Macro Passed Exam

A change in all of the following variables will change the market demand for a product except a change in a. The price of the product b. Population and demographics c. Income d. Tastes

A

A market that is in a shortage situation can also be described as a a. sellers market b. equilibrium c. ceteris market d. buyers market

A

An outward shift of a nation's production possibilities frontier represents a. Economic growth b. Rising prices of two goods on the ppf c. An impossible situation d. A situation in which a country producers more of one good and less of another

A

Assume we are looking at the gasoline market. How would a major increase in the supply of oil worldwide affect this market? a. Supply increases...a shortage develops..price increases...higher prices prevail b. Demand decreases...a surplus develops...price declines...lower prices prevail c. Supply decreases...a shortage develops...price increases...higher prices prevail d. Demand increases...a shortage develops...price declines...lower prices prevail

A

During an economic expansion we will most likely see which of the following a. Real GDP increase, inflation increase and unemployment decrease b. Real GDP decrease, inflation increase and unemployment increase c. Real GDP decreases, inflation decreases and unemployment decrease d. Real GDP increase, inflation increase, and unemployment decreases

A

Economic growth is generally considered as a a. Long run concept b. A short run concept that fluctuates inversely to GDP c. A short run concept that fluctuates positively to GDP d. A short run concept that fluctuates inversely to Real GDP

A

If equilibrium is achieved in a competitive market where there is no government and tax a. there is no deadweight loss b. the deadweight loss will be maximized c. the deadweight loss will equal the sum of consumer surplus and producer surplus d. the deadweight loss will be the same as the opportunity cost

A

In October 2005, the US Fish and Wildlife Service banned the importation of beluga caviar into the US most prized of caviars, from the Caspian Sea. What happened in the market for caviar in the US? a. The supply curve shifted to the left b. The supply curve shifted to the right c. The demand curve shifted to the right d. The demand curve shifted to the left

A

In the circular flow model, the value of total production for an economy ___ the value of total expenditures on final goods and services a. Equals b. Is greater than c. Is less than d. May be greater than or less

A

Monetary policy that is intended to stimulate and expand the economy will end up doing which of the following? a. Reducing interest rates b. Increasing interest rates c. Decreasing tax d. Increasing tax

A

Up to what rate of inflation is considered to be acceptable by the Federal Reserve? a. 2% b. 6% c. 4% d. 0%

A

Which of the following stamens is true regarding taxing by the state of CT a. The taxes tend to reduce consumer surplus b. Taxes on gas, tobacco, and alcohol are sometimes called sin taxes and the purpose of these taxes is to reduce the consumption of these products c. Taxes on gas, tobacco and alcohol are generally taxed at a normal rate d. All of the above

A

During a recession we will most likely see which of the following? a. Real GDP increase, inflation increase and unemployment decrease b. Real GDP decrease, inflation increase and unemployment increase c. Real GDP decreases, inflation decreases and unemployment decrease d. Real GDP increase, inflation increase, and unemployment decreases

B

During the last half of the 1970's we saw very high nominal interest rates with negative real interest rates. What could have caused this? a. Poor unemployment rates b. The existence of very high inflation c. The existence of very low inflation d. A dysfunctional GDP deflator

B

Economics is the study of the ___ people make to attain their goals, given their ___ a. purchases, unlimited b. choices, scarce c. income, available d. decisions, household

B

In order to be binding, a price ceiling a. Must lie above the free market equilibrium price b. Must lie below the free market equilibrium price c. Must coincide with the free market equilibrium price d. Must be high enough for firms to earn a profit

B

Most of the time, recessions cause the unemployment rate to ___ and the inflation rate to __ a. Rise; rise b. Rise; fall c. Fall; rise d. Fall; fall

B

The basis for trade is absolute advantage, not comparative advantage a. True b. False

B

The real rate of interest is a. the nominal interest rate plus the inflation rate b. the nominal interest rate minus the inflation rate c. the interest rate determined by the supply and demand in the money market d. the nominal interest rate

B

When a factory closes, why is it bad news for the local restaurants? a. Sales taxes are likely to increase b. Unemployed factory workers have lower incomes and are less likely to dine out c. Unemployed factory workers are eligible for government unemployment benefits d. The OC of dining out has fallen

B

Which of the following is not a result of a binding government price control? a. Some people win and some people lose b. Price controls benefit poor consumers but harm producers and wealthy consumers c. Price controls decrease economic efficiency d. A deadweight loss will occur

B

Which of the following statements about a simple circular flow model is false? a. Producers are buyers in the factor market and sellers in the product market b. Households are neither buys nor sellers in the product market c. Producers are buyers in the factor market d. Households are buyers in the product market

