Archives: Quiz
Chapter 23 In 1936, John Maynard Keynes published a book
Aggregate Demand and Aggregate Supply 8175 120. According to the “In the News” article, macroprudential tools a. allow a central bank to alter lending for specific industries. b. allow a central bank to alter taxes. c. limit a central bank’s […]
Chapter 23 At the Same Timesenator Succeeds Getting Major Restrictions
Aggregate Demand and Aggregate Supply 8155 82. Which of the following would cause stagflation? a. aggregate demand shifts right b. aggregate demand shifts left c. aggregate supply shifts right d. aggregate supply shifts left ANSWER: d POINTS: 1 DIFFICULTY: Easy […]
Chapter 23 This Decrease Wages Shifts The short run Aggregate Supply
Aggregate Demand and Aggregate Supply 8135 42. Refer to Optimism. In the long run, the change in price expectations created by optimism shifts a. long–run aggregate supply right. b. long–run aggregate supply left. c. short–run aggregate supply right. d. short-run […]
Chapter 23 If the price of goods rises, to maintain the real value of her money
Aggregate Demand and Aggregate Supply 8115 6. Which of the following would cause prices and real GDP to rise in the short run? a. an increase in the expected price level b. an increase in the money supply c. a […]
Chapter 23 Suppose each good costs $5 per unit and Megan holds $40
Aggregate Demand and Aggregate Supply 8095 63. Other things the same, if the price level is lower than expected, then some firms believe that the relative price of what they produce has a. decreased, so they increase production. b. decreased, […]
Chapter 23 Given the price of your output you determine you are
Aggregate Demand and Aggregate Supply 8075 22. A candidate for political office announces the following policies which, he says, economics clearly demonstrates will lead to higher output in the long run: 1. increase immigration from abroad 2. make trade more […]
Chapter 23 You find that to attract a sufficient number of workers
Aggregate Demand and Aggregate Supply 8055 131. If countries that imported goods and services from the United States went into recession, we would expect that U.S. net exports would a. rise, making aggregate demand shift right. b. rise, making aggregate […]
Chapter 23 Therefore, she believes that her
Aggregate Demand and Aggregate Supply 8035 91. Suppose a fall in stock prices makes people feel poorer. The decrease in wealth would induce people to a. decrease consumption, shown as a movement to the left along a given aggregate-demand curve. […]
Chapter 23 Your spouse complains that her 6% raise this year will
Aggregate Demand and Aggregate Supply 8015 45. Other things the same, when the price level falls, interest rates a. rise, which means consumers will want to spend more on homebuilding. b. rise, which means consumers will want to spend less […]
Chapter 23 Nominal tuition was higher in 2011
Aggregate Demand and Aggregate Supply 7975 33. Which of the following is correct concerning recessions? a. They come at fairly regular and predictable intervals. b. They are associated with comparatively large increases in investment spending. c. They are any period […]
Chapter 22 Growth And Inflation 753571 Inflation Distorts Relative Prices
Money Growth and Inflation 7529 60. According to the classical dichotomy, what changes nominal variables? What changes real variables? ANSWER: The classical dichotomy argues that nominal variables are determined primarily by developments in the monetary system such as changes in […]
Chapter 22 His real and nominal salary have fallen
Money Growth and Inflation 7509 5. In the 1990s, U.S. prices rose at about the same rate as in the 1970s. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.15.151 – LO: 30-0 NATIONAL STANDARDS: United […]
Chapter 22 When shopping you notice that a pair of
Money Growth and Inflation 7469 12. The shoeleather cost of inflation refers to a. the redistributional effects of unexpected inflation. b. the time spent searching for low prices when inflation rises. c. the waste of resources used to maintain lower […]
Chapter 22 The price of a Honda Accorda
Money Growth and Inflation 7429 177. During the 2008 financial crisis velocity decreased. This means that the rate at which money changed hands a. decreased. Other things the same, a decrease in velocity decreases the price level. b. decreased. Other […]
Chapter 22 The $750 is a nominal variable
Money Growth and Inflation 7409 137. The principle of monetary neutrality implies that an increase in the money supply will a. increase real GDP and the price level. b. increase real GDP, but not the price level. c. increase the […]
