D. Government intervention. Minimum wage laws cause unemployment because the legal minimum wage is set A) There will be an increase in unemployment. A) The federal government buys a Humvee. a. C. There is often a tradeoff between the two. D) Sarah is not experiencing unemployment of any kind, because she is not currently part of the labor force. The Federal Aviation Administration is considering increasing the number of takeoff and landing slots available at Ronal Reagan Washington National Airport B. The decrease in auto sales impacts GDP because new automobiles are counted as ________ when purchased by households and ________ when purchased by businesses. Depreciation is _________ B) add to GDP. Ford Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ________ and real GDP to be ________. C) oil prices. Compose a sentence using the following word. D) producer surplus is minimized. B. c. It confuses correlation and causation b. Stability c. Efficiency d. Growth A Economics is best defined as the study of a. D) GDP falls by $1,875. C) A state government cuts taxes to help the economy of the state. In cities with rent control, people have an incentive to list their apartments on sites such as Airbnb at rents ________ the controlled rates, because rent control causes a ________ of apartments. Which assumptions do you need to make in order to be correct in considering a binomial distribution for your variable? B) the underground economy. c. determine the objective. If the economy is slipping into a recession, which of the following would be an appropriate fiscal policy? A) greater on the buyer when the tax is collected from the buyer. . \text{Admission}&\text{\$\hspace{10pt}60,000}\hspace{10pt}&\text{Number of admissions}&\text{\hspace{5pt}20,000}\\ B) Marginal benefit is the additional benefit to a consumer from consuming one more unit of a product. First, the poor tend to hold most of their financial assets in the form of cash rather than in interest-bearing assets. c. Post hoc, ergo propter hoc c. The price of gasoline The opportunity cost of studying for an economics test is d. Comparative economic systems, Determine whether the following is covered by microeconomics or macroeconomics A. a. of disabled individuals to a less restrictive facility) also a. MULTIPLE CHOICE QUESTIONS TESTBANK - CHAPTER 3. A) there is a sustained increase in the price level. They always call for opposite outcomes. C. Technology is lost. If a firm expects that the price of its product will be lower in the future than it is today This means that _______ C) equity Is not a very efficient means of communicating consumer demand to the producers of goods and services. The invisible hand refers to It is also the case that reported burglaries increase during the same period. The Bureau of Economic Analysis calculates a number of different measures of inflation: the GDP Deflator, the Consumer Price Index, the Wholesale Price Index, etc. B) vertical. The best alt. Explain how these higher income taxes will affect the aggregate demand curve. With respect to factors of production, which of the following statements is not true? Classify the following topics as relating to microeconomics or macroeconomics. A. public economics. Fill in the columns for the GDP deflator and for the percent . E-Normative, One of the scarce resources that constrain our behavior is time. C-Nomative B) the labor force participation rate decreased. Step-by-step explanation. The Federal Reserve lowered interest rates at its last meeting. A) the value of output in 2015 was around $17.3 trillion. D. None of these choices are correct. A: Economics is the study of production, distribution, and consumption when the resources are scarce in. The decision about what goods and services will be produced in a market economy is made by Examples of comparative advantage show how trade between two countries can make each better off. B) Consumer efficiency A city's decision to limit smoking in public areas is an example of Assume PetSmart, Inc. expects to incur $380,000 of indirect costs this year. D) only change GDP if the development occurs within the borders of the United States. The number of work visas should not be limited by the government. C) the value of the addition to the capital stock. C) do not change; overestimates A) a retired railroad engineer who receives a fixed income payment every month C) The quantity of inkjet printers demanded increases. A) decrease the measured unemployment rate. Which of the following is an example of government failure? Answer the following questions by selecting the appropriate answer from the list below. Your grandfather tells you that he earned $7,000/year in his first job in 1961. C. All points inside the curve. B. D-Positive C) raise taxes by $200 billion. C) a decrease in the unemployment rate Insert your responses to the following: Explain the intent of the taxation policy decisions you made of your seven-year term. . answer choices. A) Yes, the recession will ensure that you will never find a job as a programmer. A) some cyclical unemployment always exists. A. D) lower; lower, If real GDP exceeded potential real GDP and inflation was increasing, which of the following would be an appropriate fiscal policy? C) a strong foreign currency exchange rate. B) decrease the measured labor force participation rate. B) Delta buys a new European-made jetliner. A pair of shoes that costs $80 last month costs $100 this month. B. A) Economic efficiency D) Excise and other taxes; individual income taxes. Several conditions must be met before the state is permitted to commit a person involuntarily: The person has a(n)___________ and is in need of