1) the national income and product accounts (nipa) help economists and policymakers
to:
a.design and implement policies to improve the economy’s health.
b.follow the long-run course of the economy to determine whether it has grown or
stagnated.
c.assess the health of the economy by comparing output levels at regular intervals.
d.accomplish all of the above.
2) (Advanced analysis) Answer the next question(s) on the basis of the following
information for a private open economy. The letters Y, C, Ig, X, and M stand for GDP,
consumption, gross investment, exports, and imports respectively. Figures are in
billions of dollars.
The multiplier for the above economy is:
A.4.60.
B.3.33.
C.5.00.
D.4.00.
3) in the short run a pure monopolist:
a.always earns an economic profit.
b.always earns a normal profit.
c.always realizes a loss.
d.may realize an economic profit, a normal profit, or a loss.
4)
Refer to the above data. The 10 percent proportional tax on income would cause:
A.both consumption and saving to increase by larger and larger absolute amounts as
GDP rises.
B.both consumption and saving to increase by smaller and smaller absolute amounts as
GDP rises.
C.consumption to decrease by larger amounts and saving to decrease by smaller
amounts as GDP rises.
D.no change in the amounts consumed and saved at each level of GDP.
5) If nation X has a larger real per capita output than nation Y, then equal rates of
growth of per capita output will:
A.leave the absolute income gap unchanged.
B.decrease the absolute income gap.
C.increase the absolute income gap.
D.cause the nominal per capita outputs of both nations to increase faster than their real
per capita outputs.
6)
refer to the above diagram, which shows demand and supply conditions in the
competitive market for product x. if supply is s1 and demand d0, then
a.at any price above 0g a shortage would occur.
b.0f represents a price that would result in a surplus of ac.
c.a surplus of gh would occur.
d.0f represents a price that would result in a shortage of ac.
7) for a progressive tax the:
a.average tax rate exceeds the marginal tax rate as income rises.
b.marginal tax rate declines as income increases.
c.average and marginal tax rates are equal.
d.marginal tax rate exceeds the average tax rate as income rises.
8) between 2007 and 2013, productivity growth is expected to account for about
________ percent of the growth of real gdp in the united states.
a.10
b.30
c.70
d.90
9)
refer to the above diagram. which of the following would most likely cause an increase
in the dollar price of euros from $1.60 to $2.00?
a.an increased number of euro zone citizens visiting the united states.
b.greater u.s. exports of financial services to germany and france.
c.rising incomes in euro zone nations.
d.rising incomes in the united states.
10) corporate bonds are:
a.promises by a corporation to repay a loan.
b.also known as stocks.
c.illegal in the united states.
d.shares of ownership of a corporation.