Flag this Question

Question 11pts

Which of he following would represent anequilibriumof supply and demand>

Group of answer choices

P = $5, Qs = 6, Qd = 6

P = $3, Qs = 8. Qd = 12.

P - $1, Qs = 7, Qd = 1

P - $12, Qs = 12, Qd = 20

Flag this Question

Question 21pts

Macroeconomics is the field of study which is concerned with the overall performance of the economy.Some subsets of this field include ___________.

Group of answer choices

business cycles

monetary policy

fiscal policy

All of the above.

Flag this Question

Question 31pts

The twin themes of economics are that goods are scarce, and societies must use their resources efficiently.Therefore, the essential themes of economics are ______________.

Group of answer choices

using and distributing goods and services.

scarcity and efficiency.

scarcity and choice.

products free to individuals, and free to society.

Flag this Question

Question 41pts

What occurs when firms or people impose costsorbenefits on others in the marketplace?

Group of answer choices

chagrin

business cycles

externalities

marginal cost

Flag this Question

Question 51pts

If I buy a new pair of shoes today, I must make a conscious decisionnotto buy something else with that same money.This illustrates the concept of ________________.

Group of answer choices

opportunity cost.

marginal benefit.

laissez-faire.

the market economy.

Flag this Question

Question 61pts

In a market economy such as ours, who actually makes the decisions as to what will be produced and sold?

Group of answer choices

the Federal Reserve System.

The Council of Economic Advisors.

You, the consumer, with your dollar vote.

George Soros

Flag this Question

Question 71pts

Simple, basic example:You can catch some fish with your hands in the river.Use a fishing pole, and you'll catch more. Use a boat and nets, and you'll catch even more.In spurring on an economy, this example describes the concept of ___________________.

Group of answer choices

catfishing.

capital.

demise of command economies.

net profit.

Flag this Question

Question 81pts

Goods that can be enjoyed by everyone, and from which nobody can be excluded, are known as __________________________.

Group of answer choices

commodities in equity.

the circular flow.

marginal utility.

public goods.

Flag this Question

Question 91pts

Unemployment compensation and farm subsidies are good examples of what?

Group of answer choices

government waste

transfer payments.

welfare

demand derivatives

Flag this Question

Question 101pts

The most comprehensive measure of output in an economy in a given year is the _____________________________, which is a measure of the market value of all final goods and services produced in a country during a year.

Group of answer choices

Gross National Product

Net Disposable Income

Gross Disposable Income

Gross Domestic Product

Flag this Question

Question 111pts

In the formula GDP = C + I + G + Xn, what does the "I" stand for?

Group of answer choices

Interest

Imports

Internal Audits

Investment

Flag this Question

Question 121pts

Using the Rule of 70, if the growth rate of GDP is 5%, how many years will it take for the GDP to double?

Group of answer choices

14 years.

35 years.

10 years.

7 years.

Flag this Question

Question 131pts

A third-world follower country wishes to use IPADs in their factories.The United States has developed IPADs, and are trying research and development to improve their reliability.Who has the economic advantage here?

Group of answer choices

The follower country has the advantage, because they can soon acquire IPADs without having had to pay any of the cost of developing them.

The leader country (U.S.) has all the advantage, because we have a patent, and the follower country will be required to buy from us.

Neither. China will produce the IPADs. We will lose the sales, and the follower country will have to pay China.

No answer text provided.

Flag this Question

Question 141pts

Every month, government statisticians record the prices of around 80,000 goods and services.The prices are then arranged into eight major groups, such as Food and Beverages, Housing, Medical Care, etc.They then chainweighteach price according to the economic importance of each commodity.The final product of their efforts is called the ___________________.

Group of answer choices

Gross Domestic Product.

Positive Externality Quotient.

Consumer Price Index.

Per-Capita GDP.

