209.One of the 20th century's worst episodes of inflation occurred in

a. the United States in the 1960s.

211.President Gerald Ford referred to inflation as

a. a blight on our nation's economy.

b. a necessary evil to combat high unemployment.

213.In which of the following decades was there both high inflation and rapid money supply growth in the US?

b. the 1970's but not the 1990's

c. the 1990's but not the 1970's

d. neither the 1970's nor the 1990's

214.In the 1990s, inflation in the United States was

d. commonly referred to as "public enemy number one."

215.Large or persistent inflation is almost always caused by

b. excessive growth in the quantity of money.

a. excessive government spending.

d. higher-than-normal levels of productivity.

216.Which of the following would a permanent increase in the growth rate of the money supply change permanently?

c. both inflation and unemployment

d. neither inflation nor unemployment

217.Most economists believe that an increase in the quantity of money results in

a. an increase in the demand for goods and services.

b. lower unemployment in the short run.

c. higher inflation in the long run.

220.In the short run, an increase in the money supply is likely to lead to

b. lower unemployment and higher inflation.

a. lower unemployment and lower inflation.

c. higher unemployment and lower inflation.

d. higher unemployment and higher inflation.

221.Suppose that the Federal Reserve Bank announces that it will be making a change to a key interest rate to increase the money supply. This is likely because

b. the Federal Reserve Bank is worried about unemployment.

a. the Federal Reserve Bank is worried about inflation.

c. the Federal Reserve Bank is hoping to reduce the demand for goods and services.

d. the Federal Reserve Bank is worried that the economy is growing too quickly.

222.Low rates of inflation are generally associated with

d. low rates of growth of the quantity of money.

a. low rates of government spending.

b. small or nonexistent government budget deficits.

c. low rates of productivity growth.

223.Which of the following is the most correct statement about the relationship between inflation and unemployment?

b. In the short run, falling inflation is associated with rising unemployment.

a. In the short run, falling inflation is associated with falling unemployment.

. c. In the long run, falling inflation is associated with falling unemployment.

d. In the long run, falling inflation is associated with rising unemployment.

224.Which of the following is an important cause of inflation in an economy?

d. growth in the quantity of money in the economy

a. increases in productivity in the economy

b. the influence of positive externalities on the economy

c. lack of property rights in the economy

225.The mainstream view among economists is that

a. society faces a tradeoff between unemployment and inflation, but only in the short run.

b. society faces a tradeoff between unemployment and inflation, but only in the long run.

c. society faces a tradeoff between unemployment and inflation, both in the short run and in the long run.

d. no tradeoff exists between unemployment and inflation, either in the short run or in the long run.

226.Which of the following claims is consistent with the views of mainstream economists?

a. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will temporarily fall.

b. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will temporarily rise.

c. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will permanently fall.

d. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will permanently rise.

227.For a very long time Tropicland has had inflation of 12%. Suddenly its inflation rate drops to 4%. The drop in the inflation rate

a. could be due to slower money supply growth. We would expect unemployment to be higher.

b. could be due to slower money supply growth. We would expect unemployment to be lower.

c. could be due to higher money supply growth. We would expect unemployment to be higher.

d. could be due to higher money supply growth. We would expect unemployment to be lower.

228.For a number of years country A had inflation of 3% but for the last five years has had inflation of 6%. Country B had inflation of 4% for many years, but very recently inflation unexpectedly rose to 9%. Other things the same, in which of the countries would the higher inflation rate be more likely to reduce unemployment?

a. both country A and country B

b. neither country A nor country B

229.In the early 1980s, U.S. economic policy was directed toward reducing inflation. What would you have expected to observe during this short period of time?

c. Inflation fell and unemployment increased.

a. Inflation fell and unemployment fell.

b. Inflation and unemployment were both unaffected.

d. Inflation fell and unemployment was unchanged.

230.The relatively low inflation experienced in the United States in the 1990s is attributable to

b. slow growth of the quantity of money in the U.S. in the 1990s.

a. slow growth of U.S. productivity during the 1990s.

c. low levels of government spending in the U.S. in the 1980s and 1990s.

d. the eight-year presidency of William Jefferson Clinton during the 1990s.

231.During the 1990s, the United Kingdom experienced low levels of inflation while Turkey experienced high levels of inflation. A likely explanation of these facts is that

b. the rate of growth of the quantity of money was slower in the United Kingdom than in Turkey.

a. the United Kingdom has a better education system than Turkey.

c. workers in Turkey are more productive than workers in the United Kingdom.

d. there are more instances of market power in Turkey than in the United Kingdom.