treatment, the person b. a. C) equal to the highest value of an alternative use of the time and money spent on the class. The production possibilities curve illustrates which two of the following essential principles? is a corporation unresponsive to the demands of its customers? D) No, the recession will have no impact on my ability to get a job or my future income. You borrow $10,000 from a bank for one year at a nominal interest rate of 5%. A. Government failure. What determines the growth rate of gross domestic product? A) the value of worn-out equipment, machinery, and buildings. c. It eliminates the need for abstraction or simplification In the long run, most economists agree that a permanent increase in government spending leads to ________ crowding out of private spending b. Caveat emptor It focuses on areas like inflation, economic growth rate, price levels of various goods and services, gross domestic product (GDP), national income and the unemployment rate in a particular country. D) the same whether the tax is collected from the buyer or the seller. d. To learn how to make lots of money, Explain whether each of the following is an example of a macro or micro concern a. Deadweight loss refers to D. All of the choices are correct. A: Macroeconomics is that branch of economics in which we study the economic problem and issues at a. D) 5%. Combinations of goods and services an economy is actually producing. D) gross national product of Canada and the gross national product of the United States. A. Combinations of goods and services an economy is actually producing. The "guns versus butter" dilemma that all nations confront is that D) the level of technology is fixed and unchanging. A) Consumer surplus measures the difference between the highest price a consumer is willing to pay for a product and the price she actually pays. Increasing the federal tax on gasoline would cause shipping costs in the United States to increase D) building an online job database that helps workers find jobs. Would a projects NPV for a typical firm be higher or lower if the firm used accelerated rather than straight-line depreciation? C) Every individual, no matter how rich or poor, is faced with making trade-offs. Simple economies can be described in terms of three major economic flows. (D) the economy as a whole. A) allocative efficiency Question: Which of the following is a macroeconomics question? Which of the following is a government expenditure, but is not a government purchase? B. The use of market signals and government directives to select economic outcomes. c. Marginal cost Answering these four questions is essential for an economy to function properly. Which of the following is a term used by economists to describe the money received from the sale of an additional bag of potatoes? Suppose real GDP is $12.6 trillion and potential GDP is $12.4 trillion. Profits are always very high and persistent B. Q. d. It allows researcher to analyze the effect of all potential influences on a particular event, Which of the following is not listed in the book as a reason to study economics? The increase in the amount that the government collects in taxes when the economy expands and the decrease in the amount that the government collects in taxes when the economy goes into a recession is an example of B) Trade-offs do not apply when the consumers purchase a product for which there is excess supply, such as a stock clearance sale. A) frictional unemployment A) employed Math is a way of solving problems by using numbers and equations. What determines the salaries of Wall Street executives? A. B) protect the environment. C) The market system allocates goods and services to those who are able to pay for those products and therefore income is a limiting factor. A) Anytime you have to decide which action to take you are facing an economic trade-off. D) a demand curve has shifted to the right. Suppose that homemakers are included as employed in the labor force statistics, rather than being counted as out of the labor force. C. normative economics. B) the value of all cars produced by Ford in Mexico b. e. variable cost reduction. A. D) decreasing the money supply and increasing interest rates. Producers are using inventory faster than it can be replaced. A. unlimited wants exceed limited resources. D) seasonal unemployment, Structural unemployment is the result of ____________ D) the wages of college graduates do not fall during recession. C) there are not enough jobs for everyone who wants one. The production possibilities curve between tanks and automobiles will shift outward. B) Their value is counted separately, and their value is also included as part of the value of the final good for which they are an input. To Liza, Voluntary exchange A) Technological change occurs at a faster rate in Europe, so structural unemployment is higher in Europe. ECO111 Quizz 01 FALL 2021. Expected inflation is 2.3% and actual inflation may be greater by 0.4%, calculate the impact on the S&P500 projected return ( How would the projected return change) Create a portfolio invested in Boaz Allan (BAH) and Five9 (FIVN) with the . The following table contains nominal and real GDP data, in billions of dollars, from the U.S. Bureau of Economic Analysis for 2013 and 2014. To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in (1). A. consumers dictating to firms what they need most. C) greater on the buyer when the tax is collected from the seller and greater on the seller when the tax is collected from the buyer. A) automatic stabilizers. A) the value of leisure is included in GDP. D) decrease tax rates. Full employment is not considered to be zero unemployment, because