When the aggregate demand curve shifts to the right, intersecting the aggregate supply
curve on its upward-sloping or vertical segment,
a. demand-pull inflation occurs.
b. cost-push inflation occurs.
c. stagflation occurs.
d. deflation occurs.
e. the shift pulls the price level down.
Absolute advantage occurs when one nation can produce a good ____ its trading
partners.
a. in larger quantities than
b. faster than
c. that is desired by
d. more efficiently than
e. only consumed by
The interest rate which the Fed charges banks that borrow reserves from it is the:
a. federal funds rate.
b. discount rate.
c. reserved rate.
d. investment rate.
e. check rate
An economic forecast:
a. will always be true.
b. is more reliable than a weather forecast.
c. will never provide valuable information.
d. should not be relied upon to predict economic events.
e. is always based upon a Ceteris paribus condition.
Matchthefollowingbusinessformswiththeircharacteristicsbelow.
a. Sole proprietorship
b. Partnership
c. Corporation
A share of stock acts as evidence of ownership
Which one of the following groups benefits from inflation?
a. Borrowers.
b. Savers.
c. Landlords.
d. Lenders.
Which of the following items is included in the calculation of GDP?
a. Purchase of 100 shares of General Motors stock.
b. Purchase of a used car.
c. The value of a homemaker’s services.
d. Sale of Gulf War military surplus.
e. None of these would be included.
If the supply of a good decreased, what would be the effect on the equilibrium price and
quantity?
a. Price would increase, and quantity would decrease.
b. Price would decrease, and quantity would decrease.
c. Price would increase, and quantity would increase.
d. Price would decrease, and quantity would increase.
Supply-side economists:
a. saw influence beyond in both the Bush and Clinton administrations.
b. disagreed with economist Arthur Laffer’s views on taxes.
c. were influential in President Reagan’s decision to change the tax structure.
d. believe that government regulations do not reduce productivity and undermine
industrial efficiency.
The demand schedule for a good shows:
a. the specific quantity of the good that people are willing and able to sell at different
prices.
b. the positive relationship between the price and the quantity of the good.
c. no relationship between the price and the quantity of the good.
d. the specific quantity of the good that people are willing and able to buy at different
prices.
e. the quantity of the good that is sold in the market.