Archives: Quiz

True / False 1. In 2007, the value of the American dollar rose relative to the euro. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: International trade and fi – DISC: International trade and finance […]

NATIONAL STANDARDS: United States – Analytic – BB–Legal ACCREDITING STANDARDS: International trade and finance TOPICS: Why Inhibit Trade? 191. The trade philosophy of the Clinton administration is best characterized as a. protectionist. b. mercantilist. c. free trade. d. strategic trade. […]

ACCREDITING STANDARDS: International trade and finance TOPICS: The Law of Comparative Advantage 148. As a result of pure free trade in a commodity the a. price of the commodity must be the same in all countries. b. total quantity imported […]

POINTS: 1 DIFFICULTY: Difficult NATIONAL STANDARDS: United States – Analytic – BB–Legal ACCREDITING STANDARDS: International trade and finance TOPICS: International Versus Intranational Trade 86. Which of the following is an extreme form of risk associated with investing in a foreign […]

1. Something other than exploiting cheap foreign labor must be driving international trade. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States – Analytic – BB–Legal ACCREDITING STANDARDS: Labor markets TOPICS: ISSUE: How Can Americans […]

a. It is horizontal in the short and long run. b. It is vertical in the short and long run. c. It is vertical in the short run and upward sloping in the long run. d. It is downward sloping […]

ACCREDITING STANDARDS: Aggregate demand and aggregate s – Aggregate demand and aggregate supply TOPICS: What the Phillips Curve is Not KEYWORDS: BLOOM’S: Comprehension 130. The main process by which a recessionary gap is eliminated is a(n) a. increase in wages […]

b. supply-side inflation. c. falling prices. d. stable prices. ANSWER: c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: Aggregate demand and aggre – DISC: Aggregate demand and aggregate supply NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: Aggregate demand […]

True / False 1. Inflation can come from the demand side or from the supply side of the economy. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: Aggregate demand and aggre – DISC: Aggregate demand […]

POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: Monetary and fiscal policy NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: Monetary and fiscal policy TOPICS: Debts, Interest Rates, and Crowding Out KEYWORDS: BLOOM’S: Comprehension 178. If the government ran a […]

DIFFICULTY: Difficult LEARNING OBJECTIVES: DISC: Monetary and fiscal policy NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: Monetary and fiscal policy TOPICS: Why is the National Debt Considered a Burden? KEYWORDS: BLOOM’S: Comprehension 135. In contrast to Argentina in […]

KEYWORDS: BLOOM’S: Comprehension 71. Deficit is to debt as a. responsible is to irresponsible. b. increase is to decrease. c. flow is to stock. d. important is to unimportant. ANSWER: c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: Monetary and […]

True / False 1. The federal budget deficit in 2009 was more than eight times larger than the deficit in 2007. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: Monetary and fiscal policy NATIONAL STANDARDS: […]

LEARNING OBJECTIVES: DISC: Monetary and fiscal policy NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: Monetary and fiscal policy TOPICS: Debate: The Shape of the Aggregate Supply Curve KEYWORDS: BLOOM’S: Comprehension 180. When will stabilization policy be most effective […]

d. decreased and the Treasury interest rate had fallen. ANSWER: b POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: Monetary and fiscal policy NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: Monetary and fiscal policy TOPICS: Debate: Should the Fed […]

d. velocity of money is zero. ANSWER: b POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: The study of economics, an – DISC: The study of economics, and definitions in economics NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: The […]

True / False 1. The differences between monetarist and Keynesian theories are more apparent than real. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: The study of economics, an – DISC: The study of economics, […]

KEYWORDS: BLOOM’S: Comprehension 38. Assume that Michaela purchases $12,000 worth of a stock. To do so she uses $2,000 of her own money and borrows the remaining $10,000 at an 8.0% interest rate. If the stock’s value increases by 20% […]

True / False 1. The United States has not experienced a recession as severe as the 2007-2009 downturn since the 1930s. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: Markets, market failure, a – DISC: […]

KEYWORDS: BLOOM’S: Comprehension 177. If the Fed reduces the required reserve ratio, a. excess reserves will increase. b. excess reserves will decrease. c. total reserves will increase. d. total reserves will decrease. ANSWER: a POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: […]

d. will probably cause inflation if the economy is at potential GDP. ANSWER: d POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: Monetary and fiscal policy NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: Monetary and fiscal policy TOPICS: Implementing […]

DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: Monetary and fiscal policy NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: Monetary and fiscal policy TOPICS: America’s Central Bank: The Federal Reserve System KEYWORDS: BLOOM’S: Comprehension 72. The Federal Open Market Committee consists […]

True / False 1. The central bank in the United States is known as the Federal Reserve System. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: Monetary and fiscal policy NATIONAL STANDARDS: United States – […]

c. change in money supply = (1/m) × change in reserves. d. change in money supply = m/change in reserves. ANSWER: c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: The role of money NATIONAL STANDARDS: United States – BPROG: Analytic […]

highest interest rates. b. refuse to make risky loans and make loans only to the safest borrowers. c. invest in U.S. government securities and make loans only to established businesses. d. strike the appropriate balance between the attraction of bank […]

b. reduce shopping time. c. protect against inflation. d. quote prices. ANSWER: d POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: The role of money NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: The role of money TOPICS: The Nature […]

