Extra Review: Macroeconomics

The market equilibrium price is the price at which

• surpluses depress the number of goods supplied

• shortages and surpluses will have no effect on the market

• the government will not intervene in the market

• the quantity demanded is the same as the quantity supplied

What causes a shift in the demand curve?

• A decrease in price

• An increase in price

• A change in an area other than price

• A change in price and availability

The diagram represents a(n)

• increase in supply

• decrease in supply

• change in quantity supplied

• none of the above

Much of the tea in the U.K. is imported from India. If wages for Indian tea workers rose, thus increasing input costs, how would this effect supply of tea in the U.K.?

• Supply would increase

• Supply would Decrease

• Supply would stay the same

• India is not a real country

A Japanese car company makes a new sedan in Kentucky. Which country's GDP is this added to?

• U.S.

• Japan

• U.S. and Japan

• China

• no answer

Chemical fertilizers used by the farmers or cloth used by a tailor are examples of ________________________.

• Intermediate goods

• Final Goods

A company putting its money towards expanding its business. An example of this would be a construction company buying new trucks and other heavy equipment to improve production.

• Household Consumption/ C

• Business Investment/ I

• Government Purchases/ G

• Net Exports/ NX

According to this image, the United States exported 200 billion in goods and services, and imported 150 billion. This category is what part of GDP?

• Household Consumption/ C

• Business Investment/ I

• Government Purchases/ G

• Net Exports/ NX

To measure the average price level of items that consumers actually buy, the Bureau of Labor and Statistics use the

• Gross Domestic Product

• Unemployment Rate

• Consumer Price Index

• National Production Rate

In 1989, the CPI was 124.0. In 1990, it was 130.7. What was the rate of inflation over this period?

• 30.7 percent

• 5.4 percent

• 5.1 percent

• You can't tell without knowing the base year.