When expectations of inflation are revised upward, the short-run Phillips curve:
a. shifts rightward.
b. becomes steeper.
c. shifts leftward.
d. becomes flatter.
Question 2Which of the following activities, if any, represents an external benefit?
a. The benefit to a consumer from watching a film on DVD.
b. The reduction in air quality resulting from industrial development in an urban area.
c. The increase in the value of property belonging to your neighbors when you hire a landscaper to beautify your front yard.
d. The reduction in property values when a new airport is built in a neighborhood.
Question 3Countries in which one would see a spread of ideas, information, images, and people would be categorized under _____ globalization.
a. economic
b. social
c. ethical
d. cultural
e. political
Question 4When expectations of inflation are revised downward, the short-run Phillips curve:
a. shifts rightward.
b. becomes steeper.
c. shifts leftward.
d. becomes flatter.
Question 5Countries that enjoy long distance flows of goods, capital, and services as well as information and perceptions that accompany market exchanges would be categorized under _____ globalization.
a. ethical
b. cultural
c. social
d. economic
e. political
Question 6Which of the following activities, if any, represents an external benefit?
a. The benefit to a consumer from consuming a Caesar salad.
b. The damage to a person's health from secondhand smoke.
c. The reduction in tourist revenues at a beach resort caused by an oil spill.
d. None of the above
Question 7As the economy moves down and to the left along a short-run aggregate supply curve, it:
a. moves up and to the right along the short-run Phillips curve.
b. moves up and to the left along the short-run Phillips curve.
c. moves down and to the left along the short-run Phillips curve.
d. moves down and to the right along the short-run Phillips curve.
Question 8Which of the following activities, if any, represents an external cost?
a. The benefits that accrue to society when an individual receives a college education.
b. The increase in property values of vacant lots in an area near where a new amusement park is constructed.
c. The pollination of apple trees that occurs when a beekeeper locates next door to an apple orchard.
d. None of the above
Question 9Which of the following is a direct consequence of the development of faster and cheaper computers?
a. The development of double-entry bookkeeping
b. The enhanced ability of managers of business operations to deal with complex transactions in far-flung locations
c. The creation of money
d. The decrease in workers' productivity, because more computers need fewer people to operate them
e. A decline in the rate of inflation
Question 10If the level of unemployment is above the natural rate of unemployment, it would be expected that:
a. the short-run Phillips curve will shift leftward, as inflationary expectations adjust.
b. the inflation rate will increase.
c. the short-run Phillips curve will shift rightward, as inflationary expectations adjust.
d. both b. and c.
Question 11Which of the following multinational agreements allows the international movement of workers?
a. NATO
b. The European Union
c. The group of G-8
d. NAFTA
e. The United Nations Accords
Question 12Which of the following activities, if any, represents an external cost?
a. The reduction in the incidence of chicken pox when children are inoculated against the disease.
b. The damage to a person's health from secondhand smoke.
c. The increase in local property values when the city creates a neighborhood park.
d. The price you pay for the prime rib that you consume at a local restaurant.
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