C) automatic stabilizers; monetary policy B) the value of the decrease in business inventory stocks. D) simplify some aspect of economic life. Producers are using inventory faster than it can be replaced. B. B) the nominal interest rate minus the inflation rate. Total the statement columns, compute net income (loss), and complete work sheet. D) a decrease in oil prices, The aggregate demand curve will shift to the left ________ the initial decrease in government purchases. C. Production managers are more concerned with satisfying government's orders than with satisfying consumer wants. PetSmart, Inc. is a large specialty pet retailer of services and solutions for the needs of pets. b. A. C) decrease the number of persons in the labor force. B. b. Government agencies. C) 3% The unemployment rate for the United States rose to 5 percent in the last quarter. It indicates that the currency is in continuous demand by the people Oc taffects only the rich and not the poor Od itact as an incentive to boost in supply in the economy 2When the economy is in Keynesian macroeconomic equilibrium, planned investment is greater than actual investment. Which of the following best defines economics? Posted on February 28th, 2023 Last modified on February 28th, 2023 Comments. The Bureau of Economic Analysis calculates a number of different measures of inflation: the GDP Deflator, the Consumer Price Index, the Wholesale Price Index, etc. B) the equilibrium quantity of sailboats increased." 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? A) allocative efficiency iii. Start. A) climate and natural resources. d. Why do some countries grow faster than others? C) the firm has an incentive to increase quantity supplied now and decrease quantity supplied in the future. The data is listed per quarter, and the real GDP data was calculated using 2009 as the base year. Timer Bonus. A. C) a full-time employee at a pizza parlor who makes more than the minimum wage It is an example of the coincidental fallacy B) There will be an increase in the quantity of labor demanded by firms. c. To be an informed citizen If a firm expects that the price of its product will be lower in the future than it is today c. Florida should devote all revenues from its state lottery to improving public education The Government will decrease spending by $20 million and increase taxes by $15 million. In the past two decades the United States lost its comparative advantage in automobiles to Japan. b. C) increasing the money supply and decreasing interest rates. It allows researchers to isolate the effect of one event on another without the influence of outside variables C. Should the government prevent the merger of two large firms? Microeconomics studies individuals and business decisions, while macroeconomics analyzes the decisions made by countries and governments. B. E) the cost of tuition and fees only. A) those that borrow money lose. C. The government should subsidize solar power for homeowners. In addition to selling pet food and pet products, PetSmart also offers dog grooming services including baths, nail trimming, teeth brushing, and aromatherapy to reduce everyday stress, and nail polish and stickers. The New York City Police recommended steps the bank could take to deter robberies, including the installation of plastic barriers called "bandit barriers." View Answer The key. a) A French resident buys a Volkswagen car produced in Wolfsburg, Germany. A tax is imposed on employers and workers that are used to fund Social Security and Medicare. Maximum combinations of goods and services an economy can produce given its available resources and technology. First, the poor tend to hold most of their financial assets in the form of cash rather than in interest-bearing assets. D. People begin to retire at earlier ages. Which one of the following is a macroeconomic issue? C) 1.5% D) the reduction in economic surplus resulting from not being in competitive equilibrium. Question 02. The country is experiencing a serious rise in inflation which the government wants to control through fiscal policy. the person is unable to care for himself or herself, also a. An outward shift of a nation's production possibilities frontier can occur due to C. An increase in national defense is possible only if we produce more butter. &\textbf{Estimated}\hspace{10pt}&&\textbf{Estimated Quantity}\\ This situation will most likely coincide with high unemployment. What goods and services to produce; how will these goods and services be produced; and who receives them? How do you go about weighing the alternatives? B. decisions; household D) an increase in the labor force. What kind of unemployment is Sarah experiencing? C) an increase in unemployment insurance payments A. In the first six months of 2003, branches of Commerce Bank in New York City were robbed 14 times. D. Average combinations of goods and services an economy can produce given its available resources and technology. E) States increase taxes to fund education. This would C) a discouraged worker Explain. A) higher; higher A ________ can change over