Question 1

The Fed's low short-term interest rate policy of 2002 to 2004 made it highly attractive for buyers to purchase a house

Accepted Answer

A)  with a large down payment and a 30-year, fixed rate mortgage. 
B)  with a large down payment and an adjustable rate mortgage. 
C)  with a small down payment and an adjustable rate mortgage. 
D)  quickly before housing prices began to decline in 2006. 
A)  with a large down payment and a 30-year, fixed rate mortgage. 
B)  with a large down payment and an adjustable rate mortgage. 
C)  with a small down payment and an adjustable rate mortgage. 
D)  quickly before housing prices began to decline in 2006.

Question 2

The structure of the Social Security system is particularly advantageous to

Accepted Answer

A)  blacks. 
B)  those with life shortening diseases such as diabetes. 
C)  groups with below average earnings and above average life expectancy. 
D)  groups with above average earnings and below average life expectancy. 
A)  blacks. 
B)  those with life shortening diseases such as diabetes. 
C)  groups with below average earnings and above average life expectancy. 
D)  groups with above average earnings and below average life expectancy.

Question 3

What percentage of U.S. healthcare expenditures is currently paid for by a third party, either the government or an insurance company?

Accepted Answer

A)  less than 10 percent 
B)  approximately 30 percent 
C)  approximately 50 percent 
D)  more than 85 percent 
A)  less than 10 percent 
B)  approximately 30 percent 
C)  approximately 50 percent 
D)  more than 85 percent

Question 4

Which of the following would increase the incentive of consumers to economize and of producers to provide medical services at economical prices?

Accepted Answer

A)  substitution of catastrophic health insurance plans for low deductible, low co-payment plans 
B)  more reliance on medical savings accounts rather than insurance 
C)  equalization of tax treatment between out-of-pocket medical expenses and employer-provided health insurance 
D)  all of the above 
A)  substitution of catastrophic health insurance plans for low deductible, low co-payment plans 
B)  more reliance on medical savings accounts rather than insurance 
C)  equalization of tax treatment between out-of-pocket medical expenses and employer-provided health insurance 
D)  all of the above

Question 5

The market for new issues of stock is called the

Accepted Answer

A)  primary market. 
B)  secondary market. 
C)  The New York Stock Exchange (NYS
E) . 
D)  The Chicago Board of Trade. 
A)  primary market. 
B)  secondary market. 
C)  The New York Stock Exchange (NYS
E) . 
D)  The Chicago Board of Trade.

Question 6

The proportion of degrees earned by women in which of the following fields has increased since 1970?

Accepted Answer

A)  economics 
B)  engineering 
C)  architecture 
D)  all of the above 
A)  economics 
B)  engineering 
C)  architecture 
D)  all of the above

Question 7

(I) The market for new issues of stock is called the primary market. (II) The New York Stock Exchange is an example of a secondary market in which previously issued shares are traded between investors.

Accepted Answer

A)  I is true; II is false. 
B)  I is false; II is true. 
C)  Both I and II are true. 
D)  Both I and II are false. 
A)  I is true; II is false. 
B)  I is false; II is true. 
C)  Both I and II are true. 
D)  Both I and II are false.

Question 8

The amount of a resource consumed depends on

Accepted Answer

A)  the price of the resource. 
B)  consumer income. 
C)  the price of substitute resources. 
D)  all of the above. 
A)  the price of the resource. 
B)  consumer income. 
C)  the price of substitute resources. 
D)  all of the above.

Question 9

Compared to U.S. elementary and secondary schools, the international standing of U.S. colleges and universities is

Accepted Answer

A)  much lower. 
B)  slightly lower. 
C)  virtually the same. 
D)  much higher. 
A)  much lower. 
B)  slightly lower. 
C)  virtually the same. 
D)  much higher.

Question 10

Predictions that natural resources such as oil will be essentially used up in the next few decades

Accepted Answer

A)  have been frequently made for the past century but have always proven to be false. 
B)  have usually been based on the quantity of proved reserves. 
C)  have ignored the role of price in governing the quantities demanded and supplied. 
D)  All of the above are correct. 
A)  have been frequently made for the past century but have always proven to be false. 
B)  have usually been based on the quantity of proved reserves. 
C)  have ignored the role of price in governing the quantities demanded and supplied. 
D)  All of the above are correct.

Question 11

Which of the following is true?

