Archives: Quiz
Chapter 17 Which of the following distinguishes industrially advanced countries
Chapter 17—Growth and the Less-Developed Countries MULTIPLE CHOICE 1. Which of the following distinguishes industrially advanced countries from less-developed countries? a. GDP per capita. b. Educational attainment of the workforce. c. Extent to which capital is technologically advanced. d. All […]
Chapter 16 2 Which of the following is a bank liability
Copyright © 2014 Pearson Education, Inc. 4) Which of the following is a bank liability? A) reserve deposits held at the Fed B) loans made to customers C) required reserves D) demand deposit balances Answer: D Diff: 1 Topic: A […]
Chapter 17 The rational expectations theory indicates that expansionary
a. be ineffective, even in the short run. b. be effective in the short run but ineffective in the long run. c. be effective both in the short run and long run. d. make it possible to trade-off a higher […]
Chapter 16 1 The supply of money in the U.S. economy is determined primarily
Copyright © 2014 Pearson Education, Inc. Survey of Economics, 6e (O’Sullivan/Sheffrin/Perez) Chapter 16 Money and the Banking System 16.1 What Is Money? 1) The supply of money in the U.S. economy is determined primarily by A) decisions made by the […]
Chapter 17 The Phillips curve illustrates the relationship between
Chapter 17—The Phillips Curve and Expectations Theory MULTIPLE CHOICE 1. The Phillips curve illustrates the relationship between: a. change in the money supply and change in unemployment. b. tax rates and tax revenues. c. the equilibrium level of income and […]
Chapter 15 2 Households Whose Incomes Are Falling Due Recession
Copyright © 2014 Pearson Education, Inc. 30) A federal budget ________ occurs when the federal government spends more than it collects in taxes. A) surplus B) deficit C) equilibrium D) ceiling Answer: B Diff: 1 Topic: The Federal Deficit and […]
Chapter 16 The economic system that answers the What, How and
Chapter 16—Economies in Transition MULTIPLE CHOICE 1. The economic system that answers the What, How and For Whom questions the way they have always been answered is a: a. market economy. c. soviet economy. b. command economy d. traditional economy. […]
Chapter 15 1 Unemployment Varies And Cant Tracked c They Not
Copyright © 2014 Pearson Education, Inc. Survey of Economics, 6e (O’Sullivan/Sheffrin/Perez) Chapter 15 Fiscal Policy 15.1 The Role of Fiscal Policy 1) What are the two tools of fiscal policy that governments can use to stabilize an economy? A) government […]
Chapter 16 will raise real GDP because the economy is operating below the
97. In Exhibit 16-4, which one of the following actions could the Fed use to shift the AD curve from AD1 to AD2? a. Lower the legal reserve requirement. b. Lower the federal funds rate. c. Print currency. d. Raise […]
Chapter 14 3 Two Approaches to Determining the Causes of Recessions
Copyright © 2014 Pearson Education, Inc. 18) Refer to Figure 14.2. A movement from point d to point b could be caused by a(n) A) increase in government spending. B) increase in the price of oil. C) increase in taxes. […]
Chapter 16 Keynes called money people hold to make routine day-to-day
Chapter 16—Monetary Policy MULTIPLE CHOICE 1. Keynes called money people hold to make routine day-to-day purchases the: a. transactions demand for holding money. c. speculative demand for holding money. b. precautionary demand for holding money. d. store of value demand […]
Chapter 14 2 how would an increase in the aggregate demand affect real GDP
Copyright © 2014 Pearson Education, Inc. 31) Assuming the price level has not changed, how would an increase in the aggregate demand affect real GDP? A) It decreases. B) It increases. C) It only changes with changes in imports. D) […]
Chapter 15 The exchange rate for X’s currency is more than
b. 10 U.S. dollars c. 12 U.S. dollars d. 14.4 U.S. dollars e. 14.4 Canadian dollars 177. The exchange rate is the: a. value of money. b. quantity of dollars, yen, etc. that are traded. c. amount of a foreign […]