time or across observations. Changes in the aggregate price level (inflation) B) Chester buys a first-class ticket from Atlanta to London for his long-awaited vacation. Scarcity refers to the situation in which. C) below; surplus C) a decrease in the unemployment rate A) average price levels of goods and services in the economy. The 1994 agreement that eliminated most tariffs among the United States, Canada, and Mexico is known as B. not everyone can have enough goods to survive. C) The quantity of traditional camera film demanded increases. Directions: You are advised to spend the first 10 minutes reading all of the questions and planning your answers. How does a market system prevent people from getting as many goods and services as they wish? The Federal Aviation Administration is considering increasing the number of takeoff and landing slots available at Ronal Reagan Washington National Airport Ch. 1 Microeconomics Homework Flashcards | Quizlet A. unlimited wants exceed limited resources. B. D) the working-age population increased. C) an increase in taxes E. it is easier to book holidays in member countries. Which of the following is a microeconomics question? The level of inflation in the economy. Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy? Micro Economic 100% (3) 6. A) during a deep recession. They always call for opposite outcomes. Which of the following is/are functions of Department of Economic Affairs under Ministry of Finance? B. spending, production and saving. C) Consumer surplus measures the net benefit from participating in a market. D. Jenny's wage rate rose, and in response, she decided to work more hours. C) there has been a downward movement along a demand curve. D) a decrease in the quantity supplied. The doctrine of lassiez faire is based on the belief that Which of the following statements is not true? A) increase; more B) the consumer surplus received from purchasing a given quantity of a product. B) a job retraining program Adam Smith's invisible hand is now called A) the supply curve shifted to the left resulting in an increase in the equilibrium price. How does the increasing use of digital cameras affect the market for traditional camera film? A) Individual income taxes; corporate income taxes Simple economies can be described in terms of three major economic flows. C. A movement from inside the production possibilities curve to a point on the production possibilities curve. Keynesian Economics Questions and Answers - Study.com A) increasing government purchases or decreasing taxes. Classify the following topics as relating to microeconomics or macroeconomics. The use of market prices and sales to signal desired output. there is a current account surplus. Thus we can say that it is that part of economic theory which studies the economy in its totality or as a whole. A) the price of sailboats increased and the demand for sailboats decreased." The importance of the ceteris paribus assumption when using models is that: B) when real GDP is above but close to potential GDP. Every society faces economic tradeoffs. Zero because you knew when you registered for the class that studying would be required. C) ensure safe imports. D) The demand for video game consoles would increase and the equilibrium price of video game consoles would increase. Writing Period 50 minutes . The government should reduce the tax burden to help small business. A. C) $140. B. A) an increase in demand. Macroeconomics MCQ: Multiple Choice Questions C. decreasing opportunity costs as more and more of one good is produced. If your nominal wage rises faster than the price level, we can say your real wage has ________ and the purchasing power of your income has ________ A) Governments interfere with the market mechanism to influence the allocation of goods and services. If the United States decides to convert automobile factories to tank production, as it did during World War II, but finds that some auto manufacturing facilities are not well suited to tank production, then a. A) the free market. Despite the Obama administration's support of the Trans-Pacific Partnership (TPP), the AFL-CIO labor union has argued that the TPP will not B) gross national product of Canada. Next post [UPSC Interview 2022] - Transcript #116 : Gen, Raj Shukla Board, PSIR Optional, Maharashtra Home State . A) There will be an increase in unemployment. c. It considers part-timers as employed, and hence it is understated. A. The price of steel declined by 3% last year. More teenagers enter the labor force. A) buys a new robotic machine (from a plant in Ohio) to assemble cars. C) equity A. supply and demand. If the CPI rose from 82 to 202 between 2007 and 2016, which of the following is true? C) real GDP in 2016 was less than real GDP in the base year. B) structural The two policies may have similar objectives, which are to foster economic development and stability; nevertheless, the ways . Question: Which of the following is an example of a macroeconomic question? B) decrease the measured labor force participation rate. D. The government is allocating resources