A specialized worker does not spend time switching from one task to another. This is
called:
A) continuity.
B) innovation.
C) functionality.
D) repetition.
If the government collects taxes using a constant income tax rate t, then the adjusted
marginal propensity to consume (adjusted MPC) is:
A) b ( 1 – t ).
B) t ( 1 – b).
C) bt – t.
D) 1 (1-bt).
According to the Texas Transportation Institute, the typical U.S. commuter wastes
approximately how much time per year due to traffic congestion?
A) 14 hours
B) 22 hours
C) 47 hours
D) 96 hours
According to economic data, the last time the U.S. economy experienced a budget
surplus was in:
A) 2002.
B) 2001.
C) 2000.
D) 1999.
If gross investment is 500 and depreciation is 1000, then net investment is:
A) -500.
B) 1000.
C) 500.
D) -1500.
All else equal, a decrease in the level of imports allowed into the United States
________ the demand for goods and service produced in the United States.
A) increases or decreases
B) does not affect
C) decreases
D) increases
Figure 4.3 illustrates the demand for tacos. Assume tacos are a normal good. An
increase in income would bring about a movement from
A) point a to point .
B) point c to point .
C) D2 to D1.
D) D0 to D1.
If the growth rate for GDP was 5 percent and GDP in year 1 was 140, then GDP in year
2 would be
A) 133.3
B) 135
C) 145
D) 147
Figure 19.2
Refer to Figure 19.2. The demand and supply of euros (¬) are and . If the supply
shifts to and demand remains unchanged at :
A) the dollar depreciates and the equilibrium quantity of ¬ increases.
B) the dollar depreciates and the equilibrium quantity of ¬ decreases.
C) the dollar appreciates and the equilibrium quantity of ¬ decreases.
D) the dollar appreciates and the equilibrium quantity of ¬ increases.
Figure 4.5 illustrates a set of supply and demand curves for hamburgers. An increase in
demand and an increase in quantity supplied are represented by a movement from
A) point to point a.
B) point c to point d.
C) point d to point a.
D) point to point d.
What does the investment spending multiplier measure?
A) I / Y
B) I * Y
C) Y / I
D) I + Y
Which of the following factors does NOT shift the demand curve for money?
A) changes in the interest rate
B) changes in the price level in the economy
C) changes in real income
D) changes in real GDP
Table 3.3
Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel’s
and Mia’s hourly productivity are shown in Table 3.3. Which of the following is true?
A) Nigel has an absolute advantage in producing hair pins but not bandanas.
B) Nigel has an absolute advantage in producing bandanas but not hair pins.
C) Nigel has an absolute advantage in producing both goods.
D) Nigel does not have an absolute advantage in producing either good.
Governments run a balanced budget when
A) their debt is interest-free.
B) transfer payments equal zero.
C) revenues exceed spending.
D) revenues equal spending.
If Sam does not have a job and is not looking for work, he is considered
A) unemployed and in the labor force.
B) unemployed and not in the labor force.
C) not in the labor force.
D) unemployed.
What is the difference between the CPI and the GDP chain index?
A) The CPI includes a fixed basket of goods while the chain index does not.
B) The CPI includes capital goods but the chain index does not.
C) The CPI basket includes more goods and services than the GDP chain index basket.
D) The CPI measures price changes while the GDP chain index measures production
changes.