Flag this Question

Question 151pts

Probably the cheapest mode for transporting cargo is sea transportation.In colonial times, a large ship may have carried 40 tons of cargo. Today, double-decker super-tankers may carry a million tons, and use very little fuel.This is very efficient, just because it's bigger, and improves profits. This is an example of _________________.

Group of answer choices

marginal propensity to consume.

economies of scale.

economic growth.

the stimulus package

Flag this Question

Question 161pts

Inflation caused by the rising prices of intermediate goods which factories need to produce final goods is called ________________________________.

Group of answer choices

Cost-Push Inflation.

Demand-Pull Inflation.

Natural Rate of Inflation.

Natural Rate of Unemployment.

Flag this Question

Question 171pts

When I spend a dollar on a bagel, that dollar becomes income to the bagel shop.They will spend that dollar somewhere, and that becomes income to the next person. That person will spend his dollar, which becomes income to somebody else.This means that the dollar I spent results in a larger amount of total income in the economy. This concept is known as the ___________.

Group of answer choices

investment effect.

.capital.

multiplier.

a. income elasticity.

Flag this Question

Question 181pts

Some people become unemployedvoluntarily, as they move from job to job.This is called __________________________.

Group of answer choices

occupational unemployment.

Bush-era unemployment.

equilibrium unemployment, or frictional unemployment.

stagflation.

Flag this Question

Question 191pts

Placing a heavy tax on a good that is a necessity (such as food) will dowhatto its price?

Group of answer choices

increase the price.

decrease the price.

have no effect on the price.

increase the supply.

Flag this Question

Question 201pts

The U.S. Bureau of Labor Statistics, when they compute unemployment, divide the American population into several groups.How do they define the grouping"Institutional Population"?

Group of answer choices

All those people in institutions. They can count as employed, but not as unemployed.

People under 16 years old, the military, and people in institutions. They are not counted as either employed or unemployed.

People who have jobs, but are dissatisfied with their employment.

People who are employed as guards or custodians in federal or state institutions.

Flag this Question

Question 211pts

In the case of water, because of diminishing marginal utility, consumers' satisfaction exceeds what they pay for water.This is a concept known as _________________.

Group of answer choices

consumer surplus.

diminishing consumer utility.

consumer shortfall.

excessive utility.

Flag this Question

Question 221pts

Which item below isnotincluded in Gross Domestic Product (GDP)?

Group of answer choices

manufacture of "frivolous" items.

stock market transactions.

services.

goods produced in the U.S. by foreign corporations.

Flag this Question

Question 231pts

Private goodsare characterized byrivalryandexcludability.In other words, if Buyer "A" buys something from a store shelf, then nobody else can buy it, and sellers will not allow customers to have their products unless they pay for them.On the other hand, what characterizespublic goods?

Group of answer choices

free prices and nonparticipation.

chivalry and exclusivity.

monopolistic competition.

non-rivalry and non-excludability.

Flag this Question

Question 241pts

Consider the demand for jackets.Suppose that in North Dakota, there have been five years of extremely warm winters.Suddenly, this year the winter turnedextremelycold - so cold that the demand for jackets increased by a very large amount.In fact, we're not even talking about a movement along the Demand Curve, What has occurred is ashiftof theentireDemand Curve upward and to the right.When a demand curve increases like this, what is the one result that will always occur?

Group of answer choices

Jackets will be better made, for more cold weather durability

The price of jackets will rise.

Due to greater supply, prices should fall significantly.

The supply curve will also shift, downward and to the left.

Flag this Question

Question 251pts

Many believe that the "Invisible Hand" of the free market will operate to promote the public and social interest.Who developed this term and concept?

Group of answer choices

John Maynard Keynes, in 1936.

Adam Smith, in 1936, in "A Theory of Production, Employment, and Profits".

Adam Smith, in 1776, in "The Wealth of Nations".

Karl Marx, in 1848, in "Das Kapital".

Flag this Question

Question 261pts

How does the stock market affect the economy?

