A) The federal government buys a Humvee. The ability to exercise control over one's own resources within the confines of the law refers to D) lower; lower, If real GDP exceeded potential real GDP and inflation was increasing, which of the following would be an appropriate fiscal policy? D) all of the above. Which of the following is a microeconomics question? The money-creating potential in the banking system is simply the amount of new money that can be created using the excess reserves of the bank. Principles of Macroeconomics Quiz- Which of the following represents the major functions of the central bank (a) note issuing agency (b) controller of. b. Macroeconomics Which of the following is an example of a "how much" decision? In the past two decades the United States lost its comparative advantage in automobiles to Japan. A) create jobs. Question 1. A) The supply curve will shift to the left. C) decrease the number of persons in the labor force. C) any level of the two products that the economy produces is currently possible. How do you go about weighing the alternatives? If, in response to a decrease in the price of coffee, the quantity of coffee demanded increases, economists would describe this as_______ B) unattainable D) the unemployment rate consists of only frictional and structural unemployment. e. variable cost reduction. Holding everything else constant, how would this affect the market for video game consoles (a complement to LCD televisions)? 1) Economic models do all of the following except A) answer economic questions. The following macroeconomic projected return models =. A)Government must maintain the current level of defense spending to keep the nation safe B)The minimum wage should be increased to give people a decent wage C)Americans should buy American products in order to boost the national economy D) The quantity of inkjet printers demanded decreases, Last month, the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit. C) demographics A point on a nation's production possibilities curve represents C) productively efficient Which of the following causes the unemployment rate to understate the true extent of joblessness? Which of the following is a problem inherent in centrally planned economies? A. Explore the definition and types of economics including microeconomics and macroeconomics and. B) $60. Let us now understand how it is different from Microeconomics. C) incorporates substitutions by consumers when prices of specific products rise rapidly. A production possibilities curve indicates the c. As less and less time is spent on one activity, the opportunity cost of that activity in terms of other activities rises D) the price of sailboats increased. B) the value of the decrease in business inventory stocks. The production possibilities frontier model assumes all of the following except____________ C) opportunity A. The invisible hand refers to d. The cost of the food that you consume while attending college, T/F The price is increasing as quantity increases, the slope of the line representing different prices and their corresponding quantities will be positive, The study of economics Second, they are generally less able than are the better off to protect the real value of their incomes and assets from inflation. Which of the following is a macroeconomics question? Which of the following is a positive economic statement? The Bureau of Labor Statistics would categorize a person as ________ if they were temporarily away from their job because they were ill B) increase in demand; increase in quantity demanded Commits the fallacy of composition A. achieve full employment. a. A lassiez faire approach will reduce the level of pollution. D. Are willing to pay the highest price. C) make economic ideas explicit and concrete for use by decision makers. See Answer. C) automatic stabilizers; monetary policy C) There is much more disagreement among economists over positive economic analysis than over normative economic analysis. d. C. do have an economic problem but are solving it. Suddenly, the stock market prices increased much more than expected, increasing investors' wealth and causing a short-term period of increased optimism about the future of the economy. Prelims Marathon - Economic Survey - February 28th - 2023. In a market economy, the people who receive the goods and services that are produced are those who Which of the following would be the best measure of the cost of living? A) 2% B) the value of the house in 2003 If the nominal interest rate is 6% and the inflation rate is 9%, then the real interest rate is although this definition differs from state to state. O a. Maximum combinations of goods and services an economy can produce given its available resources and technology. A) the opportunity cost to firms from producing the equilibrium quantity in a competitive market. C. The government should subsidize solar power for homeowners. D) The purchasing power of your salary increased between 2007 and 2016. b. Caveat emptor Government directives are likely to do a better job of allocating resources than markets. What is the current national rate of unemployment? Prelims Marathon - Economic Survey - March 1st - 2023. B. a nation's poverty level increases faster than its population. A production possibilities frontier with a bowed-outward shape indicates A. increasing opportunity costs as more and more of one good is produced. D. Al of the choices are correct. P = $80 In perfect competition, P = AR = Question: Which of the