Chapter 14 1 What Likely Happen To prices And Output That
Copyright © 2014 Pearson Education, Inc. Survey of Economics, 6e (O’Sullivan/Sheffrin/Perez) Chapter 14 Aggregate Demand and Aggregate Supply 14.1 Sticky Prices and Their Macroeconomic Consequences 1) Recessions occur because of A) real adverse shocks to the economy. B) shocks to […]
Chapter 15 You Were Told That The Exchange
STA: DISC: International trade and finance TOP: Free Trade versus Protectionism KEY: Bloom’s: Comprehension 98. Which of the following is the best example of a quota? a. a tax placed on all small cars sold in the domestic market b. […]
Chapter 12 3 When wages or benefits are automatically increased based
Copyright © 2014 Pearson Education, Inc. 20) When wages or benefits are automatically increased based on the reported inflation rate, it is called the ________ adjustment. A) natural flow of money B) cost-of-living C) change in exports D) change in […]
Chapter 15 the benefits of trade between two nations
Chapter 15—International Trade and Finance MULTIPLE CHOICE 1. What country is our largest trading partner, as measured by exports and imports? a. Japan. d. Canada. b. The United Kingdom. e. Mexico. c. China. 2. In terms of production possibilities curves, […]
Chapter 12 2 In periods when GDP fails to grow at its normal rate
Copyright © 2014 Pearson Education, Inc. 21) In periods when GDP fails to grow at its normal rate, the actual unemployment rate will be ________ than the natural rate of unemployment. A) lower B) higher C) the same D) falling […]
Chapter 15 The Fed’s countercyclical policy during expansion
175. The Fed’s countercyclical policy during expansion and prosperity includes: a. raising the required reserve ratio, raising the discount rate, and selling government bonds on the open market. b. raising the required reserve ratio, raising the discount rate, and buying […]
Chapter 12 1 Economists define the labor force to include
Copyright © 2014 Pearson Education, Inc. Survey of Economics, 6e (O’Sullivan/Sheffrin/Perez) Chapter 12 Unemployment and Inflation 12.1 Examining Unemployment 1) During periods of poor economic performance, real GDP A) declines and unemployment rises. B) declines and unemployment declines. C) declines […]
Chapter 15 The Feds Countercyclical Policy Tools Eliminate
114. When the Fed sells government securities, it: a. lowers the cost of borrowing from the Fed, encouraging banks to make loans to the general public. b. raises the cost of borrowing from the Fed, discouraging banks from making loans […]
Chapter 11 3 When differences between nominal GDP and real GDP result
Copyright © 2014 Pearson Education, Inc. 13) When differences between nominal GDP and real GDP result due to price changes and nothing else is compared, an index is created called the A) inflation index. B) consumer price index. C) GDP […]
Chapter 15 Which of the following compose the reserves of a commercial bank
Chapter 15—Money Creation MULTIPLE CHOICE 1. Which of the following compose the reserves of a commercial bank? a. checkable deposits and time deposits b. vault cash and deposits of the bank with the Federal Reserve c. U.S. securities and stock […]
Chapter 11 2 Wages paid to teachers, police personnel, and postal workers
Copyright © 2014 Pearson Education, Inc. 56) Wages paid to teachers, police personnel, and postal workers are not transfer payments because they are payments for services and not simply “transfers” of money. Answer: TRUE Diff: 1 Topic: Government Purchases Skill: […]
Chapter 14 Which of the following best describes social benefits
Chapter 14—Environmental Economics MULTIPLE CHOICE 1. Which of the following best describes social benefits? a. The external benefits to other members of society, ignoring the private benefits to market participants. b. The sum of external benefits and private benefits. c. […]
