Test
ECON102: Macroeconomics MidTerm Review
Preguntas del test (31)
1A situation where people have to make choices based on unlimited wants and limited resources is known as
- AFactors of production
- BMacroeconomics
- CScarcity
- DLaw of Demand
2Which of the following is an example of a price floor?
- AAgricultural price supports
- BRent controls
- CMinimum wages
- DBoth a and c
3What is the portion of the unemployed that is accounted for by people who are out of work for long periods of time because their skills do not match those required for available jobs known as?
- AStructural unemployment
- BFunctional unemployment
- CFrictional unemployment
- DCyclical unemployment
4Farmers can choose to produce eggs or milk. If there is an increase in the price of milk then what will be the effect on the egg market?
- AEgg supply will increase.
- BEgg supply will decrease.
- CEgg demand will decrease.
- DThe quantity of eggs demanded will increase.
5Positive economics focuses on
- AHow to fairly allocate goods and services in the economy.
- BDetermining which government policies are good for the economy.
- CObserved facts and the relationship between them.
- DAll of the above.
6The Law of Demand states that as the price of a good ____________________, the quantity demanded tends to ________________.
- AIncreases....increase
- BDecreases....remain unchanged
- CDecreases....decrease
- DIncreases....decrease
7If a decrease in the price of good Y causes the demand for good Z to decrease, this indicates that
- AY and Z are complements.
- Bthe demand for Y is elastic, but the demand for Z is inelastic.
- CY and Z are substitutes.
- DY and Z are unrelated.
8A price floor that sets the price of a good above market equilibrium will cause
- Aa surplus of the good.
- Ba decrease in quantity demanded of the good.
- Can increase in quantity supplied of the good.
- DAll of the above.
9What is the term for the process of adjusting payments like social security benefits for changes in the price level?
- ARealization
- BNominal adjustment
- CIndexation
- DCyclical alignment
10Which of the following is most likely to shift the demand curve for electricity to the left?
- AAn increase in income
- BAn increase in the price of natural gas, a substitute source of energy
- CA decrease in the price of electricity
- DConsumers being more energy conscious
11A graph the shows the possible combination of goods that can be produced by an economy given available knowledge and factors of production is called
- AProduction Possibilities Curve
- BSupply schedule
- CDemand schedule
- DConsumer price index
12The highest valued alternative that must be given up in order to choose an option is called
- Aopportunity cost.
- Bdisutility.
- Cutility.
- Dscarcity.
13Two products that are usually consumed jointly would be referred to as
- Aunrelated goods.
- Bcomplements.
- Csubstitutes.
- Dinferior goods.
14Farmers can produce wheat and/or corn. What will happen in the wheat market if there is an increase in price of corn?
- AWheat supply will decrease.
- BWheat demand will decrease.
- CWheat supply will increase.
- DWheat demand will increase.
15Suppose a seller finds a new technology that increases the speed with which he can produce the good. This leads to
- AA decrease in the quantity supplied for this good.
- BAn increase in the price of this good.
- CThe supply curve for this good shifts to the right.
- DAn increase in the opportunity cost of producing the good.
16The type of unemployment which occurs when workers are briefly between jobs is called
- Astructural unemployment.
- Bfrictional unemployment.
- Cfunctional unemployment.
- Dcyclical unemployment.
17Economics is primarily the study of
- Athe choices we must make among alternatives because of scarcity.
- Bhow to make money in the stock market.
- Cthe proper form of industrial structure for the United States.
- Dhow to find lower cost methods of production.
18Comparative advantage is when
- Atwo parties can complete a task equally well.
- BOne person can produce more than another person.
- COne person can produce a good at a lower opportunity cost than another person.
19If the price of Coke decreases, the demand curve for Pepsi will
- Aremain unchanged.
- Bshift to the right.
- Cshift to the left.
- Ddo none of the above.
20Which of the following goods are likely to be complements?
- Apotato chips and pretzels.
- BPepsi and Coke.
- Chot dogs and hot dog buns.
- DDVD players and VCRs.
21The Law of Supply states that as the price ________________, the quantity supplied tends to ________________.
- Adecreases....increase
- Bincreases....decrease
- Cdecreases....remain unchanged
- Dincreases....increase
22Which of the following is a measurement of improvements in technology and organization that allow more output per unit of labor and capital inputs?
- AReal input productivity
- BTotal factor productivity
- CNominal capital productivity
- DReal labor productivity
23If the demand for a good increased, what would be the effect on the equilibrium price and quantity?
- APrice would decrease, and quantity would increase.
- BPrice would increase, and quantity would increase.
- CPrice would decrease, and quantity would decrease.
- DPrice would increase, and quantity would decrease.
24Which of the following is an example of a normative economic statement?
- AThe economy grew at an annual rate of 5% during the first quarter this year.
- BThe minimum wage should be increased so that low income workers can afford to keep up with the cost of living.
- CIf two automobile companies merge, it is likely that the price of automobiles will rise.
- DThe inflation rate in the United States decreased from 4% last year to 3% this year as a result of lower energy prices.
25Three key economic ideas/assumptions:
- APeople are rational.
- BEvery society faces trade-offs.
- COptimal decisions are made at the margin.
- DA market is a group of buyers and sellers of a good or service.
- EMarkets reward hard work.
- FUse economic data to test hypotheses.
- GPeople respond to economic incentives.
- HEconomic issues must be simplified to be analyzed and understandable.
26Type of unemployment where overall demand for goods and services in an economy cannot support full employment.
- ACyclical unemployment
- BFrictional unemployment
- CFunctional unemployment
- DStructural unemployment
27A price set below equilibrium will lead to a
- Ashortage.
- Bsurplus.
- Cprice ceiling.
- Dcontraction.
28A price floor that sets price above market equilibrium will cause
- Aan increase in quantity demanded.
- Ba decrease in quantity demanded.
- Can increase in quantity supplied.
- Da decrease in quantity supplied.
- Ea surplus.
- Fa shortage.
29_______________ make(s) trade-offs necessary,
- AAlternatives
- BScarcity
- CComparative advantage
- DNormative analysis
30Analysis of "what ought to be"
- APositive analysis
- BNormative analysis
31If price is set above market equilibrium, there will be a
- Ashortage.
- Bsurplus.
- Cdeadweight loss.
- Dcomparative advantage.
Información
- Descripción
- Test sobre ECON102: Macroeconomics MidTerm Review, creado por devonelisevan el 15/10/2014.
- Autor
- devonelisevan
- Idioma
- English
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