Economics

In the DMP model, (Multiple Choice Question)

In the DMP model, (Multiple Choice Question)

In the DMP model,
A) There are N firms, Q is the labor force, and N-Q is the vacancy rate.
B) There are N consumers, Q is the labor force, and N+Q is the number of consumers choosing home production.
C) There are N consumers, Q is the

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Gordis

From 2009 to 2012 (Multiple Choice Question)

From 2009 to 2012 (Multiple Choice Question)

From 2009 to 2012
A) The Beveridge curve shifted to the right.
B) The Beveridge curve cannot be discerned in the data.
C) The Beveridge curve became flat.
D) The Beveridge curve shifted to the left.

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Gordis

The negative correlation between the vacancy rate and the unemployment rate is called

The negative correlation between the vacancy rate and the unemployment rate is called

The negative correlation between the vacancy rate and the unemployment rate is called
A) The Phillips curve.
B) The Beveridge curve.
C) The Laffer curve.
D) The Fisher relation.

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Gordis

If A is the number of job vacancies in the aggregate, Q is the labor force, and U is the number of u

If A is the number of job vacancies in the aggregate, Q is the labor force, and U is the number of u

If A is the number of job vacancies in the aggregate, Q is the labor force, and U is the number of unemployed, then the vacancy rate is measured by
A) A/(A+Q-U)
B) U/(A+Q-U)
C) A/(A+Q+U)
D) A/(Q

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Gordis

The employment/population ratio is

The employment/population ratio is

The employment/population ratio is
A) less volatile than the participation rate.
B) roughly constant over time.
C) smaller in 2012 than in 1970.
D) more volatile than the participation rate.

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Gordis

The participation rate was higher in 2012 than in 1948 because

The participation rate was higher in 2012 than in 1948 because

The participation rate was higher in 2012 than in 1948 because
A) of the Great Moderation
B) the labor force was larger in 2012 than in 1948.
C) the unemployment rate became less variable over time.
D) the participation rate of wo

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Gordis

The participation rate is (Multiple Choice Question)

The participation rate is (Multiple Choice Question)

The participation rate is
A) a leading variable
B) countercyclical
C) more variable than GDP
D) procyclical

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Gordis

The average unemployment rate was lowest during what period?

The average unemployment rate was lowest during what period?

The average unemployment rate was lowest during what period?
A) 2000-2010
B) 1950-1970
C) 1980-2000
D) 1980-1990

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Gordis

In the 1948-2012 data, the unemployment rate was highest in

In the 1948-2012 data, the unemployment rate was highest in

In the 1948-2012 data, the unemployment rate was highest in
A) 1975
B) 1991
C) 1982
D) 2009

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Gordis

The unemployment rate is (Multiple Choice Question)

The unemployment rate is (Multiple Choice Question)

The unemployment rate is
A) countercyclical
B) smooth
C) procyclical
D) a leading variable

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Gordis

If N is the working-age population, Q is the labor force, and U is the number of unemployed, then th

If N is the working-age population, Q is the labor force, and U is the number of unemployed, then th

If N is the working-age population, Q is the labor force, and U is the number of unemployed, then the employment/population ratio is measured as
A) Q/N
B) N/Q
C) U/Q
D) (Q-U)/N

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Gordis

If N is the working-age population, Q is the labor force, and U is the number of unemployed, then th

If N is the working-age population, Q is the labor force, and U is the number of unemployed, then th

If N is the working-age population, Q is the labor force, and U is the number of unemployed, then the employment/population ratio is measured as
A) U/Q
B) Q/N
C) (Q-U)/N
D) N/Q

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Gordis

If N is the working-age population, Q is the labor force, and U is the number of unemployed, then th

If N is the working-age population, Q is the labor force, and U is the number of unemployed, then th

If N is the working-age population, Q is the labor force, and U is the number of unemployed, then the participation rate is measured as
A) U/N
B) Q/N
C) Q/U
D) (Q-U)/N

