question
A
answer
When the consumer price index rises, the typical family
a. has to spend more dollars to maintain the same standard of living.
b. can spend fewer dollars to maintain the same standard of living.
c. finds that its standard of living is not affected.
d. can offset the effects of rising prices by saving more.
a. has to spend more dollars to maintain the same standard of living.
b. can spend fewer dollars to maintain the same standard of living.
c. finds that its standard of living is not affected.
d. can offset the effects of rising prices by saving more.
question
B
answer
Economists use the term inflation to describe a situation in which
a. some prices are rising faster than others.
b. the economy's overall price level is rising.
c. the economy's overall price level is high, but not necessarily rising.
d. the economy's overall output of goods and services is rising faster than the economy's overall price level.
a. some prices are rising faster than others.
b. the economy's overall price level is rising.
c. the economy's overall price level is high, but not necessarily rising.
d. the economy's overall output of goods and services is rising faster than the economy's overall price level.
question
B
answer
If the CPI rises from 206.7 to 212.7 between two consecutive years, by how much has the cost of living changed between these two years?
A) The cost of living has increased by 6%.
B) The cost of living has increased by 2.9%.
C) The cost of living has increased by 12.7%.
D) The cost of living has decreased by 6%.
A) The cost of living has increased by 6%.
B) The cost of living has increased by 2.9%.
C) The cost of living has increased by 12.7%.
D) The cost of living has decreased by 6%.
question
B
answer
Which of the following is correct?
a. The GDP deflator is better than the CPI at reflecting the goods and services bought by consumers.
b. The CPI is better than the GDP deflator at reflecting the goods and services bought by consumers.
c. The GDP deflator and the CPI are equally good at reflecting the goods and services bought by consumers.
d. The GDP deflator is more commonly used as a gauge of inflation than the CPI is.
a. The GDP deflator is better than the CPI at reflecting the goods and services bought by consumers.
b. The CPI is better than the GDP deflator at reflecting the goods and services bought by consumers.
c. The GDP deflator and the CPI are equally good at reflecting the goods and services bought by consumers.
d. The GDP deflator is more commonly used as a gauge of inflation than the CPI is.
question
C
answer
In the CPI, goods and services are weighted according to
a. how long a market has existed for each good or service.
b. the extent to which each good or service is regarded by the government as a necessity.
c. how much consumers buy of each good or service.
d. the number of firms that produce and sell each good or service.
a. how long a market has existed for each good or service.
b. the extent to which each good or service is regarded by the government as a necessity.
c. how much consumers buy of each good or service.
d. the number of firms that produce and sell each good or service.
question
C
answer
Suppose a basket of goods and services has been selected to calculate the CPI and 2002 has been selected as the base year. In 2002, the basket's cost was $50; in 2004, the basket's cost was $52; and in 2006, the basket's cost was $54.60. The value of the CPI in 2004 was
a. 96.2.
b. 102.0.
c. 104.0.
d. 152.0.
a. 96.2.
b. 102.0.
c. 104.0.
d. 152.0.
question
D
answer
Angelica is an unpaid homemaker who works as a volunteer at the local Red Cross and is currently not looking for a paid job. The Bureau of Labor Statistics counts Angelica as
a. unemployed and in the labor force.
b. unemployed, but not in the labor force.
c. in the labor force, but not unemployed.
d. neither in the labor force nor unemployed.
a. unemployed and in the labor force.
b. unemployed, but not in the labor force.
c. in the labor force, but not unemployed.
d. neither in the labor force nor unemployed.
question
C
answer
The labor-force participation rate tells us the fraction of the population that
a. is unemployed
b. has ever been employed.
c. has chosen to participate in the labor market.
d. has chosen not to participate in the labor market.
a. is unemployed
b. has ever been employed.
c. has chosen to participate in the labor market.
d. has chosen not to participate in the labor market.
question
A
answer
The unemployment rate is computed as the number of unemployed
a. divided by the labor force, all times 100.
b. divided by the number of employed, all times 100.
c. divided by the adult population, all times 100.
d. times the labor-force participation rate, all times 100.
a. divided by the labor force, all times 100.
b. divided by the number of employed, all times 100.
c. divided by the adult population, all times 100.
d. times the labor-force participation rate, all times 100.
question
B
answer
Discouraged workers are classified by the BLS as
A) part of the labor force.
B) out of the labor force.
C) unemployed.
D) employed.
E) part-time employees.
A) part of the labor force.
B) out of the labor force.
