Economics Final

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Author:
ds0029
ID:
272429
Filename:
Economics Final
Updated:
2014-04-29 20:15:18
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Econ
Folders:
econ
Description:
ECN 142-01
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  1. In the short run in periods of low inflation, an increase in aggregate demand from a position of full employment leads to: 
    A) higher prices and higher unemployment
    B) lower prices and higher output
    C) higher prices and higher output
    D)lower prices and higher unemployment
    C) higher prices and higher output
    (this multiple choice question has been scrambled)
  2. In the long run, an increase in aggregate demand from a position of full employment leads to:
    A) higher prices and higher output.
    B) higher prices and the same output.
    C) higher output and lower prices.
    D) higher output and higher unemployment
    B) higher prices and the same output.
    (this multiple choice question has been scrambled)
  3. Inflation doesn't reduce purchasing power if:
    A) the Federal Reserve increases the money supply enough to offset it.
    B) nominal wages rise at the same rate as prices.
    C) prices of essential products, such as food and gasoline, don't increase too much.
    D) it remains under 10% per year.  
    B) nominal wages rise at the same rate as prices.
    (this multiple choice question has been scrambled)
  4. During periods of high inflation, the short-run aggregate supply curve is:
    A) vertical.
    B) horizontal.
    C) upward sloping.
    D) downward sloping.
    A) vertical.
    (this multiple choice question has been scrambled)
  5. In the long run, any given percentage increase in the money supply:
    A) increases real GDP.
    B) decreases real GDP.
    C) leads to an equal percentage increase in the overall price level.
    D) leads to an equal percentage decrease in the unemployment rate.
    C) leads to an equal percentage increase in the overall price level.
    (this multiple choice question has been scrambled)
  6. An inflation tax is:
    A) a tax on businesses for raising prices.
    B) an excise tax on new automobile tires.
    C) the reduction in purchasing power due to inflation.
    D) a tax on people with inflated incomes.
    C) the reduction in purchasing power due to inflation.
    (this multiple choice question has been scrambled)
  7. The closer you get to the equator:
    A. economic growth speeds up
    B. economic growth is irrelavant
    C. economic growth is deterministic in terms of recource inputs
    D. economic growth slows down
    D. economic growth slows down
    (this multiple choice question has been scrambled)
  8. A Phillips curve implies a negative relationship between:
    A) consumption and inflation.
    B) inflation and unemployment.
    C) consumption and saving.
    D) inflation and prices.
    B) inflation and unemployment.
    (this multiple choice question has been scrambled)
  9. A liquidity trap is a situation in which:
    A) aggregate demand falls because consumers do not have enough liquidity to consume.
    B) using expansionary monetary policy is not effective because the real interest rate is negative.
    C) lenders are trapped by large loans with declining rates of return.
    D) using expansionary monetary policy is not effective because the nominal interest rate is almost zero.
    D) using expansionary monetary policy is not effective because the nominal interest rate is almost zero.
    (this multiple choice question has been scrambled)
  10. The Federal Reserve is able to have an impact on financial crises because it:
    A) determines tax rates.
    B) conducts monetary policy.
    C) determines government spending.
    D) is responsive to the people who elected its members to office.
    B) conducts monetary policy.
    (this multiple choice question has been scrambled)
  11. If the Federal Reserve wants to lower the interest rate, it will:
    A) mandate a lower interest rate.
    B) increase the money supply.
    C) decrease the money supply.
    D) keep the money supply unchanged.
    B) increase the money supply.
    (this multiple choice question has been scrambled)
  12. If the Federal Reserve wants to lower interest rates, it can:
    A) decrease the money supply by buying Treasury bills.
    B) decrease the money supply by selling Treasury bills.
    C) increase the money supply by selling Treasury bills.
    D) increase the money supply by buying Treasury bills.
    D) increase the money supply by buying Treasury bills.
    (this multiple choice question has been scrambled)
  13. When the Federal Reserve buys Treasury bills, this leads to:
    A) a decrease in the money supply.
    B) an increase in short-term interest rates.
    C) an increase in the money supply.
    D) an increase in the Federal Reserve funds rate.
    C) an increase in the money supply.
    (this multiple choice question has been scrambled)
  14. Money whose value derives entirely from its official status as a means of exchange is known as:
    A) bank reserves.
    B) fiat money.
    C) commodity money.
    D) commodity-backed money.
