If a German firm produces cars in the United States, that production should count towards D) more than complete, A tax rebate, like the one issued in 2008, is likely to ________ consumption spending ________ than would a permanent tax cut. A) personal income minus personal taxes. B. a nation's poverty level increases faster than its population. D) discretionary fiscal policy; conscious fiscal policy. A) climate and natural resources. D) a decrease in the quantity supplied. b. D) The minimum wage in Europe is lower than it is in the United States. He hasn't looked for a job in the last three months, but he's just started looking for work again. C) risen; risen It considers discouraged workers, and hence it is overstated. A) an increase in the number of people in the labor force A. how households and firms make choices. B. A) decreased government regulations on businesses. Given that, the question "According to the Bureau of Economic Analysis, what has been the average annual level of inflation (as measured by the GDP Deflator) over the past 10 years?" 9 Questions. The automobile industry was experiencing the effects of _______ C) There is much more disagreement among economists over positive economic analysis than over normative economic analysis. D) rises; Marla becomes more productive once she's married. The difference between microeconomics and macroeconomics is that microeconomics analyzes the decisions made by _________, while macroeconomics deals primarily with _____________. Households and firms; the economy as a whole, T/F Resources are limited in both wealthy and poor societies, All of the following are criteria frequently applied in judging economic outcomes except, Economics is best defined as the study of, The most common method for graphing the relationship between two variables is by drawing two __________ lines, where the __________ is a horizontal line and the __________ is a vertical line. D) durable goods; nondurable goods, How are intermediate goods treated in the calculation of GDP? B) increases; decreases Which of the following would be included in the gross domestic product for 2016? b. select the best possible solution. a. D) the decline in the value of the stock market, net of dividends. A shift inward of the production possibilities curve. D) lower; lower, Contractionary fiscal policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be ________ and real GDP to be ________. The income effect of a price change results in a _________ 60 seconds. What goods and services to produce; how will these goods and services be produced; and who receives them? D) lower; lower, If real GDP exceeded potential real GDP and inflation was increasing, which of the following would be an appropriate fiscal policy? B) change; underestimates meaning severe emotional or thought disturbances A production possibilities curve indicates the See Answer. A) those that borrow money lose. D. Scarcity. C) 3% ActivityAdmissionCleaningGroomingTotalindirectcostsEstimatedCost$60,000240,00080,000$380,000AllocationBaseNumberofadmissionsCleaningdirectlaborhoursGroomingdirectlaborhoursEstimatedQuantityofAllocationBase20,000100,0004,000. Scarce resources and opportunity cost. B) the economy produces only two products. Th View the full answer _____a. D) 15%. Which of the following is a problem inherent in centrally planned economies? As a result, _____________ Unemployment is too high. Cutting taxes _______ D. Al of the choices are correct. A. central bank prints more money B. increase in household savings C. decrease in borrowing by private firms D. foreign financial investors Bureaucratic delays C. Market success. A) U.S. GNP. B. how to make money in a market economy. C) The demand for video game consoles would decrease because consumers could afford to buy fewer LCD televisions and video game consoles. Public economics Which of the following is a microeconomics question? \end{array} A) The supply curve will shift to the left. The decision about what goods and services will be produced in a market economy is made by A) taxes; interest rates Question 20. A. Which of the following is a macroeconomic question? D) refrigerator. B) an increase in supply. D) the legally determined maximum price that sellers may charge for a given quantity of a product. D. A movement from the production possibilities curve to a point inside the production possibilities curve. C. Want the goods and services the most. The four basic economic questions are: what goods to produce, how to use resources in the production process, who receives the finished goods and when to produce the goods. ii. C) equity C. Theme park construction. A black market is a market where buying and selling take place Option a: This option is incorrect because unit of measure is a function of money as money can be used to measure the value of goods and services. B. Scott is a woodworker and charges $125 an hour for his time manufacturing custom-made wood products. C) legalized prostitution. The use of market prices and sales to signal desired output. D) implicit. c. The overall price level in the economy Question 01. D) a student who borrows $10,000 at a nominal interest rate of 5% to finance educational expenses. By how much and in what direction does GDP change as a result of his efforts? What determines the growth rate of gross domestic product? A) welfare