If real gross domestic product (GDP) for a particular year is 5 trillion and the GDP price index for that year is 136, the nominal gross domestic product (GDP) for that year is _____.
a. 3.7 trillion
b. 4 trillion
c. 6.8 trillion
d. 27 trillion
e. 68 trillion
QUESTION 2The MFC curve increases for a monopsonist because:
a. hiring more workers raises total labor costs.
b. output price rises as a firm's market power increases.
c. hiring more workers does not affect wages.
d. the later workers hired are less productive.
e. as more workers are hired, all workers receive higher wages.
QUESTION 3Which of the following measures did President Bush adopt in 2001 to get the economy moving again?
a. A hike in the wages of workers
b. A ten-year tax cut
c. An increase in taxes on high-income households
d. Liquidation of money supply
e. A decrease in government spending
QUESTION 4If a monopsonist offers a wage of 6, he finds that 1,200 people are willing to work for him. This means that the:
a. marginal factor cost is 6.
b. marginal factor cost is 200.
c. total wage cost is 1,200.
d. total wage cost is 7,200.
e. 6 wage is too high.
QUESTION 5If nominal gross domestic product (GDP) for a particular year is 6 trillion and real gross domestic product (GDP) for that year is 5 trillion, then the GDP price index for that year is _____.
a. 1.2
b. 17
c. 20
d. 83
e. 120
QUESTION 6Which of the following factors did not contribute to the federal budget surpluses in the 1990s?
a. Higher taxes on the rich
b. More federal government spending discipline
c. Market globalization
d. Slower consumer spending
e. Rising business optimism based on technological innovation
QUESTION 7Lorna's Lumberyard is a monopsony. Lorna estimates that at a wage of 10, 100 workers would be willing to work for her. Similarly, at a wage of 12, 200 workers would be willing to work. Her marginal factor cost is:
a. 10.
b. 14.
c. 120.
d. 140.
e. 240.
QUESTION 8If real gross domestic product (GDP) in a particular year is 5,000 trillion and nominal gross domestic product (GDP) in that same year is 4,000 trillion, then the:
a. consumer price index (CPI) is 125.
b. economic activity has decreased by 20 percent.
c. GDP price index is 125.
d. GDP price index is 80.
e. economy has grown by 20 percent.
QUESTION 9Large federal budget deficits:
a. can best be reduced by automatic stabilizers.
b. make it difficult to use discretionary fiscal policy.
c. in the mid to late 1980s were the result of a severe recession.
d. constitute only about 1 percent of GDP.
e. have little to do with the growth of the federal debt.
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