Archives: Quiz
Chapter 12 A country experiencing a growth rate of 12% per year can go from
Production and Growth Multiple Choice – Section 00: Introduction 1. The average income in a rich country, such as the United States or Japan, is more than a. 3 times, but less than 5 times, the average income in a […]
Chapter 11 What is the difference between the Consumer Price Index
232 Measuring the Cost of Living 16. Refer to Scenario 24-6. Using 2011 as the base year, what is the inflation rate in 2011? Table 24–14 The table below lists the per pound prices of meat and potatoes for the […]
Chapter 11 Compute how much each of the following items
Measuring the Cost of Living 221 71. In the late 1970s, U.S. nominal interest rates were high and real interest rates were low, but in the late 1990s, U.S. nominal interest rates were low and real interest rates were high. […]
Chapter 11 The Bureau of Labor Statistics determines which prices are most
Measuring the Cost of Living 201 11. The Bureau of Labor Statistics determines which prices are most important to the typical consumer by surveying consumers. a. True b. False 12. The content of the basket of goods and services used […]
Chapter 11 If the nominal interest rate is 4 percent and the real interest
Measuring the Cost of Living 181 105. If the nominal interest rate is 4 percent and the real interest rate is 7 percent, then the inflation rate is a. –3 percent. b. 0.75 percent. c. 3 percent. d. 11 percent. […]
Chapter 11 CPIC The Newspaper Editorial Could Correct The
Measuring the Cost of Living 161 63. Refer to Table 24–13. Suppose Olivia’s 2009 clothing expenditure in 2010 dollars amounts to $1,440. Then X, the consumer price index for 2009, has a value of a. 120. b. 130. c. 140. […]
Chapter 11 Harrys 2014 Spending 2009 Dollars About a 40000b
Measuring the Cost of Living 141 23. Refer to Scenario 24-1. In 1975 dollars, a 1975 tennis ball cost $0.10 and a 2005 tennis ball cost a. $0.27, so tennis balls were cheaper in 1975. b. $0.27, so tennis balls […]
Chapter 11 In which of the following cases would there be an effect
Measuring the Cost of Living 121 10. Which of the following statements is true? a. Even if we know the values of the consumer price index for the years 2009 and 2010, we cannot calculate the inflation rate for 2010 […]
Chapter 11 An important difference between the GDP deflator and the consumer
Measuring the Cost of Living 101 200. An important difference between the GDP deflator and the consumer price index is that a. the GDP deflator reflects the prices of goods and services bought by producers, whereas the consumer price index […]
Chapter 11 The consumer price index tries to gauge how much incomes must rise
Measuring the Cost of Living 81 158. The consumer price index tries to gauge how much incomes must rise to maintain a. an increasing standard of living. b. a constant standard of living. c. a decreasing standard of living. d. […]
Chapter 11 The table below applies to an economy with only two goods
Measuring the Cost of Living 61 116. Refer to Table 24-6. If the base year is 2009, then the economy’s inflation rate in 2010 is a. 20 percent. b. 25 percent. c. 30 percent. d. 120 percent. 117. Refer to […]
Chapter 11 Suppose Basket Goods And Services Has
Measuring the Cost of Living 41 69. For an imaginary economy, the value of the consumer price index was 138.75 in 2016, and the inflation rate was 10 percent between 2015 and 2016. The consumer price index in 2015 was […]
Chapter 11 Suppose The Price Index Was 110
Measuring the Cost of Living 21 28. If the consumer price index was 96 in 2012, 100 in 2013, and 102 in 2014, then the base year must be a. 2012. b. 2013. c. 2014. d. The base year cannot […]
Chapter 11 Babe Ruth The Famous Baseball Player Earned
Measuring the Cost of Living Multiple Choice – Section 00: Introduction 1. Babe Ruth, the famous baseball player, earned $80,000 in 1931. Today, the best baseball players can earn more than 400 times as much as Babe Ruth earned in […]
Chapter 10 You find that your paycheck for the year is higher this year
5810 Measuring a Nation’s Income 82. You find that your paycheck for the year is higher this year than last. Does that mean that your real income has increased? Explain carefully. 83. U.S. real GDP is substantially higher today than […]
Chapter 10 The government computes measures of income other than GDP
Measuring a Nation’s Income 5791 27. The government computes measures of income other than GDP because these other measures usually tell different stories about overall economic conditions. a. True b. False 28. When an American doctor opens a practice in […]
Chapter 10 GDP Per Person Associated With a Longer Life
Measuring a Nation’s Income 5771 5. GDP does not reflect a. the value of leisure. b. the value of goods and services produced at home. c. the quality of the environment. d. All of the above are correct. 6. Which […]
Chapter 10 Which of the following is not a correct statement about the growth