232.The tradeoff between inflation and unemployment

D. None of the above are correct.

A. implies that policies designed to reduce unemployment also reduce inflation.

B. was eliminated by improved economic policies in the 1900s.

C. is a long-run tradeoff, persisting for decades, according to most economists.

233.Germany could have avoided the high inflation that it experienced in the 1920s by

C. not allowing the quantity of money to increase so rapidly.

A. not directing so many of its resources toward preparation for World War II.

B. not increasing taxes so much on the German middle class.

D. using government policies to stimulate the economy more so than what was done.

234.In the short run, which of the following is not correct?

D. Policies that encourage higher employment will also induce a lower rate of inflation.

A. Increasing the money supply increases the demand for goods and services.

B. Increasing the money supply encourages firms to hire more workers.

C. Lowering the money supply leads to a higher level of unemployment.

235.The short-run tradeoff between inflation and unemployment implies that, in the short run,

A. a decrease in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate.

B. an increase in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate.

C. policymakers are able to reduce the inflation rate and, at the same time, reduce the unemployment rate.

D. policymakers can influence the inflation rate, but not the unemployment rate.

236.The business cycle is the

B. irregular fluctuations in economic activity.

A. relationship between unemployment and inflation.

C. positive relationship between the quantity of money in an economy and inflation.

D. predictable changes in economic activity due to changes in government spending and taxes.

237.The business cycle is measured by the

A. production of goods and services.

238.The "broken window fallacy"

C. is illustrated when a government program is justified not on its merits but on the number of jobs it will create.

A. explains why inflation is so high.

B. is a justification for the government to print more money.

D. has nothing to do with public policy.

239.It once took 90 percent of our population to grow our food. It now takes only 3 percent of the population to grow our food. Which of the following statements is true?

D. Economists understand this is progress because the proportion of the population that used to be farmers is now employed in other professions.

A. This loss of jobs has been detrimental to our economy.

B. The government should provide subsidies to encourage more people to become farmers.

C. This reduction in the number of farmers explains the increase in the price of food.

240.Which of the following is not correct?

B. Economics has its own language and its own way of thinking, but few other fields of study do.

A. Economists use some familiar words in specialized ways.

C. Supply, demand, elasticity, comparative advantage, consumer surplus, and deadweight loss are all terms that are part of the economist's language.

D. The value of the economist's language lies in its ability to provide you with a new and useful way of thinking about the world in which you live.

241.Economists, like mathematicians, physicists, and biologists,

a. make use of the scientific method.

b. try to address their subject with a scientist's objectivity.

c. devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories.

242.The essence of science is

c. the study of nature, but not the study of society.

243.The scientific method is

c. the dispassionate development and testing of theories about how the world works.

a. the use of modern technology to understand the way the world works.

b. the use of controlled laboratory experiments to understand the way the world works.

d. the search for evidence to support preconceived theories about how the world works.

244.The scientific method is applicable to studying

c. both natural sciences and social sciences.

a. natural sciences, but not social sciences.

b. social sciences, but not natural sciences.

d. None of the above is correct.

245.Albert Einstein once made the following observation about science:

a. "The whole of science is nothing more than the refinement of everyday thinking."

b. "The whole of science is nothing more than an interesting intellectual exercise."

c. "In order to understand science, one must rely solely on abstraction."

d. "In order to understand science, one must transcend everyday thinking."

246.Sir Isaac Newton's development of the theory of gravity after observing an apple fall from a tree is an example of

d. the interplay between observation and theory in science.

a. a controlled experiment that lead to the formulation of a scientific theory.

b. being in the right place at the right time.

c. an idea whose time had come.

247.The goal of an economist who formulates new theories is to

c. contribute to an understanding of how the world works.

a. provide an interesting framework of analysis, whether or not the framework turns out to be of much use in understanding how the world works.

b. provoke stimulating debate in scientific journals.

d. demonstrate that economists, like other scientists, can formulate testable theories.

248.Which of the following statements applies to economics, as well as to other sciences such as physics?

c. Real-world observations often lead to theories.

a. Experiments are considered valid only when they are conducted in a laboratory.

b. Good theories do not need to be tested.

d. Economics, as well as other sciences, is concerned primarily with abstract concepts.

