Self-Test Questions Chapter 10
MULTIPLE CHOICE 1. Which of the following statements is true? a. In the long run, output is determined by the amount of capital, labour, and technology; the interest rate adjusts to balance the supply and demand for money; a
Self-Test Questions Chapter 3
MULTIPLE CHOICE 1. The concept of elasticity is used to a. analyze how much the economy is capable of expanding. b. determine the level of government invention in the economy. c. analyze supply and demand with greater precisi
Self-Test Questions Chapter 15
MULTIPLE CHOICE 1. Why does trade make all parties better off? a. Because it always expands the amount of domestic production of each good and service, and more is preferred to less. b. Because it permits all parties to acqu
Self-Test Questions Chapter 12
MULTIPLE CHOICE 1. Demand deposits are: a. assets of banks, liabilities of depositors. b. liabilities of banks, assets of depositors. c. assets of banks and their depositors. d. liabilities of banks and their depositors. ANS
Self-Test Questions Chapter 9
MULTIPLE CHOICE Use the table below to answer the following questions. Table A-1 year 2000 2001 peaches $11 per bushel $9 per bushel pecans $6 per bushel $10 per bushel
1. Refer to Table A-1. Suppose that the typical consumer
Self-Test Questions Chapter 1
MULTIPLE CHOICE 1. Scarcity exists when a. there is less than an infinite amount of a resource or good. b. society can meet the wants of every individual. c. there is less of a good or resource available than people wish to h
Self-Test Questions Chapter 6
MULTIPLE CHOICE 1. To define a monopoly, we cite the following characteristics: (i) The firm is the sole seller of its product. (ii) The firm's product does not have close substitutes. (iii) The firm generates a large economi
Self-Test Questions Chapter 11
MULTIPLE CHOICE 1. If policymakers expand aggregate demand, a. in the long run, prices will be higher and unemployment will be lower. b. in the long run, prices will be higher and unemployment will be unchanged. c. in the lo
Exercises for Chapter 25
1. A nation's standard of living is determined by
a. its productivity.
b. its gross domestic product.
c. its national income.
d. how much it has relative to others.
ANSWER: a. its productivity.
1: An example of stabilization policy is:
a. raising government purchases during a period of high unemployment.
b. raising taxes during a period of high unemployment.
c. raising government purchases during a period of high inflation.
d. cutting taxes duri
Review of Micro for the Final Exam Fall 2010
Part I:Chapters 1 to 7
Diagram: The Circular-Flow Model
Product Markets $ $
Dollar Flow Real Flow
Households $ Resource Markets Businesses $
Production Possibilities Frontier
Opportunity Cost of nex
Self-Test Questions Chapter 4
MULTIPLE CHOICE 1. According to the law of supply, a. firms' production levels are not correlated with the price of a good. b. the supply curve slopes downward. c. firms are willing to produce a greater quantity of a good whe
Self-Test Questions Chapter 5
MULTIPLE CHOICE 1. A market is competitive if (i) firms have the flexibility to price their own product. (ii) each buyer is small compared to the market. (iii) each seller is small compared to the market. a. (i) and (ii) only
Self-Test Questions Chapter 7 Name:_ (please print) 1. The statement, "measures of the distribution of income are based on money income" relates to
which problem in measuring inequality? a. in-kind transfers b. economic life cycle c. transitory versus per
Self-Test Questions Chapter 7 1. The statement, "measures of the distribution of income are based on money income" relates to
which problem in measuring inequality? a. in-kind transfers b. economic life cycle c. transitory versus permanent income d. econo
Self-Test Questions Chapter 8
MULTIPLE CHOICE 1. Which of the following is correct for an economy? a. Income is greater than production. b. Production is greater than income. c. Income always equals production. d. Income equals production only when saving
Self-Test Questions Chapter 13
MULTIPLE CHOICE 1. The most important function of the Bank of Canada is: a. raising or lowering taxes. b. regulating the supply of money. c. increasing or reducing government spending. d. none of the above. ANS: B 2. When Ba
Self-Test Questions Chapter 14
MULTIPLE CHOICE 1. Net capital outflow refers to the purchase of a. foreign assets by domestic residents minus the purchase of domestic assets by foreign residents. b. foreign assets by domestic residents minus the purchase
Chapter 11- Fiscal Policy
Fiscal Policy Government: Spending and Taxation The Multiplier Effect Fiscal Policy and the AD/AS Model Automatic Stabilizers Possible Obstacles to Effective Fiscal Policy The Federal Government Debt