inefficiently. D-Positive Government failure. C) an increase in the quantity supplied. Which of the following is a normative economic statement? B) a cut in unemployment compensation Economic development \hline\\ Households and firms; the economy as a whole, T/F Resources are limited in both wealthy and poor societies, All of the following are criteria frequently applied in judging economic outcomes except, Economics is best defined as the study of, The most common method for graphing the relationship between two variables is by drawing two __________ lines, where the __________ is a horizontal line and the __________ is a vertical line. D) lawn care services are deliberately charging low prices because they want to discourage people from maintaining their own lawns. A) the firm has an incentive to increase supply now and decrease supply in the future. B) teachers' salaries paid by a local government answer choices. Cadre Management for Indian Economic Services D) do not change; underestimates. B) Individual income taxes; social insurance taxes Quiz 1: Introduction to Macroeconomics Quiz - Quizizz A) create jobs. b. consumers Which of the following is the best example of land? However, with increased productivity, the economy has more available resources which can be used for non-necessary goods, such as leisure and education. D) lower; lower, If real GDP exceeded potential real GDP and inflation was increasing, which of the following would be an appropriate fiscal policy? i. Household income Choose 1 answer: Hors many smartphones should Samsung produce this quarter? B) increased income tax rates. B. C. Production of nonmilitary goods will decrease. A. Combinations of goods and services an economy is actually producing. A) inflation \end{array} Deflation occurs when ____________ D) What determines the salaries of college professors? Answered: Which of the following questions are | bartleby To learn a way of thinking Option a: This option is incorrect because unit of measure is a function of money as money can be used to measure the value of goods and services. Solved Which of the following is an illustration of a | Chegg.com B. You have majored in computer science and, because of the recession, have difficulty in finding a job. B) The demand curve for inkjet printers shifts to the left. a. D. Allocative efficiency. Answer the following questions by selecting the appropriate answer from the list below. Which assumptions do you need to make in order to be correct in considering a binomial distribution for your variable? D) real GDP in 2016 was greater than real GDP in the base year. Combinations of goods and services an economy is actually producing. You borrow $10,000 from a bank for one year at a nominal interest rate of 5%. Every society faces economic trade-offs. Which of the following is an example of a "how much" decision? Electric car enthusiasts want to buy more electric cars at a lower price. D) changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives. E. consumers and producers. Solved which of the following is NOT a macroeconomic | Chegg.com 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? Choose the correct option. (B) important rather than trivial issues. C) shift of the demand curve due to a change in purchasing power brought about by the price change. B) the underground economy. A. e. None of the above. B) The federal government pays the salary of an FBI agent. C) looking for work is your only option. D) The minimum wage in Europe is lower than it is in the United States. The market mechanism. C) Firms in European countries offer employees higher wages and higher benefits than do firms in the United States. E. consumers and firms choosing which goods and services to buy or produce. D) The quantity of inkjet printers demanded decreases, Last month, the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit. = 8.8 - 1.2 F,, + 1.6 FGpp + 6 E (RSP500. C. Levels of production that will cause both unemployment and inflation. Step-by-step explanation. D) GDP falls by $1,875. A. E) 9.5%. Which of the following is an example of spending on goods and services in the circular flow model? D) durable goods; nondurable goods, How are intermediate goods treated in the calculation of GDP? Allocative efficiency best explains ________, and productive efficiency best explains________. Which of the following is a macroeconomics question? a. How many The Federal Reserve lowered interest rates at its last meeting. Preparation and presentation of Budget for state governments under President's Rule 3. If the variables along the x-axis and y-axis move in opposite directions, there is a ________ relationship between the two variables. C. Maximum combinations of goods and services an economy can produce given unlimited resources. Solved Question 21 Which of the following exemplifies a - Chegg Which of the following is not a macroeconomic statement? C) consumer surplus is minimized The economy's capital stock declines. C) a 12-inch Subway sandwich purchased by a student In a market economy, those who are willing and able to buy what is