Test
Macroeconomics chapters 1-9
Preguntas del test (81)
1Economics is a social science concerned with:
- Athe best use of scarce resources to achieve the maximum satisfaction of economic wants
- Bincreasing the level of productive resources so there is a minimum level of income
- Cincreasing the level of productive resources so there is a maximum output in society
- Dthe best use of scarce resources paid for at the minimum level of cost to consumers and businesses
2a person should consume more of something when its marginal:
- ABenefit exceeds is marginal cost
- Bcost exceeds its marginal benefit
- Ccost equals its marginal benefit
- Dbenefit is still positive
3the process of developing hypotheses, testing them against facts, and using the result to construct theories is called:
- Aopportunity cost calculation
- Bmicroeconomics
- Cmarginal analysis
- Dthe scientific method
4which is an illustration of a microeconomic question?
- Awhat is the current national rate of unemployment?
- Bis the economy experiencing a decline in the rate of inflation?
- Cwill a new type of television set increase the number of buyers?
- Dis the production of goods and services in the economy greater this year than last year?
5A schedule or curve that shows the various combinations of two products a consumer can purchase with a specific amount of money income is:
- Aa tradeoff
- Ba budget line
- Ca tangent point
- Dan optimal output
6which of the following is real capital?
- Aa pair of stockings
- Ba construction crane
- Ca savings account
- Da share of IBM stock
7a point inside a production possibilities curve best illustrates:
- Aunemployment
- Bthe efficient use of resources
- Cthe use of best-available technology
- Dunlimited wants
8A normative statement is one that:
- Ais based on the law of averages
- Bapplies only to microeconomics
- Capplies only to macroeconomics
- Dis based on value judgments.
9the problems of aggregate inflation and unemployment are:
- Amajor topics of macroeconomics
- Bnot relevant to the u.s. economy
- Cmajor topics of microeconomics.
- Dpeculiar to command economics
10On a production possibilities curve, the single optimal or best combination of output for any society:
- Ais at a point near the top of the curve
- Bis at the precise midpoint of the curve
- Cis at a point near the bottom of the curve
- Ddepends upon the preferences of society
11which statement best describes a command economy
- Athe production of goods and services is determined primarily by markets, but the allocation of goods and services is determined primarily by the government.
- Bthe production of goods and services is determined primarily by government, but the allocation of goods and services is determined by markets.
- Cthe production and allocation of goods and services is determined primarily through markets.
- Dthe production and allocation of goods and services is determined primarily through government.
12which statement is correct?
- AFreedom of choice and enterprise are essential elements of the market system
- Bproducers are "kings" in a market economy because they determine what is produced.
- Cthe market system is efficient at allocation of resources, but not consumer goods to their most valued uses.
- Dthe operation of a market system eventually results in an equal distribution of income.
13In a competitive economy, prices:
- Ainfluence consumers in their purchases of goods and services.
- Binfluence businesses in their purchases of economic resources.
- Cinfluence workers in making occupational choices.
- Ddo all of these.
14the competitive market system:
- Aencourages innovation because government provides tax breaks and subsidies to those who develop new products or new productive techniques.
- Bdiscourages innovation because it is difficult to acquire additional capital in the form of new machinery and equipment.
- Cdiscourages innovation because firms want to get all the profits possible from existing machinery and equipment.
- Dencourages innovation because successful innovators are rewarded with economic profits.
15which is not one of the Five Fundamental Questions?
- Ahow will the goods and services be produced?
- Bhow should the system accommodate change?
- Cwho is to receive the output of the system?
- Dwhat goods and services should be produced by government?
16The idea that firms and resource suppliers in seeking to further their own self-interests in a competitive market economy also simultaneously promotes the public or social interest is a description of:
- Athe guiding function of prices
- BCapital accumulation
- Cthe "Invisible hand"
- D"Dollar votes"
17which of the following is a limitation of the simple circular flow model?
- Aproduct markets are ignored.
- Bresource markets are ignored.
- Cthe determination of product and resource prices is not explained.
- Dhouseholds are included, but not businesses.
18households and businesses are:
- Aboth buyers in the resource market.
- Bboth sellers in the product market.
- Csellers in the resource and product markets respectively.
- Dsellers in the product and resource markets respectively.
19The influential book written by Adam Smith was:
- AThe Worldly Philosophers
- BThe Wealth of Nations
- CThe Age of the Economist
- DThe Affluent Society
20the circular flow model:
- Aassumes that central planning is taking place
- Billustrates how natural resources are created
- Cillustrates how money is created by the banking system
- Dillustrates the interdependence of businesses and consumers
21the law of demand is illustrated by a demand curve that is:
- Avertical
- Bhorizontal
- Cupward sloping
- Ddownward sloping
22which would cause a decrease in the quantity of computers supplied?
