QN=10 (2251) (17764) Gross domestic product is defined as

c. (iii) the market value of all final goods and services produced within a country in a given period of time.

a. (i) the quantity of all final goods and services demanded within a country in a given period of time.

b. (ii) the quantity of all final goods and services supplied within a country in a given period of time.

d. Both (i) and (ii) are correct.

QN=11 (2286) (17800) In 1949, Sycamore, Illinois built a hospital for about $500,000. In 1987, the county restored the courthouse for about $1.7 million. A price index for nonresidential construction was 24 in 1949, 108 in 1987, and 126.5 in 2000. According to these numbers, the hospital cost about

d. $2.6 million in 2000 dollars, which is more than the cost of the courthouse restoration in 2000 dollars.

a. $2.1 million in 2000 dollars, which is less than the cost of the courthouse restoration in 2000 dollars.

b. $2.1 million in 2000 dollars, which is more than the cost of the courthouse restoration in 2000 dollars.

c. $2.6 million in 2000 dollars, which is less than the cost of the courthouse restoration in 2000 dollars.

QN=12 (2276) (17786) If you buy a burger and fries at your favorite fast food restaurant,

d. then both GDP and consumption spending will be higher.

a. then neither GDP nor consumption will be affected because you would have eaten at home had you not bought the meal at the restaurant.

b. then GDP will be higher, but consumption spending will be unchanged.

c. then GDP will be unchanged, but consumption spending will be higher.

QN=13 (2274) (17791) A German citizen buys an automobile produced in the United States by a Japanese company. As a result,

c. U.S. net exports and GDP increase, Japanese GNP increases, German net exports decrease, and German GNP and GDP are unaffected.

a. U.S. net exports increase, U.S. GDP is unaffected, Japanese GNP increases, German net exports decrease, and German GNP and GDP are unaffected.

b. U.S. net exports and GDP increase, Japanese GNP increases, German net exports decrease, and German GNP is unaffected, and German GDP decreases.

d. U.S. net exports and GDP are unaffected, Japanese GNP increases, and German net exports, GNP, and GDP decrease.

QN=15 (2267) (17771) A transfer payment is

c. a form of government spending that is not made in exchange for a currently produced good or service.

a. a payment for moving expenses a worker receives when he or she is transferred by an employer to a new location.

b. a payment that is automatically transferred from your bank account to pay a bill or some other obligation.

d. the benefit that a person receives from an expenditure by government minus the taxes that were collected by government to fund that expenditure.

QN=17 (2311) (17834) Human capital is the

a. knowledge and skills that workers acquire through education, training, and experience.

b. stock of equipment and structures that is used to produce goods and services.

c. total number of hours worked in an economy.

d. same thing as technological knowledge.

QN=18 (2303) (17792) When the consumer price index rises, the typical family

a. has to spend more dollars to maintain the same standard of living.

b. can spend fewer dollars to maintain the same standard of living.

c. finds that its standard of living is not affected.

d. can offset the effects of rising prices by saving more.

QN=22 (2346) (17870) If the government's expenditures exceeded its receipts, it would likely

d. sell bonds directly to the public.

a. lend money to a bank or other financial intermediary.

b. borrow money from a bank or other financial intermediary.

c. buy bonds directly from the public.

QN=23 (2345) (17862) Suppose that in a closed economy GDP is equal to 11,000, taxes are equal to 2,500 consumption equals 7,500 and government purchases equal 2,000. What are private saving, public saving, and national saving?

b. (ii) 1,000, 500, and 1,500, respectively

a. (i) 1,500, 1,000, and 500, respectively

c. (iii) 500, 1,500, and 1,000, respectively

QN=24 (2343) (17861) World Wide Delivery Service Corporation develops a way to speed up its deliveries and reduce its costs. We would expect that this would

a. raise the demand for existing shares of the stock, causing the price to rise.

b. decrease the demand for existing shares of the stock, causing the price to fall.

c. raise the supply of the existing shares of stock, causing the price to rise.

d. raise the supply of the existing shares of stock, causing the price to fall.

QN=25 (2355) (17853) The source of the supply of loanable funds is

a. saving, and the source of the demand for loanable funds is investment.

b. consumption, and the source of the demand for loanable funds is investment.

c. investment, and the source of the demand for loanable funds is saving.

d. the interest rate, and the source of the demand for loanable funds is saving.

QN=27 (2375) (17897) Suppose that because of the popularity of the low-carb diet, bakeries need fewer workers and steak houses need more workers. This is an example of

b. frictional unemployment created by sectoral shifts.

d. structural unemployment created by sectoral shifts.

a. frictional unemployment created by efficiency wages.

c. structural unemployment created by efficiency wages.