B

A full-time student who is not working is categorized as a. Unemployed b. Employed c. Not in the labor force d. A discouraged worker

C

As measured by a percentage of the entire economic output: a. Foreign trade is just as important for the US as it is for most other countries b. Foreign trade is more important for the US as it is for most other countries c. Foreign trade is less important for the US than it is for many other countries d. The US ranks highest in the world

C

Assume we are looking at the corn market. How would a major drought affect the market? a. Supply increases...a shortage develops..price increases...higher prices prevail b. Demand decreases...a surplus develops...price declines...lower prices prevail c. Supply decreases...a shortage develops...price increases...higher prices prevail d. Demand increases...a shortage develops...price declines...lower prices prevail

C

Assume we are looking at the gasoline market. How would a major increase in the price of oil affect this market? a. Supply increases...a shortage develops..price increases...higher prices prevail b. Demand decreases...a surplus develops...price declines...lower prices prevail c. Supply decreases...a shortage develops...price increases...higher prices prevail d. Demand increases...a shortage develops...price declines...lower prices prevail

C

Many countries engage in the trade protection by imposing tariffs or quotas for at least some goods. This is because: a. Economists have established that such restrictions are welfare-improving for certain categories of goods b. Such restrictions tend to benefit consumers without harming producers c. While such restrictions harm consumers, they benefit producers, who are usually more cohesive and politically influential group d. While such restrictions harm consumers and benefit producers, the losses to consumers are outweighed by the gains to producers

C

The reduction in economic surplus that results from a market not being competitive is called the a. Marginal cost b. Producer surplus c. Deadweight loss d. Consumer surplus

C

When labor unions successfully bargain for wage rates that are ___ the equilibrium wage rate, they may cause ___ a. Lower than; frictional unemployment b. Equal to; shortages in the labor market c. Higher than; an increase in the structural unemployment d. Higher than; shortages in the labor market

C

Which of the following time period is known as a time of protectionism and very high tariffs? a. The 1990s b. The 1950s c. The 1930s d. The 1960s

C

Which of the following will shift the demand curve for a good? a. A change in technology used to produce the good b. An increase in the price of the good c. A decrease in the price of a complementary good d. A decrease in the price of the good

C

Which one of the following categories of goods and services represent the largest category of the CPI basket? a. medical care b. transportation c. housing d. education

C

Assume we are looking at the electric car market. How would a major increase in gas prices affect this market? a. Supply increases...a shortage develops..price increases...higher prices prevail b. Demand decreases...a surplus develops...price declines...lower prices prevail c. Supply decreases...a shortage develops...price increases...higher prices prevail d. Demand increases...a shortage develops...price declines...lower prices prevail

D

Assume we are looking at the market for soda. A medical study is published that says soda has many medical benefits. How would the market be affected? a. Supply increases...a shortage develops..price increases...higher prices prevail b. Demand decreases...a surplus develops...price declines...lower prices prevail c. Supply decreases...a shortage develops...price increases...higher prices prevail d. Demand increases...a shortage develops...price declines...lower prices prevail

D

If a minimum wage is imposed that is higher than the market's equilibrium we will likely see a. An increase in some peoples' standard of living b. An increase in unemployment c. Neither A or B d. Both A or B

D

If mortgage interest rates dramatically decrease what could we expect in the housing market? a. Supply increases...a shortage develops..price increases...higher prices prevail b. Demand decreases...a surplus develops...price declines...lower prices prevail c. Supply decreases...a shortage develops...price increases...higher prices prevail d. Demand increases...a shortage develops...price declines...lower prices prevail

D

In Macroeconomics there are 3 general areas of concern. Which of the following is more of a long run concern a. The value of the stock market b. Inflation c. Unemployment d. Economic Growth

D

In a city with rent-controlled apartments, all of the following are true except a. apartments usually rent for rates lower than the market rate b. apartments are often in shorter supply than they would be without rent control c. it usually takes more time to find an apartment than it would without rent control d. landlords have an incentive to rent more apartments than they would without rent control

D

Investment, as defined by economists, would not include which of the following? a. Buys a new robotic machine to assemble cars b. Adds 1,000 new cars to the inventories c. Builds another assembly plant in the US d. Buys US government bonds

D

The purpose of the Smoot-Hawley legislation in 1930 was to __ a. Reduce our heavy comparative advantage in manufacturing b. Reduce exports to other countries c. Balance the federal budget d. Reduce imports from other countries

D

Which of the following statements about the economic decision that consumers, firms and the government have to make is true? a. Only governments face the problem of scarcity in making economic decisions b. Only individuals face scarcity; firms and the government do not c. Only firms and individuals face scarcity d. Each faces the problem of scarcity which necessitates trade-offs in making economic decisions

D