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Which of the following statements istrue?

Select one:

a.Investment subtracts from the natural resource base and depreciation adds to it.

b.Investment adds to the natural resource base and depreciation reduces it.

c.Investment and depreciation add to the capital stock.

d.Investment adds to capital stock and depreciation reduces it.

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What is the fundamental argument in Malthus'AnEssay on the Principle of Population?

Select one:

a.Ultimately, population growth rate would outpace growth in real GDP leading to declining standards of living.

b.Population growth tends to undermine global stability which is a stimulus for future wars and conflicts.

c.Population would increase at a geometric rate and the food supply at an arithmetic rate and that this disharmony would lead to forced return to subsistence-level conditions.

d.Population growth is the root cause of hunger, poverty, environmental destruction, disease, and social unrest.

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Demand is defined as __________

Choose one answer.

Select one:

a.an amount that is purchased at a specific price, given supply

b.a schedule that establishes the price of a good.

c.a schedule that shows how much will be purchased at various prices during a particular period, all other things unchanged.

d.the amount that will be bought at a specific price.

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Which of the following statements istrue?

I. Small differences in rates of economic growth can lead to large differences in levels of potential output over time.

II. From the perspective of the rule of 72, small differences in rates of economic growth between two countries will not significantly affect their respective standards of living.

III. Countries that have higher population growth rates are likely to see higher economic growth rates because increases in population lead to increases in the size of the labor force.

Select one:

a.I and III

b.II and III

c.I only

d.II only

e.III only

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Financial markets are __________

Choose one answer.

Select one:

a.markets where money is traded between the Fed and economic agents.

b.markets where funds accumulated by one group are made available to another group.

c.banks interact to lend and borrow reserves.

d.the market where capital goods are traded.

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Economics, generally speaking, is primarily concerned with __________

Select one:

a.the operation of the bond and stock markets.

b.the issues of income inequality or income equality.

c.how people choose among the alternatives available to them.

d.ceteris paribus, the scientific method, and the margin.

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Which of the following is possible with international trade?

I. Countries that engage in trade can consume at a point outside their respective production possibilities curve.

II. Global production will be increased.

III. World resources will be used more efficiently.

Select one:

a.I, II, and III

b.I and II only

c.I and III only

d.II and III only

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Disposable personal income is __________

Choose one answer.

Select one:

a.the income households receive after paying personal taxes and personal debt.

b.the income households earn from supplying labor services for the production of aggregate output.

c.the income households receive after paying personal taxes.

d.the income households have leftover after paying personal taxes and purchasing necessities.

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Which of the following istrueabout the Great Depression?

Select one:

a.Following the Great Depression of 1929, the economy did not regain its potential output until the early 1940s when the pressures of WWII sharply increased aggregate demand.

b.Expansionary monetary and fiscal policies successfully moved the economy from the Great Depression of 1929 within three to five years.

c.The Great Depression of 1929 was considered to be a normal stage of business cycles.

d.The Great Depression could be explained by classical economic theory.

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Economic growth

I. is represented by an outward shift of the production possibilities curve.

II. is defined in terms of a series of events that increase the economy's ability to produce goods and services.

III. refers to a process that increases potential output.

IV. occurs when the economy operates on its production possibilities frontier.

Select one:

a.I and IV only

b.I, II, and III

c.I, III, and IV

d.I, II, III, and IV

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Since the late 1970s, the United States __________

Select one:

a.has experienced only moderate inflation, usually between 2 to 3 percent.

b.has seen a steadily increasing rate of inflation.

c.has experienced low inflation, except for a seven-year period between 1979 and 1986.

d.has experienced high inflation followed by a long period of deflation.

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Socialism, as an organizing principle for a national economy, is in large part the product of the ideas of __________

Select one:

a.Adam Smith.

b.Karl Marx.

c.David Ricardo.

d.Thomas Malthus.

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A curve that relates an economy's total output to the total amount of labor employed, holding all other determinants of output constant, is called __________

Select one:

a.an input-output matrix.

b.an average output function.

c.a marginal product function.

d.an aggregate production function.

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The study of how people choose among the alternatives available to them is the __________

Select one:

a.definition of economics.

b.model of demand.

c.theory of opportunity costs.

d.method of distinguishing between microeconomics and macroeconomics.

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Potential output is __________

Select one:

a.the level of real GDP that exists when the economy is experiencing only cyclical and structural unemployment.

b.the level of real GDP that exists when the quantity of labor supplied is equal to the quantity of labor demanded.

c.the level of real GDP that exists when the actual rate of unemployment is zero.

d.the level of real GDP that exists when the economy is experiencing only frictional and cyclical unemployment.