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Econ 101 Quiz sobre Practice Econ Test, criado por mjheg em 03-05-2013.

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Practice Econ Test

Practice Econ Test

Questão 1 de 27

1

Consider the employment situation for the following three people:
William lost his job four months ago. He would like to work, but gave up searching for a job six weeks ago.
Frank quit his job six weeks ago and went back to school full time.
Elizabeth lost her full-time job last month. Since then, she's worked one day per week through a temp agency

Selecione uma das seguintes:

  • Elizabeth and William

  • Frank and Elizabeth

  • Frank and William

  • All of them are considered unemployed

  • None of them are considered unemployed

Explicação

Questão 2 de 27

1

Which of the following describes a situation in which every good or service is produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of producing it?

Selecione uma das seguintes:

  • Allocative efficiency

  • Productive efficiency

  • Profit maximization

  • Marginal efficiency

  • Allocation maximization

Explicação

Questão 3 de 27

1

Which one of the following scenarios would be least likely to change one's behavior?

Selecione uma das seguintes:

  • The city of Saskatoon pays everyone a penny for each can they recycle to promote environmental protection

  • To make people eat healthier, the city of Bakersville tells its resident to eat whole wheat bread instead of white bread.

  • The country of Ravamock enacts a policy to fine companies 20% of their earnings if the safety standards are not acceptable.

  • A basketball team hires three new famous basketball stars who then clamor for other players to come and join their team to win the guaranteed championship.

Explicação

Questão 4 de 27

1

Fiscal and monetary policies are less effective when

Selecione uma das seguintes:

  • the a recession is caused by a real shock

  • the recession is caused by inflation

  • a firm has market dominance

  • the economic boom is caused by a real shock

Explicação

Questão 5 de 27

1

Which of the following describes the process whose ultimate result is illustrated by the multiplier?

Selecione uma das seguintes:

  • When people spend money, the money ends up in the hands or bank accounts of other people who then use that money in some way

  • When people see the government spending more money, they realize that the government thinks prices are low and thus a good time to buy things

  • When people see others spending money, they know that the economy is about to improve and so they also spend money

  • The multiplier exists because money today is always more valuable than money spent in the future due to inflation and interest. As such, when money is spent today, its value to the economy is a multiple of the value to the economy of money spent in the future.

Explicação

Questão 6 de 27

1

As interest rates ________ , investment ___________.

Selecione uma das seguintes:

  • decreases; decreases

  • increases; increases

  • increases; stays the same

  • decreases; increases

  • stays the same; decreases

Explicação

Questão 7 de 27

1

The unemployment rate __________ if the number of discouraged workers increases.

Selecione uma das seguintes:

  • decreases

  • increases

  • stays the same

  • There is not enough information to determine and answer

Explicação

Questão 8 de 27

1

What is not a way to increase the money supply (Expansionary Policy)

Selecione uma das seguintes:

  • Open market purchases

  • Lower the discount rate

  • Open market sales

  • Lower the reserve requirement

Explicação

Questão 9 de 27

1

As the income tax increases, labor force participation _______, and as incentive _______ labor force increases.

Selecione uma das seguintes:

  • decreases; increases

  • decreases; decreases

  • increases; increases

  • increases; decreases

Explicação

Questão 10 de 27

1

Which of the following is not a problem with inflation

Selecione uma das seguintes:

  • Interacts with other taxes

  • Causes price confusion and money illusion

  • Painful to stop

  • Redistributes wealth

  • Can cause a closed economy

Explicação

Questão 11 de 27

1

Maggie gets a 10% raise, and therefore decides to take on a higher mortgage. Inflation during this period has increased by 10%. What has Maggie experienced?

Selecione uma das seguintes:

  • Money illusion

  • Wealth redistribution

  • Real GDP growth

  • Price confusion

  • Interaction with other taxes

Explicação

Questão 12 de 27

1

What happens when inflation is higher than the expected inflation rate?

Selecione uma das seguintes:

  • Nothing happens

  • Wealth is redistributed from the lender to the borrower

  • Wealth is redistributed from the borrower to the lender

  • Both the borrower and the lender are benefited.

