Question 1

In Econland,population and average labour productivity are constant.If a larger proportion of the population than usual retires,then total output will _________ and output per person will ______.

Accepted Answer

A)   increase;increase
B)   decrease;decrease
C)   remain constant;remain constant
D)   decrease;remain constant
E)   remain constant;decreaseF) B) and C)
G) All of the above

Question 2

A trade surplus occurs when

Accepted Answer

A)   government spending exceeds government revenue.
B)   government revenue exceeds government spending.
C)   exports equal imports.
D)   exports exceed imports.
E)   exports are less than imports.F) A) and E)
G) C) and E)

Question 3

To argue that,since one fan at a sports event is able to see better by standing up,every fan must be able to see better when all fans stand up at the same time,would constitute an example of

Accepted Answer

A)   the fallacy of composition.
B)   the fallacy of aggregation.
C)   the fallacy of deregulation.
D)   a normative issue.
E)   a positive issuE.F) B) and D)
G) A) and C)

Question 4

A cost of aggregation is that

Accepted Answer

A)   details about individual households and firms are lost.
B)   the "big picture" cannot be studied.
C)   economy-wide totals cannot be obtained.
D)   broad economic trends are obscured.
E)   an overview of the economy is not possiblE.F) B) and E)
G) A) and B)

Question 5

The fundamental objective of monetary policy is to assist the economy in achieving

Accepted Answer

A)   a rapid pace of economic growth.
B)   a money supply which is based on the gold standard.
C)   a full-employment,non-inflationary level of total output.
D)   a balanced-budget consistent with full-employment.
E)   an increase in the money supply.F) B) and C)
G) C) and D)

Question 6

A decrease in the federal income tax is an example of ______ policy.

Accepted Answer

A)   aggregation
B)   fiscal
C)   monetary
D)   structural
E)   productivityF) None of the above
G) D) and E)

Question 7

A government deficit is _________ and government debt is ________.

Accepted Answer

A)   a flow;a flow
B)   a flow;a stock
C)   a stock;a flow
D)   inflationary;a stock
E)   inflationary;a flowF) C) and E)
G) A) and B)

Question 8

If a country's exports are greater than its imports,then the country has a

Accepted Answer

A)   government budget deficit.
B)   government budget surplus.
C)   trade balance.
D)   trade surplus.
E)   trade deficit.F) A) and B)
G) B) and D)

Question 9

The value of output was $100 billion in Northland and $200 billion in Southland.The population of Northland was 50 million and the population of Southland was 30 million.There were 30 million employed workers in Northland and 20 million employed workers in Southland.Average labour productivity was higher in _________ and the standard of living was _______.

Accepted Answer

A)   Northland;the same in both countries
B)   Northland;higher in Northland
C)   Southland;higher in Northland
D)   Southland;higher in Southland
E)   Southland;the same in both countriesF) C) and D)
G) A) and B)

Question 10

When jobs are easy to find,wage increases are frequently given,and businesses are doing well,the economy is most likely in a(n)

Accepted Answer

A)   expansion.
B)   depression.
C)   recession.
D)   surplus.
E)   shortagE.F) C) and D)
G) B) and D)

Question 11

Compared to 1926,total output in Canada today is nearly __________ times larger,and total output per person is about _________ times larger.

Accepted Answer

A)   7;25
B)   20;6
C)   2;10
D)   10;2
E)   100;50F) A) and C)
G) C) and D)

Question 12

People who enjoy high standards of living usually have all of the following EXCEPT

Accepted Answer

A)   more,and better,consumer goods.
B)   longer life expectancies.
C)   better general health.
D)   higher literacy rates.
E)   freedom from scarcity.F) A) and C)
G) A) and D)

Question 13

If average labour productivity increases,then the same number of employed workers will produce

Accepted Answer

A)   more total output.
B)   less total output.
C)   the same amount of total output.
D)   the same output per person.
E)   less output per person.F) B) and D)
G) None of the above

Question 14

Which of the following would be considered an example of fiscal policy?

Accepted Answer

A)   A broad government initiative to reduce the country's reliance on agriculture and promote high-technology industries.
B)   A reduction in income tax rates.
C)   The provision of additional cash to the banking system.
D)   Interest rate hikes generated by a reduction in the money supply.
E)   A decision by a developing country to reduce government control of the economy and to become more market-oriented.F) C) and D)
G) None of the above

Question 15

Decisions to determine the government's budget are called

Accepted Answer

A)   structural policy.
B)   trade policy.
C)   monetary policy.
D)   fiscal policy.
E)   antitrust policy.F) B) and E)
G) B) and D)

Question 16

If the unemployment rate increases from 4% to 10%,then the economy is most likely in a(n)

Accepted Answer

A)   expansion.
B)   boom.
C)   recession.
D)   depression.
E)   aggregation.F) C) and D)
G) D) and E)

Question 17

Major macroeconomic questions include all of the following EXCEPT

Accepted Answer

A)   what causes economic growth?
B)   what causes differences in wages between men and women?
C)   why does inflation vary over time and across countries?
D)   what are the effects of trade imbalances?
E)   what are the causes of unemployment?F) D) and E)
G) A) and B)