benefits B) The demand curve for inkjet printers shifts to the left. B) a job retraining program C. when something will be produced; why something will be produced The opportunity cost of studying for an economics test is Preparation and presentation of Union Budget 2. Suppose a drought resulted in a major reduction in the California lettuce crop. C) an increase in the quantity supplied. The production possibilities frontier model assumes all of the following except____________ A) Governments interfere with the market mechanism to influence the allocation of goods and services. C. consumers The output of U.S. citizens who work in Canada would be included in the _____________ B) increase; less B) the labor force participation rate decreased. D) the Western Trade Union. B. A. Economists have shown that the burden of a tax is A) the willingness of consumers to purchase a product at different prices. C. the tendency of many economic variables to move together in a predictable way over the business cycle. In this initiative, you can attempt 10 subjective MCQs on a daily basis. B) a decrease in government purchases B) Consumer efficiency D) The quantity of inkjet printers demanded decreases, Last month, the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit. B) Laurence rents a car to drive to a wedding in San Diego. For schedule, refer to the archive link given below. How much will be saved; what will be produced; and how can these goods and services be fairly distributed? B) Yes, the recession will lower income in my field permanently. C) an increase in taxes B) there has been an upward movement along a demand curve. Principles of Macroeconomics Quiz- Which of the following represents the major functions of the central bank (a) note issuing agency (b) controller of. An outward shift of a nation's production possibilities frontier can occur due to B. The number of work visas should not be limited by the government. B) the value of the time spent on line. B) increase in demand; increase in quantity demanded B) an increase in government spending Individual consumers. C. A centrally planned economy If the BLS counted persons that are on active military service in the totals for employment, the labor force, or the working-age population, this would _______________ D) gross national product of Canada and the gross national product of the United States. \hline\\ C. For whom should goods and services be produced? Which of the following correctly describes the relationship between economic efficiency and economic equity? Automatic stabilizers refer to D) GDP is adjusted for increases in drug addiction. Microeconomics is the study of B. not everyone can have enough goods to survive. \text{Cleaning}&\text{{\hspace{10pt}240,000}}\hspace{10pt}&\text{Cleaning direct labor hours}&\text{100,000}\\ D) the plastic bags that Subway purchases to wrap its sandwiches. C) any level of the two products that the economy produces is currently possible. A) 5 times as much as your grandfather in terms of real income. b. d. Everyone always gets what they want, T/F Macroeconomics deal with the function of individual industries and the behavior of firms and households, All of the following are examples of topics examined in macroeconomics except D) the demand curve shifted to the left resulting in a decrease in the equilibrium price. Real domestic output is at its maximum level. b. If the CPI rose from 82 to 202 between 2007 and 2016, which of the following is true? 2. C. Maximum combinations of goods and services an economy can produce given unlimited resources. Therefore, exercising daily causes people to eat kale. b. consumers He is willing to pay $200 for the dozen fish, but buys them for a total of $140. Is not a very efficient means of communicating consumer demand to the producers of goods and services. b. unit contribution margin. (C) how individual markets work. Production possibilities curve will shift outward. Administrativeexpenses. Totaloperatingexpenses Incomefromoperations. Otherincome.. Incomebeforeincometax.. Incometaxexpense.. Netincome. David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, Intro to Microeconomics (First Exam) (Chapter, Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. The invisible hand at work. Given this information, we know for certain that ________ D. Works because prices serve as a means of communication between consumers and producers. D) a bridge purchased by the state government. a. Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ________ and real GDP to be ________. This would A. Which of the following transactions would be recorded in the French current account of its balance of payments statistics? (Round percentages to one decimal place.). C) There will be a decrease in the quantity of labor supplied by households. Economic development This means B) the federal income tax. Suddenly, the stock market prices increased much more than expected, increasing investors' wealth and causing a short-term period of increased optimism about the future of the economy. B) falls; Marla's work becomes less valuable once she's married The Bureau of Economic Analysis calculates a number of different measures of inflation: the GDP Deflator, the Consumer Price Index, the Wholesale Price Index, etc. Which of the following events would allow the production possibilities curve to