249.With respect to how economists study the economy, which of the following statements is most accurate?

c. Economists devise theories, collect data, and analyze the data to test the theories.

a. Economists study the past, but they do not try to predict the future.

b. Economists use "rules of thumb" to predict the future.

d. Economists use controlled experiments in much the same way that biologists and physicists do.

250.Economists face an obstacle that many other scientists do not face. What is that obstacle?

b. It is often difficult and sometimes impossible to perform experiments in economics.

a. It is often difficult to formulate theories in economics.

c. Economics cannot be addressed objectively; it must be addressed subjectively.

d. The scientific method cannot be applied to the study of economics.

201-251 Eco

Authored by Nguyễn Thảo

English

University

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

Content View

Student View

50 questions

Show all answers

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

201.To raise productivity, policymakers could

a. increase spending on education.

b. provide tax credits to firms for capital improvements.

c. fund research and development.

d. All of the above are correct.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

202.To increase living standards, public policy should

a. ensure that workers are well educated and have the necessary tools and technology.

b. make unemployment benefits more generous.

c. move workers into jobs directly from high school.

d. ensure a greater degree of equality, taking all income-earners into account.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

203.To improve living standards, policymakers should

a. impose restrictions on foreign competition.

b. formulate policies designed to increase productivity.

c. impose tougher immigration policies.

d. provide tax breaks for the middle class.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

204.Incomes of U.S. households in the 1970s and 1980s

a. grew rapidly, due to the widespread success of labor unions in pushing up wages during those decades.

b. grew rapidly, due to several increases in the minimum wage during those decades.

c. grew rapidly, due to government policies that discouraged the importation of foreign products during those decades.

d. grew slowly, due to slow growth of the output of goods and services per hour of U.S. workers' time during those decades.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

205.An increase in the overall level of prices in an economy is referred to as

a. the income effect.

b. inflation.

c. deflation.

d. the substitution effect.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

206.Inflation is defined as

a. a period of rising productivity in the economy.

b. a period of rising income in the economy.

c. an increase in the overall level of output in the economy.

d. an increase in the overall level of prices in the economy.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

207.In the early 1920s,

a. Germany experienced a very high rate of inflation.

b. the quantity of German money was declining rapidly.

c. the value of German money remained almost constant.

d. All of the above are correct.

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever

or continue with

Microsoft

Apple

Others

Already have an account?

Similar Resources on Wayground

50 questions

Ағылшын 2 сем 2 тест

Quiz

•

University

50 questions

Grade 10 English Grammar Quiz

Quiz

•

10th Grade - University

45 questions

PAS BAHASA INGGRIS KELAS 9 MTs AS SALAM TP. 2024/2025

Quiz

•

9th Grade - University

45 questions

SOL1- review unit 2

Quiz

•

University

51 questions

Diagnostic Test Level 2

Quiz

•

University

50 questions

Ethics in Research Quiz

Quiz

•

11th Grade - University

50 questions

AKT test (251-300) Жаңа вариант

Quiz

•

University

50 questions

English Conversation Skills: Unit 2 - "Tell Us What You See"

Quiz

•

University

Popular Resources on Wayground

15 questions

Fractions on a Number Line

Quiz

•

3rd Grade

20 questions

Equivalent Fractions

Quiz

•

3rd Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

29 questions

Alg. 1 Section 5.1 Coordinate Plane

Quiz

•

9th Grade

$fractions$

22 questions

fractions

Quiz

•

3rd Grade

11 questions

FOREST Effective communication

Lesson

•

20 questions

Main Idea and Details

Quiz

•

5th Grade

20 questions

Context Clues

Quiz

•

6th Grade

Discover more resources for English

12 questions

IREAD Week 4 - Review

Quiz

•

3rd Grade - University

20 questions

Implicit vs. Explicit

Quiz

•

6th Grade - University

18 questions

The Basic Parts of an Essay

Quiz

•

9th Grade - University

201-251 Eco

201.To raise productivity, policymakers could

202.To increase living standards, public policy should

203.To improve living standards, policymakers should

204.Incomes of U.S. households in the 1970s and 1980s

205.An increase in the overall level of prices in an economy is referred to as

206.Inflation is defined as

207.In the early 1920s,

208.During the early 1920s in Germany, prices

209.One of the 20th century's worst episodes of inflation occurred in

210.In the United States, the overall level of prices more than doubled during the

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for English