1)
Refer to the above diagram. If drawn, the long-run aggregate supply curve would
include points:
A.v, w, and u
B.y, w, and u
C.t, w, and z
D.y, w, and x
2) from 1960 to 2004:
a.follower countries such as ireland, singapore, and hong kong caught up to and
surpassed leader countries such as france and the united kingdom.
b.leader country growth rates were about double those of follower countries.
c.japan’s rapid growth pushed its real gdp per capita above that of the united states.
d.growth rates in follower nations such as south korea and hong kong averaged about
10 percent per year.
3) The primary purpose of Social Security is to:
A.subsidize families in need.
B.offset the progressiveness of the personal income tax.
C.provide income for workers who are temporarily unemployed.
D.provide income for retired and disabled workers.
4) When economists say that money serves as a unit of account, they mean that it is:
A.a way to keep wealth in a readily spendable form for future use.
B.a means of payment.
C.a monetary unit for measuring and comparing the relative values of goods.
D.declared as legal tender by the government.
5)
refer to the above diagram. the highest price that buyers will be willing and able to pay
for 100 units of this product is:
a.$30.
b.$60.
c.$40.
d.$20.
6)
refer to the above table. over the $6-$4 price range, supply is:
a.perfectly elastic.
b.elastic.
c.perfectly inelastic.
d.inelastic.
7) Federal Reserve Notes in circulation are:
A.an asset as viewed by the Federal Reserve Banks.
B.a liability as viewed by the Federal Reserve Banks.
C.neither an asset nor a liability as viewed by the Federal Reserve Banks.
D.part of M1, but not of M2.
8)
Refer to the above diagram. Assume that G and T1 are the relevant curves, the economy
is currently at A, and the full-employment GDP is B. This economy has a(n):
A.standardized budget deficit.
B.actual budget deficit.
C.actual budget surplus.
D.neither a surplus nor deficit in the actual budget.
9)
Refer to the above labor market diagrams. The tactics of exclusive unionism are
portrayed in Figure:
A.4
B.3
C.2
D.1
10) Wealth represents:
A.a stock of real and financial assets.
B.a flow of income.
C.financial assets only.
D.real assets only.
11)
Refer to the above diagram. If the initial aggregate demand and supply curves are AD0
and AS0, the equilibrium price level and level of real domestic output will be:
A.F and C, respectively.
B.G and B, respectively.
C.F and A, respectively.
D.E and B, respectively.
12) Critics of industrial regulation say that such regulation:
A.benefits small firms at the expense of large firms.
B.perpetuates monopoly long after new technology has eroded natural monopoly.
C.creates insurmountable principal-agent problems.
D.has resulted mainly from the paradox of voting.
13) Which of the following is the best example of public investment?
A.salaries of Senators and Representatives
B.government expenditures on food stamps
C.construction of highways
D.funding of regulatory agencies
14) What is the pure rate of interest?
15) One of the advantages of monetary policy is its speed and flexibility, but there are
limitations. Explain.
16) Why would a farmer continue farming in the short run, even though his ATC was
greater than the price he received for his crops?
17) How do supply-side advocates respond to critics? How valid is their defense?
18) Prepare a list of events that would shift the aggregate supply curve leftward.
19) Name at least four institutional structures that promote and sustain modern
economic growth. What other factors also influence a nations capacity for economic
growth?