Accepted Answer

A)  Most stockholders own stock because they want to run the business. 
B)  The shareholders of a large well-established firm can be reasonably sure that they will earn a real rate of return of about 7 percent in the future. 
C)  Ownership of a corporate bond provides the bondholder with an ownership right to a fraction of the firm's future profits. 
D)  Stock ownership makes it possible for investors to own a fractional share of a firm's future profits even if they do not participate in the operation of the firm. 
A)  Most stockholders own stock because they want to run the business. 
B)  The shareholders of a large well-established firm can be reasonably sure that they will earn a real rate of return of about 7 percent in the future. 
C)  Ownership of a corporate bond provides the bondholder with an ownership right to a fraction of the firm's future profits. 
D)  Stock ownership makes it possible for investors to own a fractional share of a firm's future profits even if they do not participate in the operation of the firm.

Question 12

During the last four decades,

Accepted Answer

A)  the total expenditures of Americans on health care have been relatively constant. 
B)  the share of health-care expenditures covered by a third party (either the government or an insurance company) has increased substantially. 
C)  the prices of health-care services have risen but not as rapidly as the general level of prices. 
D)  health-care providers have lowered prices in response to the rapid increase in medical technology. 
A)  the total expenditures of Americans on health care have been relatively constant. 
B)  the share of health-care expenditures covered by a third party (either the government or an insurance company) has increased substantially. 
C)  the prices of health-care services have risen but not as rapidly as the general level of prices. 
D)  health-care providers have lowered prices in response to the rapid increase in medical technology.

Question 13

Fiscal policy analysis indicates that large tax increases during a severe recession will result in

Accepted Answer

A)  an increase in the incentive to earn and the maintenance of a balanced federal budget. 
B)  higher tax revenues and an expansion in government spending. 
C)  smaller budget deficits, which will speed an economic recovery. 
D)  a reduction in aggregate demand and a worsening of the recession. 
A)  an increase in the incentive to earn and the maintenance of a balanced federal budget. 
B)  higher tax revenues and an expansion in government spending. 
C)  smaller budget deficits, which will speed an economic recovery. 
D)  a reduction in aggregate demand and a worsening of the recession.

Question 14

Which of the following provides the bulk of revenue for the federal government?

Accepted Answer

A)  corporate income taxes and grants from state and local governments 
B)  personal income and payroll taxes 
C)  user charges and funds borrowed from the general public 
D)  corporate income and sales taxes 
A)  corporate income taxes and grants from state and local governments 
B)  personal income and payroll taxes 
C)  user charges and funds borrowed from the general public 
D)  corporate income and sales taxes

Question 15

Doomsday forecasts about running out of natural resources, with dire consequences,

Accepted Answer

A)  have occurred at least as far back in time as the 16th century. 
B)  have generally been correct, and resources today are nearly all rising in price. 
C)  seldom are taken seriously enough by the public. 
D)  began to be heard for the first time after Earth Day of 1970. 
A)  have occurred at least as far back in time as the 16th century. 
B)  have generally been correct, and resources today are nearly all rising in price. 
C)  seldom are taken seriously enough by the public. 
D)  began to be heard for the first time after Earth Day of 1970.

Question 16

How does competition from nonunion firms and foreign producers affect the ability of a union to increase the wages of its members?

Accepted Answer

A)  Such competition makes it easier for the union to achieve wage increases. 
B)  Such competition reduces the ability of a union to achieve wage increases. 
C)  Such competition does not affect the ability of a union to achieve wage increases. 
D)  Such competition will increase the strength of a union if it produces a product sold in the domestic market but will reduce the strength of the union if it produces an export product. 
A)  Such competition makes it easier for the union to achieve wage increases. 
B)  Such competition reduces the ability of a union to achieve wage increases. 
C)  Such competition does not affect the ability of a union to achieve wage increases. 
D)  Such competition will increase the strength of a union if it produces a product sold in the domestic market but will reduce the strength of the union if it produces an export product.

Question 17

The earnings difference between men who have never been married and women is

Accepted Answer

A)  significantly less than the earnings difference between married men and women. 
B)  about the same as the earnings difference between married men and women. 
C)  significantly more than the earnings difference between married men and women. 
D)  modestly more than the earnings difference between married men and women. 
A)  significantly less than the earnings difference between married men and women. 
B)  about the same as the earnings difference between married men and women. 
C)  significantly more than the earnings difference between married men and women. 
D)  modestly more than the earnings difference between married men and women.

