econ test 3

Irregular fluctuations in economic activity are known as the A.) Business cycle B.) Broken window fallacy C.) Tradeoff between inflation and unemployment D.) Ten principles of economics

A.) Business cycle

The art in scientific thinking -- whether in chemistry, economics, or biology -- is A.) The design and implementation of Labatory experiments B.) Knowing when to stop collecting data and when to start analyzing the data C.) Deciding which assumptions to make D.) being able to mathematically model natural phenomena

C.) Deciding which assumptions to make

Macroeconomics is the study of A.) Indvidual decision maker B.) International trade C.) Economy-wide phenomena D.) Markets for large products

C.) Economy-wide phenomena

Reports on the current consumer price index are released every A.) Quater B.) Two weeks C.) Month d.) Week

C.) Month

When ranking movies by nominal box office receipts, what important fact is overlooked? A.) More people go to movies now than in the past B.) There are no good substitutes for movies currently C.) Prices, including those for movie tickets, have been rising over time D.) Movies and DVD are complements

C.) Prices, including those for movie tickets, have been rising over time

For purposes of calculating the CPI, the housing category of consumer spending includes the cost of A.) Clothing, but not footwear or Jewely B.) Clothing and footwear, but not jewelry C.) Clothing and jewelry, but not footwear D.) Clothing, footwear, and jewelry

D.) Clothing, footwear, and jewelry

Factors of production are A.) The mathematical calculations firms make in determining their optimal production levels B.) Social and political conditions that affect production C.) The physical relationship between economic inputs and outputs D.) Inputs into the production process

D.) Inputs into the production process

Which of the following are not consumer durable goods? A.) Automobiles B.) Washing machines C.) Air conditions D.) Paperback books

D.) Paperback books

Total income from the domestic production of final goods and services equals A.) Only household expenditures on these goods and Servies B.) Only household and business expenditures on these goods and services C.) Only households and government expenditures on these goods and services D.) The expenditures on these goods and services by whoever buys them

D.) The expenditures on these goods and services by whoever buys them