following is a macroeconomics question? The correct answer is C. Explanation: Macroeconomics tries to know and measure an economy goes, how well it is performing. C. the highest valued alternative that must be given up to engage in an activity. A. B) Yes, the recession will lower income in my field permanently. D) 3.5% C. Macroeconomic failure. Profitability b. E. consumers and producers. Explain the pitfall of this statement. The police were surprised the bank did not take their advice. d. Congress extends the maximum duration for the collection of unemployment benefits from 26-52 weeks, T/F The collection and use of data to test economic theory is called empirical economics, To analyze the relationship between two variables while holding the values of other variables unchanged is a device known as c. Bill Gates faces scarcity because resources are limited All of these O b. C) a 12-inch Subway sandwich purchased by a student D. Markets result in an unfair distribution of income. A) a retired railroad engineer who receives a fixed income payment every month D) changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives. b. D) increase all of the monetary flows. B. the idea that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. C) $140. C) decrease in demand; decrease in quantity demanded B) frictional unemployment equals zero. B) Delta buys a new European-made jetliner. Real domestic output is at its maximum level. b. consumers C) an increase in unemployment insurance payments Use the supply schedule below to answer the following question: Price $10 $20 Quantity Supplied 100 This problem has been solved! C) entrepreneurship. The market mechanism. B) There is much less disagreement among economists over normative economic analysis than over positive economic analysis. The nominal GDP of the U.S. in 2015 was approximately $17.3 trillion. D) 5%. A) technological advancement in the production of electric car batteries. A) increase the measured unemployment rate. D) will raise disposable income and raise spending. D) lower taxes by $200 billion. Which of the following is/are functions of Department of Economic Affairs under Ministry of Finance? Economic development Question 1: Multiple Choice Which of the following does macroeconomics endeavor to answer? B) above; shortage C. The process by which the production possibilities curve shifts inward. The government should reduce the tax burden to help small business. b. C) those that hold paper money lose. (b). B. A black market is a market where buying and selling take place A) a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. The size of the underground economy would tend to decrease if the government of a country __________________ This situation will most likely coincide with high unemployment. B) price charged for laptop computers by Dell. C. Market success. B) a cut in unemployment compensation All of the following are sources of comparative advantage except The decrease in auto sales impacts GDP because new automobiles are counted as ________ when purchased by households and ________ when purchased by businesses. C. Levels of production that will cause both unemployment and inflation. a. If the economy is slipping into a recession, which of the following would be an appropriate fiscal policy? Fill in the blanks: (International Balance of Payments accounting) _ Accounts are the transfer of money/wealth that occur between countries but hope to create future revenue. B) the economy produces only two products. B. Which of the following events would allow the production possibilities curve to shift outward? B) The supply curve will shift to the right. The substitution bias in the consumer price index refers to the idea that consumers ________ the quantity of products they buy in response to price, and the CPI does not reflect this and ________ the cost of the market basket Classify the following topics as relating to microeconomics or macroeconomics. C) GDP rises by $125. D. workers deciding to produce only what the boss says must be produced. If a German firm produces cars in the United States, that production should count towards D) Brazil's GNP. Answer: B Diff: 1 Page Ref: 12/12 Topic: Economic Models *: Recurring A. Deadweight loss refers to Answer the following questions by selecting the appropriate answer from the list below. The three fundamental questions that any economy must address are a. Which of the following is an example of spending on factors of production in the circular flow model? C) lower; higher A city's decision to limit smoking in public areas is an example of Why has the unemployment rate been nearly twice as high in Europe as in the United States in recent years? MULTIPLE CHOICE QUESTIONS TESTBANK - CHAPTER 3. C) builds another assembly plant in the United States. b. C) Apple computer buys computer processors from Intel. Macroeconomics is a branch of economics that depicts a substantial picture. D. Laissez faire. C) implementing an unemployment insurance policy It considers discouraged workers, and hence it is overstated. a. A) increase; more How much will be saved; what will be produced; and how can these goods and services be fairly distributed? What are some of the causes of desertification? D) an increase in the price of gasoline. Is justified by the superiority of lassiez faire over government intervention. A) decreased government regulations on businesses. Microeconomics is the study of C) increased income tax rates. "A decrease in the number of manufacturers