A) an increase in the minimum wage A shift outward of the production possibilities curve. An increase in national defense implies more sacrifices of civilian goods and services. Scarce resources and opportunity cost. Most primitive economies concentrate on producing food and shelter - the basic necessities of life. National income is equal to Economics teaches how to limit our wants. The use of market prices and sales to signal desired output. b. As more and more time is spent on one activity, the opportunity cost of the activity in terms of other activities rises Is a normative analysis D. A movement from the production possibilities curve to a point inside the production possibilities curve. c. Is it sensible for a government to subsidize tobacco production? d. The unemployment rate, Does the "richest man in the world" face scarcity, or does scarcity only affect those with more limited incomes and lower net worth? Chuck is paying Marla $150 per hour to design his new home. B) The tax cut would increase consumption spending more than would a permanent tax cut. b) A French pharmaceutical firm builds a new factory in Poland for its subsidiary. C) falls; Marla's architectural design services are no longer bought by Chuck once they're married C) downward sloping. B) discretionary fiscal policy. A) decrease the measured unemployment rate. A) total employment is greater. Which of the following transactions would be recorded in the French current account of its balance of payments statistics? C) decrease in demand; decrease in quantity demanded C. Production managers are more concerned with satisfying government's orders than with satisfying consumer wants. 1. D) only change GDP if the development occurs within the borders of the United States. D) gross national product of Canada and the gross national product of the United States. What were the macroeconomic principles or models that influenced your decision making?] D) less than 5 times as much as your grandfather in terms of nominal income. A) less difficult than with monetary policy. Suppose that when the price of ice cream increases, Liza decreases her purchase of hot fudge. d. Ceteris paribus, Which of the following is not an opportunity cost of attending college? b. The economy has gone into a recession. Rational cost Stability c. Efficiency d. Growth A Economics is best defined as the study of a. A: Economics is the study of production, distribution, and consumption when the resources are scarce in. B. the global economy. b. C. the economy as a whole. D) the value of the services of the real estate agent, Which of the following goods is directly counted in GDP? B) automobile A) the law of supply has been violated. B) fallen; risen b. select the best possible solution. D) decrease the number of persons in the working-age population. D. give more money to the government to solve its problems. Timer Bonus. C. income, saving and . The importance of the ceteris paribus assumption when using models is that: D. Economic growth and market failure. Assume PetSmart, Inc. expects to incur $380,000 of indirect costs this year. D) sometimes by more than and other times by less than, A change in consumption spending caused by income changes is ________ change in spending, and a change in government spending that occurs to improve roads and bridges is ________ change in spending B) movement along the demand curve due to a change in relative prices. A) 2% D. Increasing opportunity costs will occur with greater tank production. Minimum wage laws cause unemployment because the legal minimum wage is set According to a deputy commissioner of police, "Commerce does very little of what we recommend. Marco's consumer surplus from the purchase is The country is experiencing a serious rise in inflation which the government wants to control through fiscal policy. C. There is often a tradeoff between the two. B. Question 01. A) the nominal interest rate plus the inflation rate. There are no problems and everyone, including consumers, is satisfied. C. There is often a tradeoff between the two. Which of the following is a normative economic statement? The minimum wage law causes unemployment. Cutting taxes _______ D) the reduction in economic surplus resulting from not being in competitive equilibrium. They are both automatically achieved in a free market economy. An undesirable combination of goods and services. C) GDP deflator B. decisions; household D. All of the choices are correct. Next post [UPSC Interview 2022] - Transcript #116 : Gen, Raj Shukla Board, PSIR Optional, Maharashtra Home State . Therefore, exercising daily causes people to eat kale. D) The minimum wage in Europe is lower than it is in the United States. &\textbf{Estimated}\hspace{10pt}&&\textbf{Estimated Quantity}\\ In the first six months of 2003, branches of Commerce Bank in New York City were robbed 14 times. A. C) GDP is adjusted for changes in crime rates. B) there has been an upward movement along a demand curve. A) increase; more B) higher; lower b. real costs. D) the level of technology is fixed and unchanging. C) wages paid to employees by Dell. A(n) ________ is represented by a rightward shift of the demand curve while a(n) ________ is represented by a movement along a given demand curve. Which of the following statements is not true? MACROECONOMICS FREE-RESPONSE QUESTIONS MACROECONOMICS Section II Total Time1 hour . c. producers Total the statement columns, compute net income (loss), and complete work sheet. Persistence is A. the tendency for declines in economic activity to be followed by further declines, and for growth in economic activity to be followed by more growth. B) the price level in 2016 was less than the price level in the base year. The difference between microeconomics and macroeconomics is that microeconomics analyzes the decisions made by _________, while macroeconomics deals primarily with _____________. C. Technology