C) more difficult than with monetary policy. B) government spending and taxes that automatically increase or decrease along with the business cycle. C. the economy as a whole. To understand society and global affairs The impact of crowding out may be the least _____________ D) $200. Which of the following is not one of the three core economic issues that must be resolved? \\\hline The opportunity cost of taking an on-line history class is C. Maintaining a strong level of economic growth. c. Is it sensible for a government to subsidize tobacco production? Real domestic output is at its maximum level. Household income C. economies of scal. A) an induced; an autonomous For below problem geometric sequence given write the next three terms. A) decrease the required reserve ratio. A. do not have an economic problem. To find the parametric solutions for the predicted GDP (Y) and the predicted investment (I), we can substitute the second equation into the first equation: Y = a + b (Y - T0) + e + kY + G0. b. To learn a way of thinking A. As more and more time is spent on one activity, the opportunity cost of the activity in terms of other activities rises A) The federal government passes tax cuts to encourage firms to reduce air pollution. Given this information, we know for certain that ________ A) increases; increases A. gross earnings Determine the following. (a) 3,6,12,3,6,12, \ldots3,6,12, Laws and regulations. B. A) Governments interfere with the market mechanism to influence the allocation of goods and services. D. Is one that allows trade with other countries. C) There is much more disagreement among economists over positive economic analysis than over normative economic analysis. E) 9.5%. The income you could have earned 1) Economic models do all of the following except A) answer economic questions. Grossprofit.Sellingexpenses..Administrativeexpenses.TotaloperatingexpensesIncomefromoperations.Otherincome..Incomebeforeincometax..Incometaxexpense..Netincome.20Y1$1,500,000510,000$990,000$270,000180,000$450,000$540,00060,000$600,000450,000$150,000$1,250,000475,000$775,000$200,000156,250$356,250$418,75050,000$468,750375,000$93,750. Which of the following is a macroeconomics question? C) after regular office hours. C) total spending in 2015 was around $17.3 trillion. A) -3%. A. A. . A) shift of the demand curve when income changes. Each point on a demand curve shows Choices made by people faced with scarcity b. 9 Questions. Then compare your responses with the key at the end of the book. b. Macroeconomics A) the price of sailboats increased and the demand for sailboats decreased." C. the tendency of many economic variables to move together in a predictable way over the business cycle. a. the government d. It is an example of the fallacy of composition, The field of economics that deals primarily with the factors that determine wage rates, employment, and unemployment is called: The aggregate demand and aggregate supply curve intersect. "A decrease in the number of manufacturers caused a decrease in the supply of sailboats. D) do not change; underestimates. A) the law of supply has been violated. C. Congress increased the minimum wage rate in January. A sharp rise in the price of vegetables. Technological advancements have led to lower prices and an increase in the sale of color laser printers. In a market economy, those who are willing and able to buy what is produced. The market mechanism may best be defined as How does this affect the market for traditional inkjet printers? D) on foreign soil. d. It does not consider those who were laid off due to . The economy may be in equilibrium. c. Industrial organization B) the value of the decrease in business inventory stocks. d. sensitivity analysis. B) the federal income tax. B) the value of the house in 2003 Which of the following is a microeconomics question? A. Which of the following events would allow the production possibilities curve to shift outward? A) taxes; interest rates A. producing more of one good means less of another good can be produced. O How will the government's budget deficit be affected by public infrastructure projects? C) decrease in demand; decrease in quantity demanded A. central bank prints more money B. increase in household savings C. decrease in borrowing by private firms D. foreign financial investors D) risen and declined with different generations, Fiscal policy is defined as changes in federal ________ and ________ to achieve macroeconomic objectives such as price stability, high rates of economic growth, and high employment B) automobile C) No, the recession will most likely be short-lived and I can get a job after it is over. B. how something will be produced; when something will be produced What is the standard deviation of this random variable (i.e., the risk of being late)? A) cyclical Persistence is A. the tendency for declines in economic activity to be followed by further declines, and for growth in economic activity to be followed by more growth. A. Individual consumers. D. Production of nonmilitary goods will decrease. D) They are included only if they are imported, Which of the following are not considered part of government purchases? B) European countries offer higher unemployment benefits than the United States. C. Market mechanisms and lassiez faire. C. Should the government prevent the merger of two large firms? The level of inflation in the economy. B) an increase in the unemployment rate C) an increase in the quantity supplied. Question 01. A) the cost of additional education is always higher during recession. C. A surplus of . C) the price of sailboats increased and the quantity of sailboats demanded decreased." A) create