Question 1

Households are sellers in input markets.

Accepted Answer

A) True 
 B)False

Question 2

Fiscal policy is chosen by

Accepted Answer

A)  the rest of the world. 
B)  businesses. 
C)  the Bank of Canada and banking system. 
D)  government. 
E)  consumers. 
A)  the rest of the world. 
B)  businesses. 
C)  the Bank of Canada and banking system. 
D)  government. 
E)  consumers.

Question 3

The hands-on camp generally believes that business cycles are caused by

Accepted Answer

A)  government policy. 
B)  government failure. 
C)  expectations. 
D)  external events 
E)  economists. 
A)  government policy. 
B)  government failure. 
C)  expectations. 
D)  external events 
E)  economists.

Question 4

A macroeconomic choice for businesses is whether to produce more pants or more boxer shorts.

Accepted Answer

A) True 
 B)False

Question 5

When unemployment is high,

Accepted Answer

A)  jobs are easy to find. 
B)  employers compete against many other employers for new workers. 
C)  workers compete against many other unemployed workers. 
D)  workers have an advantage in bargaining over wages. 
E)  workers can choose from a large number of available jobs. 
A)  jobs are easy to find. 
B)  employers compete against many other employers for new workers. 
C)  workers compete against many other unemployed workers. 
D)  workers have an advantage in bargaining over wages. 
E)  workers can choose from a large number of available jobs.

Question 6

Government fiscal policy involves changes in transfer payments.

Accepted Answer

A) True 
 B)False

Question 7

The hands-off camp believes that business cycles are caused by normally functioning markets.

Accepted Answer

A) True 
 B)False

Question 8

Input markets determine

Accepted Answer

A)  all prices. 
B)  loans. 
C)  outputs. 
D)  incomes. 
E)  connections. 
A)  all prices. 
B)  loans. 
C)  outputs. 
D)  incomes. 
E)  connections.

Question 9

When GDP goes up, unemployment goes down.

Accepted Answer

A) True 
 B)False

Question 10

Monetary policy includes changes in

Accepted Answer

A)  transfer payments. 
B)  the supply of money. 
C)  exports. 
D)  imports. 
E)  government purchases. 
A)  transfer payments. 
B)  the supply of money. 
C)  exports. 
D)  imports. 
E)  government purchases.

Question 11

The hands-on camp believes that government failure is worse than market failure.

Accepted Answer

A) True 
 B)False

Question 12

When there is inflation,

Accepted Answer

A)  average prices fall. 
B)  the value of money rises. 
C)  the purchasing power of your savings falls. 
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)  the purchasing power of your savings falls. 
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.

Question 13

All prices are determined in output markets.

Accepted Answer

A) True 
 B)False

Question 14

The hands-on camp generally believes that business cycles are caused by

Accepted Answer

A)  irrational investors. 
B)  banking. 
C)  expectations. 
D)  money. 
E)  all of the above answers. 
A)  irrational investors. 
B)  banking. 
C)  expectations. 
D)  money. 
E)  all of the above answers.

Question 15

The "Yes, Markets Self-Adjust" camp focuses on long-run growth, while the "No, Markets Fail Often" camp focuses on short-run business cycles.

Accepted Answer

A) True 
 B)False

Question 16

The group of macroeconomic players that makes the most choices about setting interest rates is

Accepted Answer

A)  businesses. 
B)  the Bank of Canada and banking system. 
C)  government. 
D)  consumers. 
E)  the rest of the world. 
A)  businesses. 
B)  the Bank of Canada and banking system. 
C)  government. 
D)  consumers. 
E)  the rest of the world.

Question 17

The hands-on camp believes that markets quickly self-adjust.

Accepted Answer

A) True 
 B)False

Question 18

Fiscal policy includes government changes in

Accepted Answer

A)  interest rates. 
B)  the supply of money. 
C)  exports. 
D)  taxes. 
E)  imports. 
A)  interest rates. 
B)  the supply of money. 
C)  exports. 
D)  taxes. 
E)  imports.

Question 19

The economist most associated with the view that markets are not quick to adjust is J.M. Keynes.

Accepted Answer

A) True 
 B)False

Question 20

Lower GDP per person generally means

Accepted Answer

A)  lower unemployment rates. 
B)  higher prices. 
C)  lower living standards. 
D)  an increasing population. 
E)  a decreasing population. 
A)  lower unemployment rates. 
B)  higher prices. 
C)  lower living standards. 
D)  an increasing population. 
E)  a decreasing population.

Households are sellers in input markets.

Fiscal policy is chosen by

The hands-on camp generally believes that business cycles are caused by

A macroeconomic choice for businesses is whether to produce more pants or more boxer shorts.

When unemployment is high,

Government fiscal policy involves changes in transfer payments.

The hands-off camp believes that business cycles are caused by normally functioning markets.

Input markets determine

When GDP goes up, unemployment goes down.

Monetary policy includes changes in

The hands-on camp believes that government failure is worse than market failure.

When there is inflation,

All prices are determined in output markets.

The hands-on camp generally believes that business cycles are caused by

The "Yes, Markets Self-Adjust" camp focuses on long-run growth, while the "No, Markets Fail Often" camp focuses on short-run business cycles.

The group of macroeconomic players that makes the most choices about setting interest rates is

The hands-on camp believes that markets quickly self-adjust.

Fiscal policy includes government changes in

The economist most associated with the view that markets are not quick to adjust is J.M. Keynes.

Lower GDP per person generally means

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

Households are sellers in input markets.

Fiscal policy is chosen by

The hands-on camp generally believes that business cycles are caused by

A macroeconomic choice for businesses is whether to produce more pants or more boxer shorts.

When unemployment is high,

Government fiscal policy involves changes in transfer payments.

The hands-off camp believes that business cycles are caused by normally functioning markets.

Input markets determine

When GDP goes up, unemployment goes down.

Monetary policy includes changes in

The hands-on camp believes that government failure is worse than market failure.

When there is inflation,

All prices are determined in output markets.

The hands-on camp generally believes that business cycles are caused by

The "Yes, Markets Self-Adjust" camp focuses on long-run growth, while the "No, Markets Fail Often" camp focuses on short-run business cycles.

The group of macroeconomic players that makes the most choices about setting interest rates is

The hands-on camp believes that markets quickly self-adjust.

Fiscal policy includes government changes in

The economist most associated with the view that markets are not quick to adjust is J.M. Keynes.

Lower GDP per person generally means

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