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Gordis

If N is the working-age population, Q is the labor force, and U is the number of unemployed, then th

If N is the working-age population, Q is the labor force, and U is the number of unemployed, then th

If N is the working-age population, Q is the labor force, and U is the number of unemployed, then the unemployment rate is measured as
A) U/Q
B) U/N
C) Q/N
D) U/(N-Q)

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Gordis

If public goods can be produced more efficiently, then

If public goods can be produced more efficiently, then

If public goods can be produced more efficiently, then
A) public goods production stays the same, and private goods increase.
B) public goods production falls, and private goods production rises.
C) public goods and private goods both

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Gordis

If GDP increases in the model of public goods

If GDP increases in the model of public goods

If GDP increases in the model of public goods
A) all of the increase in GDP goes into public goods.
B) there is substitution from private goods to public goods.
C) people are richer, so they need less public goods.
D) if the gover

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Gordis

In the model of public goods, when the government chooses public goods provision optimally

In the model of public goods, when the government chooses public goods provision optimally

In the model of public goods, when the government chooses public goods provision optimally
A) there is no public goods production.
B) the marginal rate of substitution of private goods for public goods equals the marginal rate of transforma

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Gordis

In the model of public goods

In the model of public goods

In the model of public goods
A) there is a production function.
B) GDP is fixed.
C) public goods production is proportional to labor input.
D) labor supply matters.

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Gordis

In the model of public goods

In the model of public goods

In the model of public goods
A) private consumption and government spending are equal.
B) consumers benefit from private goods and public goods.
C) the government provides goods at no cost to the public.
D) government spending is

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Gordis

Supply-side economists argue that (Multiple Choice Question)

Supply-side economists argue that (Multiple Choice Question)

Supply-side economists argue that
A) one can increase tax revenue by decreasing the tax rate.
B) one should get rid of all taxes.
C) increasing tax rates always hurts tax revenue.
D) tax rates should not be progressive.

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Gordis

The Laffer curve is a curve showing

The Laffer curve is a curve showing

The Laffer curve is a curve showing
A) government expenses as a function of how liberal the government is.
B) output as a function of the tax rate.
C) tax revenue as a function of the tax rate.
D) the tax rate as a function of gov

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Gordis

When the tax rate increases, the tax revenue

When the tax rate increases, the tax revenue

When the tax rate increases, the tax revenue
A) may increase or decrease.
B) does not change.
C) always increases.
D) always decreases.

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Gordis

The tax base is (Multiple Choice Question)

The tax base is (Multiple Choice Question)

The tax base is
A) the lowest tax rate.
B) the average tax rate.
C) the tax rate for the base year.
D) the object being taxed.

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Gordis

At the competitive equilibrium with a positive proportional labor income tax

At the competitive equilibrium with a positive proportional labor income tax

At the competitive equilibrium with a positive proportional labor income tax
A) the real wage before tax is lower than the marginal product of labor.
B) We cannot say.
C) the real wage before tax equals the marginal product of labor.

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Gordis

At the competitive equilibrium with a positive proportional labor income tax

At the competitive equilibrium with a positive proportional labor income tax

At the competitive equilibrium with a positive proportional labor income tax
A) the real wage after tax exceeds the marginal product of labor.
B) We cannot say.
C) the real wage after tax equals the marginal product of labor.
D) t

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Gordis

How does an increase in the proportional labor income tax modify the consumer's budget constraint?

How does an increase in the proportional labor income tax modify the consumer's budget constraint?

How does an increase in the proportional labor income tax modify the consumer's budget constraint?
A) the slope decreases (constraint gets steeper)
B) the slope increases (constraint gets flatter)
C) a parallel move up
D) a p

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Gordis

With a linear production function in labor only, which of the following must be true?

With a linear production function in labor only, which of the following must be true?