Chapter 22 You are a precious-metals dealer, and you are always aware of
Money Growth and Inflation 7369 60. Open-market purchases by the Fed a. make the price level and value of money fall. b. make the price level rise, and make the value of money fall. c. make the price level and […]
Chapter 22 Dollar bills, rare paintings, and emerald necklaces are all
Money Growth and Inflation Multiple Choice – Section 00: Introduction 1. Over the past 80 years, prices in the U.S. have risen on average about a. 2 percent per year. b. 4 percent per year. c. 3.6 percent per year. […]
Chapter 21 Any item that people can use to transfer purchasing power from
7310 The Monetary System © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © 2015 Cengage Learning. All Rights Reserved. May not be […]
Chapter 21 You pay for cheese and bread from the deli with currency
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 100. Refer to Scenario 29-2. Suppose that the Bank of Tazi changes the reserve […]
Chapter 21 The existence of money leads to
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 60. The Fed increases the reserve requirement, but it wants to offset the effects […]
Chapter 21 The confidence you have that a retailer will accept dollars
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15. When the Fed purchases $1000 worth of government bonds from the public, the […]
Chapter 21 Consider five high school students working on homework in study
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 75. Refer to Table 29-3. If all banks in the economy have the same […]
Chapter 21 Eric will buy from Allen
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 34. If the reserve requirement is 10 percent, a bank desires to hold no […]
Chapter 21 Consider five individuals with different occupations
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 44. An open-market sale a. increases the number of dollars and the number of […]
Chapter 21 Consider the following traders who meet
The Monetary System 7151 Multiple Choice – Section 02: The Federal Reserve System 1. Which of the following institutions is a central bank? a. the Bank of Japan b. the Bank of England c. the Federal Reserve System d. All […]
Chapter 21 A double coincidence of wants
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 66. Which of the following is not included in M1? a. a $5 bill […]
Chapter 21 A barber gives a plumber a haircut in exchange for
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 25. Treasury Bonds are a. liquid, but not a store of value. b. a […]
Chapter 21 A parent gives a teenager a $10 bill in exchange
The Monetary System Multiple Choice – Section 00: Introduction 1. You use U.S. currency to pay the owner of a restaurant for a delicious meal. The currency a. has no intrinsic value. The exchange is an example of barter. b. […]
Chapter 20 If unions were formed in more industries, the supply
Unemployment Multiple Choice – Section 00: Introduction 1. To maintain their standard of living, most people rely on a. government assistance. b. their personal savings. c. their labor earnings. d. rental income. ANSWER: c DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.135 […]
Chapter 20 The Efficiency wage Theory Worker Health More Relevant
Unemployment 7053 190. It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment. a. True b. False ANSWER: True DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.138 – LO: 28-3 NATIONAL STANDARDS: […]
Chapter 20 If outsiders had more say in union contracts then
Unemployment 7033 130. The Bureau of Labor Statistics’ household survey and establishment survey both yield the same results about total employment. a. True b. False ANSWER: False DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.136 – LO: 28-1 NATIONAL STANDARDS: United States […]
Chapter 20 The Bureau Labor Statistics Defines Discouraged Workers
Unemployment 7013 70. Data on the unemployment rate in the U.S. since 1960 show that the economy always has some unemployment and that the amount changes from year to year. a. True b. False ANSWER: True DIFFICULTY: Difficulty: Easy LEARNING […]
Chapter 20 the wage to rise above the equilibrium level
Unemployment 6993 9. The natural rate of unemployment is closely associated with the short–run ups and downs of economic activity. a. True b. False ANSWER: False DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.141 – LO: 28-0 NATIONAL STANDARDS: United States – […]
Chapter 20 Which of the following do unions not cause?
