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Unformatted text preview: Quiz Home > Student Center > ChagterZB > Quiz Social STUDIES STUDENT CENTER Textbook Resources I web Chapters and Supplements ' Updates and Errata Chapter Activities Chapter 23 Origin of the idea interacth Graphs Worked Roblerrs See the thh Pow eerint Presentations Key Questions Quiz Narrated Slides Paul Soln'en Videos ind (intent Web-based Questions CLOSE - a“! [av/fire SEARCH Learning Center Economics (McConnell), 18th Edition Chapter 23: An Introduction to Macroeconomics Quiz Results Re porter Out of 10 questions: you anewered 2 correctlywith a final grade ot20% Your Results: The correct answertor each question is indicated by a j. V Living i’l) 5) C) D) Feedback 2 correct (20%) B incorrect (80%) O unanswered (0%) standards in ancient Rome remained relativelyconslantfor1000 years because: population increased at approximatelythe same rate as output, leaving output per person unchanged average familysizes increased atthe same rate as output per perscm oonstantwars reduced the size ofthe population at the same rate as output was telling, leaving outputper person unchanged constantwars depleted the economy‘s capital stock. resulting in little or no growth oftoial output :Total output inancient Rome increasedseveral times over, but population increases kept pace, leaving output per person unchanged. Compared to the beginning ofthe Industrial Revolution, living standards around the world: A) B) C) D) Feedback years has have approximatelytripled for both rich and poorcountries leaving the relative gap between rich and poor countries the same have grown fastest in whatwere then the poorest countries: resulting in much less variation between rich and poor nations show considerably more variation between rich and poor countries show no marked trend regarding the gap between rich and poorcounlries : Living standards, as measured by GDP per capita, have diverged considerably over the last 309 ause of diverging rates of growth between rich and poor countries. The purchase ofcorporate stock is considered: J“l 5) hnp f/highereiimcgrzw-i’iili mmjsiles/DEIZS5942lllsmderit_view|]f:haplerZi/quiz html an ewnomic investment [ops/u] 12 13 PM Page [of 3 Quiz V B) a financial investment 0) dissaving I3) the same as the purchase cfnew plantand equipment Feedback: Purchases of assets such as stocks and bonds are considered financial investment, as opposed to economic investment which consists ofthe creation of new capital goods. If all prices could quickiyadiustto unexpected changes in demand: A) outputwould fluctuate in inverse proportion to the price changes V B) outputwould remain constant and resources remain fullyem ployed ci) outputwould fluctuate in direct proporti0n to the price changes D) outputwould fluctuate in Inverse proportion to changes in employment Feedback: lfall prices were flexible. firms would respond toenexpected changes in demand by raising or lowering prices. rendering changes in output to meet consumer demand unnecessary. If prices are inflexible, an unexpected reduction in demand fora firm's productwould result in: \l A) rising inventories followed bycuts in production 5) falling inventories followed bycuts in production 0) immediate cuts in both production and desired inventorylevels D) rising inventories followed byincreased employment cfrescurces Feedback: With inflexible prices, an unexpected reduction in demand will mean falling sales and ' ' any, a build-upofinventory. lfthis build-up of inventories persists, firms will respond by cutting production and raducing Refer employment of resources. to the following diagram' 35 50 55 Bars perweek Suppose a factoryminimizes its average costs byproducing 50 metal bars per week. It can produce this output profitably atan expected price of$4 each. correspcnding to expected demand of DM. With flexible prices, which ofthe following is the mostlikelyinitial consequence ota change in demand? A) Production will drop to 35 bars perweek ifdemand unexpectedlyfalls to BL B) Production Will rise to 65 bars perweek ifdemend predictably rises to DH V C) Profits will rise itdemand unexpectedlyrises to DH D) The price Will rise to $6 and production will rise to 65 bars perweek if demand unemectedlyrises to DH Feedback: With flexible prices, an unexpected increase in demand will he met initially by raising the price for the ba results in rs to $6 without moving production away from its cost-minimizing output. The higher price higher profits. Which productwould mostlikely be characterized by"sticky" prices? A) B) or V D) Feedback Feed corn Oil Natural gas Magazines :The prices of basic commodities, such as corn, soybeans, and oil, tend to respOnd very quickly to changes in market canditiOns. In contrast, the prices offinal consumer goods such as magazines. newspapers, and haircuts, tend to respond veryslcririrly. The eccnomytends to exhibitshort-run outputfluctuations and long-run stabilitybecause: A) V B) C) D) Feedback changes i economy prices are more flexible in the short run than the long run prices are more flexible in the long run than the short run demand shocks are more common in the short run while supplyshocks are more common in the long run government and central bank policies are destabilian in the shortrun but effective in the long run :lnthe veryshort run, prices are very sticky: unexpected changes in demand are met by n output and employment. However, prices tend to be very flexible in the long run, allowing the to adjust to economic shocks. An unexpected drop in wHSUmerspending would be classified as a: V A) I3) 0) D) Feedback hup ffhighcrorimrgraw-hill combines/DI]25594212/5tudont_viowflfdraplerZi/quiz mmi negative demand shock negative supplyshock positive demand shock positive supplyshock : Demand s hooks are unexpected changes in the dema rid for goods and services. A negative tuna/1n 12 13 PM Page 2 of 3 QUIZ ldjza/ld 12 13 PM demand shock occurs when spending is lower than expected. Refer to the following diagram: 35 50 65 Bali Prwiek Suppose a facturymlnimizes lts average costs byproducing 50 metal bars per week. ltcan produce this output profitably atan expected price of$4 each, corresp0nding to expected demand of DM. Production will likelyfall to 35 bars per week if: A) prloes are flexible and demand unexpectedlyialls to BL y B) prlces are inflexible and demand unexpectedlytalls tb DL :3) prices are flexible and demand predictablyfalls to BL D) the price unexpectedlyfalls to $2 Feedback: With inflexible pricesY an unexpected drop in demand will be met by building inventories and a consequent cut in production. E-mail Your Results Date: Thu Oct 25 201010:12:53 GMT+0200 (Jerusalem Standard Time) Myriame: E-mail these results to: E-mail address: Format: Me: HTML MyTeache-r: HTML Other: HTML E-mail The Results Ema The McGraw-Hr'fl Cnmparries Pleam lead ourTerms at use and Prlvac! Notice beture you explore uurWeh Ste Tu leper! a technical problem with thlsWeb ate, pleaE contact the Web Fmduner hnp x/highemimcgmw-hlll mmfsiIes/DEIZS5942lllsmdent_viewflf:haplerZi/qulz htrnl Page 3 at 3 ...
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