Economics

What do we assume about households and firms?

What do we assume about households and firms?

What do we assume about households and firms?
A) They optimize.
B) They look after each other.
C) They act irrationally.
D) They do what the government tells them to do.

Ao9   216   3 Replies

Gordis

What characterizes a competitive equilibrium?

What characterizes a competitive equilibrium?

What characterizes a competitive equilibrium?
A) It is costly to experiment with policies.
B) Governments stay out of the market.
C) Economic agents are price-takers.
D) Markets are rationed.

Ao9   99   3 Replies

Gordis

The structure of a macroeconomic model involves all of the following except

The structure of a macroeconomic model involves all of the following except

The structure of a macroeconomic model involves all of the following except
A) the available technology.
B) the preferences of consumers.
C) the available resources.
D) the behavior of consumers and firms.

Ao9   135   3 Replies

Gordis

Macroeconomic models are (Multiple Choice Question)

Macroeconomic models are (Multiple Choice Question)

Macroeconomic models are
A) simple abstractions of reality.
B) accurate descriptions of the economy.
C) consistent with all economic data.
D) never wrong.

Ao9   147   3 Replies

Gordis

A useful macroeconomic model (Multiple Choice Question)

A useful macroeconomic model (Multiple Choice Question)

A useful macroeconomic model
A) is simple.
B) never generates testable hypotheses.
C) provides a lot of intricate details.
D) is extremely realistic.

Ao9   150   3 Replies

Gordis

When we say the U.S. economy has grown on average at 2.1%, we mean

When we say the U.S. economy has grown on average at 2.1%, we mean

When we say the U.S. economy has grown on average at 2.1%, we mean
A) the growth rate of nominal GDP.
B) the growth rate of per-capita nominal GDP.
C) the growth rate of per-capita real GDP.
D) the inflation rate.

Ao9   161   3 Replies

Gordis

Over the twentieth century, growth in per-capita GNP was highest

Over the twentieth century, growth in per-capita GNP was highest

Over the twentieth century, growth in per-capita GNP was highest
A) during the 1980s.
B) during World War II.
C) during the 1960s.
D) immediately prior to the Great Depression.

Ao9   125   3 Replies

Gordis

For the study of economic growth, it is most helpful to examine movements in ________; for the study

For the study of economic growth, it is most helpful to examine movements in ________; for the study

For the study of economic growth, it is most helpful to examine movements in ________; for the study of business cycles, it is most helpful to examine movements in ________.
A) trend GNP; trend GNP
B) deviations from trend in GNP; trend GNP

Ao9   147   3 Replies

Gordis

The business cycle component of the log of real per-capita GNP is equal to

The business cycle component of the log of real per-capita GNP is equal to

The business cycle component of the log of real per-capita GNP is equal to
A) log of trend GNP - log of actual real GNP.
B) log of actual real GNP ÷ log of trend GNP.
C) log of actual real GNP - log of trend GNP.
D) log of trend G

Ao9   124   3 Replies

Gordis

The relationship between the growth rate of an economic variable, gt, and its level, yt, can be appr

The relationship between the growth rate of an economic variable, gt, and its level, yt, can be appr

The relationship between the growth rate of an economic variable, gt, and its level, yt, can be approximated by
A) yt = log gt - log gt - 1.
B) log gt = yt - yt - 1.
C) gt = logt - log yt - 1. 
D) gt = yt - yt - 1.

Ao9   156   3 Replies

Gordis

Which of the following assertions is false?

Which of the following assertions is false?

Which of the following assertions is false?
A) The Great Depression was a typical business cycle.
B) Very rapid growth occurred during World War II.
C) On average, the U.S. economy grows at a rate of 2.1%.
D) Real GDP per capita d

Ao9   103   3 Replies

Gordis

Over the course of the twentieth century, the typical American

Over the course of the twentieth century, the typical American

Over the course of the twentieth century, the typical American
A) became twice as rich.
B) became five times as rich
C) became eight times as rich.
D) remained equally as rich.

Ao9   405   3 Replies

Gordis

The two most important American business cycle events of the twentieth century were

The two most important American business cycle events of the twentieth century were

The two most important American business cycle events of the twentieth century were
A) the productivity slowdown and the Great Depression.
B) the Great Depression and stagflation.
C) government budget deficits and World War II.
D)

Ao9   117   3 Replies

Gordis

Primarily, macroeconomists use microeconomic principles to study

Primarily, macroeconomists use microeconomic principles to study

Primarily, macroeconomists use microeconomic principles to study
A) trends in the stock market and long-term economic growth.
B) long-run economic growth and antitrust policies.
C) long-run economic growth and business cycles.
D)

Ao9   170   3 Replies

Gordis

Which of the following questions is of most interest for MACROECONOMISTS?

Which of the following questions is of most interest for MACROECONOMISTS?

