1. John just bought shares of stock in IBM for $10,000 and paid a $90 commission to his broker. How did this affect GDP?
A) It had no impact on GDP.
B) GDP increased by $90.
C) GDP increased by $10,000.
D) GDP increased by $9,990.
E) GDP increased by $10,090.
2. Opportunity cost is the ____ alternative for feited when a choice is made.
A) least-valued
B) most highly-valued
C) most convenient
D) most recently considered
3. If there is an increase in the amount of good B foregone as every additional unit of good A is produced, the PPF between A and B would
A) be a straight line.
B) be a bowed-outward curve.
C) be a bowed-inward curve.
D) not exist.
4. Persons who are retired or engaged in own-home housework are considered to be in which of the following categories?
A) in the civilian labor force
B) not in the labor force
C) employed
D) unemployed
5. A recessionary gap exists if (actual) Real GDP is ____ Natural Real GDP.
A) less than
B) greater than
C) equal to
D) b and c
E) none of the above
6. Decision making "at the margin" means making a choice based on ____ of a decision.
A) the total benefits
B) the total costs
C) comparing the total benefits and costs
D) comparing the additional benefits and costs
7. When Claudia trades $100 for good X, economists assume that she is
A) trading something of less value to her for something of more value to her.
B) trading something of more value to her for something of less value to her.
C) trading something that gives her less utility for something that gives her more utility.
D) a and c
E) none of the above
8. An increase in investment at a given price level
A) shifts the AD curve to the right.
B) shifts the AD curve to the left.
C) causes an upward movement along the existing AD curve.
D) causes a downward movement along the existing AD curve.
E) none of the above
9. If the demand for a good falls by less than the supply of the good rises, then equilibrium price will ____ and equilibrium quantity will ____.
A) rise; fall
B) rise; rise
C) fall; fall
D) fall; rise
10. The CPI was 140 in one year and 144 the following year. Approximately how much did prices rise between the two years?
A) 2.86 percent
B) 2.78 percent
C) 0.03 percent
D) 1.03 percent
E) none of the above