Measuring a Nation’s Income 5751 57. Refer to Table 23-5. In 2017, this country’s a. real GDP was $900, and the GDP deflator was 138.9. b. real GDP was $1250, and the GDP deflator was 128.0. c. real GDP was […]
Chapter 10 Which of the following is the correct formula for the GDP deflator
Measuring a Nation’s Income 5731 14. Which of the following statements about nominal GDP and real GDP is correct? a. Nominal GDP is a better gauge of economic well-being than real GDP. b. Real GDP is a better gauge of […]
Chapter 10 If total spending rises from one year to the next
Measuring a Nation’s Income 5711 88. In the economy of Talikastan in 2015, consumption was $3000, exports were $400, GDP was $5000, imports were $500, and investment was $1400. What were Talikastan’s government purchases in 2015? a. $60 b. $500 […]
Chapter 10 Us Consumers Which Of the Following This Transaction
Measuring a Nation’s Income 5691 46. Which of the following items is counted as part of government purchases? a. The federal government pays the salary of a Navy officer. b. The state of Nevada pays a private firm to repair […]
Chapter 10 Consumption consists of spending by households on goods and services
Measuring a Nation’s Income 5671 6. Consumption consists of spending by households on goods and services, with the exception of a. purchases of intangible services. b. purchases of durable goods. c. purchases of new houses. d. spending on education. 7. […]
Chapter 10 United States GDP And GNP Are Nearly
Measuring a Nation’s Income 5651 84. The government of a country, which has adopted American GDP accounting conventions, reported that seasonally adjusted GDP in quarter 3 was $48 billion at an annual rate. This means that the seasonally-adjusted market value […]
Chapter 10 Which The Following Transactions Would Included
Measuring a Nation’s Income 5631 44. Janet bought flour and used it to bake bread she ate. ABC Bakery bought flour which it used to bake bread that customers purchased. In which case will the flour be counted as a […]
Chapter 10 Which of the following is a way to compute GDP
Measuring a Nation’s Income 5611 3. Which of the following is a way to compute GDP? a. total income earned. b. total expenditures on final goods. c. add up the market values of all final goods and services. d. All […]
Chapter 10 Which of the following questions is more likely to be studied by a microeconomist
Measuring a Nation’s Income Multiple Choice – Section 00: Introduction 1. Macroeconomists study a. the decisions of individual households and firms. b. the interaction between households and firms. c. economy-wide phenomena. d. regulations imposed on firms and unions. 2. Which […]
Chapter 9 Paul Krugman Argued Favor Of a Protectionism Based
Application: International Trade 2425 11. Countries that restrict foreign trade are likely to a. forgo the additional surplus that trade allows, but will probably enjoy economies of scale. b. forgo the additional surplus that trade allows, but will be compensated […]
Chapter 9 The following diagram shows the domestic demand and domestic supply
Application: International Trade 2405 Figure 9-22 The following diagram shows the domestic demand and domestic supply in a market. In addition, assume that the world price in this market is $40 per unit. 24. Refer to Figure 9-22. With free […]
Chapter 9 When a country that exported a particular good abandons a free-trade
Application: International Trade 2385 229. When a country abandons a no-trade policy, adopts a free-trade policy, and becomes an importer of a particular good, a. producer surplus increases and total surplus increases in the market for that good. b. producer […]
Chapter 9 Iso land Ends Exporting Steel d Creates Losers But
Application: International Trade 2365 189. The nation of Aquilonia has decided to end its policy of not trading with the rest of the world. When it ends its trade restrictions, it discovers that it is importing incense, exporting steel, and […]
Chapter 9 When a country that imports a particular good imposes an import
Application: International Trade 2345 145. A tariff on a product makes a. domestic sellers better off and domestic buyers worse off. b. domestic sellers worse off and domestic buyers worse off. c. domestic sellers better off and domestic buyers better […]
Chapter 9 The change in total surplus in this market because of trade is
Application: International Trade 2325 106. Refer to Figure 9-9. Consumer surplus in this market before trade is a. A. b. A + B. c. A + B + D. d. C. 107. Refer to Figure 9-9. Consumer surplus in this […]
Chapter 9 What would happen if there were a decrease in the price
Application: International Trade 2305 72. Refer to Figure 9-5. Without trade, consumer surplus amounts to a. $810. b. $1,620. c. $3,240. d. $6,480. 73. Refer to Figure 9-5. Without trade, producer surplus amounts to a. $810. b. $1,620. c. $3,240. […]
Chapter 9 When a country allows international trade and becomes an exporter