shift outward? One can conclude that Use the supply schedule below to answer the following question: Price $10 $20 Quantity Supplied 100 This problem has been solved! D) there is a decrease in the expected rate of inflation. D) the value of the services of the real estate agent, Which of the following goods is directly counted in GDP? The production possibilities curve illustrates which two of the following essential principles? Is very narrow endeavor C) lower; higher If a firm expects that the price of its product will be lower in the future than it is today Required use of pollution control technology that is obsolete. The size of the underground economy would tend to increase if the government of a country ________________ It does not consider discouraged workers, and hence it is understated. B) there is a one-time increase in the price level. D) Sarah is not experiencing unemployment of any kind, because she is not currently part of the labor force. B. a. B) The quantity of traditional camera film demanded decreases. PetSmart even offers a Top Dog service that includes a premium shampoo, milk bath conditioner, scented cologne spritz, teeth brushing, and a bandana or bow. What are the differences and similarities between behaviorism, psychodynamic, and humanistic perspectives? Which one of the following is the objective of fiscal policy? B) an expansionary; a contractionary B. In the United States in 2013, the Bureau of Economic Analysis began counting spending by firms and individuals on developing entertainment products as investment. B) the firm has an incentive to decrease supply now and increase supply in the future. The level of inflation in the economy. Q. given up when we make a decision is called ____ of that decision C) ensure safe imports. The demand for bottled water by individuals. C. Technology is lost. Maximum combinations of goods and services an economy can produce given its available resources and technology. A) during a deep recession. Expected inflation is 2.3% and actual inflation may be greater by 0.4%, calculate the impact on the S&P500 projected return ( How would the projected return change) Create a portfolio invested in Boaz Allan (BAH) and Five9 (FIVN) with the . Let us now understand how it is different from Microeconomics. D) Your father buys a new John Deere riding lawn mower. B. A) decrease the required reserve ratio. The market mechanism = 8.8 - 1.2 F,, + 1.6 FGpp + 6 E (RSP500. What is the impact of competition on the profits of a business? ________ increases economic efficiency because it forces firms to produce and sell goods and services as long as the additional benefit to consumers is greater than the additional cost of production. D. workers deciding to produce only what the boss says must be produced. C) equal to the highest value of an alternative use of the time and money spent on the class. Should Congress and the president take action to reduce global warming? C) gross domestic product of the United States. a. the government C) oil prices. d. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer. According to a deputy commissioner of police, "Commerce does very little of what we recommend. D. All of the choices are correct. D) taxes; expenditures, Active changes in tax and spending by government intended to smooth out the business cycle are called ________, and changes in taxes and spending that occur passively over the business cycle are called ________ The money-creating potential in the banking system is simply the amount of new money that can be created using the excess reserves of the bank. Which of the following causes the unemployment rate to understate the true extent of joblessness? A) There was deflation between 2007 and 2016. You have majored in computer science and, because of the recession, have difficulty in finding a job. B. microeconomics. B. a. A) labor, capital, land and natural resources are fixed in quantity. B) Trade Without Borders. C) decrease the number of persons in the labor force. A) the supply curve shifted to the left resulting in an increase in the equilibrium price. Expert Answer Option b deals with a microeconomi View the full answer Transcribed image text: Which of the following is NOT a macroeconomic question? What factors determine the price of carrots? B. A) attainable A decrease in input costs in the production of LCD televisions caused the price of LCD televisions to decrease. A. Keynesian economics says that: (a) workers are paid for their ability to work, not for the value of what their labor creates. d. National output, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, Alexander Holmes, Barbara Illowsky, Susan Dean. D) GDP falls by $1,875. If the nominal rate of interest is 6.5% and the inflation rate is 3.0%, what is the real rate of interest? A. consumers dictating to firms what they need most. President Obama has discussed raising income taxes for individuals earning over $250,000 in income. C) real GDP in 2016 was less than real GDP in the base year. B. C) A state government cuts taxes to help the economy of the state. D) decrease; less. (B) important rather than trivial issues. d. Cannot be calculated, T/F The phrase "there's no such thing as a free lunch" is a common way of expressing the concept of efficient markets, "Statistics tell us that ice cream sales increase during the summer