Group of answer choices

It is what drives the economy. For example, if the Dow-Jones goes up, it will improve the economy by a multiple of the dollar rise in stock prices.

They are intertwined. The economy improving means that stock prices will go up quickly. This, of course, benefits only Wall Street. Since they provide most of the campaign contributions, politicians want to see the economy improve, as a way to "pay back" their donors.

Stock prices only go up if the company issuing a particular stock is doing well financially. Thus, if you are going to buy a stock, you should research that stock intensively, and know before you buy what sort of sales they are expected to make this year.

The stock market has nothing to do with the economy, except perhaps to reflect consumers' expectations. For example, when President Obama visited Nike in 2015, their stock price jumped by a large amount the next day. If you buy a share of stock in WalMart, for example, WalMart doesn't get any money at all from you. They got their money when the first customer bought that share of stock. After that, the stock share became a piece of paper sold by individuals to other individuals. The value of stocks is computed entirely on the supply and demand for that stock. That is, how many people want to buy today, and how many people want to sell that day?

Flag this Question

Question 271pts

What is "wealth"?

Group of answer choices

Being fabulously rich.

Otherwise defined as "net worth", it's simply a term that means whatever is left over at a point in time if you compute your assets minus your liabilities.

Giving Donald Trump money because you feel sorry for the poor guy.

Wealth is relative, and it's mostly a "feeling" of whether you are content and satisfied with your life. You may be hungry, but you're told that this is "the new normal".

Flag this Question

Question 281pts

Changes in which of the following factors doesnotshift the demand curve?In other words, which of the following isnota "demand shifter"?

Group of answer choices

tastes or preferences

costs of production.

number of buyers in the marketplace.

average income in the marketplace.

Flag this Question

Question 291pts

Envision a situation in which the federal government decides that corporations don't pay enough taxes (even though the U.S. corporate tax rate is 38% -- the highest in the world).Also, at the same time, elected officials feel that voters will always fall for the class warfare argument that greedy corporations have too much money, so the government should take some money from the successful businesses and give it to the poor.(As W.C. Fields used to say, "Which poor?Uspoor.")In any event, the government decides to raise the corporate tax rate to 50%.Now, this is not a political question. Think. Given what you now know about economics, particularly supply and demand theory, how would basic economics analyze this issue?

Group of answer choices

This is not really a subject which macroeconomics can address.

Taxes provide money directly to the poor. Thus, their standard of living will improve to at least a middle-class level, while the extra money being taken from the corporate officers will reduce their incomes to what the government decides is an acceptable level for them.

A corporate tax rate of 50% is still much too low, because Bernie Sanders says (truly) that he will raise the personal tax rate to 92%.

The increased taxes are an increased cost to the corporations, which they will normally have to pass on to you, so you pay anyway. Either way, increased costs of production result directly in less supply, which results in higher prices. As prices go up, quantity demanded will be less. These factors are definite results. In addition, it is very likely that unemployment will increase as a result of the decreased demand. Aggregate income thus will decrease, so the end result may very well be that the government gets less total dollars of tax revenue in the aggregate.

Flag this Question

Question 301pts

A problem with analyzing government effectiveness is that there is not a standard measuring tool.With private businesses, it's pretty easy. Why is it much harder to analyze the effectiveness of a government agency compared to the same analysis for a private business?

Group of answer choices

Businesses have a simple standard of measurement - profit or loss. The average person has no way of knowing how well a government agency does, because there is no standard of measurement known to the average person.

We don't need to know how well a government agency does, because it's not really any of our business. The people in Washington are smarter than us, and they'll make the right decisions.

. It's harder because the methods to measure successful outcomes of a government entity are detailed in a 26, government regulation (USC 203.557), in which nothing is listed in alphabetical order.

Government agencies are so well-run that it's difficult to recognize their shortcomings when there are so very few shortcomings. Businesses, on the other hand, make so many mistakes that they're easier to point out.