Application: International Trade 2285 33. When a country allows international trade and becomes an exporter of a good, a. domestic producers of the good become better off. b. domestic consumers of the good become worse off. c. the gains of […]
Chapter 9 An important factor in the decline of the U.S. textile
Application: International Trade Multiple Choice – Section 00: Introduction 1. An important factor in the decline of the U.S. textile industry over the past 100 or so years is a. foreign competitors that can produce quality textile goods at low […]
Chapter 8 What are the equilibrium price and equilibrium quantity
2228 Application: The Costs of Taxation Figure 8-26 26. Refer to Figure 8-26. What are the equilibrium price and equilibrium quantity in this market? 27. Refer to Figure 8-26. How much is consumer surplus at the market equilibrium? ANSWER: Consumer […]
Chapter 8 The optimal tax is difficult to determine because although revenues
Application: The Costs of Taxation 2211 56. The optimal tax is difficult to determine because although revenues rise and fall as the size of the tax increases, deadweight loss continues to increase. a. True b. False 57. Suppose that a […]
Chapter 8 Economists Edward Prescott and Lee Ohanian claimed that
Application: The Costs of Taxation 2191 69. In a 2012 Wall Street Journal column, economists Edward Prescott and Lee Ohanian claimed that, in order to promote faster economic growth, the government should a. increase tax rates on individuals with high […]
Chapter 8 Ronald Reagan believed that reducing income tax rates would
Application: The Costs of Taxation 2171 35. The Laffer curve relates a. the tax rate to tax revenue raised by the tax. b. the tax rate to the deadweight loss of the tax. c. the price elasticity of supply to […]
Chapter 8 Assume The Price Gasoline 200 Per
Application: The Costs of Taxation 2131 26. The deadweight loss from a tax a. does not vary in amount when the price elasticity of demand changes. b. does not vary in amount when the amount of the tax per unit […]
Chapter 8 The response of buyers to a change in the price
Application: The Costs of Taxation 2111 238. Refer to Figure 8-12. Suppose a $3 per-unit tax is placed on this good. The amount of deadweight loss resulting from this tax is a. $7.50. b. $15.00. c. $22.50. d. $45.00. 239. […]
Chapter 8 The per-unit burden of the tax on sellers is
Application: The Costs of Taxation 2091 199. Refer to Figure 8-9. The per-unit burden of the tax on sellers is a. $20. b. $200. c. $300. d. $500. 200. Refer to Figure 8-9. The amount of tax revenue received by […]
Chapter 8 Which of the following results is most likely
Application: The Costs of Taxation 2071 158. Refer to Figure 8-8. The tax causes consumer surplus to decrease by the area a. A. b. B+C. c. A+B+C. d. A+B+C+D+F. 159. Refer to Figure 8-8. After the tax goes into effect, […]
Chapter 8 What happens to producer surplus when the tax is imposed
Application: The Costs of Taxation 2051 115. Refer to Figure 8-4. The tax results in a loss of consumer surplus that amounts to a. $105. b. $140. c. $170. d. $210. 116. Refer to Figure 8-4. The tax results in […]
Chapter 8 The loss of producer surplus for those sellers of the good
Application: The Costs of Taxation 2031 77. Refer to Figure 8-1. Suppose the government imposes a tax of P’ – P”’. The deadweight loss due to the tax is measured by the area a. J+K+L+M. b. J+K+L+M+N. c. I+Y. d. […]
Chapter 8 If T represents the size of the tax on a good and Q represents
Application: The Costs of Taxation 2011 38. If T represents the size of the tax on a good and Q represents the quantity of the good that is sold, total tax revenue received by government can be expressed as a. […]
Chapter 8 To fully understand how taxes affect economic well-being
Application: The Costs of Taxation Multiple Choice – Section 00: Introduction 1. In 1776, the American Revolution was sparked by anger over a. the extravagant lifestyle of British royalty. b. the crimes of British soldiers stationed in the American colonies. […]
Chapter 7 What do economists call the highest amount a consumer will pay
1972 Consumers, Producers, and the Efficiency of Markets Problems 1. What do economists call the highest amount a consumer will pay to purchase a good? 2. If John’s willingness to pay for a good is $20 and the price of […]
Chapter 7 A decrease in demand will cause an increase in producer surplus
Consumers, Producers, and the Efficiency of Markets 1953 29. All else equal, a decrease in demand will cause an increase in producer surplus. a. True b. False 30. If producing a soccer ball costs Jake $5, and he sells it […]
Chapter 7 A sharp reduction in the supply of steak would
Consumers, Producers, and the Efficiency of Markets 1933 125. Steak and chicken are substitutes. A sharp reduction in the supply of steak would a. increase consumer surplus in the market for steak and decrease producer surplus in the market for […]