With a linear production function in labor only, which of the following must be true?
A) The representative household works as much as possible.
B) The real wage equals total factor productivity.
C) The representative firm makes large

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Gordis

Proportional income taxation is distorting because

Proportional income taxation is distorting because

Proportional income taxation is distorting because
A) firms do all they can to avoid paying taxes.
B) the competitive equilibrium is not Pareto optimal.
C) people do all they can to avoid paying taxes.
D) the government budget con

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Gordis

If the government replaces a lump sum tax with a proportional labor income tax, then

If the government replaces a lump sum tax with a proportional labor income tax, then

If the government replaces a lump sum tax with a proportional labor income tax, then
A) employment decreases and output increases.
B) employment increases and output decreases.
C) employment and output decrease.
D) employment and

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Gordis

A one-unit increase in government expenditures should, according to the model, increase GDP by

A one-unit increase in government expenditures should, according to the model, increase GDP by

A one-unit increase in government expenditures should, according to the model, increase GDP by
A) between zero and one unit.
B) one unit.
C) more than one unit.
D) 0.

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Gordis

The variable G considered in the model encompasses

The variable G considered in the model encompasses

The variable G considered in the model encompasses
A) government expenses on goods and services.
B) government expenses on goods.
C) government expenses on goods and services as well as transfers.
D) government expenses on goods a

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Gordis

Real business cycle theory argues that the primary cause of business cycles is fluctuations in

Real business cycle theory argues that the primary cause of business cycles is fluctuations in

Real business cycle theory argues that the primary cause of business cycles is fluctuations in
A) total factor productivity.
B) preferences.
C) government spending.
D) the importance of externalities.

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Gordis

Changes in total factor productivity are plausible causes of business cycles because

Changes in total factor productivity are plausible causes of business cycles because

Changes in total factor productivity are plausible causes of business cycles because
A) of the welfare theorems.
B) the model matches many stylized facts.
C) the U.S. government is following supply-side economic policy.
D) prices

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Gordis

Changes in total factor productivity are plausible causes of business cycles because productivity-in

Changes in total factor productivity are plausible causes of business cycles because productivity-in

Changes in total factor productivity are plausible causes of business cycles because productivity-induced business cycles correctly predict
A) real wages and total hours must be procyclical.
B) total hours worked and consumption must be pro

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Gordis

In response to an increase in total factor productivity

In response to an increase in total factor productivity

In response to an increase in total factor productivity
A) both the substitution effect and the income effect suggest that hours worked should increase.
B) the substitution effect suggests that hours worked should increase, while the income

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Gordis

Suppose total factor productivity increases. Which of the following is incorrect?

Suppose total factor productivity increases. Which of the following is incorrect?

Suppose total factor productivity increases. Which of the following is incorrect?
A) Households are better off.
B) Output goes up.
C) The real wage goes down.
D) Consumption goes up.

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Gordis

An increase in total factor productivity

An increase in total factor productivity

An increase in total factor productivity
A) reduces consumption, increases output, and increases the real wage.
B) increases consumption, increases output, and increases the real wage.
C) reduces consumption, increases output and reduc

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Gordis

An increase in total factor productivity shifts the PPF

An increase in total factor productivity shifts the PPF

An increase in total factor productivity shifts the PPF
A) upward, and also changes its slope.
B) upward, but does not change its slope.
C) downward, and also changes its slope.
D) downward, but does not change its slope.

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Gordis

Which feature of the business cycle does the one-period model replicate with shocks to government ex

Which feature of the business cycle does the one-period model replicate with shocks to government ex

Which feature of the business cycle does the one-period model replicate with shocks to government expenditures?
A) countercyclical prices
B) procyclical consumption
C) procyclical employment
D) procyclical real wages

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Gordis

Changes in government spending are not likely causes of business cycles because changes in governmen

Changes in government spending are not likely causes of business cycles because changes in governmen

Changes in government spending are not likely causes of business cycles because changes in government spending predict
A) procyclical consumption.
B) procyclical employment.
C) countercyclical employment.
D) countercyclical consum

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Gordis