Interest rates typically rise when
A) bond prices increase.
B) bond prices decrease.
C) the coupon payout on existing bonds increase.
D) the maturity date on existing bonds extends farther into the future.
Ques. 2Which of the following is an important factor affecting economic growth?
A) the rate of saving
B) exchange rates
C) the rate of interest
D) the level of prices
Ques. 3Unemployed U.S. residents who are, in effect, merely searching for work between jobs, are defined as
A) frictionally unemployed.
B) structurally unemployed.
C) cyclically unemployed.
D) seasonally unemployed.
Ques. 4Mrs. Smith is given a government subsidy for an apartment in a public housing project. The apartment
A) is not subject to the principle of rival consumption.
B) is not a public good.
C) has widespread benefits and concentrated costs.
D) is subject to the free-rider problem.
Ques. 5When are black markets likely to arise?
A) when the government removes a price floor
B) when the government enforces a price ceiling
C) when there is a surplus of a good
D) when the quantity supplied of a good exceeds the quantity demanded
Ques. 6The fastest-growing part of the federal budget is
A) national defense.
B) payments for services rendered.
C) entitlements.
D) government salaries.
Ques. 7The approach to understanding the determination of real GDP and the price level that emphasizes incomplete adjustment in the prices of many goods is
A) the classical model.
B) the Keynesian model.
C) Say's law.
D) the aggregate demand model.
Ques. 8All of the following are major factors limiting economic growth in developing countries EXCEPT
A) dead capital.
B) deregulation.
C) inefficient government regulation.
D) corruption.
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