jobs. D) The purchasing power of your salary increased between 2007 and 2016. B) taxes; the money supply D) below; shortage. D) a decrease in the minimum wage, Which of the following policies would reduce structural unemployment? Because Mike started looking for a new job ______________ a. c. Walmart announced that it will increase its starting wage for employees to $10/hour by Feb 2016 A) higher; higher A) decreased government regulations on businesses. d. B and C only, T/F On a time series graph, time is measured along the vertical scale, People who eat kale on a regular basis are more likely to exercise every day than people who do not eat kale. A) the knowledge and enjoyment you receive from taking the class. B. A point on a nation's production possibilities curve represents Economics is concerned with prices and quantities of goods and services, both at the individual. In 2015, the U.S. auto industry experienced rising sales. A) What determines the minimum wage? A) -9.5% D. macroeconomics. Question 12. C) any level of the two products that the economy produces is currently possible. Which of the following is not a macroeconomic statement? When governments are borrowers in financial capital markets, which of the following is least likely to be a possible source of the funds from a macroeconomic point of view? A) take away from GDP. Maximum combinations of goods and services an economy can produce given its available resources and technology. Q: Choose the statement that does not describe Microeconomics. D) there is a decrease in the expected rate of inflation. Which of the following best describes an assumption economists make about human behavior? ___________ (movement of disabled individuals out Q. C) The federal government pays out an unemployment insurance claim. Macroeconomics Multiple Choice Questions 1. B) explicit c. Will a new type of electronic reader or tablet increase the number of buyers? C) the value of all cars produced by Toyota in the United States C) The tax cut would increase consumption spending by the same amount as would a permanent tax cut. One can conclude that Should the government attempt to influence the interest rate to lower inflation? B. microeconomics. C) a discouraged worker b. Electric car enthusiasts want to buy more electric cars at a lower price. Economics promotes which of the following as the way to make the best decision? Suppose that when the price of ice cream increases, Liza decreases her purchase of hot fudge. If inflation is positive and is perfectly anticipated ____________ Which of the following is/are functions of Department of Economic Affairs under Ministry of Finance? Timer Bonus. The study of national economy as whole. that negatively affect an individuals health and safety, The nominal GDP of the U.S. in 2015 was approximately $17.3 trillion. How should we produce goods and services? (a) Unlimited Wants D) the working-age population increased. FortheYearsEndedDecember31,20Y2and20Y1. A production possibilities frontier with a bowed-outward shape indicates A. increasing opportunity costs as more and more of one good is produced. A) a demand curve has shifted to the left. C) the demand curve shifted to the right resulting in an increase in the equilibrium price. Which one of the following is not a key people behind macroeconomics? A) When will the government better secure the borders? ; D. what will be produced; how something will be produced. A. A) he lettuce that Subway purchases for its sandwiches c. functional costs. Will a cut in the interest rate increase Canadian output? D. the choices people make to attain their goals, given their scarce resources. When the laws about civil commitment emerged, B) will raise disposable income and lower spending. D) The "Lucky Ducky" casino buys a new crabs table for the casino floor. D. People begin to retire at earlier ages. B) the nominal interest rate minus the inflation rate. You are investigating the punctuality of the airlines in Asia. C. Lassiez faire price policies. C. Government failure does not exist. Bureaucratic delays D. Scarcity. A. supply and demand. D) What determines the level of U.S. imports and exports? B) when real GDP is above but close to potential GDP. A grocery store sells a bag of potatoes at a fixed price of $2.30. D) an increase in the price of gasoline. c. Falls victim to "post hoc, ergo propter hoc." B. firm could more readily exploit. What is the probability that they all will be late? The invisible hand at work. C) cyclical unemployment Which of the following is not a factor of production? Raising the income tax decreases the amount of disposable income available to those households. A) increase in demand; decrease in demand Refer to the above diagram. C) will lower disposable income and raise spending. Should the government put a tax on alcohol in an attempt to reduce highway fatalities? National income is equal to A) those that borrow money lose. Combinations of production that are unattainable, given current technology and resources. D) efficient central planning. B) a cut in unemployment compensation C) The demand curve will shift to the right. Suddenly, the stock market prices increased much more than expected, increasing investors' wealth and causing a short-term period of increased optimism about the future of the economy. Which of the following can be used to correct market failure? An outward shift of a nation's production possibilities frontier can occur due to C) the loss of economic surplus when the marginal benefit equals the marginal cost of the last unit produced. _____a. Macroeconomics is focused on the movement and trends in the economy as a whole. b. D) Deadweight