MACRO+TEST+1+SP+09

MACRO+TEST+1+SP+09 - MACROECONOMICSTEST1,FORM#_

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MACROECONOMICS TEST 1, FORM # ___________ 1. In a free market, if the price of a good is above the equilibrium price, then A. government needs to set a higher price. B. suppliers, dissatisfied with growing inventories, will raise the price. C. consumers, wanting to ensure that they acquire the good, will bid the price higher. D. government needs to set a lower price. E. suppliers, dissatisfied with growing inventories, will lower the price. 2. Which of the following is NOT true of a market in equilibrium? A. Supply equals demand. B. There is no tendency for the price to change. C. The supply curve intersects the demand curve. D. Buyers can purchase exactly the amount they are willing to purchase at the equilibrium price. E. Quantity demanded equals quantity supplied. 3. If the wages paid to computer production workers decrease, one would expect to see a(n) A. increase in the quantity of computers supplied. B. increase in the supply of computers. C. increase in demand for computers. D. decrease in quantity of computers supplied. E. decrease in the supply of computers. 4. In the United States, the years 1929 to 1933 were characterized by A. a downward-sloping short-run aggregate supply curve. B. rising prices and declining unemployment. C. rising prices and rising unemployment. D. declining prices and declining real output. E. high government spending as the U.S. prepared for World War II. 5. The economic surplus of a particular action is A. the value of the action. B. the cost of the action. C. the difference between the benefit and the cost of the action. D. the average of the benefits and costs. E. the ratio of the benefits to the costs. 6. The socially optimal quantity of a good is the quantity that A. maximizes profits. B. minimizes costs. C. maximizes benefits. D. maximizes the number of people receiving benefits. E. maximizes total economic surplus. NAME__________________________________ 7. The production possibilities curve shows A. the relationship between inputs and output. B. the minimum production of one good for every possible production level of the other good. C. a positive relationship. D. the maximum production of one good for every possible production level of the other good. E. how increasing the production of one good allows possibilities for producing more of another good 8. Which of the following would be a feature of an unregulated market in a state of disequilibrium? A. Excess supply. B. A stable price. C. Excess demand. D. Changes in the equilibrium quantity. E. A changing price. 9. If a country experiences increasing opportunity costs, its production possibilities curve will A. be a straight line. B. shift in toward the origin. C. bow outward. D. shift out from the origin.
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This note was uploaded on 03/25/2009 for the course ECO 2315 taught by Professor Bishop during the Spring '09 term at Texas State.

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MACRO+TEST+1+SP+09 - MACROECONOMICSTEST1,FORM#_

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