produced. Macroeconomics is a branch of economics that depicts a substantial picture. A) horizontal. C) total spending in 2015 was around $17.3 trillion. B. D) all of the above are true. B. All of the following are benefits of the single market except ? Dear Friends, We are posting prelims marathon MCQs for today. d. Everyone always gets what they want, T/F Macroeconomics deal with the function of individual industries and the behavior of firms and households, All of the following are examples of topics examined in macroeconomics except b. 1) Economic models do all of the following except A) answer economic questions. The following macroeconomic projected return models =. C) the demand for lawn care service has decreased. B) The demand for video game consoles would decrease and the equilibrium price of video game consoles would decrease. 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. Need the goods and services the most. D) the price of sailboats increased. a. B) an increase in the number of manufacturers of electric cars. C. For whom should goods and services be produced? B. Prelims Marathon - Economic Survey - March 1st - 2023 b. If the BLS counted persons that are on active military service in the totals for employment, the labor force, or the working-age population, this would _______________ C) a change in consumer income. A) When will the government better secure the borders? What were the macroeconomic principles or models that influenced your decision making?] is considered___________ to herself or others, and B. The market mechanism may best be defined as Technological progress has made it possible for firms such as Apple and Alivecor to develop small electronic devices, including smartwatches, smartphones, and products that can be attached to the smartwatches and smartphones, to serve consumers who have become more health conscious and wish to monitor various health conditions. A) nondurable goods; durable goods ' Insert your responses to the following: Explain PDF AP Macroeconomics 2018 Free-Response Questions - College Board D. Competition, Consider the following economic agents: A) less difficult than with monetary policy. b. The correct answer is C. Explanation: Macroeconomics tries to know and measure an economy goes, how well it is performing. A. An economic ________ is a simplified version of some aspect of economic life used to analyze an economic issue. B) The Federal Reserve cuts interest rates to stimulate the economy. For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $50,000 for advertising. D. marginal costs C. do have an economic problem but are solving it. Use the following (partial) chart of accountsaccount numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies (124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned Landscaping Revenue (236); D. Tyler, Capital (301); D. Tyler, Withdrawals (302); Landscaping Revenue (403); Wages Expense (601), and Landscaping Expense (696). The difference between microeconomics and macroeconomics is that microeconomics analyzes the decisions made by _________, while macroeconomics deals primarily with _____________. The invisible hand at work. Step-by-step explanation. C) demographics A) stayed roughly the same. A. do not have an economic problem. B) an increase in the unemployment rate Economists reason that the optimal decision is to continue any activity up to the point where the. Cutting taxes _______ C) not change GDP. D. Markets result in an unfair distribution of income. C) NAFTA. The best alt. The market mechanism What goods and services to producehow will these goods and services be produced; and who receives them? D) a contractionary; an expansionary. is a corporation unresponsive to the demands of its customers? D) building an online job database that helps workers find jobs. Compared to their pre-trade positions, trade makes both countries better off because in each country Determine the following steps in preparing a work sheet in their proper order by writing numbers 1-5 in the blank spaces provided. B. B. the possibility of inefficient production. C. Government failure does not exist. Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to understate the true extent of joblessness? C. Congress increased the minimum wage rate in January. B) more than 5 times as much as your grandfather in terms of real income. You earn _________ C) complete a. margin of safety. C) the price of sailboats increased and the quantity of sailboats demanded decreased." c. Falls victim to "post hoc, ergo propter hoc." Which of the following is an example of government failure? B) one's property rights. How has the discovery of oil in the Niger delta affected Nigeria's environment? What determines the growth rate of gross domestic product? Solve homework. d. Congress extends the maximum duration for the collection of unemployment benefits from 26-52 weeks, T/F The collection and use of data to test economic theory is called empirical economics, To analyze the relationship between two variables while holding the values of other variables unchanged is a device known as