Chapter 11 1 Which of the following is a macroeconomic statement
Copyright © 2014 Pearson Education, Inc. Survey of Economics, 6e (O’Sullivan/Sheffrin/Perez) Chapter 11 Measuring a Nation’s Production and Income 11.1 The “Flip” Sides of Macroeconomic Activity: Production and Income 1) Macroeconomics differs from microeconomics in that A) macroeconomics is the […]
Chapter 14 Members of the Federal Reserve Board of Governors serve one
a. Four years. c. Fourteen years. b. Six years. d. Life or until the member resigns. 80. Decisions to buy or sell securities at the Fed are made by the: a. Congress. b. Federal Open Market Committee. c. Federal Deposit […]
Chapter 10 4 Advances Technology Have Increased The Demand For
Copyright © 2014 Pearson Education, Inc. 71) Which of the following statements about featherbedding is correct? A) It could increase production costs, resulting in higher prices for products. B) The quantity of labor demanded by firms could actually decrease. C) […]
Chapter 14 Which One The Following Items Would The
Chapter 14—Money and the Federal Reserve System MULTIPLE CHOICE 1. A barter economy is one in which: a. money serves as a medium of exchange. b. only precious metals are accepted as money. c. goods are traded directly for other […]
Chapter 10 3 Iraq d Only Few People Have Skills Necessary
Copyright © 2014 Pearson Education, Inc. 18) Suppose the wage rate in a certain industry falls, and firms hire more workers. The best explanation of this is that labor A) demand fell. B) demand increased. C) supply fell. D) supply […]
Chapter 13 A merger between two manufacturers of computers would result
STA: DISC: The role of government TOP: Mergers and Global Antitrust Policy KEY: Bloom’s: Comprehension 104. A merger between two manufacturers of computers would result in which of the following? a. A vertical merger. c. A horizontal merger. b. A […]
Chapter 10 2 For a perfectly competitive firm, the marginal-revenue product
Copyright © 2014 Pearson Education, Inc. 57) In less-developed countries the ________ effect leads to ________. A) input-substitution; labor intensive production B) input-substitution; mechanized production C) output effect; labor intensive production D) input effect; mechanized production Answer: A Diff: 2 […]
Chapter 13 A firm that places its assets in the custody of a board
Chapter 13—Antitrust and Regulation MULTIPLE CHOICE 1. The purpose of antitrust laws is to: a. reduce anticompetitive activities. c. guarantee worker safety. b. regulate electric companies. d. promote quality products. 2. A firm that places its assets in the custody […]
Chapter 10 1 A curve that shows the relationship between the wage
Copyright © 2014 Pearson Education, Inc. Survey of Economics, 6e (O’Sullivan/Sheffrin/Perez) Chapter 10 The Labor Market and the Distribution of Income 10.1 The Demand for Labor 1) Labor costs account for approximately ________ of total production costs. A) three-fourths B) […]
Chapter 13 The federal budget process begins when federal agencies submit
Chapter 13—Federal Deficits, Surpluses, and the National Debt MULTIPLE CHOICE 1. The federal budget process begins when federal agencies submit their budget requests to the: a. Treasury Department. b. Council of Economic Advisors (CEA). c. Office of Management and Budget […]
Chapter 9 7 Smith Trades The Right Increase Pollution 500
Copyright © 2014 Pearson Education, Inc. Table 9.6 16) Given the data in Table 9.6, if Firm A were to reduce pollution from 100 gallons of wastewater per day to 0 gallons per day, production costs A) would increase by […]
Chapter 12 Which of the following government programs provides recipients
STA: DISC: Measuring the Economy TOP: Poverty KEY: Bloom’s: Knowledge 64. Which of the following government programs provides recipients with in-kind benefits? a. Temporary Assistance to Needy Families (TANF). b. Social Security. c. The food stamp program. d. Unemployment compensation. […]
Chapter 9 6 A carbon tax will raise the price of an energy
