Question 1

The paradox of thrift happens when many people save more and spend less, so businesses lower prices.

Accepted Answer

A) True 
 B)False

Question 2

The Bank of Canada conducts monetary policy.

Accepted Answer

A) True 
 B)False

Question 3

When GDP goes up, unemployment goes up.

Accepted Answer

A) True 
 B)False

Question 4

Government fiscal policy involves changes in taxes.

Accepted Answer

A) True 
 B)False

Question 5

J.B. Say would probably vote for the New Democratic Party in Canada.

Accepted Answer

A) True 
 B)False

Question 6

When a consumer household buys shares in a Canadian business, this counts as investment spending.

Accepted Answer

A) True 
 B)False

Question 7

In the circular flow of economic life, the government sets the rules of the game.

Accepted Answer

A) True 
 B)False

Question 8

Higher GDP per person allows higher living standards.

Accepted Answer

A) True 
 B)False

Question 9

Macroeconomics is about the combined outcome of individual choices.

Accepted Answer

A) True 
 B)False

Question 10

Gross domestic product is the value of all final products and services produced annually in a country.

Accepted Answer

A) True 
 B)False

Question 11

The hands-off camp believes that business cycles can be caused by government mistakes.

Accepted Answer

A) True 
 B)False

Question 12

The hands-off camp generally believes that

Accepted Answer

A)  market failure is worse than government failure. 
B)  markets fail to quickly self-adjust. 
C)  external events are major causes of business cycles. 
D)  macroeconomic and microeconomic outcomes are different. 
E)  demand creates its own supply. 
A)  market failure is worse than government failure. 
B)  markets fail to quickly self-adjust. 
C)  external events are major causes of business cycles. 
D)  macroeconomic and microeconomic outcomes are different. 
E)  demand creates its own supply.

Question 13

Monetary policy includes changes in

Accepted Answer

A)  interest rates. 
B)  taxes. 
C)  exports. 
D)  imports. 
E)  government purchases. 
A)  interest rates. 
B)  taxes. 
C)  exports. 
D)  imports. 
E)  government purchases.

Question 14

In the circular flow of economic life, which players are the main buyers in input markets?

Accepted Answer

A)  economists 
B)  households 
C)  governments 
D)  banks 
E)  businesses 
A)  economists 
B)  households 
C)  governments 
D)  banks 
E)  businesses

Question 15

In the circular flow of economic life, businesses set the rules of the game.

Accepted Answer

A) True 
 B)False

Question 16

Monetary policy involves changes in interest rates and the supply of money.

Accepted Answer

A) True 
 B)False

Question 17

Price stability is not a desirable macroeconomic outcome.

Accepted Answer

A) True 
 B)False

Question 18

Unemployment tends to be positively related to growth in GDP.

Accepted Answer

A) True 
 B)False

Question 19

Businesses are sellers in input markets.

Accepted Answer

A) True 
 B)False

Question 20

When there is inflation,

Accepted Answer

A)  average prices fall. 
B)  the value of money rises. 
C)  your standard of living rises if your income rises faster than the prices of what you buy. 
D)  the purchasing power of your savings rises. 
E)  your standard of living falls if your income rises faster than the prices of what you buy. 
A)  average prices fall. 
B)  the value of money rises. 
C)  your standard of living rises if your income rises faster than the prices of what you buy. 
D)  the purchasing power of your savings rises. 
E)  your standard of living falls if your income rises faster than the prices of what you buy.

The paradox of thrift happens when many people save more and spend less, so businesses lower prices.

The Bank of Canada conducts monetary policy.

When GDP goes up, unemployment goes up.

Government fiscal policy involves changes in taxes.

J.B. Say would probably vote for the New Democratic Party in Canada.

When a consumer household buys shares in a Canadian business, this counts as investment spending.

In the circular flow of economic life, the government sets the rules of the game.

Higher GDP per person allows higher living standards.

Macroeconomics is about the combined outcome of individual choices.

Gross domestic product is the value of all final products and services produced annually in a country.

The hands-off camp believes that business cycles can be caused by government mistakes.

The hands-off camp generally believes that

Monetary policy includes changes in

In the circular flow of economic life, which players are the main buyers in input markets?

In the circular flow of economic life, businesses set the rules of the game.

Monetary policy involves changes in interest rates and the supply of money.

Price stability is not a desirable macroeconomic outcome.

Unemployment tends to be positively related to growth in GDP.

Businesses are sellers in input markets.

When there is inflation,

Whats in Economics for You Scarcity, Opportunity Cost, Trade, and Models

Making Smart Choices: the Law of Demand

Show Me the Money: the Law of Supply

Coordinating Smart Choices: Demand and Supply

Up Around the Circular Flow: Gdp, Economic Growth, and Business Cycles

Costs of Not Working and Living: Unemployment and Inflation

Skating to Where the Puck Is Going: Aggregate Supply and Aggregate Demand

Money Is for Lunatics: Demanders and Suppliers of Money

Trading Dollars for Dollars Exchange Rates and Payments With the Rest of the World

Steering Blindly Monetary Policy and the Bank of Canada

Spending Others Money: Fiscal Policy, Deficits, and National Debt

Are Sweatshops All Bad Globalization and Trade Policy

Filters

Exam 5: Are Your Smart Choices Smart for All Macroeconomics and Microeconomics

The paradox of thrift happens when many people save more and spend less, so businesses lower prices.

The Bank of Canada conducts monetary policy.

When GDP goes up, unemployment goes up.

Government fiscal policy involves changes in taxes.

J.B. Say would probably vote for the New Democratic Party in Canada.

When a consumer household buys shares in a Canadian business, this counts as investment spending.

In the circular flow of economic life, the government sets the rules of the game.

Higher GDP per person allows higher living standards.

Macroeconomics is about the combined outcome of individual choices.

Gross domestic product is the value of all final products and services produced annually in a country.

The hands-off camp believes that business cycles can be caused by government mistakes.

The hands-off camp generally believes that

Monetary policy includes changes in

In the circular flow of economic life, which players are the main buyers in input markets?

In the circular flow of economic life, businesses set the rules of the game.

Monetary policy involves changes in interest rates and the supply of money.

Price stability is not a desirable macroeconomic outcome.

Unemployment tends to be positively related to growth in GDP.

Businesses are sellers in input markets.

When there is inflation,

Whats in Economics for You Scarcity, Opportunity Cost, Trade, and Models

Making Smart Choices: the Law of Demand

Show Me the Money: the Law of Supply

Coordinating Smart Choices: Demand and Supply

Up Around the Circular Flow: Gdp, Economic Growth, and Business Cycles

Costs of Not Working and Living: Unemployment and Inflation

Skating to Where the Puck Is Going: Aggregate Supply and Aggregate Demand

Money Is for Lunatics: Demanders and Suppliers of Money

Trading Dollars for Dollars Exchange Rates and Payments With the Rest of the World

Steering Blindly Monetary Policy and the Bank of Canada

Spending Others Money: Fiscal Policy, Deficits, and National Debt

Are Sweatshops All Bad Globalization and Trade Policy

Filters