Macroeconomics Revision quizzes

If the nominal interest rate is 7 percent and the inflation rate is 3 percent, then the real interest rate is

• -4 percent

• 4 percent

• 21 percent

• 10 percent

• 3 percent

Which of the following is correct?

• The word economy comes from the Greek word for "rational thinker"

• Economists study the management of scarce resources

• Because economists believe that people pursue their best interests, they are not interested in how people interact

• All of the above are correct

The term used by economists to indicate marginal change to describe a small incremental adjustment to an existing plan of action

(a)  

Approximately what percentage of the world's economies experience scarcity?

• 25%

• 50%

• 75%

• 100%

When a nation has very little GDP per person

• It must be a small nation

• An increase in capital will likely have little impact on output

• It has the potential to grow relatively quickly due to the "catch-up effect"

• It is doomed to being relatively poor forever

• None of the above is true

What can induce a person to act

(a)  

A financial intermediary is a middle-person between

• Labor unions and firms

• Husbands and wives

• Buyers and sellers

• Borrowers and lenders

Which of the following types of unemployment will exist even if the wage is at the competitive equilibrium?

• Unemployment due to minimum-wage laws

• Unemployment due to efficiency wages

• Frictional unemployment

• Unemployment due to unions

The opportunity cost of growth is

• A reduction in current investment

• A reduction in taxes

• A reduction in current saving

• A reduction in current consumption

Which of the following expenditures to enhance productivity is most likely to emit a positive externality?

• Susan pays her college tuition

• General Motors buy a new drill press

• Exxon leases a new oil field

• Megabank buys a new computer