1) the emigration of software designers from india to the united states best illustrates
a(n):
a.trade flow.
b.resource flow.
c.financial flow.
d.information flow.
2) An increase in net exports will shift the:
A.aggregate expenditures curve upward and the aggregate demand curve rightward.
B.aggregate expenditures curve upward and the aggregate demand curve leftward.
C.aggregate expenditures curve downward and the aggregate demand curve rightward.
D. aggregate expenditures curve downward and the aggregate demand curve leftward.
3) The following information is for a closed economy:
Refer to the above information. The addition of a $100 billion lump-sum tax:
A.reduces the MPC and increases the multiplier.
B.increases the MPC and decreases the multiplier.
C.increases both the MPC and the multiplier.
D.has no effect on either the MPC or the multiplier.
4) (Last Word) Which of the following is a reason why changes in the price of imported
oil have less of an effect on the U.S. economy than in the 1970s and early 1980s?
A.The United States is now more reliant on domestic oil and less reliant on imported
oil.
B.The amount of energy consumed in producing each dollar of GDP has greatly
declined.
C.The United States has vastly expanded its hydroelectric capacity (dams and
reservoirs).
D.The United States has greatly expanded its passenger train services.
5) between 1950 and 2007, u.s. real gdp per capita grew at an average annual rate of
about:
a.5.5 percent.
b.4.2 percent.
c.3.5 percent.
d.2.3 percent.
6) the distribution of income among individual households is known as:
a.income differentials.
b.the personal distribution of income.
c.the functional distribution of income.
d.the concentration ratio.
7) Mainstream economists favor:
A.the use of discretionary monetary policy and fiscal policy.
B.a monetary rule.
C.a balance-budget amendment.
D.wage and price controls.
8) net exports are negative when:
a.a nation’s imports exceed its exports.
b.the economy’s stock of capital goods is declining.
c.depreciation exceeds domestic investment.
d.a nation’s exports exceed its imports.
9) “backflows” occur when:
a.two countries send immigrants to each other in approximately equal numbers.
b.physical capital flows into a country that has lost labor due to migration.
c.immigrants send financial payments back to family in their country of origin.
d.migrants return to their home country.
10) A commercial bank can expand its excess reserves by:
A.demanding and receiving payment on an overdue loan.
B.buying bonds from a Federal Reserve Bank.
C.buying bonds from the public.
D.paying back money borrowed from a Federal Reserve Bank.
11) Inflation accompanied by falling real output and employment is known as:
A.Laffer’s law.
B.Okun’s law.
C.stagflation.
D.the Phillips Curve.
12) Which of the following taxes is least likely to be shifted?
A.a state excise tax on the sellers of football tickets
B.a personal income tax
C.a general sales tax on retailers who sell foodstuffs and clothing
D.a Federal excise tax on the producers of whiskey
13) kelly works at an ice cream shop and observes that the number of people buying ice
cream varies greatly from day to day. for a couple of weeks she has recorded the
number of people at the shop each day, as well as the daily temperature. if kelly is using
the scientific method to better understand ice cream buying habits, her next step is to:
a.conclude definitively that people buy more ice cream when the temperature rises.
b.state her findings as a well-tested economic principle.
c.use the observed data to form a hypothesis about ice cream buying behavior.
d.throw out the data if it does not show a perfect relationship between buying habits and
the other information she has collected.
14) the united states’ exports are about what percentage of u.s. gdp?
a.4 percent
b.25 percent
c.12 percent
d.30 percent
15) The asset demand for money is downsloping because:
A.the opportunity cost of holding money increases as the interest rate rises.
B.it is more attractive to hold money at high interest rates than at low interest rates.
C.bond prices rise as interest rates rise.
D.the opportunity cost of holding money declines as the interest rate rises.
16) in corporations, owners are __________________ and managers are
________________.
a.agents; principals.
b.stockholders; bondholders.
c.agents; employees.
d.principals; agents.
17) the united states’ economy is considered to be at full employment when:
a.90 percent of the total population is employed.
b.90 percent of the labor force is employed.
c.about 4-5 percent of the labor force is unemployed.
d. 100 percent of the labor force is employed.