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Which of the following is false?
a. It is impossible for a person to be uninformed on who is running for president, what
the candidates stand for, and on everything else connected with presidential politics and
still be rational.
b. Failure to vote in an election is not necessarily a sign of apathy.
c. Informed voters necessarily have a larger impact on elections than uninformed voters.
d. a and c
One implication of the policy ineffectiveness proposition (PIP) is that expansionary
__________ policy is not effective at raising __________.
a. monetary; Real GDP
b. monetary; the price level
c. fiscal; the price level
d. a and b
e. a and c
Suppose farmers agree to reduce their supply of foodstuffs. The most likely reason they
would want to do this is they believe that less supply
a. means higher prices and higher total revenue.
b. means consumers will buy more of what they have to sell.
c. translates into higher-quality foodstuffs and that the higher the quality of the
foodstuffs they sell, the higher the prices for what they sell.
d. will get Congress to favor them with agriculture subsidies.
e. will get Congress to decrease their taxes.
A savings deposit is a type of
a. time deposit that is payable on demand.
b. time deposit that earns interest and allows the depositor to write checks payable to
other persons.
c. time deposit that does not earn interest but does offer limited check-writing services.
d. interest-earning account at a bank or thrift institution in which funds can be
withdrawn at any time without a penalty payment.
e. checkable deposit that also pays interest.
Look at the following data: Total population = 230 million; employed persons = 80
million; unemployed persons = 8 million. The unemployment rate is approximately
__________ and the employment rate __________.
a. 9.1 percent; cannot be determined
b. 10 percent; is 90 percent
c. 8.2 percent; is 34 percent
d. 11 percent; is 38 percent
e. 9.1 percent; 90.9 percent
If the economy is self-regulating, then it follows that
a. recessionary and inflationary gaps are temporary economic states.
b. wages will fall when the economy is in a recessionary gap.
c. wages will rise when the economy is in an inflationary gap.
d. the economy is always in long-run equilibrium.
e. a, b and c
There is an inverse relationship between the required reserve ratio and the money
supply.
a. True
b. False
Exhibit 3-7
If S1 is the relevant supply curve, a decrease in the price of a resource that is necessary
for the production of good X causes
a. the supply of good X to shift from S1 to S2
b. the supply of good X to shift from S1 to S3.
c. a movement along S1 perhaps from point A to point B.
d. a movement along S1 perhaps from point A to point C.
e. no change in the supply of good X.
Use the information provided in Exhibit 11-4
What is the marginal tax rate on the 42,001st dollar of taxable income earned?
a. 15%
b. 20%
c. 25%
d. 30%
e. There is not enough information provided to answer this question.
Exhibit 34-1
Country A is the lower opportunity cost producer of
a. good X.
b. good Y.
c. goods X and Y.
d. neither good X nor good Y.
The ticket price of zero for the viewing of a television show taping often results in a
shortage of tickets which are frequently rationed on a first-come-first-served basis.
a. True
b. False
