As the U.S. dollar appreciates and the Japanese yen depreciates,
a. U.S.-produced goods become more expensive for the Japanese and
Japanese-produced goods become cheaper for Americans.
b. U.S.-produced goods become cheaper for the Japanese and Japanese-produced goods
become more expensive for Americans.
c. U.S.-produced goods become cheaper for both the Japanese and Americans.
d. Japanese-produced goods become more expensive for both the Japanese and
Americans.
e. none of the above
The civilian non-institutional population can be broken down into two groups:
a. employed persons and unemployed persons.
b. persons working and persons not working.
c. persons working in service jobs and persons working in manufacturing jobs.
d. persons not in the labor force and persons in the labor force.
Exhibit 10-6
If government purchases decrease, it follows that
a. the TE curve will shift upward, possibly passing through point 2.
b. the TE curve will shift downward, possibly passing through point 3.
c. the TE curve will not change but the economy will move from point 1 to point 3.
d. the TE curve will not change but the economy will move from point 1 to point 2.
e. At the new equilibrium position, Real GDP will necessarily be Q3.
Which of the following is a characteristic of consumption according to Keynes?
a. consumption depends on disposable income
b. consumption and disposable income have a direct relationship
c. when disposable income changes, consumption changes by less
d. a and c
e. a, b, and c
Exhibit 10-9
What is the value of the marginal propensity to save (MPS) that would correctly fill in
blank (A) and the multiplier that would correctly fill in blank (B)?
a. 0.20; 5
b. 0.08; 8
c. 0.08; 12.5
d. 0.05; 0.95
For the period 1961 to 1969, the Phillips curve for the United States displayed the same
shape that A. W. Phillips found for the United Kingdom for the period 1861 to 1913—it
was
a. horizontal.
b. vertical.
c. downward sloping.
d. upward sloping.
Over the past 50 years in the United States, tax revenues as a percentage of GDP have
tended to be in the __________________ percent range.
a. 1 to 9
b. 10 to 14
c. 15 to 19
d. 20 to 24
e. 25 to 30
Exhibit 32-3
The exhibit shows the breakdown of benefits and costs for a five-person community
considering whether to purchase a $5,000 statue of Adam Smith to put in the center of
the public square. How will each of the five persons (from Milton to Kenneth, in order)
vote?
a. against; against; against; for; for
b. against; against; for; for; against
c. against; for; for; for; for
d. for; for; for; against; against
e. for; for; against; against; for
Which of the following statements is false?
a. Specialization and trade allow a country’s inhabitants to consume at a level beyond its
production possibilities frontier.
b. Some of the goods the U.S. exports include cars, coal, and wheat.
c. Some of the goods the U.S. imports include cars, oil, and coffee.
d. A country has a comparative advantage in producing that good it can produce at
lower opportunity cost than another country.
e. none of the above
Is it possible for mandatory seatbelt laws to increase vehicle fatalities?
a. Yes, if the number of accidents increases by a greater percentage than the number of
deaths per accident decreases.
b. No, because wearing seatbelts decreases the number of deaths per accident.
c. No, because wearing seatbelts decreases the number of accidents.
d. There is not enough information to answer the question.