The expansionary monetary and fiscal policies of the 1960s resulted in
A) high inflation rates and high rates of unemployment.
B) low inflation rates and low rates of unemployment.
C) low inflation rates and high rates of unemployment.
D) high inflation rates and low rates of unemployment.
If you want to know the present value of $10,000 received in one year, and the interest
rate is 4 percent, what formula can you use?
A) Present value equals $10,000 times 0.04.
B) Present value equals $10,000 divided by 1.04
C) Present value equals 1.04 divided by $10,000.
D) Present value equals $10,000 times 1.04.
Figure 4-3
Figure 4-3 shows the market for granola. The market is initially in equilibrium at a price
of P1 and a quantity of Q1. Now suppose producers decide to cut output to Q2 in order
to raise the price to P2.
Refer to Figure 4-3. What area represents producer surplus at P2?
A) A + B + D
B) B + D
C) B + D + G
D) B + C + D + E
Mortgages issued to borrowers who fail to document that their incomes are high enough
to afford their mortgage payments are known as ________ mortgages.
A) subprime
B) Alt-A
C) gray market
D) reciprocal
A supply curve
A) is a table that shows the relationship between the price of a product and the quantity
of the product supplied.
B) is a curve that shows the relationship between the price of a product and the quantity
of the product supplied.
C) is the relationship between the supply of a good and the cost of producing the good.
D) is a curve that shows the relationship between the price of a product and the quantity
of the product that producers and consumers are willing to exchange.
A cut in tax rates effects equilibrium real GDP through two channels: ________
disposable income and consumer spending, and ________ the size of the multiplier
effect.
A) decreasing; increasing
B) decreasing; decreasing
C) increasing; increasing
D) increasing; decreasing
Jack lost his job six months ago, and he’s been actively looking for a new job ever
since. The Bureau of Labor Statistics would classify Jack as
A) unemployed.
B) out of the labor force.
C) a discouraged worker.
D) all of the above.
Table 7-6
Production and
Consumption Production
Without Trade With Trade
Estonia and Morocco can produce both swords and belts. Table 7-6 shows the
production and consumption quantities without trade, and the production numbers with
trade.
Refer to Table 7-6. If the actual terms of trade are 1 belt for 1.5 swords and 70 belts are
traded, how many swords will Morocco consume?
A) 50
B) 95
C) 105
D) 200
In the United States, consumers usually pay less than the true cost of medical treatment
because of
A) adverse selection.
B) rising insurance premiums.
C) third-party payers.
D) rising insurance deductibles.
According to ________, the economy is normally at potential GDP.
A) the short-run Phillips curve
B) the adaptive expectations theory
C) new Keynesian economists
D) real business cycle models
Table 4-2
Refer to Table 4-2. The table above lists the highest prices five consumers are willing to
pay for a concert ticket. If the price of one ticket falls from $50 to $20
A) only three tickets will be sold.
B) consumer surplus decreases from $48 to $24.
C) consumer surplus increases from $0 to $62.
D) everyone will buy a ticket.
When a grocery store accepts your $5 bill in exchange for bread and milk, the $5 bill
serves as a
A) medium of exchange.
B) unit of account.
C) store of value.
D) standard of deferred payment.
Table 9-19
Refer to Table 9-19. Looking at the table above, what is the rate of growth of the
average price level from 2011 to 2012?
A) 1%
B) 2%
C) 3%
D) 4%
E) 5%
What is the NAIRU?
A) the natural accelerating inflation rate of unemployment
B) the nonaccelerating inflation rate of unemployment
C) the nongovernmental agency of inflationary rate unions
D) the new accrual index of real unemployment