If employers win major wage concessions in many industries, what will be the effect on short-run aggregate supply?
Question 1 options:
It will shift right (a decrease in aggregate supply).
It will shift left (a decrease in aggregate supply).
It will shift right (an increase in aggregate supply).
It will shift left (an increase in aggregate supply).
Question 2 (1 point)
Given a constant rate of growth of real GDP, what would cause a fall in real GDP per capita?
Question 2 options:
an increase in the size of the labour force
a rate of population growth that is greater than the rate of growth of real GDP
a rate of population growth that is less than the rate of growth of real GDP
a decrease in the capital stock
Question 3 (1 point)
Which of the following is generally NOT considered to be a factor that contributes to economic growth?
Question 3 options:
the migration of resources from areas of low productivity to areas of high productivity
increased taxes on wages
increased labour productivity
Question 4 (1 point)
How do economists define aggregate demand?
Question 4 options:
as the total spending by consumers, business firms, and governments on final goods and services
as the total spending by consumers, business firms, and governments in one year
as the total amount that all consumers, business firms, governments, and foreigners wish to spend on all final goods and services at various price levels
as the total spending by all consumers, business firms, governments, and foreigners in Canada
Question 5 (1 point)
For individuals who are holding money or fixed dollar value assets, what is the effect of inflation?
Question 5 options:
It improves their ability to purchase goods and services with those dollars.
It reduces their ability to purchase goods and services with those dollars.
It increases the purchasing power of those dollars.
It does NOT change the purchasing power of those dollars.
Question 6 (1 point)
Which of the following are included in the investment category under the expenditure approach to GDP accounting?
Question 6 options:
additions to business inventories
Question 7 (1 point)
WWhich of the following will cause the standard of living to decline?
Question 7 options:
the nominal GDP growing at a slower rate than real GDP
the rate of population growth being less than the rate of growth of real GDP
the nominal GDP growing at a faster rate than real GDP
the rate of population growth exceeding the rate of growth of real GDP
Question 8 (1 point)
2012, what was the approximate real GDP per capita in Canada in 2017?
Question 8 options:
Question 9 (1 point)
Which of the following would decrease SRAS?
Question 9 options:
a decrease in investments into in education and vocational programs
on-the-job training that causes worker productivity to rise
an increase in the amount of capital employed by businesses
firms adopting more powerful computers and more advanced machine tools for their workers
Question 10 (1 point)
What redistribution of income results from an unanticipated period of deflation?
Question 10 options:
a redistribution of income from taxpayers to governments
a redistribution of income from borrowers to lenders
a redistribution of income from lenders to borrowers
a redistribution of income from workers to employers
Question 11 (1 point)
Which of the following will cause the production possibilities curve to shift outward?
Question 11 options:
reallocation of resources toward food production
improved public education
increased regulation of the financial sector
Question 12 (1 point)
Which of the following types of unemployment will NOT occur in an economic boom?
Question 12 options:
Question 13 (1 point)
Which of the following terms best describes persons who work 25 hours per week
Question 13 options:
part of the labour force
Question 14 (1 point)
WWhich of the following is a measure of economic growth?
Question 14 options:
the advancement in the quality of a nation's technology
the rate of business investment and capital formation
the marginal change in nominal output divided by total output from the previous year
the annual percentage change in per capita real output of goods and services
Question 15 (1 point)
Which of the following will NOT directly affect the size of a nation's capital stock?
Question 15 options:
a newly constructed factory
a new machine installed in a company's plant
a student enrolled in university as a full-time student
resources reallocated to the production of food
Question 16 (1 point)
How do economists define the marginal propensity to consume (MPC)?
Question 16 options:
as the additional disposable income households earn in a given period
as the additional consumption that results from one dollar increase in disposable income
as the fraction of total disposable income that households save
as the fraction of total disposable income that households spend on consumption
Question 17 (1 point)
What is the term for household income after taxes?
Question 17 options:
gross domestic product
gross national product
Question 18 (1 point)
In the short run, which of the following increases will result from an increase in the price level?
