Government can change markets through all of the following except__________.

• awarding subsidies
• enacting regulations
• awarding large business contracts
• changing the tax rate

A house with an elasticity score of 3 would be considered a __________ good, while a house with an elasticity score of 0.5 would be considered a(n) _________ good.

• luxury; inferior
• luxury; normal
• normal; inferior
• normal; luxury

Which of the following will lead to a surplus if implemented?

• Non-binding price floor
• Binding price ceiling
• Binding price floor
• Non-binding price ceiling

Select the statement below that corresponds to the business cycle.

• Happens between expansions and recessions
• Happens between recessions and expansions
• Shows only the periods of economic decline
• The process of expansion and contraction of the GDP

Which statement below regarding expansions is true?

• They happen when GDP reaches its lowest point.
• They occur during times of high rates of unemployment.
• They happen when GDP reaches its highest point.
• They occur when the economy is experiencing GDP growth.

Which statement below is true regarding aggregate supply?

• AS has no quantity limit.
• It is not used that often in macroeconomics.
• It is influenced by the wealth effect.
• Two curves represent AS.

U.S. dollars (USD) are the base currency and Bahraini dinar(BHD) are the price currency.

If one U.S. dollar can purchase 0.56Bahraini dinar, what is the exchange rate?

• 0.44
• 1.12
• 3.51
• 1.79

Which of the following kinds of unemployment is Naomi experiencing if she has a degree in a field that is experiencing a great deal of growth at the moment but is having a difficult time finding work because she just moved to a new city and does not know anyone yet?

• Cyclical
• Frictional
• Structural
• Seasonal

Which of the following make up a country's balance of payments?

• Current account and trade deficit
• Trade deficit anddemand
• Supply andtrade surplus
• Capital account andcurrent account

The producer or supplierwill bear more of the burden of a tax than the consumer if demand is which of the following?

• Elastic
• Perfectly inelastic
• Inelastic
• Greater than supply

Select the statement that corresponds to a shift in the supply curve.

• A movement that occurs due to factors such as firms having more or less access to resources
• Occurs when the price for a certain good changes and influences the quantity supplied
• The amount of goods and services that may be purchased at a certain moment in time at a specific income level
• The amount of goods and services that are available at different prices at a certain moment in time

If college tuition for one yearcost $2,500in 1976 and $11,000 in 2007, the price has increased by which of the following factors?

• -4.4
• 4.4
• -44
• 44

Select the statement below that is an example of monetary policy only.

• A tool of this policy is government spending.
• It is how the federal government influences the business cycle.
• It influences interest rates and borrowing in the economy.
• It can promote growth when economy is slowing.

Which one of the following is NOT an automatic stabilizer?

• The countercyclical approach
• Unemployment insurance
• Social Security
• The TANF program

Which of the following is NOT part of the expenditure approach to calculating GDP?

• Imports
• Labor income
• Exports
• Business investments

Which of the following is true about exchange rates?

• They often change as a result of changing economic conditions in one country compared to another.
• A country's exchange rate will depend on how much supply and demand exist for its currency.
• Exchange rates matter when making international purchases or traveling abroad.
• All of the above are true regarding exchange rates.

Which statement below regarding reasons for studying macroeconomics is false?

• Macroeconomics is the basis for discussions of economics in the media.
• Understanding macroeconomics helps onebecomea better citizen.
• Macroeconomics can help you understand the limitations of monetary and fiscal policy but not individual decision-making.
• Macroeconomics helps us understand the economic situation of the United States but has little application for other countries.

Determine which statement below about economics is true.

• As a field of study, economics is pretty much the same around the world.
• Economics studies decision-making processes.
• Macroeconomics studies the decisions of individual consumers and firms.
• Economics predicts what the market will do in the future.