Question 1

Suppose congress enacts a $500 billion increase in spending and a $500 billion tax increase to finance the additional government spending. The result of the balanced-budget approach is a:

Question 2

Macroeconomic analysis is concerned with:

Question 3

The demand curve for a product would shift to the left if:

Question 4

The cost of a purchase or action measured in item of its foregone alternative is?

Question 5

The price level depends upon?

Question 6

If a good were priced at 15 euros in Germany when the exchange rate between the dollar and the euro went from 1.50 euro/$1.00 to 2.00 euro/$1.00, the price of that good in US dollars would:

Question 7

The law of increasing opportunity cost :

Question 8

If aggregate demand increases; while aggregate supply remains the same:

Question 9

If an economy were to pursue a policy of maintaining full employment, it would likely have to forego?

Question 10

Suppose the economy is experiencing inflation. Which of the following would be a corrective measure by the central monetary authority?

Question 11

Economic goals vary from one economist’s opinion to the other, it depends on the goals of society. Which of the following is considered an economic goal?

Question 12

The multiplier effect:

Question 13

Demand-pull inflation is the result of:

Question 14

Probably the most important factor leading to improved resource efficiency over the long run is:

Question 15

A nation, as a whole, increases its purchasing power when

Question 16

When wages rise faster than labor productivity, one would expect:

Question 17

If the economy was in a recession, which of the following would be the best corrective measure, by the central monetary authority?

Question 18

In aggregate demand and supply model, there exists an inverse and direct relationship between which two variables?

Question 19

Which of the following would cause an increase in the supply of a particular product?

Question 20

Households begin to change their attitude towards thrift, and increase their level of savings. What may follow?

Question 21

A financial depository institution's reserve requirement is a specified percentage of:

Question 22

When an economy is on a paper monetary standard, its money is backed by:

Question 23

The velocity of money measures:

Question 24

In economics, the opportunity cost of an item purchased is:

Question 25

Prior to 1971 the US monetary standard was back by?

Question 26

The FDIC

Question 27

Which one of the following is a major purchaser of goods and services in the market?

Question 28

Which of the following groups believe that the economy can achieve full employment without inflation through tax reductions, spending cuts, and deregulation?

Question 29

In a nation with excessive population growth, and unskilled labor, the production possibilities curve tends to:

Question 30

If government expenditure were less than tax revenues, the government would be operating with a:

Question 31

Forcing private borrowers out of the market because government borrowing has raised the rate of interest is:

Question 32

Protectionism refers to the philosophy that:

Question 33

With an aggregate supply function that is continually positively sloped (LRAS), a reduction in aggregate demand leads to:

Question 34

A person(s) is out of work due to a downturn in economic activity, and spending by households has shifted the aggregate demand curve to the left; causing both the average price level and real GDP to decrease.

This is known to cause which type of unemployment in the economy?

Question 35

A change in the quantity of a product:

Question 36

If the equilibrium price of a product was $4 and the actual price charged in the market was $2, you would expect:

Question 37

The classical school of thought holds that a market economy will tend to operate at full employment if:

Question 38

Which of the following statements about free trade is true?

Question 39

Suppose an economy were experiencing a high rate of unemployment, an appropriate corrective measure by the government would be to:

Question 40

Which of the following best describes a capital in a law office?

Question 41

Economics is concerned with how people use:

Question 42

Which one of the following is not a consequence of inflation?

Question 43

interest rates in the US move above rates in Britain. As a result_______________________________________.

Question 44

To increase the money supply; central bank of the US can?

Question 45

The production possibilities curve is shifting to the right and as a consequence we attain economic growth.

Which of the following best describes the reason?

Question 46

A tax on imports of electronic equipment is an example of:

Question 47

An initial deposit of $10,000 at a ratio of 10% from currency in circulation, will lead to a maximum change in the composition of the money supply by_____________.

Question 48

The economy is considered at full employment, with a small amount of a natural rate of unemployment, only when:

Question 49

Which of the following causes an increase in the money supply?

Question 50

Tool used by the central monetary authority of the US indirectly influence: