• Question 1
2 out of 2 points
If an improvement in the quality of a good is not fully measured, then the consumer price index will overstate the increase in the cost of living.
• Question 2
2 out of 2 points
Risk aversion means that people dislike bad things happening to them.
• Question 3
0 out of 2 points
If a tax credit made investments more attractive, the interest rate
• Question 4
0 out of 2 points
According to the traditional theory of production, as capital per worker increases
• Question 5
0 out of 2 points
Greg, an economist, says, “Prices rise when the government prints too much money.” In this case, Greg is making a positive statement.
• Question 6
2 out of 2 points
A producer has a comparative advantage in the production of a good if that producer can produce the good using fewer inputs than other producers.
• Question 7
0 out of 2 points
Buyers of new bonds
• Question 8
2 out of 2 points
Microeconomics is the study of
• Question 9
0 out of 2 points
If a U.S. airplane manufacturer opened a factory in Brazil, it would be engaged in
• Question 10
2 out of 2 points
When one producer has an absolute advantage in the production of every good, that producer cannot gain from trade with other producers.
• Question 11
0 out of 2 points
Which of the following is included in GDP?
• Question 12
0 out of 2 points
Frictional unemployment results from
• Question 13
0 out of 2 points
To produce electricity a U.S. energy company purchases electrical generators from a company in Germany. Which of the following happens to the components of U.S. GDP?
• Question 14
0 out of 2 points
A plane from St. Louis to Orlando is about to take off, but it still has a few empty seats. If the average cost per seat is $500, the airline must charge standby passengers more than $500 to profit from the sale of the seat.
• Question 15
2 out of 2 points
The consumer price index is computed using weights based
• Question 16
0 out of 2 points
The cyclical unemployment rate is the natural rate of unemployment minus the actual unemployment rate.
• Question 17
2 out of 2 points
In a market economy, the decisions of what and how much to produce are generally made by
• Question 18
2 out of 2 points
On the one hand more rapid population growth may lower productivity by stretching the supply of natural resources and reducing the amount of capital available per worker. On the other hand, a large population may enhance the rate of technological progress because there are more scientists and engineers.
• Question 19
2 out of 2 points
Mike is a U.S. citizen who works in a motorcycle factory in Mexico. Wendy is a foreign exchange student from Germany who works in a fast food restaurant in the U.S. Whose output is included in GDP?
• Question 20
0 out of 2 points
Which of the following are included in the investment category of GDP?
• Question 21
2 out of 2 points
A company announces that it has made record profits. According to the efficient markets hypothesis, this announcement should
• Question 22
2 out of 2 points
Some economists question the efficient markets hypothesis and believe that irrational psychological factors also influence asset prices.
• Question 23
0 out of 2 points
The efficient markets hypothesis implies that.
• Question 24
0 out of 2 points
Which of the following should not be included in the cost of going to college?
• Question 25
0 out of 2 points
A high price-earnings ratio indicates either that a stock is undervalued or that people expect the corporation’s earnings to fall.
• Question 26
2 out of 2 points
Most unemployment spells are short, and most unemployment observed at any given time is long-term.
• Question 27
2 out of 2 points
Financial markets are financial institutions through which savers can directly provide funds to borrowers.
• Question 28
2 out of 2 points
Which of the following is true concerning stocks?
• Question 29
2 out of 2 points
Suppose that the CPI includes two goods, rice and bread which are substitutes. If the year after the base year the price of bread rises relative to the price of rice then
• Question 30
0 out of 2 points
Which of the following statements is false?
• Question 31
0 out of 2 points
In one day Adam can produce either 5 shirts or 10 ties, and in one day Bob can produce either 6 shirts or 15 ties. Of course, Adam or Bob could split their time between producing shirts and ties and produce some combination of the two goods. Suppose Adam and Bob each specialize in the production of the good for which he has the comparative advantage, and they agree to trade at a price of 4 shirts for 9 ties. Which of the following statements is correct?
• Question 32
0 out of 2 points
When two individuals voluntarily trade,
• Question 33
2 out of 2 points
An increase in the amount of money in the economy will increase inflation and, as a result, push unemployment higher in the short run.
• Question 34
0 out of 2 points
The federal government enacted regulation in the 1960s requiring people to wear seatbelts in their cars. Which of the following did not occur as a result of this legislation?
• Question 35
2 out of 2 points
The sale of used cars is not included in GDP.
• Question 36
0 out of 2 points
Diversification reduces
• Question 37
0 out of 2 points
In one day Cindy can either build 1 computer or 2 stereos, and in one day Dana can build either 2 computers or 3 stereos. Of course, Cindy or Dana could split their time between the two activities and produce some combination of the two products. Suppose Cindy and Dana each specialize in the production of the good for which she has the comparative advantage, and they agree to trade at a price of 7 stereos for 4 computers. Which of the following statements is correct?
• Question 38
2 out of 2 points
Tim has looked for work in the past, but because he’s been unsuccessful finding work he has temporary given up looking for work and hasn’t looked during the last month. The BLS counts Tim as
unemployed. If he were counted as out of the labor force the unemployment rate would remain the same.
• Question 39
2 out of 2 points
A person who moved money from bonds to stocks would increase both risk and return.
• Question 40
0 out of 2 points
Economists use assumptions in order to
• Question 41
2 out of 2 points
Indexation is the automatic correction by law or contract of a dollar amount for the effects of inflation.
• Question 42
0 out of 2 points
If country A has a higher level of real GDP per person than country B, we can be certain that people in country A are better off.
• Question 43
2 out of 2 points
Adverse selection means that
• Question 44
2 out of 2 points
Trade allows countries to specialize in what they do best and to enjoy a greater variety of goods and services.
• Question 45
2 out of 2 points
Which of the following is human capital?
• Question 46
0 out of 2 points
In one day Adam can produce either 5 shirts or 10 ties, and in one day Bob can produce either 6 shirts or 15 ties. Of course, Adam or Bob could split their time between producing shirts and ties and produce some combination of the two goods.
Which of the following statements is correct?
• Question 47
0 out of 2 points
Efficiency wages make unemployment
• Question 48
0 out of 2 points
Differences in natural resources explain some differences in the standard of living around the world, but abundant natural resources are not necessary for an economy to be highly productive.
• Question 49
2 out of 2 points
Points lying on the production possibilities frontier are efficient outcomes while points lying inside the production possibilities frontier are inefficient outcomes.
• Question 50
0 out of 2 points
Which of the following is an example of a normative statement?Click here to have a similar paper done for you by one of our writers within the set deadline at a discounted…
