Quiz
Practice Econ Test
Crie uma conta grátis para terminar este quiz
Salve seu progresso e veja sua nota final.
Já tem uma conta? Inicie sessão
Perguntas do quiz (27)
1Consider 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- AElizabeth and William
- BFrank and Elizabeth
- CFrank and William
- DAll of them are considered unemployed
- ENone of them are considered unemployed
2Which 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?
- AAllocative efficiency
- BProductive efficiency
- CProfit maximization
- DMarginal efficiency
- EAllocation maximization
3Which one of the following scenarios would be least likely to change one's behavior?
- AThe city of Saskatoon pays everyone a penny for each can they recycle to promote environmental protection
- BTo make people eat healthier, the city of Bakersville tells its resident to eat whole wheat bread instead of white bread.
- CThe country of Ravamock enacts a policy to fine companies 20% of their earnings if the safety standards are not acceptable.
- DA 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.
4Fiscal and monetary policies are less effective when
- Athe a recession is caused by a real shock
- Bthe recession is caused by inflation
- Ca firm has market dominance
- Dthe economic boom is caused by a real shock
5Which of the following describes the process whose ultimate result is illustrated by the multiplier?
- AWhen people spend money, the money ends up in the hands or bank accounts of other people who then use that money in some way
- BWhen people see the government spending more money, they realize that the government thinks prices are low and thus a good time to buy things
- CWhen people see others spending money, they know that the economy is about to improve and so they also spend money
- DThe 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.
6As interest rates ________ , investment ___________.
- Adecreases; decreases
- Bincreases; increases
- Cincreases; stays the same
- Ddecreases; increases
- Estays the same; decreases
7The unemployment rate __________ if the number of discouraged workers increases.
- Adecreases
- Bincreases
- Cstays the same
- DThere is not enough information to determine and answer
8What is not a way to increase the money supply (Expansionary Policy)
- AOpen market purchases
- BLower the discount rate
- COpen market sales
- DLower the reserve requirement
9As the income tax increases, labor force participation _______, and as incentive _______ labor force increases.
- Adecreases; increases
- Bdecreases; decreases
- Cincreases; increases
- Dincreases; decreases
10Which of the following is not a problem with inflation
- AInteracts with other taxes
- BCauses price confusion and money illusion
- CPainful to stop
- DRedistributes wealth
- ECan cause a closed economy
11Maggie 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?
- AMoney illusion
- BWealth redistribution
- CReal GDP growth
- DPrice confusion
- EInteraction with other taxes
12What happens when inflation is higher than the expected inflation rate?
- ANothing happens
- BWealth is redistributed from the lender to the borrower
- CWealth is redistributed from the borrower to the lender
- DBoth the borrower and the lender are benefited.
13John's real returns on his loan to Tim are negative. What should John do?
- ASave the money so someone else can borrow it and therefore increase investment
- BSpend the money because it is gaining value
- CSpend the money because it is losing value
- DDo nothing
14If the Reserve releases $1,000 and the reserve rate is 5%, how much will the money supply change?
- A10,000
- B5,000
- C20,000
- D21,000
- E15,000
15Which is not a way to decrease the money supply (Contractionary Policy)
- AConduct open market sales
- BRaise discount rate
- CLower discount rate
- DRaise Reserve requirement
16What is one problem that arises from bank bailouts?
- ASystematic risk
- BMoral hazard
- CConfidence risk
- DInflation
17What is not a limit to fiscal policy?
- ACrowding Out
- BDrop in the Bucket
- CMatter of Timing
- DReal Shocks
- EAggregate Demand Shocks
18Which is not considered money?
- ACurrency
- BReserves
- CCheckable deposits
- DSavings deposits
- ECredit Cards
19Which of the following is not a major role of the Federal Reserve?
- AControlling the money supply
- BSetting income taxes
- CClearing checks between banks
- DLender of last resort
20If 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 ________
- Arisen;fallen
- Bfallen;fallen
- Crisen;risen
- Dfallen;risen
21What is market failure?
- AIt refers to the inability of a market to allocate resources efficiently up to the point where marginal social benefit equals marginal social cost.
- BIt refers to the inability of the market to allocate resources efficiently up to the point where marginal social
benefit equals marginal private cost. - CIt refers to a situation where an entire sector of the economy (for example, the airline industry) collapses
because of some unforeseen event. - DIt refers to a breakdown in a market economy because of widespread corruption in government.
22Which of the following is an example of a good/service that is non-excludable and rival in consumption?
- ARadio Spectrum
- BNational Defense
- CCharitable Donations
- DLighthouse
23Don't forget the markup in monopoly graphs! (Cover ATC)
- AOkay
- BWhat?
24In a noncompetetive market, if the average cost is higher than the price, the market will
- ASuffer a loss
- BBreak even
- CMake a profit
- DBe forced to exit the market
25Why does the short run aggregate supply curve shift to the right in the long run, following a decrease in aggregate demand?
- AWorkers and firms adjust their expectations of wages and prices downward and they accept lower wages
and prices. - BWorkers and firms adjust their expectations of wages and prices upward and they accept lower wages and
prices. - CWorkers and firms adjust their expectations of wages and prices upward and they push for higher wages
and prices. - DWorkers and firms adjust their expectations of wages and prices downward and they push for higher
wages and prices.
- AWorkers and firms adjust their expectations of wages and prices downward and they accept lower wages
26An increase in government spending growth will cause the Solow growth curve to
- Ashift outward
- Bshift inward
- Cremain unchanged
- Dfirst shift outward then shift inward
27Which of the following will not cause aggregate demand to increase?
- Adecreased imports and lower taxes
- Bhigher government spending and increased exports
- Cincreased net exports and higher taxes
- Dfaster money growth rate and increased wealth
Informações
- Descrição
- Econ 101 Quiz sobre Practice Econ Test, criado por mjheg em 03-05-2013.
- Autor
- mjheg
- Idioma
- English
- Visualizações
- 350
- Etiquetas
- Avaliação
- Ainda sem avaliações Avalie este quiz