Copyright © 2014 Pearson Education, Inc. 50) A carbon tax will raise the price of an energy-intensive good such as steel. Answer: TRUE Diff: 1 Topic: Example: A Carbon Tax Skill: Conceptual AACSB: Reflective Thinking Learning Outcome: Micro-22 51) A […]
Chapter 12 Which of the following most closely represents the share
Chapter 12—Income Distribution, Poverty, and Discrimination MULTIPLE CHOICE 1. Which of the following most closely represents the share of total U.S. income to the poorest 20 percent of all U.S. families? a. 47 percent. b. 23 percent. c. 10 percent. […]
Chapter 9 5 Rubber Factory b Each Price Larger Quantity Rubber
Copyright © 2014 Pearson Education, Inc. 12) Under a Coase bargaining solution, deal making between the two parties continues until the marginal ________ to the harmed party equals the marginal ________ to the other party. A) benefit; benefit B) benefit; […]
Chapter 12 Which of the following countries had the highest level of
Chapter 12—The Public Sector MULTIPLE CHOICE 1. Which of the following countries had the highest level of government expenditures as a share of GDP? a. Sweden. c. United States. b. Japan. d. Italy. 2. After 1970, the share of federal […]
Chapter 9 4 If you watch a football game on a cable TV
Copyright © 2014 Pearson Education, Inc. 14) If you watch a football game on a cable TV, the cable TV is A) a private good but nonrival in consumption. B) a private good and rival in consumption. C) a public […]
Chapter 11 When Harlan County, Kentucky, has a monopsony coal mining firm
150. When Harlan County, Kentucky, has a monopsony coal mining firm, a. d and e. b. workers will work for the firm that pays the higher wage. c. coal buyers will continue to buy coal from other counties. d. coal […]
Chapter 9 3 CARFAX is a company that compiles and sells histories
Copyright © 2014 Pearson Education, Inc. 4) CARFAX is a company that compiles and sells histories of used cars. Used car dealers offer to give their customers a copy of the CARFAX history of the cars in their inventory to […]
Chapter 11 The demand curve for labor of Coca-Cola manufacturers will not
98. The demand curve for labor of Coca-Cola manufacturers will not shift to the right if: a. d and e. b. the price of Coca-Cola increases. c. the firms innovate with new technology that raises labor productivity. d. the price […]
Chapter 9 2 how many fewer cars are sold in equilibrium
Copyright © 2014 Pearson Education, Inc. 55) Figure 9.5 represents the market for used cars. Suppose buyers are willing to pay $5,000 for a plum (high-quality) used car and $3,000 for a lemon (low-quality) used car. If buyers believe that […]
Chapter 11 A firm will employ an additional unit of labor as long as
Chapter 11—Labor Markets MULTIPLE CHOICE 1. If a product’s price increases, then its: a. MP will increase. b. MFC will increase. c. MRP will increase. d. MP will decrease. 2. The marginal revenue product of a resource: a. is defined […]
Chapter 9 1 There exists asymmetric information in a market
Copyright © 2014 Pearson Education, Inc. Survey of Economics, 6e (O’Sullivan/Sheffrin/Perez) Chapter 9 Market Failure: Imperfect Information, External Benefits, and External Costs 9.1 Adverse Selection for Buyers: The Lemons Problem 1) There exists asymmetric information in a market A) if […]
Chapter 11 To help close an inflationary gap, the government
105. To help close an inflationary gap, the government could: a. run budget deficits. b. decrease taxes. c. increase government spending. d. run budget surpluses. e. do nothing. Exhibit 11-5 Aggregate demand and supply model 106. Suppose the economy in […]
Chapter 8 8 Two government organizations that are responsible for initiating
Copyright © 2014 Pearson Education, Inc. 28) Two government organizations that are responsible for initiating actions against possible antitrust cases are A) the Department of Justice and the Department of Commerce. B) the Department of Commerce and the Federal Reserve. […]