Economics & Macroeconomics (high school)

Las preguntas del cuestionario

1. 1. Suppose that an expansionary fiscal policy leads to a large increase in real output and a small increase in the price level. From this it can be inferred that
   1. inflation had already impacted the economy before the fiscal stimulus.
   2. the economy initially had some unemployed resources.
   3. aggregate supply decreased.
   4. aggregate demand is steeply sloped.
2. 2. Which of the following is included in U.S. GDP? I. The market value of movies made in Africa by U.S. citizens II. The market value of olive oil made in Italy and sold in the United States. III. The market value of blue jeans made in the United States and sold in Japan IV. The market value of wine made in the United States by Canadian citizens
   1. II III and IV only
   2. I and III only
   3. II and IV only
   4. III and IV only
3. 3. When both short-run aggregate supply and aggregate demand increase which of the following can be said for certain?
   1. The price level rises but real GDP falls.
   2. Both the price level and real GDP rise.
   3. The price level rises but the change in real GDP is uncertain.
   4. Real GDP rises but the change in the price level is uncertain.
4. 4. Tariffs and quotas
   1. result in lower domestic prices.
   2. sometimes raise and sometimes lower the amount of the product sold domestically.
   3. lower the amount of the product sold domestically.
   4. raise the amount of the product sold domestically.
5. 5. A likely cause of falling Treasury bond prices might be
   1. expansionary monetary policy.
   2. contractionary monetary policy.
   3. a depreciating dollar.
   4. fiscal policy designed to reduce the budget deficit.
6. 6. Households demand more money as an asset when
   1. nominal GDP falls.
   2. the nominal interest rate falls.
   3. bond prices fall.
   4. the supply of money falls.
7. 7. Allocative efficiency
   1. means that no inferior products will be produced.
   2. implies that the economy's output is distributed evenly.
   3. means that those who work hardest will get more.
   4. implies that resources are used to produce the goods and services society desires in just the right amounts.
8. 8. GDP measures
   1. production within a nation's borders.
   2. production by a nation's citizens wherever they may be.
   3. income earned by the factors of production plus depreciation and indirect business taxes.
   4. (A) and (C)
9. 9. Every choice results in a foregone best alternative which economists call the
   1. accounting cost
   2. switching cost
   3. inferior cost
   4. opportunity cost
10. 10. When a nation is operating at the natural rate of unemployment
    1. there is no cyclical unemployment.
    2. the inflation rate is zero.
    3. there is no structural unemployment.
    4. the nation is experiencing a recession.
11. 11. If a country has a negative value on its current account then it must
    1. pay that amount to its trading partners.
    2. have a positive value of equal magnitude on its capital account.
    3. depreciate its currency.
    4. appreciate its currency.
12. 12. Which of the following transactions would be counted in GDP?
    1. The cash you receive from babysitting your neighbor’s kids
    2. The sale of illegal drugs
    3. The sale of cucumbers to a pickle manufacturer
    4. The sale of a pound of tomatoes at a supermarket
13. 13. If your nominal income rises 4 percent and your real income falls 1 percent by how much did the price level change?
    1. 5 percent decrease
    2. ¼ percent increase
    3. 3 percent increase
    4. 5 percent increase
14. 14. Economy X is an open economy with flexible exchange rates. Economy Y is closed. Ceteris paribus expansionary monetary policy is
    1. more effective in X because the policy will increase net exports.
    2. more effective in X because the policy will decrease net exports.
    3. equally effective in X and Y.
    4. less effective in X because the policy will decrease net exports.
15. 15. Equilibrium real GDP is far below full employment and the government lowers household taxes. Which is the likely result?
    1. Unemployment falls with little inflation.
    2. Unemployment rises with little inflation.
    3. Unemployment falls with rampant inflation.
    4. Unemployment rises with rampant inflation.
16. 16. If $1000 is deposited into a checking account and excess reserves increase by $700 the reserve ratio must be:
    1. 70%.
    2. 30%.
    3. 40%.
    4. 90%.
17. 17. Automatic or built-in stabilizers
    1. prevent inflation.
    2. prevent recessions from occurring.
    3. prevent inflation and recessions from occurring.
