percent
and that the economy is initially operating at point c where the expected and actual rates
of inflation are each 4 percent. If the actual rate of inflation unexpectedly rises from 4
percent to 6 percent, the economy will:
A.move from a to b and eventually to c
B.move directly from c to b
C.remain at a
D.move from c to d and eventually to a
20)
refer to the above diagram and assume a single good. if the price of the good decreases
from $6.30 to $5.70, consumer spending would:
a.decrease if demand were d1only.
b.decrease if demand were d2only.
c.decrease if demand were either d1or d2.
d.increase if demand were either d1or d2.
21) Why might trade barriers be a highly ineffective technique for increasing domestic
employment?
22) Explain what is meant by a built-in stabilizer and give two examples.
23) Distinguish between a balance-of-payments surplus and a balance-of-payments
deficit in terms of payments of official reserves.
24) If the population is 267 million, the labor force is 136 million, and the number
measured as unemployed is 6.8 million, what is the rate of unemployment?
25) Suppose Jackie is considering purchasing an asset that will have a future value of
$650 in 4 years. The interest rate is 8% and the price of the asset is $500. Should Jackie
buy the asset? Why or why not?
26) An investments rate of return is inversely related to its price. Explain.
27) Explain the view of Thomas Malthus on population growth in 1789 and contrast it
with what has happened since that time.