is lost. B. b. It allows researchers to isolate the effect of one event on another without the influence of outside variables Examples of comparative advantage show how trade between two countries can make each better off. A) below the market wage, causing labor demand to be greater than labor supply. A. central bank prints more money B. increase in household savings C. decrease in borrowing by private firms D. foreign financial investors ________ and ________ are the largest sources of revenue collected by the federal government The invisible hand refers to C) equity c. To be an informed citizen The following macroeconomic projected return models =. Start. C. Greater production of one good requires increasingly larger sacrifices of other goods. Which of the following statements uses the concept of equity to argue against the legalization of casino gambling? C) the price of sailboats increased and the quantity of sailboats demanded decreased." D) the firm will not change supply until it knows for certain what will happen to its price. Classify the following topics as relating to microeconomics or macroeconomics. The Federal Reserve lowered interest rates at its last meeting. B) discretionary fiscal policy; automatic stabilizers A) climate and natural resources. The New York City Police recommended steps the bank could take to deter robberies, including the installation of plastic barriers called "bandit barriers." Find the following limits: (a) limnn\lim _{n \rightarrow \infty} \alpha_nlimnn, (b) limnn\lim _{n \rightarrow \infty} \beta_nlimnn, (c) limn(3n+4n)\lim _{n \rightarrow \infty}\left(3 \alpha_n+4 \beta_n\right)limn(3n+4n), (d) limnnn\lim _{n \rightarrow \infty} \alpha_n \beta_nlimnnn, (e) limnn/n\lim _{n \rightarrow \infty} \alpha_n / \beta_nlimnn/n, (f) limnnn\lim _{n \rightarrow \infty} \sqrt{\beta_n-\alpha_n}limnnn. B. still have an economic problem. D) equal 20%. All of the following are benefits of the single market except ? Suppose in 2016, you purchase a house built in 2003. Which of the following is a macroeconomics question? The tax cut would lower the price level in 2014. You earn $35,000/year in your first job in 2016. C) the ACIF. D) decrease the number of persons in the working-age population. D) lawn care services are deliberately charging low prices because they want to discourage people from maintaining their own lawns. Que11. Every society faces economic trade-offs. B) ice cream and hot fudge and substitutes. D. The person who has the responsibility to coordinate all the markets in a market economy. B. d. A) a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. Step-by-step explanation. C) the interest rate determined by the supply and demand in the money market. B) GDP is not affected by Scott's production of the jewelry box. Which of the following individuals would be most negatively affected by anticipated inflation? From an initial long-run equilibrium, if aggregate demand grows faster than long-run and short-run aggregate supply, then Congress and the president would most likely ________ B. firm could more readily exploit. Simple economies can be described in terms of three major economic flows. b. A. Macroeconomics is a branch of economics that deals with the structure, performance and behaviour of the overall economy. A) Individual income taxes; corporate income taxes b. C) people employed in the underground economy 60 seconds. B) the firm has an incentive to decrease supply now and increase supply in the future. This means that _______ This problem has been solved! D) about the same difficulty as with monetary policy. C) The quantity of traditional camera film demanded increases. c. determine the objective. The increase in the amount that the government collects in taxes when the economy expands and the decrease in the amount that the government collects in taxes when the economy goes into a recession is an example of D) lower; lower, Contractionary fiscal policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be ________ and real GDP to be ________. C. A surplus of . B) increased income tax rates. A) will lower disposable income and lower spending. B. E. consumers and firms choosing which goods and services to buy or produce. A) attainable B) the value of the house in 2003 B. the idea that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. To Liza, D) Excise and other taxes; individual income taxes. Determine the following steps in preparing a work sheet in their proper order by writing numbers 1-5 in the blank spaces provided. B) vertical. Choices made by people faced with scarcity b. D. None of these choices are correct. A) higher; higher b. Macroeconomics c. Is one-half cost of the game, as this is the second time you have played it A. D) increased business taxes. c. Florida should devote all revenues from its state lottery to improving public education Which of the following is a positive economic statement? When the variable measured along the x-axis and the variable measured along the y-axis move in the same direction, it indicates a ________ relationship between the two variables. Several conditions must be met before the state is permitted to commit a person involuntarily: The person has a(n)___________ and is in need of treatment, the person If the nominal interest rate is 6% and the inflation rate is 9%, then the real interest rate is B) The federal government pays the salary of an FBI agent. D) a decrease in the quantity supplied. A) the price level in 2016 was greater than the price level in the base year. Market failure. Guns and butter can be produced using the same resources at the same time. D. Al of the choices are correct. The economy's capital stock declines. D) efficient central planning. An economic ________ is a simplified version of some aspect of economic life used to analyze an economic issue. \hline The money-creating potential in the banking system in the given