True / False 1. Most observers nowadays see monetary policy as much less important than fiscal policy. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: Monetary and fiscal policy NATIONAL STANDARDS: United States – BPROG: […]

ANSWER: b POINTS: 1 DIFFICULTY: Difficult LEARNING OBJECTIVES: DISC: Aggregate demand and aggre – DISC: Aggregate demand and aggregate supply NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: Aggregate demand and aggregate s – Aggregate demand and aggregate supply […]

KEYWORDS: BLOOM’S: Comprehension 134. Policy makers and citizens who want to expand the size of the government sector would favor stabilization policies that a. raise G to eliminate a recessionary gap and lower taxes to eliminate an inflationary gap. b. […]

c. Taxes reduce total spending directly. d. Taxes do not have a multiplier effect on equilibrium GDP. ANSWER: b POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: Aggregate demand and aggre – DISC: Aggregate demand and aggregate supply NATIONAL STANDARDS: United […]

True / False 1. Fiscal policy is the use of taxes and spending by the government to affect aggregate demand. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: Aggregate demand and aggre – DISC: Aggregate […]

NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: Aggregate demand and aggregate s – Aggregate demand and aggregate supply TOPICS: Adjusting to an Inflationary Gap: Inflation KEYWORDS: BLOOM’S: Comprehension 187. Self correcting mechanism reveals that a. real wages will […]

DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: Aggregate demand and aggre – DISC: Aggregate demand and aggregate supply NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: Aggregate demand and aggregate s – Aggregate demand and aggregate supply TOPICS: Recessionary and Inflationary […]

ACCREDITING STANDARDS: Aggregate demand and aggregate s – Aggregate demand and aggregate supply TOPICS: The Aggregate Supply Curve KEYWORDS: BLOOM’S: Comprehension 73. Resource prices are fixed for some period of time because a. some workers enter into long-term contracts. b. […]

True / False 1. Supply-side economics concerns itself with the interaction between demand and supply, the price level, and real GDP. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: Aggregate demand and aggre – DISC: […]

DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: Aggregate demand and aggre – DISC: Aggregate demand and aggregate supply NATIONAL STANDARDS: United States – BPROG: Reflective Thinking – BPROG: Analysis ACCREDITING STANDARDS: Aggregate demand and aggregate s – Aggregate demand and aggregate supply […]

NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: Aggregate demand and aggregate s – Aggregate demand and aggregate supply TOPICS: Demand-Side Equilibrium and Full Employment KEYWORDS: BLOOM’S: Analysis 135. In Table 9-1, inventories will be increasing as long as […]

NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: Aggregate demand and aggregate s – Aggregate demand and aggregate supply TOPICS: The Mechanics of Income Determination KEYWORDS: BLOOM’S: Comprehension 72. 45° line diagrams show how a. investment varies with income. […]

True / False 1. Free markets coordinate economic activity in such a way as to eliminate the possibility of inflation or unemployment. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: Markets, market failure, a – […]

TOPICS: Appendix: National Income Accounting KEYWORDS: BLOOM’S: Comprehension 179. The equation representing the final demand approach to calculating GDP is a. Y = C + I + X + IM. b. Y = C + I + G. c. Y […]

c. an increase in the value of real wealth d. an increase in the price level ANSWER: c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: Aggregate demand and aggre – DISC: Aggregate demand and aggregate supply NATIONAL STANDARDS: United States […]

72. Which of the following is a transfer payment? a. Work-study students receive wages transferred from the university budget. b. A company pays the moving expenses for a transferred employee. c. A student transfers to another college and receives a […]

True / False 1. Both President Bush and President Obama wanted tax cuts to stimulate consumer spending during the 2007-2009 recession. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: Aggregate demand and aggre – DISC: […]

NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: Productivity and growth TOPICS: The Productivity Slowdown and Speed-Up in The United States KEYWORDS: BLOOM’S: Comprehension 188. From the late 1960s to the late 1980s, SAT scores in the United States […]

LEARNING OBJECTIVES: DISC: The role of government NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: The role of government TOPICS: Growth Policy: Improving Education And Training KEYWORDS: BLOOM’S: Comprehension 139. In the United States, the wage premium for college […]

73. Human capital is the amount of a. capital available to workforce. b. skill embodied in the workforce. c. output the labor force can produce. d. healthy work force in the total population. ANSWER: b POINTS: 1 DIFFICULTY: Easy LEARNING […]

True / False 1. College tuition costs have risen faster than prices in general from 1979 to 2009. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: Productivity and growth NATIONAL STANDARDS: United States – BPROG: […]

ANSWER: c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: Markets, market failure, a – DISC: Markets, market failure, and externalities NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: Markets, market failure, and ext – Markets, market failure, and externalities […]

c. 6 percent. d. 3 percent. ANSWER: b POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States – Analytic – BB-Legal ACCREDITING STANDARDS: Understanding and applying econo – Understanding and applying economic models TOPICS: The Goal of Low Inflation 139. Workers […]

71. The growth rate of potential GDP is the sum of two other growth rates. These other growth rates are a. population and resource base. b. goods output and services output. c. labor input and labor hours worked. d. labor […]