    B) fiat money.
    (this multiple choice question has been scrambled)
  15. All of the following are sources of federal tax revenue EXCEPT:
    A) the corporate profits tax.
    B) sales taxes.
    C) social insurance taxes.
    D) the personal income tax.
    B) sales taxes.
    (this multiple choice question has been scrambled)
  16. Expansionary fiscal policy:
    A) decreases aggregate demand.
    B) decreases long-run aggregate supply.
    C) increases aggregate demand.
    D) increases long-run aggregate supply.
    C) increases aggregate demand.
    (this multiple choice question has been scrambled)
  17. Expansionary fiscal policy includes:
    A) decreasing government expenditures.
    B) increasing government expenditures.
    C) increasing taxes.
    D) increasing the money supply.
    B) increasing government expenditures.
    (this multiple choice question has been scrambled)
  18. An expansionary fiscal policy either _______ government spending or _______ taxes.
    A) increases; decreases
    B) decreases; decreases
    C) decreases; increases
    D) increases; increases
    A) increases; decreases
    (this multiple choice question has been scrambled)
  19. A $100 million increase in government spending increases equilibrium GDP by:
    A) more than $100 million.
    B) zero.
    C) $100 million.
    D) less than $100 million.
    A) more than $100 million.
    (this multiple choice question has been scrambled)
  20. When the economy expands, which of the following is true?
    A) Income tax receipts will stay the same unless the government changes the tax rates.
    B) Income tax receipts will rise but sales tax revenues will remain the same.
    C) Income tax receipts and sales tax revenues will both rise.
    D) Income tax receipts will fall but sales tax revenues will rise.
    C) Income tax receipts and sales tax revenues will both rise.
    (this multiple choice question has been scrambled)
  21. The federal budget tends to move toward _____ as the economy ____.
    A) surplus; contracts
    B) deficit; expands
    C) a balanced budget; contracts
    D) deficit; contracts
    D) deficit; contracts
    (this multiple choice question has been scrambled)
  22. If the government's total revenues are greater than its total expenditures, then it has a budget:
    A) deficit.
    B) equality.
    C) balance.
    D) surplus.
    D) surplus.
    (this multiple choice question has been scrambled)
  23. Suppose that the budget deficit of a country remains level for five years. Which of the following is true concerning the fiscal stance of this government?
    A) The federal debt will rise.
    B) The federal debt will either remain constant or fall.
    C) The federal debt will remain constant.
    D) The federal debt will fall.
    A) The federal debt will rise.
    (this multiple choice question has been scrambled)
  24. A government would be able to pay off its debt if:
    A) GDP grows faster than the government's debt.
    B) the debt–GDP ratio is increasing.
    C) both GDP and the government's debt grow at the same rate.
    D) the debt grows faster than GDP.
    A) GDP grows faster than the government's debt.
    (this multiple choice question has been scrambled)
  25. Spending promises made by governments that are effectively a debt, despite the fact that they are not included in the usual debt statistics, are known as:
    A) explicit liabilities.
    B) implicit assets.
    C) implicit liabilities.
    D) explicit assets.
    C) implicit liabilities.
    (this multiple choice question has been scrambled)
  26. A key statistic to measure economic growth is:
    A) real GDP per capita.
    B) the Dow Jones stock market index.
    C) the size of the government's budget.
    D) life expectancy.
    A) real GDP per capita.
    (this multiple choice question has been scrambled)
  27. If a country has a population of 1,000, an area of 100 square miles, and a GDP of $5 million, then its GDP per capita is:
    A) $5,000.
    B) $5 million.
    C) $500.
    D) $50,000.
    A) $5,000.
    (this multiple choice question has been scrambled)
  28. The term human capital describes:
    A) improvement in a worker's skills made possible by education, training and knowledge.
    B) improvement in the technology available to the work force.
    C) improvement in the robotics technology that can substitute for a human worker.
    D) improvement made possible by better machines and the equipment available.
    A) improvement in a worker's skills made possible by education, training and knowledge.
    (this multiple choice question has been scrambled)
  29. Which of the following will NOT increase the productivity of labor?
    A) an increase in the capital stock
    B) an increase in the size of the labor force
    C) improvements in education
    D) technological improvements
    B) an increase in the size of the labor force
    (this multiple choice question has been scrambled)
  30. If technology advances, then:
    A) more output can be obtained from the same inputs.