- AAn increase in the demand for computers
- Ba decrease in the demand for computers
- Can increase in the incomes of consumers
- Da decrease in the price of parts for making computers
23when the price of oil declines significantly, the price of gasoline also declines. the latter occurs because of a(n):
- Aincrease in the demand for gasoline
- Bdecrease in the demand for gasoline
- Cincrease in the supply of gasoline
- Ddecrease in the supply of gasoline
24a schedule which shows the various amounts of a product producers are willing and able to produce at each price in a series of possible prices during a specified period of time is called:
- AQuantity supplied
- BQuantity demanded
- CSupply
- DDemand
25if the quantity supplied of a product is less than the quantity demanded then:
- Athere is a shortage of the product
- Bthere is a surplus of the product
- Cthe product is a normal good
- Dthe product is an inferior good
26if the market price is above the equilibrium price:
- Aa shortage will occur and producers will produce more and lower prices
- Ba surplus will occur and producers will produce less and lower prices
- Ca surplus will result and consumers will bid prices up
- Dproducers make extremely high profits
27a competitive market will:
- Aachieve an equilibrium price.
- Bproduce shortages
- Cproduce surpluses
- Dcreate disorder
28a product market is in equilibrium:
- Awhen there is no surplus or the product
- Bwhen there is no shortage of the product
- Cwhen consumers want to buy more of the product than producers offer for sale
- Dwhere the demand and supply curves intersect
29a headline reads "storms destroy half of the lettuce crop." this situation would lead to a(n):
- Aincrease in the price of lettuce and quantity purchased
- Bdecrease in the price of lettuce and quantity purchased
- Cincrease in the price of lettuce and decrease in the quantity purchased
- Ddecrease in the prices of lettuce and increase in the quantity purchased
30government-set price floors and price ceilings:
- ADo not affect the rationing function of price in a free market
- Binterfere with the rationing function of price in a free market
- Cresult in surpluses of products in markets where they are used
- Dresult in shortages of products in markets where they are used
31a perfectly inelastic demand schedule:
- Arises upward and to the right, but has a constant slope
- Bcan be represented by a line parallel to the vertical axis
- Ccannot be shown on a two-dimensional graph.
- DCan be represented by a line parallel to the horizontal axis.
32when the percentage change in price is greater than the resulting percentage change in quantity demanded:
- Aa decrease in price will increase total revenue.
- Bdemand may either be elastic or inelastic.
- Can increase in price will increase total revenue
- Ddemand is elastic
33demand is said to be inelastic when:
- Aan increase in price results in a reduction in total revenue
- Ba reduction in price results in an increase in total revenue
- Ca reduction in price results in a decrease in total revenue
- Dthe elasticity coefficient exceeds one
34in which of the following instances will total revenue decline?
- Aprice rises and supply is elastic
- Bprice falls and demand is elastic
- Cprice rises and demand is inelastic
- Dprice rises and demand is elastic
35the main determinant of elasticity of supply is the:
- Anumber of close substitutes for the product available to consumers
- Bamount of time the producer has to adjust inputs in response to a price change
- Curgency of consumer wants for the product
- Dnumber of uses for the product
36price elasticity of supply is:
- Apositive in the short run but negative in the long run
- Bgreater in the long run than in the short run
- Cgreater in the short run than in the long run
- Dindependent of time
37Cross elasticity of demand measures how sensitive purchases of a specific product are to changes in:
- Athe price of some other product
- Bthe price of that same product
- Cincome
- Dthe general price level
38a remote island nation is discovered, and on this island the cross elasticity of demand for coconut milk and fruit punch is 1.0 this indicates that these two goods are:
- Anormal
- Binferior
- Ccomplements
- Dsubstitutes
39consumer surplus arises in a market because:
- Aat the market price, quantity supplied is greater than quantity demanded
- Bat the current market price, quantity demanded is greater than quantity supplied
- Csome consumers are willing to pay more than the equilibrium price but do not need to do so
- Dsome consumers are willing to pay less than the equilibrium price but do not need to do so
40negative externalities arise:
- Awhen firms pay more than the opportunity cost of resources
- Bwhen the demand curve for a product is located too far to the left
- Cwhen firms "use" resources without being compelled to pay for their full costs
- Donly in capitalistic societies
41rivalry and excludability are the main characteristics of:
- Acapital goods
- Bprivate goods
- Cpublic goods
- Dconsumption goods
42the market system does not produce public goods because:
- Athere is no need or demand for such goods.
- Bprivate firms cannot stop consumers who are unwilling to pay for such goods from benefiting from them
- Cpublic enterprises can produce such goods at a lower cost than can private enterprises.
