201-251 Eco

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.

  
  

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.

  
  

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.

  
  

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.

  
  

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.

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.

  
  

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.

208.During the early 1920s in Germany, prices

• a. doubled annually.
  

• 
  b. doubled monthly.
  

• 
  c. tripled monthly.
  

• 
  d. tripled annually.

  
  

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

• a. the United States in the 1960s.
  

• 
  b. Italy in the 1950s.

  
  

• 
  c. Russia in the 1930s.

  
  

• 
  d. Germany in the 1920s.

  
  

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

• a. 1950s.

• 
  b. 1960s.

• 
  c. 1970s.
  

• 
  d. 1980s.