    B) more inputs are needed to produce the same output.
    C) less output can be produced even with more inputs.
    D) less output can be obtained from the same inputs.
    A) more output can be obtained from the same inputs.
    (this multiple choice question has been scrambled)
  31. What was Cameroon’s import tariff at the time of the writing of the article?
    A. 0%
    B.20%
    C. 60%
    D. 10%
    C. 60%
    (this multiple choice question has been scrambled)
  32. From the above table, which is true:
    A. The USSR had the most manufacturing growth
    B. The USSR had almost 8x the manufacturing of France
    C. France had the least manufacturing in 1938.
    D. The USSR had the least manufacturing in the 1920s.
    A. The USSR had the most manufacturing growth
    (this multiple choice question has been scrambled)
  33. What is a time series graph?
    A) a graph that must be done before is due
    B) a series of graphs on production possibilities
    C) a graph that shows the facts on something today
    D) a graph that shows how something changes over time
    D) a graph that shows how something changes over time
    (this multiple choice question has been scrambled)
  34. A government can:
    A) borrow only in bad years
    B) borrow every year
    C) borrow only in good years
    D) only borrow if it prints its own money
    B) borrow every year
    (this multiple choice question has been scrambled)
  35. The government of Greece differs from the United States in that:
    A) The United States borrows in its own currency
    B) Greece prints its own money
    C) Greece borrows from its own citizens
    D) The United States borrows from China
    A) The United States borrows in its own currency
    (this multiple choice question has been scrambled)
  36. The largest single holder of US debt is:
    A) The US government
    B) Microsoft
    C) China
    D) India
    A) The US government
    (this multiple choice question has been scrambled)
  37. What is a problem with the debt to GDP ratio?
    A) it doesn't account for a nation's assets
    B) no problem, it is perfect
    C) it doesn't take into account trade issues
    D) it doesn't measure population growth or inflation
    A) it doesn't account for a nation's assets
    (this multiple choice question has been scrambled)
  38. What is arbitrage?
    A) negotiating a price between buyers and sellers
    B) formation of a trade agreement
    C) buying where expensive and selling where cheap
    D) buying where cheap and selling where expensive
    D) buying where cheap and selling where expensive
    (this multiple choice question has been scrambled)
  39. What is a tariff
    A) tax on imports
    B) limit on exports
    C) tax on exports
    D) limit on imports
    A) tax on imports
    (this multiple choice question has been scrambled)
  40. What is a quota in terms of trade
    A) tax on imports
    B) limit on imports
    C) tax on exports
    D) limit on exports
    B) limit on imports
    (this multiple choice question has been scrambled)
  41. The United States gets most of its oil from the Americas.  If a conflict in the Middle East erupts and their production is disrupted, this will not affect US gasoline prices. 
    a) TRUE
    b) FALSE
    b) FALSE
  42. High K/L countries should have ____ wages relative to low K/L countries
    a) low
    b) High
    b) High
  43. High K/L countries should have ___ returns on investment relative to low K/L
    a) low
    b) high
    a) low
  44. When a government borrows money:
    a) it has to pay it back
    b) none of the below
    c) all of the above
    d) it never has to pay it back
    d) it never has to pay it back
  45. What is meant by stationary in the time series context?
    A) the data is similar to others
    B) the data goes far away from its average value
    C) the data is unchanging
    D) the data does not go to far from its average value
    D) the data does not go to far from its average value
    (this multiple choice question has been scrambled)
