AP Macro Final

A budget in which the receipts of the government exceed its expenditure is called:

• Surplus budget

• Deficit budget

• Balanced budget

• None of the above.

A budget in which the receipts of the government are matched by its expenditure is known as:

• Balanced budget

• Surplus budget

• Deficit budget

____ is a systematic record of all the economic transaction between one country and rest of the world:

• Balance of Payments

• Gross Domestic Product

• Fiscal Policy

• Trade Agreement

Unions can lead to different wages in a business because:

• unions can threaten to strike or use collective bargaining to negotiate higher wages for union members

• unions enjoy higher production

• unions will agree to create similar wages with non-union members

• unions lower the company costs in general

Which one of the following describes a state of the labour market which is often linked to a lower wage for those employed?

• Monopsony

• Strong trade unions

• National minimum wage

• Highly skilled occupation

The situation wherein a person who is able and willing to work is unable to find a suitable job is called?

• Unemployment

• Employment

• Full Employment

• Under Employment

Which term describes unemployment that is due to the business cycle and growth and contraction of the economy?

• Cyclical Unemployment

• Employment

• Full Employment

• Under Employment

Which type of unemployment is represented by ECF7?

• Cyclical unemployment

• None of the above

• Structural unemployment

• Frictional unemployment

Which of the following individuals would be counted as unemployed?

• Larry, who does not have a job

• Harry, who is a full-time student

• Jennifer, who is about to start a new job

• Felicia, who worked a total of 15 hours the previous week

If the quantity of a good produced is not the same as the socially optimal quantity, there will be

• deadweight loss

• no equilibrium

• both a positive and negative externality