Macroeconomics Quiz
There are five fundamental questions asked by any market system. The market system's answer to the question "What will be produced?" is essentially:
"Goods and services that are profitable."
The market system's answer to the fundamental question "Who will get the goods and services?" is essentially
"Those willing and able to pay for them."
The market system's answer to the fundamental question "How will the system accommodate change?" is essentially:
"Through the guiding function of prices and the incentive function of profits."
The market system's answer to the fundamental question "How will the system promote progress?" is essentially: "Through the profit potential that encourages development of new technology."
"Through the profit potential that encourages development of new technology."
The market system's answer to the fundamental question "How will the goods and services be produced?" is essentially:
"Using the least-cost production techniques."
As a percentage of GDP, U.S. exports about _____ % of total U.S. output.
13
About how many nations belong to the World Trade Organization by 2015?
161
Which is considered a factor of production?
An auto plant
The United States' most important trading partner quantitatively is:
Canada
Rational behavior implies that everyone will make identical choices.
False
"NAFTA" stands for:
North American Free Trade Agreement
The organization created to oversee the provisions of multilateral trade agreements, resolve disputes under the international trade rules, and meet periodically to consider further trade liberalization is called the:
World Trade Organization (WTO)
The invisible hand concept suggests that:
assuming competition, private and public interests will coincide.
A point inside the production possibilities curve is:
attainable, but the economy is inefficient.
A person should consume more of something when its marginal:
benefit exceeds its marginal cost
Which is an example of a nontariff barrier (NTB)?
box-by-box inspection requirements for imported fruit
"Consumer sovereignty" means that:
buyers determine what will be produced based on their "dollar votes" for the goods and services offered by sellers.
The regulatory mechanism of the market system is:
competition
The advent of DVDs has virtually demolished the market for videocassettes. This is an example of:
creative destruction.
The coincidence-of-wants problem associated with barter refers to the fact that:
for exchange to occur, each seller must have a product that some buyer wants.
The simple circular flow diagram shows that:
households are on the selling side of the resource market and on the buying side of the product market.s and services
You should decide to go to a movie:
if the marginal benefit of the movie exceeds its marginal cost
Broadly defined, competition involves:
independently acting buyers and sellers and freedom to enter or leave markets.
Purposeful behavior suggests that:
individuals may make different choices because of different desired outcomes.
Which of the following arguments for trade protection contends that new domestic industries need support to establish themselves and survive?
infant industry argument
A positive economic statement is one that:
is based upon facts
As it relates to international trade, dumping:
is the practice of selling goods in a foreign market at less than cost.
The two general types of economic systems that exist today are:
market systems and command systems
The Latin term "ceteris paribus" means
other things equal
The market system is characterized by:
private property rights
Economics may best be defined as the:
social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity.
Other things equal, a tariff is:
superior to an import quota for Americans because a tariff generates revenue for the U.S. Treasury.
The nation which leads the world in the volume of imports and exports is:
the United States
In economics, the pleasure, happiness, or satisfaction received from a product is called
utility.