caused a decrease in the supply of sailboats. C) wages are higher. A(n) ________ is represented by a rightward shift of the demand curve while a(n) ________ is represented by a movement along a given demand curve. When the invisible hand does not produce optimal outcomes for the economy, there is evidence of d. To learn how to make lots of money, Explain whether each of the following is an example of a macro or micro concern When governments are borrowers in financial capital markets, which of the following is least likely to be a possible source of the funds from a macroeconomic point of view? The data is listed per quarter, and the real GDP data was calculated using 2009 as the base year. O a False O b. If a firm expects that the price of its product will be lower in the future than it is today b. A) there is a sustained increase in the price level. Question 02. D) building an online job database that helps workers find jobs. If the economy is falling below potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? C. A surplus of . D) ice cream is a normal good and hot fudge is an inferior good. Economics is the study of the ________ people make to attain their goals, given their________ resources. B) total consumption of goods is greater. A) below the market wage, causing labor demand to be greater than labor supply. The demand for bottled water by individuals. c. Florida should devote all revenues from its state lottery to improving public education D) a contractionary; an expansionary. A grocery store sells a bag of potatoes at a fixed price of $2.30. C) legalized prostitution. B. Utilizes both market and non market signals to allocate goods and services. D) below; shortage. The output of U.S. citizens who work in Canada would be included in the _____________ It is an example of the post hoc fallacy A. B) falls; Marla's work becomes less valuable once she's married C) oil prices. Que10. Which of the following is a term used by economists to describe the money received from the sale of an additional bag of potatoes? B) Marginal benefit is the additional benefit to a consumer from consuming one more unit of a product. D) the reduction in economic surplus resulting from not being in competitive equilibrium. C) not change GDP. Works through central planning by government. a. Ockham's razor The four basic economic questions are: what goods to produce, how to use resources in the production process, who receives the finished goods and when to produce the goods. D) a bridge purchased by the state government. The opportunity cost of studying for an economics test is B) Trade Without Borders. Ask an Expert. B) Laurence rents a car to drive to a wedding in San Diego. B) the price level in 2016 was less than the price level in the base year. D. Price regulation by government. D) both U.S. GNP and German GDP. True 3Government fixes the floor and ceiling . a. A) a demand curve has shifted to the left. of disabled individuals to a less restrictive facility) also How has the discovery of oil in the Niger delta affected Nigeria's environment? These firms are reacting to which of the three key economic ideas? You earn $35,000/year in your first job in 2016. c. Opportunity costs are zero \text{Grooming}&\text{\underline{\hspace{15pt}80,000}}\hspace{10pt}&\text{Grooming direct labor hours}&\text{\hspace{10pt}4,000}\\ Expansionary fiscal policy involves B) 3%. Poorly timed discretionary policy can do more harm than good. A) lower government purchases by an amount less than $200 billion. C) lower; higher A) some cyclical unemployment always exists. D) legalized marijuana. Lower disposable income decreases consumption at every price level. C. choices; scarce When every good or service is produced up to the point where the last unit provides a marginal benefit to society equal to the marginal cost of producing it, ________ occurs B) the firm has an incentive to decrease supply now and increase supply in the future. There is full employment. E. consumers and firms choosing which goods and services to buy or produce. b. unit contribution margin. Which of the following is the best example of land? A) Their value is not counted separately, but included as part of the value of the final good for which they are an input. Given that, the question "According to the Bureau of Economic Analysis, what has been the average annual level of inflation (as measured by the GDP Deflator) over the past 10 years?" A: Economics is the study of production, distribution, and consumption when the resources are scarce in. b) A French pharmaceutical firm builds a new factory in Poland for its subsidiary. How does the increasing use of digital cameras affect the market for traditional camera film? B. A) climate and natural resources. The income effect of a price change results in a _________ A) The demand curve for traditional camera film shifts to the right. Dear Friends, We are posting prelims marathon MCQs for today. How consumers make purchasing decisions c. Inflation, unemployment, and economic growth d. Final decision making A D) about the same difficulty as with monetary policy. Is zero A) marginal Q. This change will______________ B) European countries offer higher unemployment benefits than the United States. B) higher; lower B) one's property rights. Which of the following economic activities are included in the subject-matter of Economics? C) the value of the addition to the capital stock. C) GDP is adjusted for changes in crime rates. To Liza, D) They are included only if they are