C) unemployed.
D) employed.
E) part-time employees.
question
B
answer
The labor force of Aridia in 2011 was
a. 1300.
b. 1900.
c. 2400.
d. 3000.
a. 1300.
b. 1900.
c. 2400.
d. 3000.
question
B
answer
The unemployment rate of Aridia in 2011 was
a. 20%.
b. 31.6%.
c. 46.2%.
d. 63.3%.
a. 20%.
b. 31.6%.
c. 46.2%.
d. 63.3%.
question
C
answer
Over the past several decades, the difference between the labor-force participation rates of men and women in the U.S. has
a. gradually increased.
b. remained constant.
c. gradually decreased.
d. been eliminated.
a. gradually increased.
b. remained constant.
c. gradually decreased.
d. been eliminated.
question
A
answer
A good measure of the standard of living is
A) real GDP per capita.
B) nominal GDP per capita.
C) total real GDP.
D) total nominal GDP.
A) real GDP per capita.
B) nominal GDP per capita.
C) total real GDP.
D) total nominal GDP.
question
B
answer
The rule of 70 states that
A) it takes an economy 70 years to double its real GDP.
B) the number of years it takes an economy to double in size is 70 divided by the growth rate.
C) the number of years it takes an economy to double in size is the growth rate times 70.
D) the number of years it takes an economy to double in size is the growth rate divided by 70.
A) it takes an economy 70 years to double its real GDP.
B) the number of years it takes an economy to double in size is 70 divided by the growth rate.
C) the number of years it takes an economy to double in size is the growth rate times 70.
D) the number of years it takes an economy to double in size is the growth rate divided by 70.
question
C
answer
If GDP grows at a rate of 3% per year, approximately how long will it take for GDP to double in size?
A) 12 years
B) 21 years
C) 23 years
D) 35 years
A) 12 years
B) 21 years
C) 23 years
D) 35 years
question
C
answer
Labor productivity is
A) the quantity of output produced in one hour by several workers.
B) the quantity of capital one worker can produce in one day.
C) the quantity of output produced by one worker or by one hour of work.
D) the quantity of output produced in one hour by one machine.
A) the quantity of output produced in one hour by several workers.
B) the quantity of capital one worker can produce in one day.
C) the quantity of output produced by one worker or by one hour of work.
D) the quantity of output produced in one hour by one machine.
question
B
answer
________ depend on increases in labor productivity
A) Advances in technology
B) Increases in real GDP per capita
C) Decreases in the inflation rate
D) Decreases in the unemployment rate
A) Advances in technology
B) Increases in real GDP per capita
C) Decreases in the inflation rate
D) Decreases in the unemployment rate
question
C
answer
Potential GDP is defined as
A) the maximum of GDP that the economy can produce.
B) the amount of GDP produced if there is no frictional unemployment.
C) the level of GDP attained when all firms are producing at capacity.
D) the amount of GDP produced if there is no structural unemployment.
A) the maximum of GDP that the economy can produce.
B) the amount of GDP produced if there is no frictional unemployment.
C) the level of GDP attained when all firms are producing at capacity.
D) the amount of GDP produced if there is no structural unemployment.
question
A
answer
Private saving is defined as
A) Y + TR - C - T.
B) T + G + TR.
C) T - G + TR.
D) Y + TR + C - T.
A) Y + TR - C - T.
B) T + G + TR.
C) T - G + TR.
D) Y + TR + C - T.
question
D
answer
When the government runs a deficit, which of the following is true?
A) T > TR - G
B) G > T + TR
C) G > TR - T
D) T < G + TR
A) T > TR - G
B) G > T + TR
C) G > TR - T
D) T < G + TR
question
C
answer
An increase in the real interest rate results in which of the following?
A) an increase in the demand for loanable funds
B) a decrease in the demand for loanable funds
C) an increase in the quantity of loanable funds supplied
D) Both B and C will occur as a result of an increase in the real interest rate.
A) an increase in the demand for loanable funds
B) a decrease in the demand for loanable funds
C) an increase in the quantity of loanable funds supplied
D) Both B and C will occur as a result of an increase in the real interest rate.
question
C
answer
The loanable funds market is in equilibrium, as shown in the figure above. An increase in the supply of loanable funds could result in which of the following combinations of the real interest rate and quantity of loanable funds at a new equilibrium?
A) The real interest rate is 5 percent, and the quantity of loanable funds is $150 million.
B) The real interest rate is 5 percent, and the quantity of loanable funds is $90 million.