- Dtheir production seriously distorts the distribution of income
43a demand curve for a public good is determined by:
- Asumming vertically the individual demand curves for the public good
- Bsumming horizontally the individual demand curves for the public good
- Ccombining the amounts of the public good that the individual members of society demand at each price
- Dmultiplying the per-unit cost of the public good by the quantity made available
44cost-benefit analysis attempts to:
- Acompare the real worth, rather than the market values, of various goods and services.
- Bcompare the relative desirability of alternative distributions of income
- Cdetermine whether it is better to cut government expenditures or reduce taxes
- Dcompare the benefits and costs associated with any economic project or activity
45at the optimal quantity of a public good:
- AMarginal benefit exceeds marginal cost by the greatest amount
- Btotal benefit equals total cost
- Cmarginal benefit equals marginal cost
- Dmarginal benefit is zero
46an important problem in evaluating public projects through the use of cost-benefit analysis is that:
- Areal costs cannot be stated in monetary terms.
- Bone must decide whether to compare total costs and total benefits or marginal costs and marginal benefits.
- Cpositive and negative externalities associated with such projects may be difficult to measure.
- Dthe funding of such projects is inherently inflationary.
47from the economist's perspective, "market failures" basically arise when:
- Athe quantity demanded for a good or service is greater than the quantity supplied of the good or service
- Bthe quantity supplied of a good or service is greater than the quantity supplied of the good or service
- Cdemand and supply do not accurately reflect all the benefits and all the costs of production
- Dthe market system is unable to adapt to or to accommodate change
48when production of a product creates external costs greater than external benefits, a market economy will:
- Anot produce the product without government intervention
- Bproduce a socially optimal allocation of resources
- Callocate too few resources to production of the product
- Dallocate too many resources to production of the product
49Real gross domestic product...
- Ais a measure of inflation
- Bwill increase if there is an increase in the price level
- Cwill increase if there is an increase in the level of output
- Dcan change from one year to the next even if there is no change in output
50suppose that real GDP increases by 5% while the population of a country increases by 7%. then...
- Aoutput per person necessarily increases
- Boutput per person necessarily decreases
- Coutput per person necessarily remains unchanged
- Dthere is not enough information to determine what happens to output per person
51which of the following is the best example of financial investment?
- AFord Motor Co. builds a new manufacturing plant
- Ba student pursues an MBA degree
- Ca retiree purchases Google stock
- Da young couple purchases a new home
52in economics, the word "shocks" refers to...
- Asituations where firms' expectations are unmet
- Bany changes in the demand for goods and services
- Cany changes in the supply of goods and services
- Da decrease in real GDP
53higher oil prices are most likely to lead to...
- Aa negative demand shock
- Ba positive demand shock
- Ca negative supply shock
- Da positive supply shock
54the business cycle depicts:
- Afluctuations in the general price level
- Bthe phases a business goes through from when it first opens to when it finally closes
- Cthe evolution of technology over time
- Dshort run fluctuations in output and employment
55which of the following statements is most accurate about advanced economies?
- Aeconomies experience a positive growth trend over the short run, but experience significant variability in the long run.
- Beconomies experience a positive growth trend over the long run, but experience significant variability in the short run.
- Ceconomies experience positive and stable growth over both the long run and short run
- Deconomies experience little long-run growth in output, but can experience significant growth in the short run.
56before the period of modern economic growth:
- Aonly civilizations such as the roman empire experienced economic growth
- Brates of population growth virtually matched rates of output growth
- Cmost economies realized high rates of growth in output per person
- Doutput and population growth were stagnant.
57what is the difference between financial investment and economic investment?
- Athere is no difference between the two.
- Bfinancial investment refers to the purchase of financial assets only; economic investment refers to the purchase of any new or used capital goods.
- Ceconomic investment is adjusted for inflation; financial investment is not.
- Dfinancial investment refers to the purchase of assets for financial gain; economic investment refers to the purchase of newly created capital goods.
58if an economy wants to increase its current level of investment, it must:
- Asacrifice future consumption
- Bprint more money
- Coffer more stocks and bonds to financial investors
- Dsacrifice current consumption.
59suppose the total monetary value of all final goods and services produced in a particular country in 2008 is $500 billion and the total monetary value of final goods and services sold is $450 billion. we can conclude that:
- AGDP in 2008 is $450 billion
- BNDP in 2008 is $450 billion
- CGDP in 2008 is $500 billion
- Dinventories in 2008 fell by $50 billion
60if depreciation (consumption of fixed capital) exceeds domestic investment, we can conclude that:
- Anominal GDP is rising, but real GDP is declining
- Bnet investment is negative
- Cthe economy is importing more than it exports
- Dthe economy's production capacity is expanding
61Real GDP measures:
- Acurrent output at current prices
- Bcurrent output at base year prices
- Cbase year output at current prices
- Dbase year output at current exchange rates
62Real GDP and nominal GDP differ because the real GDP:
- Ais adjusted for changes in the volume of intermediate transactions.
