The most recent recession that the U.S. experienced started in:
A) December 2007.
B) November 2001.
C) March 2001.
D) December 2008.
Figure 15.5
Refer to Figure 15.5. An increase in the price level, ceteris paribus, is represented by
movement from point ________ to point ________.
A) ; c
B) c; d
C) d;
D) a; c
Suppose that the expected inflation rate is 4 percent and the actual inflation rate is 1
percent. Then borrowers
A) and lenders are both better off.
B) are better off and lenders are worse off.
C) are worse off and lenders are better off.
D) and lenders are both worse off.
Marginally attached workers:
A) are not considered as part of the labor force.
B) are part of the labor force.
C) are considered employed.
D) are considered unemployed.
In order to ________, a government must decrease spending and increase taxation.
A) increase aggregate demand
B) decrease aggregate demand
C) increase aggregate supply
D) decrease aggregate supply
Going to the dentist would be counted in GDP as
A) crowns and fillings.
B) insurance utilization.
C) a service.
D) a measure of welfare.
If the economy is experiencing 50 percent inflation per month, then a donut that costs
$1.50 today will cost about ________ next year.
A) $2.25
B) $195
C) $75
D) $160
In considering the relationships between price and quantity demanded, ceteris paribus
means economists assume that:
A) price increases affect quantity.
B) quantity increases affect prices.
C) either price or quantity can affect demand.
D) all other variables remain unchanged.
Table 6.11 Refer to
Table 6.11. If 1999 is the base year, the price index in 2001 is:
A) 100.
B) 121.7.
C) 138.7.
D) 1998.
When considering imports and exports, economists include the ________ as a
component of the GDP.
A) total imports
B) total exports
C) net exports
D) gross exports
If the economy experiences an increase in the amount of capital stock per worker, then
we say that the economy is experiencing:
A) capital deepening.
B) technological progress.
C) capital widening.
D) capital depreciation.
Quantity of Frozen Latte-On-A-Stick Supplied
Table 4.1
Refer to Table 4.1, which shows Flo’s and Rita’s individual supply schedules for frozen
latte-on-a-stick. Assuming Flo and Rita are the only suppliers in the market, if the
market quantity supplied is 3, the price must be
A) $0.
B) $2.
C) $4.
D) $5.
In modern economies, individuals in markets make most of the decisions about:
A) what to produce.
B) how to produce.
C) for whom to produce.
D) all of the above.
When the share of government spending in GDP increased in the United States during
World War II,
A) consumption’s share of GDP increased.
B) investment’s share of GDP fell.
C) government spending was crowded out.
D) investment’s share of GDP increased.
Assume that tortilla chips and salsa are complements. When the price of tortilla chips
decreases:
A) the demand for salsa increases.
B) the demand for salsa decreases.
C) the supply of salsa decreases.
D) the demand for tortilla chips decreases.
Gross domestic product calculations count only final goods and services because
A) these are the only goods and services that are purchased in an economy.
B) counting all goods and services would lead to double-counting of many activities.
C) it is difficult to measure the prices of intermediate goods produced.
D) one cannot calculate the quantities of intermediate goods produced.