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Table 11.2 Refer to Table 11.2. At an aggregate output level of $600, the unplanned
inventory change is:
A) -$100.
B) -$50.
C) $0.
D) $50.
Table 6.13 Refer to
Table 6.13. If 2000 is the base year, the inflation rate between 1999 and 2001 is:
A) 1.4%.
B) 114%.
C) 14%.
D) 9%.
If the population of Country A is 400 and the real GDP of Country A is $200,000, then
the GDP per capita in country A is:
A) $500.
B) $50.
C) $80,000,000.
D) $8,000,000.
Bananas and apples are substitutes. When the price of bananas rises, the equilibrium
quantity of apples will ________ and the equilibrium price of apples will ________.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
Recall the Application about the factors which allow the United States to continue to
run large current account trade deficits with the rest of the world to answer the
following question(s). The 2006 Economic Report of the President addressed the issue
of whether the United States can continue to run large current account deficits. The
report stated that the current account deficits would eventually be reduced and
highlighted a number of factors that suggested the deficits could continue for a long
period of time.According to this Application, in order for the United States to continue
to run large current account deficits
A) the United States needs to purchase foreign assets.
B) other countries need to purchase U.S. assets.
C) other countries need to sell U.S. assets.
D) the United States must increase its saving rate.
Logan finds $10 in his jacket pocket and deposits it into a bank. As a result of this
single transaction, M1 has
A) increased by $10.
B) increased by more than $10.
C) increased by less than $10.
D) not changed.
An economy in which people exchange goods and services in a market is called a
A) socialist economy.
B) market economy.
C) centrally planned economy.
D) command economy.
In a graph with output on the x-axis and expenditures on the y-axis, a 45-degree line
starting from the origin represents the locus of:
A) equilibrium output levels.
B) autonomous consumption levels.
C) positive inventory changes.
D) negative inventory changes.
Suppose France produces only two goods, airplanes and grapes. If France has a
comparative advantage in grapes, a move toward free trade will:
A) harm grape workers, benefit airplane workers, but benefit the nation as a whole.
B) harm grape workers, harm airplane workers, but benefit the nation as a whole.
C) benefit grape workers, harm airplane workers, but harm the nation as a whole.
D) benefit grape workers, harm airplane workers, but benefit the nation as a whole.
What would be a way for the Federal Reserve to slow down the economy when it is
growing too quickly or is inflationary?
A) print more money
B) buy back government bonds on the open market
C) sell more government bonds
D) encourage the stock market
According to the principle of diminishing returns, if all factors of production but one
are held constant and if that one factor is doubled, then eventually output will most
likely:
A) double too.
B) less than double.
C) more than double.
D) none of the above
All of the following are considered natural resources EXCEPT
A) a coral reef.
B) gold.
C) labor.
D) a redwood forest.
In modern economies
A) all prices are very flexible.
B) some prices are very flexible while others are not.
C) no prices are very flexible.
D) prices become less flexible as they increase.
A comparison of the average growth rates across time for developed nations indicates
that
A) nations with lower levels of income grow more slowly than those with higher levels
of income.
B) nations with lower levels of income will never be as rich as nations with high levels
of income.
C) nations with high levels of income experience a continuously increasing growth rate.
D) nations with lower levels of income grow more quickly than those with higher levels
of income.