- Bincludes the economic effects of international trade
- Chas been adjusted for the changes in the price level
- Dexcludes depreciation charges
63the GDP tends to:
- Aoverstate economic welfare because it does not include certain non-market activities such as the productive work of housewives
- Bunderstate economic welfare because it includes expenditures undertaken to offset or correct pollution.
- Cunderstate economic welfare because it does not take into account increases in leisure.
- Doverstate economic welfare because it does not reflect improvements in product quality.
64the monetary value of all final goods and services produced by the united states economy during a year is:
- ANDP
- BGDP
- CNI
- DDI
65which would be considered an investment according to economists?
- Athe purchase of newly-issued shares of stock in Microsoft
- Bthe construction of a new computer chip factory by Intel
- Cthe purchase of shares of stock by Fidelity, a mutual fund company
- Dthe sale of government bonds by the nation's central bank
66consumer price index attempts to measure changes in:
- Athe price of all goods and services produced by the U.S. economy
- Bthe price of a select market basket of goods and services
- Cthe spending patterns of all consumers in the United States
- Dthe spending patterns of consumers worldwide
67which is a demand factor in economic growth?
- Amore human and natural resources
- Btechnological progress and innovation
- Can increase in the economy's stock of capital goods
- Dan increase in total spending in the economy
68the entry of women into the workforce since the 1960's resulted in:
- Aa shift outward in the production possibilities curve or the united states
- Ba shift inward in the production possibilities curve of the unites states
- Ca movement along the existing production possibilities curve in the united states
- Da falling real wage for women workers of the united states
69a decline in a nation's rate of productivity growth will:
- Areduce the inflation rate
- Bincrease education and training
- Cslow the growth of the standard of living
- Dmake industry more competitive in world markets
70which is best considered a supply factor for long-run economic growth?
- Agovernment spending
- Bthe stock of capital goods
- Cfull employment of resources
- Dpersonal consumption expenditures
71Real GDP per capita:
- Acannot grow more rapidly than real GDP
- Bcannot grow more slowly than real GDP
- Cnecessarily grows more rapidly than real GDP
- Dcan grow either more slowly or more rapidly than real GDP
72growth is advantageous to a nation because it:
- Apromotes faster population growth
- Blessens the burden of scarcity
- Celiminates the economizing problem
- Dslows the growth of wants
73increases in the value of a product to each user, including existing users, as the total number of users rises are called:
- Ainformation cascades
- Blearning effects
- Cnetwork effects
- Dscale economies
74economists who believe that the recent increase in the average productivity growth rate may be permanent claim that the above-normal economic growth in the united states between 1995 and 2009 was caused by:
- Aincreases in the rate of personal saving
- Bincreased entrepreneurial activity, application of information technology, and global competition.
- Crising Federal budget surpluses that reduced real interest rates
- Dexpansionary monetary policy.
75critics of economic growth:
- Acontend that growth and industrialization reduce pollution
- Bargue that economic growth does not resolve socioeconomic problems such as an unequal distribution of income and wealth
- Cpoint out that growth results in greater economic security for workers
- Dsay that its benefits accrue nearly exclusively to white males
76the rate of unemployment when the economy is at its potential output is called the:
- Afull employment rate of unemployment
- Bnatural rate of unemployment
- Cstructural rate of unemployment
- Dfrictional rate of unemployment
77Kevin has lost his job in an automobile plant because of the use of robots for welding on the assembly line. Kevin plans to go to technical school to learn how to repair microcomputers. The type of unemployment Kevin is faced with is:
- Acyclical
- Bfrictional
- Cstructural
- Dnatural
78the industries or sectors of the economy in which business cycle fluctuations tend to affect output the most are:
- Amilitary goods and capital goods
- Bservices and non-durable consumer goods
- Cclothing and education
- Dcapital goods and durable consumer goods
79in which phase of the business cycle will the economy most likely experience rising real output and falling unemployment rates?
- Aexpansion
- Brecession
- Cpeak
- Dtrough
80during periods of full employment the:
- Aburden of unemployment is quite evenly distributed among males and females, african-americans and whites, and young and old workers.
- Bunemployment rate for teenagers is below the rate for the labor force as a whole
- Cunemployment rate for women is considerably lower than that for men
- Dunemployment rate for african-americans is about twice the rate for whites
81a college graduate using the summer following graduation to search for a job would best be classified as:
- Anot officially a member of the labor forces
- Ba part of structural unemployment
- Ca part of cyclical unemployment
- Da part of frictional unemployment
Información
- Descripción
- quiz on macroeconomics from the textbook "Macroeconoics:priciples, problems, and policies." 19th edition by McConnell, Brue, and Flynn. Chapters 1-9
- Autor
- Jess Todd
- Idioma
- English
- Visitas
- 332
- Etiquetas
- Valoración
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