Suppliers will provide more of a good when
A) the market price increases.
B) the good is a normal good.
C) resource prices increase.
D) there is a decrease in demand.
Ques. 2The seasonally adjusted unemployment rate
A) reports only seasonal unemployment.
B) removes the seasonal variation from the unemployment rate.
C) is impossible to compute since no one knows what the seasonal component equals.
D) is another name for structural unemployment.
Ques. 3Products can be differentiated
A) if the buyers are homogeneous and their number increases.
B) by location and by brand name.
C) only by brand name.
D) none of the above
Ques. 4When a country has a large amount of dead capital
A) there is too much political freedom.
B) there is a large amount of economic growth.
C) large amounts of capital will be inefficiently employed.
D) a country's exports increase.
Ques. 5What are three reasons people want to hold money balances?
What will be an ideal response?
Ques. 6An important factor in determining a country's rate of economic growth is
A) the diversity of its population.
B) its rate of saving.
C) the size of its labor force.
D) the proportion of the adult population that is working.
Ques. 7Keynesian economics predicts that if government policy makers deem current equilibrium real Gross Domestic Product (GDP) to be too low, then an appropriate policy action would be to
A) do nothing, because the economy is self-adjusting.
B) raise government spending, thereby increasing aggregate demand and pushing up real Gross Domestic Product (GDP) with little or no inflationary consequences.
C) increase taxes, thereby causing aggregate demand to increase and inducing a rise in real Gross Domestic Product (GDP) with little or no inflationary consequences.
D) reduce the money stock, thereby causing aggregate demand to decrease and inducing a rise in fall in the price level that generates an increase in total planned expenditures.
Ques. 8A concentration ratio is used to
A) determine whether a market structure is oligopoly.
B) determine the importance of labor in the production process.
C) determine the degree of homogeneity in the market.
D) see if a firm qualifies for federal assistance.
Ques. 9How is the market for gasoline affected if the excise tax on gasoline is reduced?
A) The supply of gasoline decreases.
B) The supply of gasoline increases.
C) The equilibrium quantity of gasoline decreases.
D) The equilibrium price of gasoline increases.
Ques. 10Private goods are goods
A) that carry a price.
B) for which price is greater than zero.
C) for which the more one person has the less is available for someone else.
D) that are produced by the government.
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