In order to measure what a country produces, we:
A. Summarize total output in physical terms.
B. Count units of output.
C. Count the weight of different products.
D. Summarize the monetary value of output.
GDP can be found by:
The number and relative size of firms in an industry is the definition of:
A. Competitive firm.
B. Competitive market.
C. Market structure.
Market structure is determined by:
A. The equilibrium price in a specific market.
The goals of the principal participants in the economy are to maximize:
A. Income for consumers, profits for business, and taxes for government.
B. Goods and services for consumers, scarce resources for businesses, and money for governmen
Ceteris paribus, the willingness and ability to work specific amounts of time at alternative wage rates in a
given period of time is:
A. Product supply.
B. Product demand.
C. Labor supply.
D. Labor demand.
The labor-supply curve depict
Market power exists if a firm can alter:
A. Its costs of production.
B. The market price.
C. Its own supply curve.
D. The production function.
If a seafood restaurant can raise the price of its fried shrimp without losing all of its cu
The central problem of economics is the:
A. Distribution of goods and services to those in need.
B. Scarcity of resources relative to human wants.
C. Inefficiency of government operations.
D. Unemployment of certain factors of production.
Alternating periods of economic growth and contraction are referred to as:
A. Fiscal policy.
B. The business cycle.
C. A policy lever.
D. The fiscal cycle.
The business cycle is defined as:
A. Alternating periods of economic growth and
Goods and services purchased by Americans from foreign sources:
A. Are classified as imports.
B. Decrease the trade deficit, ceteris paribus.
C. Increase the size of GDP.
D. Represent 35 percent of GDP.
Goods and services purchased fro
During the Great Depression, Keynes advocated the use of _ policy to increase the _ goods and
A. Monetary; demand for
B. Fiscal; demand for
C. Monetary; supply of
D. Fiscal; supply of
Which of the following relies on governme
Over the last decade, the world has experienced:
A. Decreased living standards in some of the poorest countries.
B. Increased living standards in all countries.
C. Growth in output for all countries.
D. Improvements in technology but litt
Which of the following is not included in the study of macroeconomics?
A. Business cycles
B. The unemployment rate
D. Market structures
Which of the following is a measure of overall economic well being for the United Stat
The most desirable combination of output attainable with available resources, technology and social
values is known as the:
A. Economic choice of output.
B. Efficient choice of production.
C. Preferred output choice.
D. Optimal mix of out
Which of the following is often described as the most powerful person in the U.S. economy?
A. The president of the United States.
B. The Speaker of the House of Representatives.
C. The chairman of the House Ways and Means Committee.
The study of aggregate economic behavior is referred to as:
C. Government policy.
D. The business cycle.
A basic purpose of macroeconomic theory is to:
A. Explain the business cycle.
B. Stop econom