months. B) Canada's GDP. C. how to make money in the stock market. A devaluation of the U.S. dollar would increase exports from the United States C. A surplus of . To find the parametric solutions for the predicted GDP (Y) and the predicted investment (I), we can substitute the second equation into the first equation: Y = a + b (Y - T0) + e + kY + G0. A. A. Technological advancements have led to lower prices and an increase in the sale of color laser printers. C. Production of nonmilitary goods will decrease. A) -9.5% A) Technological change occurs at a faster rate in Europe, so structural unemployment is higher in Europe. A. supply and demand. In the first six months of 2003, branches of Commerce Bank in New York City were robbed 14 times. a. C) the firm has an incentive to increase quantity supplied now and decrease quantity supplied in the future. 1) Economic models do all of the following except A) answer economic questions. The production possibilities curve between tanks and automobiles will appear as a straight line. Marco goes to the pet store to buy a dozen Koi fish for his new Koi pond. the person is unable to care for himself or herself, also Need the goods and services the most. A. C. An increase in national defense is possible only if we produce more butter. D) decreasing the money supply and increasing interest rates. Option b: This option is incorrect because medium of exchange is a function of money as money is used to exchange goods between buyer and seller. The minimum wage law causes unemployment. A) frictional unemployment On which base structure of economic problems has been installed? Explanation: Macroeconomics deals with the economy as a whole. B) price charged for laptop computers by Dell. D. the choices people make to attain their goals, given their scarce resources. A. A) an increase in the minimum wage B. The president has proposed increasing the marginal tax rate for people whose annual earnings exceed $275,000 and lowering the marginal tax rate for those who earn less than $275,000 B) ice cream and hot fudge and substitutes. Should you go back to school and get a second major? Which of the following would reduce the labor force participation rate, all else equal? Ford C) Firms in European countries offer employees higher wages and higher benefits than do firms in the United States. B. Which of the following is a microeconomics question? A) the opportunity cost to firms from producing the equilibrium quantity in a competitive market. B) the sum of consumer and producer surplus. there is a current account surplus. d. Is the economy experiencing a decline in the rate of inflation? B) total consumption of goods is greater. Explain how these higher income taxes will affect the aggregate demand curve. Cadre Management for Indian Economic Services Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy? D) The demand curve will shift to the left. Bill Gates does not face scarcity because he is a billionaire All of the following are sources of comparative advantage except This tax is sometimes referred to as B. still have an economic problem. C) less than 5 times as much as your grandfather in terms of real income. There are no problems and everyone, including consumers, is satisfied. D. All of the choices are correct. A graph that contains two variables with a negative relationship is _________, while a graph that contains two variables with a positive relationship is _________. Choose 1 answer: Hors many smartphones should Samsung produce this quarter? In addition to selling pet food and pet products, PetSmart also offers dog grooming services including baths, nail trimming, teeth brushing, and aromatherapy to reduce everyday stress, and nail polish and stickers. D) a decrease in the minimum wage, Which of the following policies would reduce structural unemployment? If the price level rose in three consecutive years from 100 to 120 to 140, then the annual inflation rate over those years would ________ How does a market system prevent people from getting as many goods and services as they wish? D) The demand curve for traditional camera film shifts to the left. B. C. Opportunity cost. A) 2% B) increase the measured labor force participation rate. D) the working-age population increased. Which of the following is/are functions of Department of Economic Affairs under Ministry of Finance? C) frictional c. Industrial organization In the past two decades the United States lost its comparative advantage in automobiles to Japan. Upon your graduation from college, you find that the economy is in recession and the unemployment rate is relatively high. What kind of unemployment is Sarah experiencing? c. Falls victim to "post hoc, ergo propter hoc." C) The tax cut would increase consumption spending by the same amount as would a permanent tax cut. O a False O b. 7 Principles of Macroeconomics- Chapter 1 C) increase flows (2) and (3) and reduce flows (6) and (7). . MULTIPLE CHOICE QUESTIONS TESTBANK - CHAPTER 3. Lower disposable income decreases consumption at every price level. C) people employed in the underground economy occurred. A) Many full time workers really want to be part time workers. Your survey tells you that, out of 15 airlines, 80% of them are likely to be late at least once a month. If the economy is falling below potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply?