If real GDP increases we know for sure that
A) output has risen.
B) prices have risen.
C) prices have risen but output has remained constant.
D) prices have remained constant.
The short-term unemployment arising from the process of matching workers with jobs
is called
A) frictional unemployment.
B) structural unemployment.
C) cyclical unemployment.
D) seasonal unemployment.
E) unnatural unemployment.
Figure 24-2
Ceteris paribus, an increase in workers and firms adjusting to having previously
overestimated the price level 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.
Which of the following is not a component of aggregate expenditure?
A) consumption spending
B) planned investment spending
C) actual investment spending
D) government spending
If you have trouble finding a job because of a slowdown in the overall economy, we
would say that you are
A) frictionally unemployed.
B) structurally unemployed.
C) cyclically unemployed.
D) seasonally unemployed.
A member of a corporate board of directors that is also a manager of the business is
known as
A) a shareholder.
B) an inside director.
C) a partner.
D) a corporate governor.
The slope of an indifference curve
A) is calculated by dividing the price of good on the vertical axis by price of the good
on the horizontal axis.
B) measures total utility.
C) measures the marginal rate of substitution between the two goods in question.
D) is calculated by dividing the quantity of the good on the vertical axis by the quantity
of the good on the horizontal axis.
In the long run, a perfectly competitive market will
A) produce only the quantity of output that yields a long-run profit for the typical firm.
B) supply whatever amount consumers will buy at a price which earns the market an
economic profit.
C) supply whatever amount consumers demand at a price determined by the minimum
point on the typical firm’s average total cost curve.
D) generate a long-run equilibrium where the typical firm operates at a loss.
If the Apple iPhone and the Samsung Galaxy are considered substitutes, then, other
things equal, an increase in the price of the iPhone will
A) decrease the demand for the iPhone.
B) increase the demand for the Galaxy.
C) increase the quantity demanded for the Galaxy.
D) increase the quantity demanded for the iPhone.
Individuals who have never been the best at doing anything
A) cannot have a comparative advantage in producing any product.
B) can still have a comparative advantage in producing some product.
C) perform all tasks at a higher opportunity cost than others.
D) must have an absolute advantage in at least ones task.
An increase in capital inflows will
A) increase net foreign investment.
B) increase capital outflows.
C) decrease capital outflows.
D) increase the equilibrium exchange rate.
Figure 11-2
The curve labeled “F” is
A) the total product curve.
B) the average product curve.
C) the marginal product curve.
D) the output supply curve.
When we graph consumption as a function of national income rather than as a function
of ________, the slope of this consumption function is the ________.
A) disposable income; MPC
B) personal income; MPC
C) disposable income; MPS
D) personal income; MPS
The budget deficit is defined as
A) T – (G + TR), and this is negative.
B) T – (G + TR), and this is positive.
C) T + (G – TR), and this is negative.
D) T + (G + TR), and this is negative.
Suppose there is no unemployment in the economy and society decides that it wants
more of one good. Which of the following statements is true?
A) It can only achieve this with an advance in technology.
B) It can increase output without giving up another good.
C) It can only achieve this with an increase in resource supplies.
D) It will have to give up production and consumption of some other good.
The Patient Protection and Affordable Care Act (ACA) is scheduled to be fully
implemented by 2019, at which point
A) current budget cuts are expected to have completely offset the cost of the program.
B) more than 30 million additional individuals are expected to have health care
coverage.
C) all hospitals in the United States will be taken over by the federal government.
D) private health insurance companies will no longer exist in the United States.
Table 3-1
The table above shows the demand schedules for Kona coffee of two individuals (Luke
and Ravi) and the rest of the market. If the price of Kona coffee rises from $4 to $5, the
market quantity demanded would
A) decrease by 35 lb.
B) increase by 115 lb.
C) increase by 35 lb.
D) decrease by 115 lb.