QN=29 (2357) (17871) Which of the following lists correctly identifies the four expenditure categories of GDP?

a. consumption, government purchases, investment, net-exports

b. consumption, investment, depreciation, net-exports

c. consumption, saving, investment, depreciation,

d. consumption, government purchases, investment, savings

QN=31 (2378) (17875) In one year, you meet 52 people who are each unemployed for one week and eight people who are each unemployed for the whole year. Normally there are 52 weeks in a year. What percentage of the unemployment spells you encountered was short-term, and what percentage of the unemployment you encountered in a given week was long-term?

d. 86.7 percent and 88.9 percent

c. 86.7 percent and 13.3 percent

QN=32 (2387) (17898) Public policy

a. can reduce both frictional unemployment and the natural rate of unemployment.

b. can reduce frictional unemployment, but it cannot reduce the natural rate of unemployment.

c. cannot reduce frictional unemployment, but it can reduce the natural rate of unemployment.

d. cannot reduce either frictional unemployment or the natural rate of unemployment.

QN=33 (2388) (17908) An increase in the money supply might indicate that the Fed had

b. purchased bonds in an attempt to reduce the federal funds rate.

a. purchased bonds in an attempt to increase the federal funds rate.

d. sold bonds in an attempt to reduce the federal funds rate.

c. sold bonds in an attempt to increase the federal funds rate.

QN=34 (2407) (17918) If people decide to hold more currency relative to deposits, the money supply

b. falls. The larger the reserve ratio is, the less the money supply falls.

a. falls. The larger the reserve ratio is, the more the money supply falls.

c. rises. The larger the reserve ratio is, the more the money supply rises.

d. rises. The larger the reserve ratio is, the less the money supply rises.

QN=35 (2436) (17951) According to the classical dichotomy, which of the following is affected by monetary factors?

d. All of (i), (ii), and (iii) are correct.

QN=36 (2428) (17943) Suppose that velocity rises while the money supply stays the same. It follows that

d. the effects on P*Y are uncertain.

QN=38 (2437) (17957) The classical dichotomy argues that changes in the money supply

c. affect nominal variables, but not real variables.

a. affect both nominal and real variables.

d. do not affect nominal variables, but do affect real variables.

b. affect neither nominal nor real variables.

QN=39 (2417) (17941) According to monetary neutrality and the Fisher effect, an increase in the money supply growth rate eventually increases

b. inflation and nominal interest rates, but does not change real interest rates.

a. inflation, nominal interest rates, and real interest rates.

d. neither inflation, nominal interest rates, nor real interest rates.

c. inflation and real interest rates, but does not change nominal interest rates.

QN=40 (2418) (17937) If P denotes the price of goods and services measured in terms of money, then

a. (i) 1/P represents the value of money measured in terms of goods and services.

b. (ii) P can be interpreted as the inflation rate.

c. (iii) the supply of money influences the value of P, but the demand for money does not.

d. All of (i), (ii), and (iii) are correct.

QN=41 (2473) (17968) Suppose that the nominal exchange rate is 120 yen per dollar, that the price of a basket of goods in the U.S. is $500 and the price of a basket of goods in Japan is 50,000 yen. Suppose that these values change to 100 yen per dollar, $600, and 70,000 yen. Then the real exchange rate would

d. depreciate which by itself would make U.S. net exports rise.

a. appreciate which by itself would make U.S. net exports fall.

b. appreciate which by itself would make U.S. net exports rise.

c. depreciate which by itself would make U.S. net exports fall.

QN=43 (2455) (17978) When Claudia, a U.S. citizen, purchases a handbag made in France, the purchase is

c. a U.S. import and a French export.

a. both a U.S. and French import.

b. a U.S. export and a French import.

d. neither an export nor an import for either country.

QN=44 (2494) (17997) Refer to Figure 32-3. Which curve shows the relation between the exchange rate and net exports?

b. the demand curve in panel c.

a. the demand curve in panel a.

c. the supply curve in panel a.

d. the supply curve in panel c.

QN=45 (2482) (18002) In the open-economy macroeconomic model, the purchase of a capital asset adds to the demand for loanable funds

c. (iii) whether the asset is located at home or abroad.

a. (i) only if the asset is located at home.

b. (ii) only if the asset is located abroad.

d. None of (i), (ii), and (iii) is correct.

QN=46 (2533) (18052) Fiscal policy affects the economy

c. in both the short and long run.

d. in neither the short nor the long run.

QN=47 (2528) (18042) The sticky-wage theory of the short-run aggregate supply curve says that the quantity of output firms supply will increase if

a. the price level is higher than expected making production more profitable.

b. the price level is higher than expected making production less profitable.

c. the price level is lower than expected making production more profitable.

d. the price level is lower than expected making production less profitable.

QN=48 (2535) (18046) In the long run, changes in the money supply affect

d. All of (i), (ii), and (iii).

QN=49 (2556) (18057) To reduce the effects of crowding out caused by an increase in government expenditures, the Federal Reserve could

a. increase the money supply by buying bonds.

b. increase the money supply by selling bonds.

c. decrease the money supply by buying bonds.

d. decrease the money supply by selling bonds.

