One reason Zimbabwe suffered from hyperinflation is that the government had decided
to pay for all of its expenses by
A) selling Treasury bonds to foreign governments.
B) selling its government-run oil company to a private company, which then defaulted
on its payment.
C) raising interest rates to attract foreign direct investment, then nationalizing the
foreign-owned facilities.
D) printing more and more money.
Which of the following is one reason why the income of small family farms has
decreased over time?
A) Technology has increase farm productivity and market supply.
B) The demand for farm products is price elastic.
C) The demand for farm products is income inelastic.
D) The U.S. population has increased greatly since 1950.
Expansionary fiscal policy will
A) shift the aggregate demand curve to the left.
B) shift the aggregate demand curve to the right.
C) not shift the aggregate demand curve.
D) shift the short-run aggregate supply curve to the left.
________ usually increase(s) when the U.S. economy is in a recession and decrease(s)
when the U.S. economy is expanding.
A) Consumer spending
B) Planned investment
C) Net Exports
D) Unplanned investment
If an economy experiences deflation, the real interest rate
A) will be less than the nominal interest rate.
B) will be negative when the nominal interest rate is positive.
C) will be greater than the nominal interest rate.
D) will be equal to the deflation rate, so long as the nominal interest rate is positive.
Which of the following is a transfer payment?
A) the food stamp program
B) a tax deduction
C) Social Security payments
D) an income tax credit
Which of the following increases labor productivity?
A) an increase in the aggregate hours of work
B) decreases in the availability of computers and factory buildings
C) inventions of new machinery, equipment, or software
D) a decline in the health of the population
The money demand curve has a
A) negative slope because an increase in the interest rate decreases the quantity of
money demanded.
B) positive slope because an increase in the interest rate increases the quantity of
money demanded.
C) negative slope because an increase in the price level decreases the quantity of money
demanded.
D) positive slope because an increase in the price level increases the quantity of money
demanded.
The health care system in the United Kingdom is referred to as ________, under which
the government owns most of the hospitals and employs most of the doctors.
A) an out-of-pocket system
B) a single-payer health care system
C) a universal health insurance system
D) socialized medicine
________ is the ability of an individual, a firm, or a country to produce a good or
service at a lower opportunity cost than competitors.
A) Absolute advantage
B) Specialization
C) Autarky
D) Comparative advantage
Table 4-7
The equations above describe the demand and supply for Pauline’s Pickled
Pomegranates. The equilibrium price and quantity for Pauline’s Pickled Pomegranates
are $30 and 15 thousand units. What is the value of consumer surplus?
A) $50 thousand
B) $112.5 thousand
C) $225 thousand
D) $337.5 thousand
The market supply curve for labor is
A) derived from the market supply curve for the output produced with labor.
B) perfectly inelastic if leisure is an inferior good.
C) determined by adding up the quantity of labor supplied by each worker at each
wage, holding constant all other variables that affect the willingness of workers to
supply labor.
D) determined by adding up the wages each worker is willing to work for at a given
quantity supplied, holding constant all other variables that affect the willingness of
workers to supply labor.
Holding all other personal characteristics-such as age, gender, and income-constant,
economists would expect that
A) people without health insurance will be less likely to be overweight than people with
health insurance.
B) people without health insurance will be more likely to be overweight than people
with health insurance.
C) people without health insurance will be equally likely to be overweight as people
with health insurance.
D) there is no correlation between not having health insurance and being overweight.