Assume that oranges and peaches can both be grown on the same type of land, a
decrease in the price of peaches, other things being equal, will cause a(n):
a. upward movement along the supply curve for oranges.
b. downward movement along the supply curve for oranges.
c. rightward shift of the supply curve for oranges.
d. leftward shift of the supply curve for oranges.
An industrially advanced country (IAC) is defined as a country with a GDP per capita
among the top ____ countries in the world.
a. 5
b. 10
c. 20
d. 27
Exhibit 5-3 Expenditure approach National income accountBillions of
dollars
Personal consumption expenditures (C) $1,000
Exports (X) 120
Federal government spending (G) 200
State and local government spending (G) 400
Imports (M) 20
Gross private domestic investment (I) 75 As shown in Exhibit 5-3, using the
expenditure approach, GDP is:
a. $1,000 billion.
b. $1,500 billion.
c. $1,775 billion.
d. $2,000 billion.
Market failure occurs when supply and demand curves only reflect:
a. private or market costs and benefits.
b. external costs and benefits.
c. external benefits.
d. external costs.
Normative economics is:
a. usually incorrect.
b. a statement of fact.
c. the analysis of what is.
d. the study of what ought to be.
e. free of value judgments.
Unemployment compensation payments:
a. fall during periods of prosperity and thus reduce federal budget deficits.
b. fall during periods of prosperity and thus increase federal budget deficits.
c. fall during recessions and thus increase the problem of unemployment.
d. rise during periods of prosperity and thus increase federal budget deficits.
e. rise during recessions and thus increase the problem of unemployment.
Which of the following is a statement of positive economics?
a. Too much government spending is the biggest problem facing the U.S. economy.
b. Creating jobs is the most serious problem facing the U.S. economy.
c. Raising taxes provides additional revenue that should be used to finance health care.
d. If taxes are over 50 percent of national income, job creation falls.
Exhibit 2-13 Production possibilities curve
In Exhibit 2-13, which of the
following is not true regarding point H? Point H:
a. cannot be achieved by this economy today.
b. could be achieved today if the economy only achieved full employment.
c. could be achieved in the future by an enlargement of the economy’s resource base.
d. could be achieved in the future by an advancement in technology.
e. could be achieved in the future by growth in the economy.
Exhibit 9-8 Keynesian aggregate-expenditures model
In Exhibit 9-8, the
value of the spending multiplier is:
a. 3.
b. 4.
c. 5.
d. 2.
e. 6.
Which of the following markets is closely related to macroeconomics?
a. Cattle futures market.
b. Fulton’s fish market.
c. Skilled labor market.
d. Nation’s unemployment rate.
Which of the following U.S. Treasury securities represents ownership of the national
debt?
a. Bonds owned by the banks and insurance companies.
b. Bonds owned by private individuals.
c. Bonds owned by foreigners.
d. All of these.