efficiency, When ________ in a market, the total net benefit to society is maximized. C) Japanese firms benefited from external economies. B) fallen; risen C) risen; risen D. Are willing to pay the highest price. Deflation occurs when ____________ According to a deputy commissioner of police, "Commerce does very little of what we recommend. C. do have an economic problem but are solving it. A) lower government purchases by an amount less than $200 billion. C. marginal revenue This problem has been solved! A. E. pure profit. A decrease in input costs in the production of LCD televisions caused the price of LCD televisions to decrease. B) $60. B) a job retraining program B. Question 20. A) the unemployment rate increased. B. C. Production managers are more concerned with satisfying government's orders than with satisfying consumer wants. C. the highest valued alternative that must be given up to engage in an activity. B. how to make money in a market economy. B) GDP is not adjusted for pollution. A) U.S. GDP. A) a reduction in unemployment. B) 3%. The production possibilities curve illustrates which two of the following essential principles? C) decreases; increases A: Globalization Globalization can be depicted as an interaction by which individuals of the world are Q: A firm in a perfectly competitive market faces a market price of $80, and has a total cost function: A: Introduction We have given a perfectly competitive market. A) U.S. GNP. Public economics Is a normative analysis A) Tuan purchases a cappuccino at the student union. Preparation and presentation of Union Budget 2. The 1994 agreement that eliminated most tariffs among the United States, Canada, and Mexico is known as Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy? Cutting taxes _______ In addition to selling pet food and pet products, PetSmart also offers dog grooming services including baths, nail trimming, teeth brushing, and aromatherapy to reduce everyday stress, and nail polish and stickers. D) the legally determined maximum price that sellers may charge for a given quantity of a product. C) the economic surplus received from purchasing a given quantity of a product. Getting the timing right with fiscal policy is generally _______________ D. There is too much production of lowcost, highquality goods and services. \hline\\ B) increase the measured labor force participation rate. E. consumers and firms choosing which goods and services to buy or produce. D) incorporates substitutions by consumers when prices of specific products fall rapidly. C. Inefficient incentives. C. The overall economy. A) less difficult than with monetary policy. C. Maximum combinations of goods and services an economy can produce given unlimited resources. Lower disposable income decreases consumption at every price level. C) ensure safe imports. According to the text, economists consider full employment to occur when Which of the following is an example of spending on goods and services in the circular flow model? A. D. workers deciding to produce only what the boss says must be produced. The automobile industry was experiencing the effects of _______ A) below the market wage, causing labor demand to be greater than labor supply. O a False O b. C) complete C) GDP rises by $125. If the CPI rose from 82 to 202 between 2007 and 2016, which of the following is true? C) the demand for lawn care service has decreased. A) GDP rises by $1,875. d. National output, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, Alexander Holmes, Barbara Illowsky, Susan Dean. D. Works because prices serve as a means of communication between consumers and producers. c. It considers part-timers as employed, and hence it is understated. D) the unemployment rate consists of only frictional and structural unemployment. D. The government is allocating resources inefficiently. Second, they are generally less able than are the better off to protect the real value of their incomes and assets from inflation. B) Yes, the recession will lower income in my field permanently. Where in Oceania are outrigger canoes used? Assume that the price for lawn care has fallen and sales of lawn care services have also fallen. What were the macroeconomic principles or models that influenced your decision making?] A(n) ________ is represented by a rightward shift of the demand curve while a(n) ________ is represented by a movement along a given demand curve. Which of the following would reduce the labor force participation rate, all else equal? D) the firm will not change supply until it knows for certain what will happen to its price. The president has proposed increasing the marginal tax rate for people whose annual earnings exceed $275,000 and lowering the marginal tax rate for those who earn less than $275,000 A) 2% b. C. Levels of production that will cause both unemployment and inflation. \hline B) the search process of matching workers with jobs. C) Corporate income taxes; excise and other taxes b. d. All of the above Technological progress has made it possible for firms such as Apple and Alivecor to develop small electronic devices, including smartwatches, smartphones, and products that can be attached to the smartwatches and smartphones, to serve consumers who have become more health conscious and wish to monitor various health conditions. The production possibilities curve between tanks and automobiles will appear as a straight line. 1. Which of the following is a normative economic statement? If the United States decides to convert automobile factories to tank production, as it did during World War II, but finds that some auto manufacturing facilities are not well suited to tank production, then