Unemployment 6953 14. When a union raises the wage above the equilibrium level, it a. reduces both the quantity of labor supplied and the quantity of labor demanded. b. reduces the quantity of labor supplied and raises the quantity of […]
Chapter 20 Suppose you are deciding whether or not to buy
Unemployment 6933 23. Refer to Figure 28-3. If the government imposes a minimum wage of $4, how many workers will be unemployed? a. 0 b. 3,000 c. 4,000 d. 7,000 ANSWER: a POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.138 […]
Chapter 20 Minimum Wages Are The Predominant Reason For
Unemployment 6913 28. Wanda quit her job because she was unhappy at work. Arnold was fired from his landscaping job because his company was downsizing. Who is eligible for unemployment insurance benefits? a. both Wanda and Arnold b. Wanda but […]
Chapter 20 You receive $90.91 two years from today
Unemployment 6873 152. Which of the following is not a commonly–cited explanation for the dramatically increasing labor–force participation rates for women from 1950 to the present? a. availability of reliable birth control b. invention of household labor-saving devices such as […]
Chapter 20 Suppose you will receive $500 at some point in the future
Unemployment 6853 111. Refer to Table 28-2. The labor–force participation rate of Aridia in 2012 was a. 50%. b. 53.3%. c. 56.25%. d. 88.9%. ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.136 – LO: 28-1 NATIONAL STANDARDS: United […]
Chapter 20 If the interest rate is 7.5 percent
Unemployment 6833 67. President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. You […]
Chapter 19Basic Tools Finance 67113 The Efficient Markets Hypothesis
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 102. Suppose interest of 5% for two years can be earned on $1,000 saved […]
Chapter 19 Suppose you put $500 into a bank account today
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 61. Tami knows that people in her family die young, and so she buys […]
Chapter 19 Interest is paid annually and the annual interest rate is 3 percent
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23. Refer to Figure 27–3. Suppose Paul begins with $900 in wealth. Starting from […]
Chapter 19 The financial system is very important to the functioning of the
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 156. According to the rule of 70, if the interest rate is 5 percent, […]
Chapter 19 Which of the following statements best describes the economist’s
The Basic Tools of Finance 6561 38. You put $150 in the bank two years ago and forgot about it. The bank sends you a notice that you now have $169.34 in your account. What interest rate did you earn? […]
Chapter 19 The field of finance primarily studies
The Basic Tools of Finance Multiple Choice – Section 00: Introduction 1. Most financial decisions involve two related elements: a. advice and consent. b. investment and taxes. c. time and risk. d. saving and consumption. ANSWER: c POINTS: 1 DIFFICULTY: […]
Chapter 18 The largest sector in the consumer price index market basket is
6530 Saving, Investment, and the Financial System 17. and are the two most important financial intermediaries. ANSWER: Banks, Mutual Funds Mutual Funds, banks POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.126 – LO: 26-1 NATIONAL STANDARDS: United States – BUSPROG: […]
Chapter 18 The group of goods and services used to compute the GDP
Saving, Investment, and the Financial System 6519 61. Suppose that you are a broker and people tell you the following about themselves. What sort of bond would you recommend to each? Defend your choices. a. “I am in a high […]
Chapter 18 When the price of nuclear missiles rises
Saving, Investment, and the Financial System 6479 122. For an imaginary economy, when the real interest rate is 7 percent, the quantity of loanable funds demanded is $500 and the quantity of loanable funds supplied is $500. Currently, the nominal […]
Chapter 18 Government Goes From Running Balanced Budget Running
Saving, Investment, and the Financial System 6459 89. A government budget deficit affects the supply of loanable funds, rather than the demand for loanable funds, because a. in our model of the loanable funds market, we define “loanable funds” as […]
Chapter 18 When the price of Italian wine rises, this change is reflected
Saving, Investment, and the Financial System 6439 48. Suppose the government were to replace the income tax with a consumption tax so that interest on savings was not taxed. The result would be that the interest rate a. and investment […]