QN=50 (2540) (18069) According to liquidity preference theory, the money-supply curve would shift if the Fed

d. did any of (i), (ii), or (iii).

a. (i) engaged in open-market transactions.

b. (ii) changed the discount rate.

c. (iii) changed the reserve requirement.

ECO121-A03

Authored by Ngô Minh Hiếu

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MULTIPLE CHOICE QUESTION

30 sec • 1 pt

QN=2 (2206)
(17758) Refer to Figure 3-3. Enid has an absolute advantage in the production of

burritos and a comparative advantage in the production of tacos.

burritos and a comparative advantage in the production of burritos.

neither good and a comparative advantage in the production of tacos.

neither good and a comparative advantage in the production of burritos.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

QN=3 (2226)
(17732) Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year, and a worker in Oatland can grow either 5 bushels of corn or 50 bushels of oats per year. There are 20 workers in Cornland and 20 workers in Oatland. If the two countries do not trade, Cornland will produce and consume 400 bushels of corn and 100 bushels of oats, while Oatland will produce and consume 60 bushels of corn and 400 bushels of oats. If each country made the decision to specialize in producing the good in which it has a comparative advantage, then the combined yearly output of the two countries would increase by

280 bushels of corn and 450 bushels of oats.

340 bushels of corn and 500 bushels of oats.

360 bushels of corn and 520 bushels of oats.

360 bushels of corn and 640 bushels of oats.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

QN=4 (2210)
(17726) Which famous economist developed the principle of comparative advantage as we know it today?

Adam Smith

David Ricardo

John Maynard Keynes

Milton Friedman

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

QN=5 (2227)
(17749) Refer to Table 3-4. The opportunity cost of 1 pound of potatoes for the farmer is

1/5 pound of meat.

2 hours of labor.

5 pounds of meat.

5 hours of labor.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

QN=6 (2254)
(17769) Refer to Table 23-5. In 2008, Batterland’s real GDP was

$100.

$390.

$400.

$540.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

QN=7 (2244)
(17751) Refer to Table 3-5. England has a comparative advantage in the production of

cheese and Spain has a comparative advantage in the production of bread.

bread and Spain has a comparative advantage in the production of cheese.

both goods and Spain has a comparative advantage in the production of neither good.

neither good and Spain has a comparative advantage in the production of both goods.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

QN=8 (2258)
(17789) What word do economists use to refer to the purchase of goods that will be used in the future to produce more goods and services?

capital

consumption

investment

costs

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ECO121-A03

QN=2 (2206)(17758) Refer to Figure 3-3. Enid has an absolute advantage in the production of

QN=4 (2210)(17726) Which famous economist developed the principle of comparative advantage as we know it today?

QN=5 (2227)(17749) Refer to Table 3-4. The opportunity cost of 1 pound of potatoes for the farmer is

QN=6 (2254)(17769) Refer to Table 23-5. In 2008, Batterland’s real GDP was

QN=7 (2244)(17751) Refer to Table 3-5. England has a comparative advantage in the production of

QN=8 (2258)(17789) What word do economists use to refer to the purchase of goods that will be used in the future to produce more goods and services?

QN=9 (2238)(17761) Refer to Figure 3-7. The opportunity cost of 1 bowl for Juba is

QN=10 (2251)(17764) Gross domestic product is defined as

QN=11 (2286)(17800) In 1949, Sycamore, Illinois built a hospital for about $500,000. In 1987, the county restored the courthouse for about $1.7 million. A price index for nonresidential construction was 24 in 1949, 108 in 1987, and 126.5 in 2000. According to these numbers, the hospital cost about

Access all questions and much more by creating a free account

Popular Resources on Wayground

Discover more resources for Other

QN=2 (2206)
(17758) Refer to Figure 3-3. Enid has an absolute advantage in the production of

QN=4 (2210)
(17726) Which famous economist developed the principle of comparative advantage as we know it today?

QN=5 (2227)
(17749) Refer to Table 3-4. The opportunity cost of 1 pound of potatoes for the farmer is

QN=6 (2254)
(17769) Refer to Table 23-5. In 2008, Batterland’s real GDP was

QN=7 (2244)
(17751) Refer to Table 3-5. England has a comparative advantage in the production of

QN=8 (2258)
(17789) What word do economists use to refer to the purchase of goods that will be used in the future to produce more goods and services?

QN=9 (2238)
(17761) Refer to Figure 3-7. The opportunity cost of 1 bowl for Juba is

QN=10 (2251)
(17764) Gross domestic product is defined as

QN=11 (2286)
(17800) In 1949, Sycamore, Illinois built a hospital for about $500,000. In 1987, the county restored the courthouse for about $1.7 million. A price index for nonresidential construction was 24 in 1949, 108 in 1987, and 126.5 in 2000. According to these numbers, the hospital cost about