Question 18 options:
an increase in unemployment rates
an increase in the natural rate of output
an increase in the profit margins of many producers
an increase in output prices relative to input prices
Question 19 (1 point)
Country A and Country B initially have the same real GDP per capita. Country A experiences NO economic growth, while Country B grows at a sustained rate of 5 percent. In 14 years, how will Country A's GDP compare with that of Country B's?
Question 19 options:
It will be approximately one-half of Country B's GDP.
It will be approximately double Country B's GDP.
It will be approximately one-fourth of Country B's GDP.
It will be approximately triple Country B's GDP.
Question 20 (1 point)
In a stagflation situation, what happens to real output and the price level?
Question 20 options:
Real output growth increases and the price level increases.
Real output growth increases and the price level decreases.
Real output growth decreases and the price level increases.
Real output growth decreases and the price level decreases.
Question 21 (1 point)
Which of the following is NOT included in GDP?
Question 21 options:
the fees for accounting services
the payments for a dentist's services
the allowance paid to your teenager which is NOT claimed as income
the replacement of brake pads on your two-year-old vehicle
Question 22 (1 point)
How is the unemployment rate calculated?
Question 22 options:
the number of unemployed persons divided by the number of employed plus unemployed persons
the number of employed persons divided by the number of unemployed persons
the number of unemployed persons divided by the population
the number of unemployed persons divided by the number of employed persons
Question 23 (1 point)
What is depreciation?
Question 23 options:
It is income received but NOT earned.
It is income earned but NOT received.
It is an allowance for the replacement of capital.
It is an indirect business tax.
Question 24 (1 point)
Which of the following does NOT have an abundance of natural resources
Question 24 options:
Question 25 (1 point)
Which of the following does NOT affect growth in real GDP per capita?
Question 25 options:
the production of final services in the economy
the total production of final goods in the economy
the distribution of income
Question 26 (1 point)
Which of the following groups of people would be included in the official unemployment rate?
Question 26 options:
workers temporarily laid off
Question 27 (1 point)
Which of the following is NOT a major macroeconomic goal of nearly every society?
Question 27 options:
maintaining stability of prices
achieving self-sufficiency in the production of food and energy
achieving high rates of economic growth
maintaining high levels of employment
Question 28 (1 point)
Refer to Figure 8-2. Which of the following would be illustrated by a shift in aggregate demand from AD0 to AD2?
Question 28 options:
an increase in government purchases, combined with a decrease in investment
faster growth rates by a major trading partner, combined with an increase in stock market wealth
an increase in business tax rates, combined with a decrease in consumer confidence
an increase in consumption, combined with an increase in exports
Question 29 (1 point)
If consumption is a direct function of disposable income, what would be the result of an increase in personal taxes?
Question 29 options:
a decrease in net exports
an increase in consumption but NOT in aggregate demand
a decrease in both consumption and aggregate demand
a decrease in consumption but NOT in aggregate demand
Question 30 (1 point)
Which of the following does NOT affect growth in real GDP per capita
Question 30 options:
the distribution of income
the production of final services in the economy
the total production of final goods in the economy
Question 31 (1 point)
What type of unemployment is a by-product of geographic and occupational mobility and is NOT generally considered to be a serious problem?
Question 31 options:
Question 32 (1 point)
Which of the following are included in the underground economy?
Question 32 options:
both legal and illegal sources of unreported income
payments that are reported to the government
both legal and illegal sources of reported income
only illegal sources of unreported income
Question 33 (1 point)
What was the basis of Malthus's predictions regarding the decline in per capita economic growth?
Question 33 options:
decreasing returns to scale
the law of diminishing marginal returns
the law of demand
Question 34 (1 point)
Which of the following statements best illustrates economic growth?
Question 34 options:
An increase in the quantity of labour always leads to economic growth.
A decrease in the productivity of labour leads to economic growth.
An increase in the minimum wage will always lead to economic growth.
