1. One of the measures Economists & Economic Policy makers use to Gauge Nations Economic Growth to calculate the change in A. Real per capita output. B. Total wages. C. General price level. D. Money supply. 2. The COSTS of the use of a resource for the production of one good rather than another are a. Economic costs b. Fixed costs c. Historical costs d. Opportunity costs 3. What increases when U.S. commercial banks increase net deposits? a. Purchasing power of the U.S. dollar b. Real U.S. national income c. Real wealth of the U.S. d. U.S. money supply 4. Carlton Bank has an increase in reserves of $1,000,000. If the reserve ratio is 10%, by what amount may Carlton increase its demand deposits? a. $ 100,000 b. $ 900,000 c. $ 1,000,000 d. $ 10,000,000 5. Keynesian economic theory holds that during the peak of the business cycle, the normal workings of the labor market result in a. Cyclical unemployment b. Frictional unemployment c. Phillips unemployment d. No unemployment 6. What factor would tend to cause a nation's currency to appreciate in a foreign exchange market with freely fluctuating exchange rates? a. Relatively high domestic real interest rates b. Relatively high domestic inflation c. Increased environmental protection measures resulting in higher prices on goods for export d. Increased demand for imports 7. What is the effect on the market price when both the supply and demand for a good increase? a. Decrease only with inelastic demand b. Decrease only with inelastic supply c. Increase only with inelastic demand d. Indeterminate from the given information 8. Marginal utility a. Decreases when consumption expands b. Increases when consumption expands c. Indicates that a high consumption quantity is preferred to a low consumption quantity d. Indicates that consumption decreases over time 9. The net income presented on an income statement prepared in conforming with generally accepted accounting principles generally is a. Equal to economic profit b. Greater than economic profits because interest is not considered in calculating economic profits c. Greater than economic profits because opportunity costs are not considered in calculating net income d. Less than economic profits because economic profits don't include fixed costs 10. The labor market for masons is competitive and stable. What is the likely short-term result of an attempt to increase masons' wages? a. Decreased employment levels b. Decreased employer size c. Increased employer size d. Increased labor supplied 11. What is disposable income? a. The sum of consumption spending, interest payments, and savings b. Gross domestic product divided by population, adjusted for inflation c. Net domestic product plus a country's net income earned abroad less indirect business taxes d. The total market value of all final goods and service produced within a specified country, less depreciation 12. Which of the following are not assumptions of classical economic theory? a. Flexible interest rates allow self-correcting equilibrium of savings and investing. b. Flexible prices allow self-correcting of shortages and surpluses in product markets. c. Full employment is not necessarily an attribute of equilibrium. d. An increase in money leads to an increase in aggregate demand 13. Rice production in Japan is protected partially by import tariffs and quotas. What is a consequence of this protection? a. Decreased domestic price for rice b. Decreased short-run employment in domestic rice production c. Increased domestic price for rice d. Increased volume of international rice trade 14. What will be the likely result of a decline in the value of the U.S. dollar relative to the currencies of the United States' trading partners? a. The U.S. trade deficit will increase. b. U.S. imports will increase. c. U.S. exports will increase. d. Foreign currencies will depreciate compared to the U.S. dollar