Pregunta 1
Pregunta
Over time the U.S. economy has had
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fluctuations in growth and unemployment
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full employment without serious inflation
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continuous growth in output per person
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steadily increasing unemployment
Pregunta 2
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Economics is best defined as the study of how
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to clarify resources used to produce final goods and services
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resources are apportioned to satisfy human wants
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modern businesses have grown and prospered
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technology can be used to change scarce resources into free resources
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pure capitalism has become the best system for satisfying basic human wants
Pregunta 3
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Economists generally classify economic resources into the following three categories
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men, money, and machines
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savings, spending, and investment
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land, labor, and capital
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physical, human, and technological
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employed, unemployed, and free
Pregunta 4
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Society's pool of knowledge concerning the industrial arts is called
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labor
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land
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capital
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opportunity cost
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technology
Pregunta 5
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The purpose of an economic model is to
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be a complex, exact replica of reality
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demonstrate which values and beliefs are best for the economy
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make predictions about the real world
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manage the economy like an automatic pilot
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set the prices in a price system
Pregunta 6
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When Adam Smith described the invisible hand, he was talking about
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The price system
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central planning
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opportunity cost
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the division of labor
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disguised unemployment
Pregunta 7
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For this economy to produce 5 million units of consumer goods and 3 million units of defense goods,
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resources must be used inefficiently
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the production possibilities curve must be pushed outward
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unemployment must grow
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income inequality must increase
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society's resources must shrink
Pregunta 8
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The U.S economy may be best characterized as an example of
Pregunta 9
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A market demand curve
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Shifts as the price falls
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slopes outward from left to right
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is unaffected by changes in consumers' tastes and incomes
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measures the rate of growth of per-capita output
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shows the amount buyers would like to purchase at various prices
Pregunta 10
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A decrease in demand
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Results from a decrease in supply
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means that the demand curve has shifted to the left
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increases the quantity sold in the market
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reflects an increasing consumer preference for the item
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causes the equilibrium price to rise
Pregunta 11
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In general, supply curves slope outward to the right because
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increases in the price of a commodity lead to right outward shifts of the supply curve
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rising prices motivate producers to offer more units for sale
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technology progresses over time, increasing the ability of firms to produce more at existing prices
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of increases in input prices as production is increased
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empirical studies almost always show that the is the case
Pregunta 12
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For a maket to exhibit excess demand
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supply must exceed demand
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the equilibrium price must be too high to clear the market
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the actual price must be below the equilibrium price
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the demand curve must slope outward
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the market must be growing
Pregunta 13
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The equilibrium price is
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more than $12 per pound
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$12 per pound
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$9 per pound
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$7 per pound
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less than $7 per pound
Pregunta 14
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In a free market, actual price will
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remain unchanged as equilibrium price changes
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move toward equilibrium price
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cause demand and supply curves to shift direction
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always exceed equilibrium price
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be very difficult to calculate
Pregunta 15
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If farmers currently produce 800 bushels
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the actual price is $2
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the market is in equilibrium
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actual price is below equilibrium price and will tend to rise
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Only increases in demand would encourage the rise above 80 units
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The market exhibits to surplus
Pregunta 16
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Gross domestic product:
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equals the total wages paid in a year
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is a measure of government output
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equals the total value of final goods and services produced in a year
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is the sum of all goods, both final and intermediate
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is an obsolete economic indicator of inflation
Pregunta 17
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When measuring GDP, we double count if we include the value of:
Pregunta 18
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GDP expressed in constant dollars is called:
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capital accumulation
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the net national product
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permanent income
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real GDP
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a price index
Pregunta 19
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To deflate, one must:
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multiply the price ratio by 100
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divide the current dollar values by the price index
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subtract the constant dollar values from current dollar values
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add the price index in the current year to the price index in the base year
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find the difference between the values of two different sets of goods in a given year
Pregunta 20
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(Data) According to the data in the table, from 2002 to 2003, GDP in constant dollars rose by:
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6.5 percent
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5.7 percent
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4.8 percent
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3.1 percent
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1.7 percent
Pregunta 21
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The best example of consumer nondurable counted in this year's GDP is a:
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Hair cut
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Refrigerator
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Pizza
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Concert
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Used car
Pregunta 22
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A. $1240 billion
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$1250 billion
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$1340 billion
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$1640 billion
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$2590 billion
Pregunta 23
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the stock of capital goods fell during the year
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the government balanced its budget
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value-added exceeded the income
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output exceeded GDP
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imports exceeded exports
Pregunta 24
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The level of real national output purchased at each price level is called:
Pregunta 25
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If the money supply is fixed, increases in the price level reduce:
Pregunta 26
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When the economy is at equilibrium in the horizontal range of the short run aggregate supply curve,:
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There is little upward pressure on prices because of widespread unemployment
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The aggregate demand curve must be horizontal as well
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Economic conditions similar to those experienced during world war II prevail
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Real output is equal to potential output
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A change in aggregate demand causes price levels to fall
Pregunta 27
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People temporarily out of work because they are changing jobs or looking for their first jobs are examples of
Pregunta 28
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People actively looking for work who cannot find jobs because of an insufficiency of aggregate demand are examples of:
Pregunta 29
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During a period when total spending is too high relative to potential output, the economy experiences:
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Excessive unemployment
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Failing average prices
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A glut
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A great crash
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Inflation
Pregunta 30
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The phase of the business cycle in which output is highest relative to its potential level is the:
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Peak
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Trough
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Recession
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Expansion
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Trend
Pregunta 31
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In general, a business cycle goes through its phases in the following sequence:
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Trough, peak, expansion, recession
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Recession, trough, expansion, peak
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Trough, recession, expansion, peak
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Trough, expansion, recession, peak
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Expansion, recession, trough, peak
Pregunta 32
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If Carolyn's consumption rises by $5,000 as her income from $26,000 to $32,000 per year, her marginal propensity to consume is
Pregunta 33
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The average propensity to consume equals the
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Change in personal consumption expenditures divided by the current level of consumption expenditures
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amount spent on consumption divided by the amount of disposable income
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change in personal consumption expenditures divided by the amount of disposable income
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personal consumption expenditures divided by personal saving
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sum of personal consumption expenditures and disposable income divided by two
Pregunta 34
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An MPS of .32 implies that the MPC is
Pregunta 35
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If the interest rate is 7%, the number of projects undertaken would be
Pregunta 36
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The relationship between household spending and disposable income is known as the
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investment function
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multiplier
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gross domestic product
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consumption function
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saving function
Pregunta 37
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If disposable income raises by $100 billion and personal consumption expenditure rises by $60 billion, what is the marginal propensity to consume?