Question 18

The unemployment rate is the

Accepted Answer

A)   percentage of the labour force who would like to be employed but cannot find work.
B)   number of people who would like to be employed but cannot find work.
C)   percentage of the population who are not working.
D)   number of people who are not working.
E)   the number of unemployed peoplE.F) A) and C)
G) A) and D)

Question 19

If tax revenues equal 20% of total output and government expenditures equal 25% of total output,then there is a

Accepted Answer

A)   budget deficit.
B)   budget surplus.
C)   trade imbalance.
D)   trade deficit.
E)   trade surplus.F) B) and C)
G) B) and D)

Question 20

Unconventional monetary policy typically occurs when the economy experiences

Accepted Answer

A)   trade surpluses
B)   trade deficits
C)   government deficits
D)   government surpluses
E)   financial panic or severe recessionF) B) and C)
G) A) and E)

Exam 4: Short-Term Economic Fluctuations

If tax revenues equal 20% of total output and government expenditures equal 25% of total output,then there is a

Correct Answer
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The unemployment rate is the

Correct Answer
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A decrease in the federal income tax is an example of ______ policy.

Correct Answer
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In Econland,population and average labour productivity are constant.If a larger proportion of the population than usual retires,then total output will ___ and output per person will .

Correct Answer
verified

A government deficit is _ and government debt is .

Correct Answer
verified

To argue that,since one fan at a sports event is able to see better by standing up,every fan must be able to see better when all fans stand up at the same time,would constitute an example of

Correct Answer
verified

The fundamental objective of monetary policy is to assist the economy in achieving

Correct Answer
verified

A cost of aggregation is that

Correct Answer
verified

If average labour productivity increases,then the same number of employed workers will produce

Correct Answer
verified

Decisions to determine the government's budget are called

Correct Answer
verified

If the unemployment rate increases from 4% to 10%,then the economy is most likely in a(n)

Correct Answer
verified

Unconventional monetary policy typically occurs when the economy experiences

Correct Answer
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Major macroeconomic questions include all of the following EXCEPT

Correct Answer
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Correct Answer
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When jobs are easy to find,wage increases are frequently given,and businesses are doing well,the economy is most likely in a(n)

Correct Answer
verified

Compared to 1926,total output in Canada today is nearly __ times larger,and total output per person is about _ times larger.

Correct Answer
verified

People who enjoy high standards of living usually have all of the following EXCEPT

Correct Answer
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A trade surplus occurs when

Correct Answer
verified

If a country's exports are greater than its imports,then the country has a

Correct Answer
verified

Which of the following would be considered an example of fiscal policy?

Correct Answer
verified

Exam 4: Short-Term Economic Fluctuations

If tax revenues equal 20% of total output and government expenditures equal 25% of total output,then there is a

Correct AnswerverifiedShow Answer

The unemployment rate is the

Correct AnswerverifiedShow Answer

A decrease in the federal income tax is an example of ______ policy.

Correct AnswerverifiedShow Answer

In Econland,population and average labour productivity are constant.If a larger proportion of the population than usual retires,then total output will _________ and output per person will ______.

Correct AnswerverifiedShow Answer

A government deficit is _________ and government debt is ________.

Correct AnswerverifiedShow Answer

To argue that,since one fan at a sports event is able to see better by standing up,every fan must be able to see better when all fans stand up at the same time,would constitute an example of

Correct AnswerverifiedShow Answer

The fundamental objective of monetary policy is to assist the economy in achieving

Correct AnswerverifiedShow Answer

A cost of aggregation is that

Correct AnswerverifiedShow Answer

If average labour productivity increases,then the same number of employed workers will produce

Correct AnswerverifiedShow Answer

Decisions to determine the government's budget are called

Correct AnswerverifiedShow Answer

If the unemployment rate increases from 4% to 10%,then the economy is most likely in a(n)

Correct AnswerverifiedShow Answer

Unconventional monetary policy typically occurs when the economy experiences

Correct AnswerverifiedShow Answer

Major macroeconomic questions include all of the following EXCEPT

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When jobs are easy to find,wage increases are frequently given,and businesses are doing well,the economy is most likely in a(n)

Correct AnswerverifiedShow Answer

Compared to 1926,total output in Canada today is nearly __________ times larger,and total output per person is about _________ times larger.

Correct AnswerverifiedShow Answer

People who enjoy high standards of living usually have all of the following EXCEPT

Correct AnswerverifiedShow Answer

A trade surplus occurs when

Correct AnswerverifiedShow Answer

If a country's exports are greater than its imports,then the country has a

Correct AnswerverifiedShow Answer

Which of the following would be considered an example of fiscal policy?

Correct AnswerverifiedShow Answer

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In Econland,population and average labour productivity are constant.If a larger proportion of the population than usual retires,then total output will ___ and output per person will .

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A government deficit is _ and government debt is .

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Compared to 1926,total output in Canada today is nearly __ times larger,and total output per person is about _ times larger.

Correct Answer
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Correct Answer
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Correct Answer
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