Question 1

Since countries differ in the amount of economic activity that is transacted in organized markets,

Accepted Answer

A) some countries are more productive than others. 
B) persons live better in some countries than others. 
C) international comparisons of per capita GDP are often misleading. 
D) comparisons between countries are totally impossible. 
A) some countries are more productive than others. 
B) persons live better in some countries than others. 
C) international comparisons of per capita GDP are often misleading. 
D) comparisons between countries are totally impossible.

Question 2

The stagflation in the United States during the 1974-1975 period can be attributed to

Accepted Answer

A) increases in real GDP due to high levels of defense spending. 
B) tight monetary and fiscal policies of the Nixon-Ford administrations. 
C) rapid increases in petroleum prices, poor harvests, and the removal of wage and price controls. 
D) budget deficits by the federal government and increasing trade deficits by the United States. 
A) increases in real GDP due to high levels of defense spending. 
B) tight monetary and fiscal policies of the Nixon-Ford administrations. 
C) rapid increases in petroleum prices, poor harvests, and the removal of wage and price controls. 
D) budget deficits by the federal government and increasing trade deficits by the United States.

Question 3

Discuss some of the fundamental differences between microeconomics and macroeconomics.

Accepted Answer

Microeconomics studies the decisions of

Question 4

Illegal gambling on the NCAA Final Four would be included in GDP.

Accepted Answer

A) True 
 B)False

Question 5

To fight inflation, the government may

Accepted Answer

A) decrease aggregate demand, which will also lead to lower unemployment rates. 
B) increase aggregate demand, which will also lead to lower unemployment rates. 
C) increase aggregate demand, which will also lead to higher unemployment rates. 
D) decrease aggregate demand, which will also lead to higher unemployment rates. 
A) decrease aggregate demand, which will also lead to lower unemployment rates. 
B) increase aggregate demand, which will also lead to lower unemployment rates. 
C) increase aggregate demand, which will also lead to higher unemployment rates. 
D) decrease aggregate demand, which will also lead to higher unemployment rates.

Question 6

The aggregate demand curve shows the quantity of domestic product

Accepted Answer

A) produced at each possible price level. 
B) demanded and produced at each possible price level. 
C) that is exported at each possible price level. 
D) demanded at each possible price level. 
A) produced at each possible price level. 
B) demanded and produced at each possible price level. 
C) that is exported at each possible price level. 
D) demanded at each possible price level.

Question 7

If aggregate demand shifts outward, the result will be inflation.

Accepted Answer

A) True 
 B)False

Question 8

Microeconomics focuses on ____; macroeconomics concentrates on ____.

Accepted Answer

A) the basic tools of analysis; the use of abstractions and models 
B) the economies of various countries; the decisions of individual companies 
C) the decisions of individual units; the behavior of entire economies 
D) the economic aggregates; the decisions of individual units 
A) the basic tools of analysis; the use of abstractions and models 
B) the economies of various countries; the decisions of individual companies 
C) the decisions of individual units; the behavior of entire economies 
D) the economic aggregates; the decisions of individual units

Question 9

Suppose that in 2015 you paid $150,000 for a house that was built in 2005 and sold that year for $210,000.The amount this transaction would add to the GDP in 2015 is

Accepted Answer

A) $0. 
B) $60,000. 
C) $210,000. 
D) −$60,000 
A) $0. 
B) $60,000. 
C) $210,000. 
D) −$60,000

Question 10

A macroeconomist would concentrate on which of the following issues?

Accepted Answer

A) the price of pizzas 
B) the profits of the IBM Corporation 
C) the unemployment rate in Germany 
D) the market for hot dogs 
A) the price of pizzas 
B) the profits of the IBM Corporation 
C) the unemployment rate in Germany 
D) the market for hot dogs

Question 11

Trish grows oregano in her backyard to use in her homemade pesto sauce.How is this gardening included in GDP?

Accepted Answer

A) It is included in real GDP. 
B) It is included in nominal GDP. 
C) It is not included in GDP. 
D) It is included as an intermediate good. 
A) It is included in real GDP. 
B) It is included in nominal GDP. 
C) It is not included in GDP. 
D) It is included as an intermediate good.

Question 12

Which of the following is a true measure of national output?

Accepted Answer

A) GDP at market price 
B) Nominal GDP 
C) GDP in current dollars 
D) GDP in constant dollars 
A) GDP at market price 
B) Nominal GDP 
C) GDP in current dollars 
D) GDP in constant dollars

Question 13

"Underground" economic activity can best be described as

Accepted Answer

A) the construction of subway transportation. 
B) the building of foundation structures for skyscrapers. 
C) the mining and oil industries. 
D) barter or cash activity that is not reported as income. 
A) the construction of subway transportation. 
B) the building of foundation structures for skyscrapers. 
C) the mining and oil industries. 
D) barter or cash activity that is not reported as income.

Question 14

Contrast the economic performance of the American economy of 2001 with the economic performance of the 1996 to 2001 period.Use the appropriate aggregate demand and aggregate supply curves to distinguish the differing economic condition of the two periods.

Accepted Answer

The economic performance of the 1996 to

Question 15

In contrast to the post-World War II period, before 1940 the government

Accepted Answer

A) actively intervened in the economy for stabilization purposes. 
B) used aggregate demand management to avoid recessions. 
C) rarely intervened in the economy to influence inflation or unemployment rates. 
D) used government ownership to guarantee full employment. 
A) actively intervened in the economy for stabilization purposes. 
B) used aggregate demand management to avoid recessions. 
C) rarely intervened in the economy to influence inflation or unemployment rates. 
D) used government ownership to guarantee full employment.

Question 16

In response to the "Great Depression 2.0" the Obama administration responded with more tax cuts, increased federal spending, and aid to state and local governments.

Accepted Answer

A) True 
 B)False

Exam 22: An Introduction to Macroeconomics

Since countries differ in the amount of economic activity that is transacted in organized markets,

The stagflation in the United States during the 1974-1975 period can be attributed to

Discuss some of the fundamental differences between microeconomics and macroeconomics.

Illegal gambling on the NCAA Final Four would be included in GDP.

To fight inflation, the government may

The aggregate demand curve shows the quantity of domestic product

If aggregate demand shifts outward, the result will be inflation.

Microeconomics focuses on ____; macroeconomics concentrates on ____.

Suppose that in 2015 you paid $150,000 for a house that was built in 2005 and sold that year for $210,000.The amount this transaction would add to the GDP in 2015 is

A macroeconomist would concentrate on which of the following issues?

Trish grows oregano in her backyard to use in her homemade pesto sauce.How is this gardening included in GDP?

Which of the following is a true measure of national output?

"Underground" economic activity can best be described as

Contrast the economic performance of the American economy of 2001 with the economic performance of the 1996 to 2001 period.Use the appropriate aggregate demand and aggregate supply curves to distinguish the differing economic condition of the two periods.

In contrast to the post-World War II period, before 1940 the government

In response to the "Great Depression 2.0" the Obama administration responded with more tax cuts, increased federal spending, and aid to state and local governments.

What Is Economics

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: the Importance of Marginal Analysis

Securities: Business Finance and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets: the Price System

The Shortcomings of Free Markets

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

Poverty, Inequality, and Discrimination

Is Useconomic Leadership Threatened

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation

Bringing in the Supply Side: Unemployment and Inflation

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

He Financial Crisis and the Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder

Exchange Rates and the Macroeconomy

Filters

Microeconomics focuses on ; macroeconomics concentrates on .