imported, Which of the following are not considered part of government purchases? Bureaucratic delays Nonetheless, you continue along your career path looking for a new job because _____________ C. unlimited resources exceed limited wants. To understand society and global affairs d. B and C only, T/F On a time series graph, time is measured along the vertical scale, People who eat kale on a regular basis are more likely to exercise every day than people who do not eat kale. In cities with rent control, people have an incentive to list their apartments on sites such as Airbnb at rents ________ the controlled rates, because rent control causes a ________ of apartments. First, the poor tend to hold most of their financial assets in the form of cash rather than in interest-bearing assets. Advertisement Advertisement C. Greater production of one good requires increasingly larger sacrifices of other goods. A) What determines the minimum wage? C) Discouraged workers are not counted as unemployed. B) the labor force participation rate decreased. According to the text, economists consider full employment to occur when A) the money supply and a decrease in interest rates. Public economics B) the underground economy. Marla is an architect who is designing a home for Chuck. B) an increase in quantity demanded. C) an increase in taxes B. b. The ________ production points on a production possibilities frontier are the points along and inside the production possibilities frontier. 1. D) out of the labor force. Solve the Following Short-Essay Questions: Define demand. Which of the following would be classified as fiscal policy? Voluntary exchange A) fallen; fallen Scarce resources and opportunity cost. C) There will be a decrease in the quantity of labor supplied by households. (D) the economy as a whole. Rearranging, we get: B. B) adds 1,000 new cars to inventories. D) the value of all cars produced by Nissan in Japan and the United States. D. Who gets jobs; what wages do workers earn; and who owns what property? A) the free market. C. Optimal marginalism Which one of the following is not a key people behind macroeconomics? c. Is one-half cost of the game, as this is the second time you have played it The production possibilities curve between tanks and automobiles will appear as a straight line. D) Producer surplus measures the total benefit received by producers from participating in a market. Why is the economy of India growing? Examples of comparative advantage show how trade between two countries can make each better off. The unemployment rate for the United States rose to 5 percent in the last quarter. A) Japanese firms excelled in process technology. b. c. Focuses on how a business should function D) The demand for video game consoles would increase and the equilibrium price of video game consoles would increase. Profits are always very high and persistent The doctrine of lassiez faire is based on the belief that Rational cost B. firm could more readily exploit. B) Trade-offs do not apply when the consumers purchase a product for which there is excess supply, such as a stock clearance sale. Question: Which of the following is an example of a macroeconomic question? C) looking for work is your only option. C. society's output cannot be made available to all. B. Undiscovered natural resources. A) the willingness of consumers to purchase a product at different prices. It allows researchers to isolate the effect of one event on another without the influence of outside variables B) portray reality in all its minute details. A) higher; higher To reduce the bias in the consumer price index, the Bureau of Labor Statistics A graph that contains two variables with a negative relationship is _________, while a graph that contains two variables with a positive relationship is _________. 60 seconds. A. Explain. B) -3.5% View Answer The key. Which assumptions do you need to make in order to be correct in considering a binomial distribution for your variable? that negatively affect an individuals health and safety, A. Please don't take his comments (a) personal, (b) personally. A) U.S. GDP. C. A centrally planned economy a. C) above the market wage, causing labor demand to be greater than labor supply. B) a union contractor whose pay is adjusted based on changes in the CPI Scarcity refers to the situation in which. Which of the following statements is false? Check your understanding of civil commitment by filling B) Their value is counted separately, and their value is also included as part of the value of the final good for which they are an input. D) decrease the number of persons in the working-age population. Economics is concerned with prices and quantities of goods and services, both at the individual. C. All points inside the curve. a. A) Governments interfere with the market mechanism to influence the allocation of goods and services. Flow (1) represents: A) wage, rent, interest, and profit income. c. Post hoc, ergo propter hoc B) GDP minus depreciation. D) a decrease in the quantity supplied. C) the ACIF. B) change; underestimates A) he tax cut would increase consumption spending less than would a permanent tax cut. B) Canada's GDP. Grossprofit.Sellingexpenses..Administrativeexpenses.TotaloperatingexpensesIncomefromoperations.Otherincome..Incomebeforeincometax..Incometaxexpense..Netincome.20Y1$1,500,000510,000$990,000$270,000180,000$450,000$540,00060,000$600,000450,000$150,000$1,250,000475,000$775,000$200,000156,250$356,250$418,75050,000$468,750375,000$93,750.