case is computed as follows: A) the money supply and interest rates that automatically increase or decrease along with the business cycle. A) Tuan purchases a cappuccino at the student union. Getting the timing right with fiscal policy is generally _______________ Unemployment is too high. It does not consider discouraged workers, and hence it is understated. A. With respect to factors of production, which of the following statements is not true? 2. C) by the same amount as D) The "Lucky Ducky" casino buys a new crabs table for the casino floor. d. The "richest man in the world" does not face scarcity because he has more money than others, Indicate whether the following statements are examples of positive economic analysis or normative economic analysis Macroeconomics Basics. Your grandfather tells you that he earned $7,000/year in his first job in 1961. Is the cerebellum responsible for facilitating declarative memories of emotionally stressful events? Fill in the blanks: (International Balance of Payments accounting) _ Accounts are the transfer of money/wealth that occur between countries but hope to create future revenue. of mental institutions) and ___________ (movement Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to understate the true extent of joblessness? What goods and services to producehow will these goods and services be produced; and who receives them? B) a competitive equilibrium is achieved D) out of the labor force. Assume that the price for lawn care has fallen and sales of lawn care services have also fallen. _____a. Why has the unemployment rate been nearly twice as high in Europe as in the United States in recent years? bi tp eco question points): given the following annual information about hypothetical country, answer the following questions (expenditure approach to gdp) Skip to document. a. B) an increase in the unemployment rate The conclusion of this statement: A) marginal Which of the following would increase the unemployment rate? C) increasing the money supply and decreasing interest rates. A. In this initiative, you can attempt 10 subjective MCQs on a daily basis. The market mechanism at work. A) falls; Marla's work takes place in the underground economy once she's married C. do have an economic problem but are solving it. A. trade-off Which of the following is an example of a "how much" decision? Opportunity cost A) an increase in the number of people in the labor force The substitution bias in the consumer price index refers to the idea that consumers ________ the quantity of products they buy in response to price, and the CPI does not reflect this and ________ the cost of the market basket Productive efficiency Technological advancements have led to lower prices and an increase in the sale of color laser printers. a. If the economy is falling below potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? Which of the following best describes an assumption economists make about human behavior? D. Average combinations of goods and services an economy can produce given its available resources and technology. A. . C) The federal government pays out an unemployment insurance claim. D) total welfare is greater. d. It allows researcher to analyze the effect of all potential influences on a particular event, Which of the following is not listed in the book as a reason to study economics? When governments are borrowers in financial capital markets, which of the following is least likely to be a possible source of the funds from a macroeconomic point of view? The opportunity cost of studying for an economics test is Given that, the question "According to the Bureau of Economic Analysis, what has been the average annual level of inflation (as measured by the GDP Deflator) over the past 10 years?" B) government spending and taxes that automatically increase or decrease along with the business cycle. A) a decrease in supply. A) greater on the buyer when the tax is collected from the buyer. A) labor, capital, land and natural resources are fixed in quantity. C) make economic ideas explicit and concrete for use by decision makers. Which of the following is a microeconomics question? What are some of the causes of desertification? Scott is a woodworker and charges $125 an hour for his time manufacturing custom-made wood products. c. Labor economics 1) Economic models do all of the following except A) answer economic questions. Principles of Macroeconomics Quiz- Which of the following represents the major functions of the central bank (a) note issuing agency (b) controller of. A. The market mechanism. Ford D) The government imposes taxes on those who earn beyond a certain amount of income. (Round percentages to one decimal place.). c. Post hoc, ergo propter hoc C) automatic stabilizers; monetary policy The four basic economic questions are: what goods to produce, how to use resources in the production process, who receives the finished goods and when to produce the goods. Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ________ and real GDP to be ________. Which of the following is a microeconomics question? D) below; shortage. c. As less and less time is spent on one activity, the opportunity cost of that activity in terms of other activities rises A) employed Individual consumers. C) The purchasing power of your salary remained constant between 2007 and 2016. B. Refer to the above diagram. D. constant opportunity costs as more and more of one good is produced. Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy? C) $140. These are: A. income, spending and saving. c. Marginal cost D) an increase in the working-age population. B) Individual income taxes; social insurance taxes Answer: B Diff: 1 Page Ref: 12/12 Topic: Economic Models *: Recurring They've told our detectives they have no interest in ever putting in the barriers.". Should the government attempt to influence the interest rate to lower inflation?