Which of the following questions is of most interest for MACROECONOMISTS?
A) Why do foreigners immigrate to the United States?
B) Why is there inflation?
C) Why does the steel industry want tariffs?
D) What is the appropriate stan

Ao9   97   3 Replies

Gordis

Which of the following topics is NOT a primary concern of macroeconomists?

Which of the following topics is NOT a primary concern of macroeconomists?

Which of the following topics is NOT a primary concern of macroeconomists?
A) differences in standards of living across countries
B) relative wages of skilled and unskilled workers
C) fluctuations in the level of economic activity

Ao9   152   3 Replies

Gordis

In 2011, the per-capita GDP in the United States, in 2005 dollars, was about

In 2011, the per-capita GDP in the United States, in 2005 dollars, was about

In 2011, the per-capita GDP in the United States, in 2005 dollars, was about
A) $17,500.
B) $43,000.
C) $47,500.
D) $27,500.

Ao9   145   3 Replies

Gordis

Your friend Tony opened a pizzeria. You helped him to advertise his pizza, which is in fact the best

Your friend Tony opened a pizzeria. You helped him to advertise his pizza, which is in fact the best

Your friend Tony opened a pizzeria. You helped him to advertise his pizza, which is in fact the best pizza in town. As a result, the demand for Tony's pizza increases and your friend, noticing lines of customers, raises the price of his pizza. B

malook90   479   3 Replies

duddy

Suppose a factory can be designed to produce either trucks or cars. The figure below shows the margi

Suppose a factory can be designed to produce either trucks or cars. The figure below shows the margi

11)   Suppose a factory can be designed to produce either trucks or cars. The figure below shows the marginal cost and marginal benefit of producing trucks in terms of the forgone cars.
a) What is the marginal benefit of the 25th truck?
b) Wh

malook90   490   3 Replies

duddy

Jean can either type her term paper or create Web pages during the limited time she has available. T

Jean can either type her term paper or create Web pages during the limited time she has available. T

1)   Jean can either type her term paper or create Web pages during the limited time she has available. The table below shows her PPF.
a) Can Jean type 90 pages and create 2 Web pages?
b) Use the above numbers to calculate the opportunity cos

malook90   551   3 Replies

duddy

The table below shows how the number of books Katie buys each year depends on her income.

The table below shows how the number of books Katie buys each year depends on her income.

The table below shows how the number of books Katie buys each year depends on her income.
a) What kind of relationship exists between Katie's income and the number of books she purchases?
b) Plot the relationship between Katie's i

malook90   535   3 Replies

duddy

What will the summer school cost you in terms of money explicitly paid

What will the summer school cost you in terms of money explicitly paid

Suppose you plan to go to school this summer. The cost of tuition and textbooks is $1,400 and housing, board, and entertainment will cost you $500. if you didn't go to school, you'd live in your parents' house for free, but your other

malook90   630   3 Replies

bio_man

Disagreements about whether the U.S. government should regulate international trade

Disagreements about whether the U.S. government should regulate international trade

Disagreements about whether the U.S. government should regulate international trade
A) began during the Great Depression.
B) began after World War I when government officials no longer believed in isolationism.
C) date back to the beg

Tidy   947   3 Replies

Alex Cevallos

At the beginning of 2013, with the tariff on Chinese tires having expired, Goodyear's profits ______

At the beginning of 2013, with the tariff on Chinese tires having expired, Goodyear's profits ______

At the beginning of 2013, with the tariff on Chinese tires having expired, Goodyear's profits ________ compared to the previous year, and Chinese tire imports ________.
A) rose; increased
B) rose; decreased
C) fell; increased

Tidy   919   3 Replies

Stefania Guevara

Tax reduction and simplification should ________ long-run aggregate supply and ________ aggregate de

Tax reduction and simplification should ________ long-run aggregate supply and ________ aggregate de

Tax reduction and simplification should ________ long-run aggregate supply and ________ aggregate demand.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease

Tidy   389   3 Replies

Lourdes_Cardona

The federal budget exhibited a $128.7 billion surplus in 2001 but moved to a deficit of $157.8 billi

The federal budget exhibited a $128.7 billion surplus in 2001 but moved to a deficit of $157.8 billi

The federal budget exhibited a $128.7 billion surplus in 2001 but moved to a deficit of $157.8 billion in 2002. Some argued the deficit was opened up because of the Bush 2001 tax cuts, but others argued that the deficit grew because of the recession

Tidy   236   3 Replies

Colin Hall

If the absolute value of the tax multiplier equals 1.6, real GDP is $13 trillion, and potential real

If the absolute value of the tax multiplier equals 1.6, real GDP is $13 trillion, and potential real

If the absolute value of the tax multiplier equals 1.6, real GDP is $13 trillion, and potential real GDP is $13.4 trillion, then taxes would need to be cut by ________ to restore the economy to potential real GDP.
A) $250 billion
B) $400 bi

Tidy   418   3 Replies

Jennifer Bunning

The argument advanced by Milton Friedman for adopting a monetary growth rule is that

The argument advanced by Milton Friedman for adopting a monetary growth rule is that

The argument advanced by Milton Friedman for adopting a monetary growth rule is that
A) active monetary policy potentially destabilizes the economy.
B) the Fed can control the money supply, but not the level of interest rates.
C) a con

Tidy   493   3 Replies

Goomects

When tax revenues equal government outlays, the situation is referred to as

When tax revenues equal government outlays, the situation is referred to as

When tax revenues equal government outlays, the situation is referred to as
A) a balanced budget.
B) an equivalent budget.
C) an equal budget.
D) an equilibrium budget.
E) a legal budget.