Increased education adds to the stock of human capital, NOT unlike building factories, which adds to the stock of physical capital.
Question 35 (1 point)
Which of the following best describes the presence of discouraged workers?
Question 35 options:
They are included in the official count of the unemployed.
The unemployment rate will tend to overstate the true level of unemployment when they are present.
They are considered part of the labour force.
The unemployment rate will tend to understate the true level of unemployment when they are present.
Question 36 (1 point)
Which economist is given credit for stating that "in the long run, we are all dead"?
Question 36 options:
John Maynard Keynes
Question 37 (1 point)
What term do economists use to describe persons who have jobs but are actively looking for other work?
Question 37 options:
out of the labour force
Question 38 (1 point)
When wages rise 15 percent, under which of the following circumstances will short-run aggregate supply increase?
Question 38 options:
if productivity increases by 15 percent
if productivity is stable
if productivity increases by 10 percent
if productivity increases by 20 percent
Question 39 (1 point)
Which of the following is most likely to contribute to economic growth as measured by real GDP per capita?
Question 39 options:
an increase in marginal tax rates
increased capital formation
rapid population growth
the imposition of tariffs and quotas on imported goods
Question 40 (1 point)
Which of the following statements best describes output per capita?
Question 40 options:
It is total output (GDP) divided by the number of persons among who contributed to production.
It is total output (GDP) divided by the labour force.
It is one measure of the marginal level of economic well-being in a country.
It is measured by GDP per capita.
Question 41 (1 point)
Which of the following best describes the impact of the implementation of a new technology in the economy?
Question 41 options:
It gets rid of structural unemployment.
It causes a substantial hardship on the whole labour force.
It causes considerable job losses.
It creates economic growth, and therefore job growth.
Question 42 (1 point)
Which of the following changes in taxes would lead to the greatest increase in consumption?
Question 42 options:
a $12 000 decrease in taxes, if MPC equals 0.7
a $30 000 decrease in taxes, if MPC equals 0.25
a $20 000 decrease in taxes, if MPC equals 0.4
a $15 000 decrease in taxes, if MPC equals 0.5
Question 43 (1 point)
Which of the following factors might cause the unemployment rate to underestimate the true extent of unemployment?
Question 43 options:
Many people become discouraged and cease looking for work.
Many people work in the underground economy.
Employees increase the number of hours they work overtime.
Many people have both a part-time job and a full-time job.
Question 44 (1 point)
According to the rule of 70, if a nation's economy grows at a rate of 14 percent per year, in roughly how many years will national income double?
Question 44 options:
Question 45 (1 point)
What does the labour force consist of?
Question 45 options:
all persons aged 15 and older who are working, plus those NOT working
all persons aged 15 and older who are working or actively seeking work
discouraged workers, employed workers, plus those actively seeking work
all persons aged 15 and older who are able to work
Question 46 (1 point)
What will be the result if the nation experiences a technological breakthrough in the production process?
Question 46 options:
Firms will make higher profits but will NOT increase production.
Business costs will rise, profits will fall, and production will decrease.
Business costs will decline, improving profitability, and production will increase.
Business costs will fall, but profits also will fall and production will remain at the pre-breakthrough level.
Question 47 (1 point)
What is the term for the difference between the nominal interest rate and the rate of inflation?
Question 47 options:
the real interest rate
the coupon rate
the prime rate
the discount rate
Question 48 (1 point)
Where would you generally buy consumer nondurable goods?
Question 48 options:
a stock market
a grocery store
a dentist's office
a clothing store
Question 49 (1 point)
What impact will a permanent increase in the supply of a major input have on real output?
Question 49 options:
It will increase real output in the short run but NOT in the long run.
It will increase real output in both the short run and the long run.
It will decrease real output in the short run but NOT in the long run.
It will decrease real output in both the short run and the long run.
Question 50 (1 point)
Which term describes Jeff, who has been laid off from his job at a manufacturing plant?
Question 50 options:
a job loser
a job leaver