Pregunta 38
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If disposable income is $1,800 billion, the average propensity to consume is
Pregunta 39
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If disposable income is $1,900 billion, saving is
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$16 billion
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$20 billion
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$144 billion
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$160 billion
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$180 billion
Pregunta 40
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If the multiplier is 3, a $1 billion decrease in government spending will
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lower equilibrium GDP by 1/3
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Lower equilibrium GDP by 3
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Raise equilibrium GDP by 1/3
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raise equilibrium GDP by 3
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leave equilibrium GDP unchanged but change intended spending by 1/3
Pregunta 41
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One reason not to wait for wage rates and other input prices to fall and shift the short-run aggregate supply curve to the right in an economy experiencing a recessionary gap is that
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such attention will result in inflation
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unemployment would fall too fast for a complex adjustment
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a government budget deficit would be created
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it would take too long because wages and prices tend to be sticky
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falling prices would reduce exports
Pregunta 42
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Aggregate demand shifts to the right when
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government spending is reduced
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tax rates are reduced
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equilibrium GDP is reduced
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total intended spending is reduced
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the inflator gap is reduced
Pregunta 43
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When the equilibrium level of out put in an economy is above its potential output
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the government should raise its spending
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there is an inflationary gap
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the long-run aggregate supply curve is horizontal
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unemployment rates are high
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wages and prices must rapidly falling
Pregunta 44
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In an economy experiencing a high unemployment rate, appropriate fiscal policy would attempt to
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wait for wages and other input prices to fall
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discourage firms from investing
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increase personal tax rates
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reduce welfare payments to households
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shift the aggregate demand curve to the right
Pregunta 45
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When inflation constitutes a major economic problem, government policy may attempt to
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shift the aggregate demand curve to the left
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shift the aggregate supply curve to the ;eft
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encourage and augment spending
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raise the equilibrium price level
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raise the minimum wage to reduce the effective price level
Pregunta 46
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Government anti-inflationary fiscal policy
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is intended to shift the short-run aggregate supply curve to the left
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typically leads to an increase in total real output and a rise in the price level
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leads to reduction in total real output when the short-run aggregate supply curve is positively sloped
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shifts the aggregate demand curve to the right
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is undertaken when the economy is in the horizontal
Pregunta 47
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the value of money
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rises during periods of inflation
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is inversely related to the price level
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is unaffected by creeping inflation
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has remained relatively constant in the United States over the past 25 years
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falls as real income rises
Pregunta 48
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means demand is falling and supply is rising
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increases the value of the money supply
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rarely affects the distribution of income or wealth
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is generally highest when there is plenty of excess capacity and unemployed resources
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is a general upward movement in the average level of prices
Pregunta 49
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In the base year, a price index has a value of
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-1
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zero
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1/100
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100x100
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100
Pregunta 50
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hurts people living on fixed incomes
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inevitably tends to die out
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has been the experience of this country since its founding
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does not tend to redistribute income
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inevitably leads to deflation
Pregunta 51
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During periods of high inflation, investors tend to buy real estate, art, and commodities like gold because
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during inflation there are the only items that are not in short supply
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such items tend to grow in value at a rate higher than the inflation rate
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real estate and commodities are very cheap during periods of inflation
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banks and other lenders are very eager to support such investments
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the purchasing power of money trises during inflationary periods
Pregunta 52
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Demand-side inflation is most likely to occur when the economy
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has substantial excess capacity
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is approaching or operating at full employment
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has an aggregate demand curve shifting to the left
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has a horizontal aggregate supply curve
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has labor productivity rising faster than wages
Pregunta 53
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Demand-side and supply-side inflations differ in that, in one case,
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total real output rises, and in other, it falls
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the price level rises, and in other, it falls
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borrowers benefit and, in other, savers benefit
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businesses benefit, and in other, householders benefit,
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inflation is temporary, and in other, inflation is permanent
Pregunta 54
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In part, supply-side inflation
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is at the heart of demand-side inflation
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is an example of too little money chasing too may goods
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is an outgrow of a perfectly competitive market structure
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results from significant price increases of important resources
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occurs when labor productivity rises faster than wage rates
Pregunta 55
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Currency in the United States is
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convertible into gold at fixed rates
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fiat money
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issued by commercial banks based on their deposits
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another name for checking deposits and NOW accounts
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any interest bearing government note
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bruh
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All of them
Pregunta 56
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Fiat money is any money that
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exist in the form of coin or currency
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is issued by the Federal Reserve
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has a greater face value than its purchasing power
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is money because the government says so and the people accept it
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earns interest when deposited in banks
Pregunta 57
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Assets a government says are money and are accepted by the public as money are called
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near money
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funny money
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sophisticated money
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nominal money
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fiat money