C) The real interest rate is 3 percent, and the quantity of loanable funds is $150 million.
D) The real interest rate is 3 percent, and the quantity of loanable funds is $90 million.
A) The real interest rate is 5 percent, and the quantity of loanable funds is $150 million.
B) The real interest rate is 5 percent, and the quantity of loanable funds is $90 million.
C) The real interest rate is 3 percent, and the quantity of loanable funds is $150 million.
D) The real interest rate is 3 percent, and the quantity of loanable funds is $90 million.
question
B
answer
A(n) ________ comes to an end with a business cycle ________.
A) recession; peak
B) recession; trough
C) expansion; trough
D) expansion; bubble
A) recession; peak
B) recession; trough
C) expansion; trough
D) expansion; bubble
question
B
answer
Recessions cause the unemployment rate to ________ and the inflation rate to ________.
A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall
A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall
question
B
answer
Significant economic growth did not begin in the world until
A) 1000 A.D.
B) 1750 A.D.
C) 1820 A.D.
D) the 20th century A.D.
A) 1000 A.D.
B) 1750 A.D.
C) 1820 A.D.
D) the 20th century A.D.
question
C
answer
If real GDP per capita in the United States is $8,000, what will real GDP per capita in the United States be after 5 years if real GDP per capita grows at an annual rate of 3.2%?
A) $8,520
B) $9,280
C) $9,365
D) $10,560
A) $8,520
B) $9,280
C) $9,365
D) $10,560
question
B
answer
Technological change is illustrated in the per-worker production function in the figure above by a movement from
A) A to B.
B) B to C.
C) B to A.
D) D to C.
A) A to B.
B) B to C.
C) B to A.
D) D to C.
question
C
answer
Which of the following describes the Soviet Union's economy through most of the second half of the 20th century?
A) The Soviet economy grew rapidly in the later half of the 20th century.
B) The Soviet economy increased capital per worker very slowly from 1950 through 1980.
C) The Soviet economy grew slowly because of the slow rate of technological change.
D) The Soviet economy grew because it added labor through immigration policy in the 1950s.
A) The Soviet economy grew rapidly in the later half of the 20th century.
B) The Soviet economy increased capital per worker very slowly from 1950 through 1980.
C) The Soviet economy grew slowly because of the slow rate of technological change.
D) The Soviet economy grew because it added labor through immigration policy in the 1950s.
question
A
answer
According to the text, there are three ways the government can help increase the accumulation of knowledge capital. What are they?
A) protecting intellectual property rights, subsidizing research and development, and subsidizing education
B) increasing taxes on firms, eliminating patents, and increasing the minimum wage
C) encouraging the use of trade secrets, expanding student loan programs, and increasing the minimum wage
D) reducing taxes on capital, increasing Social Security payments, and lowering the exchange rate
A) protecting intellectual property rights, subsidizing research and development, and subsidizing education
B) increasing taxes on firms, eliminating patents, and increasing the minimum wage
C) encouraging the use of trade secrets, expanding student loan programs, and increasing the minimum wage
D) reducing taxes on capital, increasing Social Security payments, and lowering the exchange rate
question
B
answer
According to Joseph Schumpeter, the theory of creative destruction describes a process by which
A) some new products unleash a gale of destruction that drive other new products out of the market.
B) new products unleash a gale of destruction that drives old products out of the market.
C) new products are created by the destruction of capital.
D) the creation of new products never involves the destruction of old products.
A) some new products unleash a gale of destruction that drive other new products out of the market.
B) new products unleash a gale of destruction that drives old products out of the market.
C) new products are created by the destruction of capital.
D) the creation of new products never involves the destruction of old products.
question
C
answer
) Growth in real GDP per hour worked in the United States was slowest during what period of time?
A) 1900-1949
B) 1950-1972
C) 1973-1994
D) 1995-2008
A) 1900-1949
B) 1950-1972
C) 1973-1994
D) 1995-2008
question
B
answer
The economic growth model predicts that
A) GDP per capita of rich countries will grow more rapidly than in poor countries.
B) GDP per capita of poor countries will grow more rapidly than in rich countries.
C) Governments must centrally direct the economy for growth to occur.
D) GDP per capita of poor countries will never change.
A) GDP per capita of rich countries will grow more rapidly than in poor countries.
B) GDP per capita of poor countries will grow more rapidly than in rich countries.
C) Governments must centrally direct the economy for growth to occur.
D) GDP per capita of poor countries will never change.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
