Economic: macroeconomics quizzes

According to the _______________ theory, market economy will tend to allocate resources efficiently through the price mechanism.

Invisible Hand

You have four friends. Which of your friends can be described as "cyclically unemployed"?

Keele, who lost her job after her company lost a lot of customers during an economic downturn

A sudden unexpected situation of stagflation (a situation of high inflation and high unemployment) is evidenced when the labor market Philips curve: *Recall: Labor Market Phillips Curve = traditional Philips Curve = the Philips Curve folks refernec out in the wild

shifts outward.

When using (what the S&W textbook calls) the Fed model to diagnose the economy, if a shock causes the real interest rate to rise, the economy has been hit by _____ shock.

financial

the difference between nominal GDP and real GDP is that:

real GDP adjusts the value of goods for changes in the price level (inflation) and nominal GDP does not.

Ceterbius Paribus, a decrease in imports leads to a

right shift of the aggregate demand curve

Of you see a newspaper headlin that says "Steel proces rise sharply," this is an example of _____ shock

supply

Free trade agreements can have a negative impact on jobs

True

Which of the following situations best demonstrates the law of demand?

Movie-goers react to an increase in the price of a theater ticket by seeing fewer movies per year

When the economic surplus in a market is less than it would be if the market were efficient, the market is experiencing:

deadweight loss

Of the government institutes a tax credit on funds invested (by firms), then the _____ loanable funds shifts ti the _____

demand for; right

Because you can get more of one good only by giving up some another good, the shape of a production possibility curve is:

downward-sloping

When consumer become pessimistic about the state of the economy, the consumption function will shift:

downward/out

If Fiji's GDP rises, the demand for imports will ____, leading to a ____ shift in the supply of the Fijian dollar

rise; right

In the market for loadable funds, the supply curve represents

saving

Primarily, economics is the study of

scarcity

The price of macadamia nut falls. This conveys all of the following EXCEPT a signal:

that the price of almonds is rising

In the AD-AS framework, price and quantity are represented by ____, respectively.

the GDP deflator and the real GDP

If the financial account balance is $2 trillion, then the current account balance is:

-$2 trillion

in May 2019, Texas reported a civilian labor force of 14,012,711. The number 9f employed people was 13,516,387. What was the unemployment rate?

0 (with margin) 0.35 (with margin: 0)

_____________ are thought to ultimately control the economy.

Households

In the IS-MP analysis in the Fed model, contractionary fiscal policy will shift the:

IS curve to the left

Which of the following is a positive economic statement?

If the government raises taxes, people will have less income available for purchases and saving.

Fei, Morgan, and Lakesha are all in the market for new Levi's jeans. The marginal benefit for each pair of jeans per year for each person is provided in the table below Quantity. Fei. Morgan. Lakesha 1. $85. $40. $90 2. 60. 32. 75 3. 32. 24. 55 4. 20. 16. 32 5. 15. 8. 25

4 (with margin: 0) 124 (with margin: 0) 0 (with margin: 0) 0 (with margin: 0)

Suppose the equlibrium unemployment rate is 3.8%. Which of the following rates kf unemployment would be most likely if the economy is in the tough of recession

7.9%

If the Fed announces an increase an increase in jnterest rates in response to an increase in flatiron, say from 2% to 4% over the past quarter, how does the Fed Model approach of this action differ from the AS-AD approach?

?????

Which of the following is a final good or service?

A haircut

According to Explained, what is the primary reason for the gender wage gap

Care responsibilities

Which of the following shows the medium of exchange function of money?

Daniela goes to the store and purchases roses with U.S. dollars.

If nominal GDP rose, that means production rose as well

False

The Rational Rule for Markets says to produce more of a good if its marginal benefit is less than its marginal cost.

False

You are purchasing a new car (produced this year) for $38,000. After six months, you sell the car for $31,500. How much does GDP rise because of the a e two transactions?

GDP rises by $38,000

Each of the following markets are considered factor markets except

Goods

Which economic figure hypothesized that the human population will expand in periods of plenty until the population size causes distress on natural resources

Thomas Malthus

Economists think that everyone is better off when trade is enabled.

True

A spending shock is any change in:

aggregate expenditure at a given interest rate and level of income

Which if the following is not included in GDP?

carrots grown in your garden and eaten by your family

Which of the following is not included in GDP?

carrots grown in your garden and eaten by your family

______ is the value a consumer gets from buying a product less it's price.

consumer surplus

Aggregate expenditure is the same of

consumption, planned investment, government expenditure, and net exports

All of the following shift the consumption function except:

income

The quantity theory of money implies that an increase in the money supply will ultimately:

increase the price level and leave real GDP unchanged

Which of the following is NOT an argument for limiting international trade? An increase in international trade may:

lead to economic growth through specialization in comparative advantages.

_________ means the true value of something is often measured through the next best option.

opportunity cost

What us measured on the y_axis on the (S&W textbook) Phillips Curve diagram?

unexpected inflation

For normal goods,

when income rises, demand rises

An underemployed person is ine who is:

working but whose skills are not fully utilized

A _________ is a cost that has been incurred and cannot be recovered.

sunk cost

The supply curve illustrates the minimum price a supplier is willing to accept for a good or service

True

From the perspective of macroeconomics , investments refers to:

purchases of capital assets that increase a nation's productivity