  46. GDP is non stationary, what does this mean?
    A) the data is similar to others
    B) the data goes far away from its average value
    C) the data is unchanging
    D) the data does not go to far from its average value
    B) the data goes far away from its average value
    (this multiple choice question has been scrambled)
  47. What is the Law of Demand
    A) it is impossible to predict future prices
    B) all else being equal, price must go up for more to be demanded
    C) all else being equal, price must go down for more to be demanded
    D) it is impossible to predict future quantities
    C) all else being equal, price must go down for more to be demanded
    (this multiple choice question has been scrambled)
  48. What is the Law of Supply
    A) all else being equal, price must go down for more to be demanded
    B) it is impossible to predict future prices
    C) all else being equal, price must go up for more to be demanded
    D) it is impossible to predict future quantities
    C) all else being equal, price must go up for more to be demanded
    (this multiple choice question has been scrambled)
  49. What are substitutes
    A)things that replace older things
    B) things that must be used together
    C) things that don't matter
    D) things that can replace each other in production or consumption
    D) things that can replace each other in production or consumption
    (this multiple choice question has been scrambled)
  50. What are complements
    A) things that can replace each other in production or consumption
    B) things that must be used together
    C) things that replace older things
    D) things that don't matter
    B) things that must be used together
    (this multiple choice question has been scrambled)
  51. What is meant by "market clearing" price
    A) at this price, excess supply and demand is an issue
    B) at this price buyers are cleared
    C) at this price, there is no excess supply or demand
    D) at this price sellers are cleared
    C) at this price, there is no excess supply or demand
    (this multiple choice question has been scrambled)
  52. What is a price ceiling
    A) a maximum price that can be charged
    B) the lowest price producers can afford
    C) a minimum price that can be charged
    D) the highest price consumers can afford
    A) a maximum price that can be charged
    (this multiple choice question has been scrambled)
  53. What is a price floor
    A) the lowest price producers can afford
    B) a maximum price that can be charged
    C) the highest price consumers can afford
    D) a minimum price that can be charged
    D) a minimum price that can be charged
    (this multiple choice question has been scrambled)
  54. If the price ceiling is below the equilibrium price, it causes a:
    A) a shortage
    B) excess supply
    C) everyone will want to sell
    D) no one will want to buy any
    A) a shortage
    (this multiple choice question has been scrambled)
  55. If the price floor is above the equilibrium price, it causes a:
    A) no one will want to buy any
    B) excess supply
    C) everyone will want to buy
    D) a shortage
    B) excess supply
    (this multiple choice question has been scrambled)
  56. What is meant if demand is perfectly inelastic?
    A) no matter what the quantity supply, consumers will only pay a certain price
    B) quantity demanded changes
    C) it is unknown what the effects of prices are on quantity
    D) no matter how high the price, quantity demanded is the same
    D) no matter how high the price, quantity demanded is the same
    (this multiple choice question has been scrambled)
  57. What is meant if demand is perfectly elastic
    A) quantity demanded does not change
    B) no matter what the quantity supply, consumers will only pay a certain price
    C) no matter how high the price, quantity demanded is the same
    D) it is unknown what the effects of prices are on quantity
    B) no matter what the quantity supply, consumers will only pay a certain price
    (this multiple choice question has been scrambled)
  58. If a country has an absolute advantage in producing a good it means:
    A) the country has a higher demand
    B) the country is larger in population
    C) it can produce the good cheaper than the other country
    D) it can produce more than another country
    D) it can produce more than another country
    (this multiple choice question has been scrambled)
  59. If a country has a comparative advantage in production a good it means:
    A) the country is larger in population
    B) it can produce more than another country
    C) it can produce the good cheaper than the other country
    D) the country has a higher demand
    C) it can produce the good cheaper than the other country
    (this multiple choice question has been scrambled)
  60. What is autarky
    A) a country being closed to trade
    B) international trade agreements
    C) two countries trading with only each other
    D) a country opening to trade
    A) a country being closed to trade
    (this multiple choice question has been scrambled)
  61. Because of arbitrage in internationally traded goods, prices tend to:
    A) be lower in countries that import that good 
    B) be the same everywhere
    C) be lower in countries that export that good
    D) be higher in importing countries
    B) be the same everywhere
    (this multiple choice question has been scrambled)
  62. For a capital intense country, opening trade with a labor intense country will result in:
    A) no trade
    B) higher wages
    C) lower wages
    D) economic collapse
    A) no trade
    (this multiple choice question has been scrambled)
  63. For a labor intense country, opening trade with a capital intense country will result in:
    A) lower wages
    B) no trade
    C) higher wages
    D) economic collapse
    C) higher wages
    (this multiple choice question has been scrambled)
  64. Opportunity cost is:
    a) the trade
    value of something
    b) the dollar cost of something
    c) what you give up to get something
    d) none of the above
    c) what you give up to get something
  65. What is economic growth
    A) increases in prices
    B) having a larger population
    C) being able to produce more
    d) none of the above
    C) being able to produce more
    (this multiple choice question has been scrambled)
  66. Efficiency is
    a) not being able to make one person better off without taking from someone else
    b) none of the above
    c) non existent
    d) being able to grow the economy quickly
    A) not being able to make one person better off without taking from someone else

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