The key figure in macroeconomics since the great depression has been

	a.	John Maynard Keynes
	b.	Adam Smith
	c.	Karl Marx
	d.	Jerome Powell

People have begun making face masks in their homes to protect their families against Coronavirus. Additionally, they are making masks to give to people in the medical field who do not have them. What impact will this production of masks have on GDP?

	a.	It will increase GDP because there is an increase in production.
	b.	It will have a negative impact on GDP because people aren't buying masks from China.
	c.	It will have a positive impact on GDP because consumption is rising.
	d.	There will be no impact on GDP.

Economists believe that individuals compare the benefits and costs of various options when making a decision and in so doing are

	a.	recognizing that all choices have opportunity costs.
	b.	responding to incentives.
	c.	acting irrationally.
	d.	making decisions at the margin.

In fiscal policy the idea that an amount of government spending could result in a bigger boost to the economy than just that level of spending is based on

	a.	the money multiplier.
	b.	the quantity theory of money.
	c.	the Laffer curve.
	d.	the fiscal multiplier.

Recently the FED has pumped trillions of dollars into the economy by buying a variety of financial assets to help stave off an economic collapse. What is this type of monetary policy called?

	a.	expansionary policy through free market operations
	b.	contractionary policy through fractional reserve banking
	c.	expansionary policy through fractional reserve banking
	d.	expansionary policy through quantitative easing

Over fishing of the oceans is an example of

	a.	a positive externality.
	b.	a public good.
	c.	illegal free-riding.
	d.	the tragedy of the commons.

Which of the following is an accurate statement based on what we know about money?

	a.	Carrie made a lot of money last year.
	b.	Nancy uses her credit card as money.
	c.	Anne needs a new microwave is saving her money in a shoebox.
	d.	Joan is happy that her money is backed by gold.

The government is sending checks to people to provide them with financial relief. Which of the following best describes the desired effect?

	a.	this expansionary fiscal policy will shift aggregate demand rightwards
	b.	this contractionary fiscal policy will shift aggregate supply leftwards
	c.	this expansionary monetary policy will shift aggregate demand leftwards
	d.	this expansionary monetary policy will shift aggregate demand rightwards

Which of the following economic policies would not promote economic growth?

	a.	encouraging investment from abroad
	b.	using tax policy to incentivize savings
	c.	reducing regulations
	d.	increasing investment taxes

Profits are equal to

	a.	assets minus total liabilities
	b.	revenue minus total cost
	c.	sales minus wages and salaries
	d.	total income

A dominant strategy is:

	a.	A strategy that is preferred by a player when the opponents have a single strategy
	b.	The most favored strategy of a player if the opponents also choose their best strategy
	c.	The least preferred strategy among players regardless of the opponents' choices
	d.	A strategy that is favored by a player regardless of the opponents' choices

A newspaper reports that "Coffee growers' monopoly is broken!!! Now there are many firms competing to sell coffee beans to the United States!" If this is true, we would expect there to be

	a.	an increase in the output of coffee beans and an increase in price.
	b.	a decrease in the output of coffee beans and an increase in price.
	c.	an increase in the output of coffee beans and a decrease in price.
	d.	a decrease in the output of coffee beans and a decrease in price.

According to the U.S. Federal Tax Rates chart, a person earning $100,000 in a given year is in the 28% tax bracket. How much will this individual owe in income taxes for that year?

	a.	$28,000
	b.	$72,000
	c.	less than $28,000
	d.	more than $28,000 but less than $72,000

At the beginning of the year, one British pound could buy 1.2 Euro. Today, the pound can buy 1.3 Euro. How many British pounds can one Euro buy today?

h

Which of the following statements is true?

	a.	Congress conducts monetary policy while the Fed conducts fiscal policy.
	b.	Congress and the Fed conduct both monetary and fiscal policy.
	c.	The Fed must get approval from the US president to conduct monetary policy.
	d.	Congress conducts fiscal policy while the Fed conducts monetary policy.

If aggregate demand declines, what happens to output, unemployment and inflation?

	a.	They all increase
	b.	They all decrease
	c.	Output and inflation decrease while unemployment increases
	d.	Output and inflation increase while unemployment decreases

When there is a shortage of a product in a competitive market, it is usually the case that the

	a.	market price of the product will eventually increase.
	b.	market price of the product will eventually decrease.
	c.	quantity of the product exchanged in the market will not change but demand will decrease.
	d.	quantity of the product exchanged in the market will eventually decrease.

When the Fed wants to change the money supply, it most frequently

	a.	issues Federal Reserve notes.
	b.	conducts open market operations.
	c.	changes the reserve requirement.
	d.	changes the discount rate.

Tax revenues are expected to fall as fewer people are working. Additionally, the federal government is spending at unprecedented levels. What do you know the result will be?

	a.	Less government borrowing.
	b.	Lower government debt.
	c.	A government budget deficit.
	d.	An increase in real GDP.

The primary purpose of the financial system is to equate:

	a.	savings and investment.
	b.	taxes and government spending.
	c.	GDP and GNP
	d.	supply and demand.