    4. are government policies already in place that promote deficit spending during recessions and surplus budgets during expansions.
18. 18. Suppose consumers expect the price of corn to be lower in the near future while the price of seed corn and fertilizer fall. What will happen to the equilibrium price and the equilibrium quantity?
    1. The equilibrium price will rise while the equilibrium quantity is indeterminate.
    2. The equilibrium price will fall while the equilibrium quantity is indeterminate.
    3. The equilibrium price is indeterminate while the equilibrium quantity will rise.
    4. The equilibrium price is indeterminate while the equilibrium quantity will fall.
19. 19. An increase in the demand for money in the economy could result from
    1. a recession.
    2. a higher price level.
    3. higher interest rates.
    4. expected future inflation.
20. 20. Marginal revenue equals marginal cost at the point where
    1. total revenue is greater than total cost at its greatest distance
    2. total revenue is equal to total cost
    3. marginal product is at its highest point
    4. total product is at its highest point
21. 21. The price of labor is $2, and the price of capital is $1. The marginal product of labor is 200, and the marginal product of capital is 50. What should the firm do?
    1. Increase capital and decrease labor so that the marginal product of capital falls and the marginal product of labor rises.
    2. Increase capital and decrease labor so that the marginal product of capital rises and the marginal product of labor falls.
    3. Decrease capital and increase labor so that the marginal product of capital rises and the marginal product of labor falls.
    4. Decrease capital and increase labor so that the marginal product of capital falls and the marginal product of labor rises.
22. 22. At a Nash equilibrium,
    1. the supply curve intersects the demand curve
    2. neither party has an incentive to deviate from his or her strategy
    3. the marginal revenue curve intersects the marginal cost curve
    4. the equilibrium is unstable and each party would like to switch strategies
23. 23. You are told that the cross-price elasticity between goods X and Y is +2.0. This means that
    1. goods X and Y are normal goods.
    2. goods X and Y are inferior goods.
    3. goods X and Y are complementary goods.
    4. goods X and Y are substitute goods.
24. 24. An externality
    1. causes the equilibrium price to be artificially high
    2. causes the equilibrium price to be artificially low
    3. exists when markets cannot reach equilibrium
    4. results in an equilibrium that does not maximize the total benefit to society
25. 25. What is one reason why the government discourages collusion between large firms in the same industry?
    1. Collusive output levels tend to increase, driving the price above competitive levels.
    2. Consumer surplus falls as the price is driven downward.
    3. Collusive output levels tend to decrease, driving the price down to competitive levels.
    4. Joint profit maximization costs society consumer surplus as the price rises above competitive levels.
26. 26. Which of the following illustrates the demand curve facing an oligopolist when rival firms follow a price decrease but not a price increase?
    1. Perfectly horizontal demand curve.
    2. Highly inelastic demand curve.
    3. Highly elastic demand curve.
    4. A demand curve consisting of two discontinuous segments.
27. 27. Which of the following is not the basis for a wage differential?
    1. Higher risk job.
    2. Investment in human capital.
    3. Increase in production of SUVs.
    4. Racial discrimination.
28. 28. Patents, control of resources, economies of scale, and exclusive licenses are
    1. all requirements for price discrimination
    2. required in order for a firm to earn short-run profits
    3. all sources of elastic demand
    4. all barriers to entry
29. 29. The industry that makes plastic army figures uses a small fraction of the plastic demanded for all purposes. On this basis, we can conclude that the army-figures industry is most likely a(n)
    1. increasing-cost industry
    2. constant-cost industry
    3. decreasing-cost industry
    4. profit-making industry
30. 30. Which of the following is most likely an example of production inputs that can be adjusted in the long run, but not in the short run?
    1. Amount of wood used to make a desk.
    2. Number of pickles put on a sandwich.
    3. The size of a McDonald’s kitchen.
    4. Number of teacher’s assistants in local high schools.

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