If the market price for fast food wages is $7 per hour, at which wage level would a price floor be binding?

• $1
• $6
• $15
• $7

Select the equation below that corresponds to income that can be consumed, saved or paid as taxes.

• Y=C+I+G+X
• Y=C+S+T+M
• X
• X=M

Suppose Venezuela can produce petroleum at a lower opportunity cost because of its natural resources, and China can produce clothing at a low opportunity cost because of its population and level of industrial development.

Which statement below regarding comparative advantage is NOT true?

• Venezuela has a comparative advantage in petroleum production.
• China can produce petroleum at high opportunity cost.
• China has a comparative advantage in clothing production.
• Venezuela can produce clothing at low opportunity cost.

Select the statement below that corresponds to the business cycle.

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

Which of the following terms is arelative value of one currency in terms of another?

• Price currency
• Base currency
• Exchange rate
• Currency

Which statement below is true regarding the increased participation of women in the workplace?

• It is accompanied by lower birth rates, which means a higher standard of living for the next generation.
• Women tend to work fewer hours than men do.
• Gender wage gaps have been almost completely eliminated.
• Most of the countries worldwide meet the new international standard for minimum duration of maternity leave.

Which of the following is false about budget deficits?

• They are financed with tax revenue or new debt.
• They canaffect long run RGDP.
• They typically happen when using contractionary fiscal policy.
• They represent the difference between tax revenue and government expenditures.

Which statement below regarding reasons for studying macroeconomics is false?

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

Using the expenditure approach and the information shown here, which of the following is the calculated GDP?

Individual Purchases: $150billion

Government purchases: $200billion

Business investments: $300billion

Imports: $150 billion

Exports: $100billion

• $600 billion
• $750 billion
• $900 billion
• $850 billion

If the demand curve is more elastic than the supply curve, and a tax is imposed,which of the following will happen?

• The seller will bear more of the burden of the tax.
• A shortage will be created.
• The price will rise by the amount of the tax.
• The consumer will bear more of the burden of the tax.

Select the example below that corresponds to consumer surplus.

• George is willing to spend up to $1,000 on a laptop but is able to find one for $500.
• Emily usually works as a babysitter for a price of $15 per hour but is willing to work for as low as $10 per hour.
• The price of a house in a certain neighborhood is $300,000 for three bedrooms andtwo bathrooms. At this price, the market is clearing.
• The price of gold increases to $300 per ounce, so many people start selling their gold.

Select the situation below where contractionary monetary policy would be needed.

• Individuals reduce the frequency with which they spend and deposit money in banks.
• People are holding onto their money rather than spending it.
• The inflation rate is growing rapidly.
• People are reluctant to take out loans.

The discount rate represents which of the following?

• It is the same as the fed funds rate.
• It is the rate that the Fed charges member banks in order to satisfy liquidity needs.
• It is the rate that banks charge when they lend out money.
• It is the rate that banks charge to one another to meet the reserve requirement.

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

Which statement below is true of ONLY fiscal policy?

• A policy typically set by a banking authority
• Increases the availability of money
• Uses government expenditures to create demand
• Used to alter AD