Question 18

Growth in the share of health-care expenditures covered by third parties (for example, insurance or government programs) will

Accepted Answer

A)  place downward pressure on the prices of health-care services. 
B)  reduce the incentive of suppliers to provide consumers with health-care services at a low cost. 
C)  make consumers more sensitive to the price of health-care services. 
D)  make it easier to control the growth of health-care expenditures. 
A)  place downward pressure on the prices of health-care services. 
B)  reduce the incentive of suppliers to provide consumers with health-care services at a low cost. 
C)  make consumers more sensitive to the price of health-care services. 
D)  make it easier to control the growth of health-care expenditures.

Question 19

During the 2009-2010 school year, how many students attended charter schools?

Accepted Answer

A)  250,000 
B)  700,000 
C)  1,100,000 
D)  1,600,000 
A)  250,000 
B)  700,000 
C)  1,100,000 
D)  1,600,000

Question 20

In the Central Utah Project, the water delivered from dams to users

Accepted Answer

A)  is very well utilized, because planners allocated water to its highest valued uses and users. 
B)  cannot generally be traded, so is often wastefully used in low-valued uses. 
C)  is often sold to water-short cities by farmers who can then enjoy a profit from the sale. 
D)  is very expensive to the users who get it. 
A)  is very well utilized, because planners allocated water to its highest valued uses and users. 
B)  cannot generally be traded, so is often wastefully used in low-valued uses. 
C)  is often sold to water-short cities by farmers who can then enjoy a profit from the sale. 
D)  is very expensive to the users who get it.

The Fed's low short-term interest rate policy of 2002 to 2004 made it highly attractive for buyers to purchase a house

The structure of the Social Security system is particularly advantageous to

What percentage of U.S. healthcare expenditures is currently paid for by a third party, either the government or an insurance company?

Which of the following would increase the incentive of consumers to economize and of producers to provide medical services at economical prices?

The market for new issues of stock is called the

The proportion of degrees earned by women in which of the following fields has increased since 1970?

(I) The market for new issues of stock is called the primary market. (II) The New York Stock Exchange is an example of a secondary market in which previously issued shares are traded between investors.

The amount of a resource consumed depends on

Compared to U.S. elementary and secondary schools, the international standing of U.S. colleges and universities is

Predictions that natural resources such as oil will be essentially used up in the next few decades

Which of the following is true?

During the last four decades,

Fiscal policy analysis indicates that large tax increases during a severe recession will result in

Which of the following provides the bulk of revenue for the federal government?

Doomsday forecasts about running out of natural resources, with dire consequences,

How does competition from nonunion firms and foreign producers affect the ability of a union to increase the wages of its members?

The earnings difference between men who have never been married and women is

Growth in the share of health-care expenditures covered by third parties (for example, insurance or government programs) will

During the 2009-2010 school year, how many students attended charter schools?

In the Central Utah Project, the water delivered from dams to users

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Costs and the Supply of Goods

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Filters

Exam 16: Applying the Basics: Special Topics in Economics

The Fed's low short-term interest rate policy of 2002 to 2004 made it highly attractive for buyers to purchase a house

The structure of the Social Security system is particularly advantageous to

What percentage of U.S. healthcare expenditures is currently paid for by a third party, either the government or an insurance company?

Which of the following would increase the incentive of consumers to economize and of producers to provide medical services at economical prices?

The market for new issues of stock is called the

The proportion of degrees earned by women in which of the following fields has increased since 1970?

(I) The market for new issues of stock is called the primary market. (II) The New York Stock Exchange is an example of a secondary market in which previously issued shares are traded between investors.

The amount of a resource consumed depends on

Compared to U.S. elementary and secondary schools, the international standing of U.S. colleges and universities is

Predictions that natural resources such as oil will be essentially used up in the next few decades

Which of the following is true?

During the last four decades,

Fiscal policy analysis indicates that large tax increases during a severe recession will result in

Which of the following provides the bulk of revenue for the federal government?

Doomsday forecasts about running out of natural resources, with dire consequences,

How does competition from nonunion firms and foreign producers affect the ability of a union to increase the wages of its members?

The earnings difference between men who have never been married and women is

Growth in the share of health-care expenditures covered by third parties (for example, insurance or government programs) will

During the 2009-2010 school year, how many students attended charter schools?

In the Central Utah Project, the water delivered from dams to users

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Costs and the Supply of Goods

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Filters