Loraine   689   3 Replies

Jillian Goelz

When the macroeconomic equilibrium is such that real GDP is less than potential real GDP, the econom

When the macroeconomic equilibrium is such that real GDP is less than potential real GDP, the econom

When the macroeconomic equilibrium is such that real GDP is less than potential real GDP, the economy is suffering from ________, and the government policy to eliminate this gap will ________ real GDP and ________ the price level.
A) a recession

Loraine   363   3 Replies

Sydnie

The 2008-2009 recession must have been a result of ________ because otherwise the combination of the

The 2008-2009 recession must have been a result of ________ because otherwise the combination of the

The 2008-2009 recession must have been a result of ________ because otherwise the combination of the ________ cannot be explained.
A) a decrease in AD and an increase in AS; fall in the price level and the decrease in real GDP
B) a decrease

Loraine   661   3 Replies

Drybones148

A combination of declining real GDP and rising price level is referred to as

A combination of declining real GDP and rising price level is referred to as

A combination of declining real GDP and rising price level is referred to as
A) an expansion.
B) a trough.
C) stagflation.
D) deflation.
E) a depression.

Loraine   381   3 Replies

Selena Villa

Although gold is highly valued by most people, it is difficult to use as a medium of exchange. Expla

Although gold is highly valued by most people, it is difficult to use as a medium of exchange. Expla

Although gold is highly valued by most people, it is difficult to use as a medium of exchange. Explain.

Tidy   226   3 Replies

Victoria Nerkowski

Starting from long-run equilibrium, use the basic aggregate demand and aggregate supply diagram to s

Starting from long-run equilibrium, use the basic aggregate demand and aggregate supply diagram to s

Starting from long-run equilibrium, use the basic aggregate demand and aggregate supply diagram to show what happens in both the long run and the short run when there is a decline in wealth.

Tidy   291   3 Replies

xxSwagReviewer4

Regulating the amount of money in the United States is one of the most important responsibilities of

Regulating the amount of money in the United States is one of the most important responsibilities of

Regulating the amount of money in the United States is one of the most important responsibilities of the
A) State Department.
B) state governments.
C) Treasury Department.
D) Federal Reserve.
E) U.S. Mint.

Loraine   898   3 Replies

Erin Suhr

The automatic mechanism ________ the price level in the case of ________ and ________ the price leve

The automatic mechanism ________ the price level in the case of ________ and ________ the price leve

The automatic mechanism ________ the price level in the case of ________ and ________ the price level in the case of ________.
A) raises; recession; lowers; expansion
B) lowers; expansion; lowers; recession
C) raises; expansion; raises

Tidy   362   3 Replies

Ian Torres Garza

The required reserve ratio is 10 percent and Charlie deposits $3,000 in her checking account. The ba

The required reserve ratio is 10 percent and Charlie deposits $3,000 in her checking account. The ba

The required reserve ratio is 10 percent and Charlie deposits $3,000 in her checking account. The bank must
A) increase reserves by $3,000.
B) increase reserves by $300.
C) decrease reserves by $3,000.
D) decrease reserves by $300

Loraine   771   3 Replies

Robert Daniels

Which of the following is considered a negative supply shock?

Which of the following is considered a negative supply shock?

Which of the following is considered a negative supply shock?
A) increasing immigration in the economy causes the labor supply to rise
B) an improvement in technology
C) an increase in unemployment
D) an unexpected decrease in the

Tidy   310   3 Replies

et96924

Which statement is most correct about the types of deposits a commercial bank can accept?

Which statement is most correct about the types of deposits a commercial bank can accept?

Which statement is most correct about the types of deposits a commercial bank can accept?
A) A commercial bank accepts checking, savings and time deposits.
B) A commercial bank can only accept checking deposits from commercial enterprises.

Loraine   373   3 Replies

Aide Brehm

In December 2009, currency was $400 billion, traveler's checks were $5 billion; checkable deposits o

In December 2009, currency was $400 billion, traveler's checks were $5 billion; checkable deposits o

In December 2009, currency was $400 billion, traveler's checks were $5 billion; checkable deposits owned by individuals and businesses were $600 billion, saving deposits were $2,00 billion, time deposits were $1,500 billion; and money market fun

Loraine   1240   3 Replies

Khushboo Haresh Patel