Explicação

Questão 13 de 27

1

John's real returns on his loan to Tim are negative. What should John do?

Selecione uma das seguintes:

  • Save the money so someone else can borrow it and therefore increase investment

  • Spend the money because it is gaining value

  • Spend the money because it is losing value

  • Do nothing

Explicação

Questão 14 de 27

1

If the Reserve releases $1,000 and the reserve rate is 5%, how much will the money supply change?

Selecione uma das seguintes:

  • 10,000

  • 5,000

  • 20,000

  • 21,000

  • 15,000

Explicação

Questão 15 de 27

1

Which is not a way to decrease the money supply (Contractionary Policy)

Selecione uma das seguintes:

  • Conduct open market sales

  • Raise discount rate

  • Lower discount rate

  • Raise Reserve requirement

Explicação

Questão 16 de 27

1

What is one problem that arises from bank bailouts?

Selecione uma das seguintes:

  • Systematic risk

  • Moral hazard

  • Confidence risk

  • Inflation

Explicação

Questão 17 de 27

1

What is not a limit to fiscal policy?

Selecione uma das seguintes:

  • Crowding Out

  • Drop in the Bucket

  • Matter of Timing

  • Real Shocks

  • Aggregate Demand Shocks

Explicação

Questão 18 de 27

1

Which is not considered money?

Selecione uma das seguintes:

  • Currency

  • Reserves

  • Checkable deposits

  • Savings deposits

  • Credit Cards

Explicação

Questão 19 de 27

1

Which of the following is not a major role of the Federal Reserve?

Selecione uma das seguintes:

  • Controlling the money supply

  • Setting income taxes

  • Clearing checks between banks

  • Lender of last resort

Explicação

Questão 20 de 27

1

If your nominal wage rises faster than the price level then we can say your real wage has _______ and the purchasing power of your income has ________

Selecione uma das seguintes:

  • risen;fallen

  • fallen;fallen

  • risen;risen

  • fallen;risen

Explicação

Questão 21 de 27

1

What is market failure?

Selecione uma das seguintes:

  • It refers to the inability of a market to allocate resources efficiently up to the point where marginal social benefit equals marginal social cost.

  • It refers to the inability of the market to allocate resources efficiently up to the point where marginal social
    benefit equals marginal private cost.

  • It refers to a situation where an entire sector of the economy (for example, the airline industry) collapses
    because of some unforeseen event.

  • It refers to a breakdown in a market economy because of widespread corruption in government.

Explicação

Questão 22 de 27

1

Which of the following is an example of a good/service that is non-excludable and rival in consumption?

Selecione uma das seguintes:

  • Radio Spectrum

  • National Defense

  • Charitable Donations

  • Lighthouse

Explicação

Questão 23 de 27

1

Don't forget the markup in monopoly graphs! (Cover ATC)

Selecione uma das seguintes:

  • Okay

  • What?

Explicação

Questão 24 de 27

1

In a noncompetetive market, if the average cost is higher than the price, the market will

Selecione uma das seguintes:

  • Suffer a loss

  • Break even

  • Make a profit

  • Be forced to exit the market

Explicação

Questão 25 de 27

1

Why does the short run aggregate supply curve shift to the right in the long run, following a decrease in aggregate demand?

Selecione uma das seguintes:

  • Workers and firms adjust their expectations of wages and prices downward and they accept lower wages
    and prices.

  • Workers and firms adjust their expectations of wages and prices upward and they accept lower wages and
    prices.

  • Workers and firms adjust their expectations of wages and prices upward and they push for higher wages
    and prices.

  • Workers and firms adjust their expectations of wages and prices downward and they push for higher
    wages and prices.

Explicação

Questão 26 de 27

1

An increase in government spending growth will cause the Solow growth curve to

Selecione uma das seguintes:

  • shift outward

  • shift inward

  • remain unchanged

  • first shift outward then shift inward

Explicação

Questão 27 de 27

1

Which of the following will not cause aggregate demand to increase?

Selecione uma das seguintes:

  • decreased imports and lower taxes

  • higher government spending and increased exports

  • increased net exports and higher taxes

  • faster money growth rate and increased wealth

Explicação

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