The term laissez faire can be translated
a. “leave it alone”
b. “make it equitable (fair)”
c. “take an active role”
d. “markets work”
e. “free of problems”
Net exports are
a. total exports minus total imports
b. what foreigners earn in the United States minus what US citizens earn abroad
c. always positive because the United States has always had a positive trade balance.
d. total imports minus total exports
e. total exports minus depreciation
Microeconomics
Gimmicks like the National Debt Clock
a. are misleading because they show the debt in nominal dollars rather than real dollars.
b. are misleading because they show the debt in dollars rather than as a percentage of
GDP.
c. are misleading because they do not show industrial production figures.
d. are needed to inform the American public about the massive amounts of debt the
government is accumulating.
e. are misleading because they show the debt as a percentage of GDP rather than in
dollars.
It was the banking panic of _____ that convinced Congress to establish the Federal
Reserve System.
a. 1890.
b. 1929.
c. 1907.
d. 1863.
e. 1921.
Figure 8-3 shows the total revenue and total cost for a firm at selected output levels.
Which is the highest possible level of profit for this firm over this output range?
In the long run, supply shocks
a. are of no concern
b. are automatically offset so that the full-employment level of output is restored
c. cause the long-run AS curve to shift
d. have no effect on the wage rate
e. are automatically offset so that output and the price level return to their original
values
Rapid economic growth is important because it
a. makes some people richer
b. eliminates scarcity
c. makes the unemployment rate zero
d. allows the average person to consume more goods and services
e. reduces interest rates
For the monopolistically competitive firm,
Macroeconomic models focus on the behavior of