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- 1. Multiple ChoiceThe Federal Reserve System is concerned that the US economy might on the verge of a deflationary period much like the one suffered by Japan. Which of the following actions might the Fed take together will both increase the money supplyOpen-Market sales, decreasing the discount rateIncreasing the reserve requirement, decreasing the discount rateOpen-Market purchases, increase the reserve requirementOpen-Market purchases, decreasing the reserve requirement
- 2. Multiple ChoiceMacroeconomics is focused mainly on:government and its commerce lawscorporations production levelsnational resource allocationindividuals and their resource value
- 3. Multiple ChoiceThe IRS lays off thousands of employees every year after April 15 (The deadline for citizens to file tax returns). This is an exampleSeasonal unemploymentCyclical UnemploymentFrictional UnemploymentStructural Unemployment
- 4. Multiple ChoiceWhat can one assume from the following headlines?"The President and Congress cannot agree on a tax plan and/or budgetThe President favors higher taxes, but Congress opposes themCongress and the President agree on defense spendingCongress and the President cannot agree on interest rates
- 5. Multiple ChoiceIf the government of Sri Lanka spends 13 million more this year than it receives in revenue, which of the following statements can be made with certainty?Sri Lanka's revenue will growSri Lanka will experience a budget deficitSri Lanka will experience a trade deficitSri Lanka will experience a trade surplus
- 6. Multiple ChoiceCongress approves a budget that allocates how much money will be spent on defense education, social programs, and so on. Their plan also calls for an increase in taxes to help pay for all the expenses. What does plan define?The governments Monetary PolicyThe governments Fiscal policyThe governments RevenueThe governments reserve requirement
- 7. Multiple ChoiceThe Consumer Price Index (CPI) is an indicator of which of the following:The size of an economyThe velocity of moneyThe level of inflation or deflationThe presence of a budget deficit or surplus
- 8. Multiple ChoiceWhich of the following is one of the tasks conducted buy the Federal Reserve System?Executing fiscal policyPrinting MoneySetting the Federal government's budgetMaking loans to commercial banks
- 9. Multiple ChoiceGDP, CPI, the unemployment rate, and the national debt are allSigns the economy is peakingSigns the economy is in contractionEconomic indicators used to determine the state and direction of the economyThe result of economic expanaion
- 10. Multiple ChoiceDue to inflation, the Federal Reserve decides to decrease the money supply. Which one of the following will the Federal Reserve Most LIKELY do?Lower the Discount RateImplement an "Easy Money" PolicyBuy BondsRaise the reserve requirements for banks
- 11. Multiple ChoiceSaying the next exports are positive is the same as saying thatThere is current account surplusThere is a capital account surplusThere is a current account defcitThe same weight of goods has been imported as we exported
- 12. Multiple ChoiceA pair of shoes that costs $80.00 last month costs $100 this month. Which of the following BEST describes this economic condition.InflationRecessionStagflationCompetition
- 13. Multiple ChoiceThe way the government chooses to control the money supply is calledMonetary PolicyOpen-Market OperationReserve requirement and discount rateFiscal Policy
- 14. Multiple ChoiceThe way the government conducts spending and taxation is calledMonetary PolicyEconomic PolicyFree-enterprise policyFiscal Policy
- 15. Multiple ChoiceWhich of the following might be a sign of an economic trough?Low unemploymentHIgh GDPRecessionStable CPI
- 16. Multiple ChoiceWhich of the following products is Most Likely to have the lowest level of price elasticity?The latest model of well know sports carThe successful new cancer medicationSoybeansChocolate chip cookies
- 17. Multiple ChoiceIn a typical business cycle, what stage immediately follows a peak?contractionexpansiontroughgrowth
- 18. Multiple ChoiceAn economy that experiences decreasing real GDP and increasing prices is said to suffer froma recession.a depression.a business cycle.stagflation.
- 19. Multiple ChoiceWhat would cause AD to decrease?an increase in taxesa decrease taxesan increase in government spendingkeeping government spending constant
- 20. Multiple ChoiceWhat term best describes the total demand for final goods and services at a range of price levels during a stated period of time?Aggregate SupplyTotal SupplyTotal DemandAggregate Demand
- 21. Multiple ChoiceWhich of the following is not a determinant of aggregate demand ?Change in Consumer SpendingChange in Political PartiesChange in Government SpendingChange in investment Spending
- 22. Multiple ChoiceWhat will generally happen to the aggregate demand curve when consumer confidence is too low?Curve shifts leftNo change in curveCurve slopes upcurve shifts right
- 23. Multiple ChoiceThe economy's long-run aggregate supply curveslopes upward and to the right.is vertical.is horizontal.slopes downward and to the right.
- 24. Multiple ChoiceThere are 4.5 million people under 16 years of age in a country with a population of 16 million people, 9.5 million are employed. What is the unemployment rate?16.873%17.3913%18.653%none of the above
- 25. Multiple ChoiceWhat is used to measure standard of living?GDP per capitaNominal GDPConsumer Price IndexMarket Basket Base Year
- 26. Multiple ChoiceExpectant parents buy supplies for the nursery. Would this be included in GDP?Yes - Consumer SpendingYes - InvestmentNo - Intermediate goodsNo - Non-market activity
- 27. Multiple ChoiceIn the following equation, what does M represent?
GDP= C+I+G+(X-M)moneyconsumer spendingimportsexports - 28. Multiple ChoiceIf Real GDP is $300 million and the population is 10 million, what is the Real GDP per capita?$3,000$300$30$5
- 29. Multiple ChoiceWhen a company buys new computers for their business, what part of the GDP equation does this count as?ConsumptionInvestmentsImportsExports
- 30. Multiple ChoiceThe Unemployment rate is calculated as the number ofunemployed persons divided by number of employed personspersons in the labour force divided by the number of unemployedunemployed persons divided by the size of the labour forceemployed persons divided by number of unemployed persons
- 31. Multiple ChoiceJeff was replaced by a computer. He is experiencing what type of unemployment?CyclicalStructuralSeasonalFrictional
- 32. Multiple ChoiceWho is most likely to be hurt by inflation?someone who borrowed moneya retiree on a fixed incomea business ownerthe U.S. government
- 33. Multiple ChoiceThere are 4 types of unemployment. Which type of employment is clinical unemployment?–refers to the unemployment that results from the time that it takes to match workers with jobs. In other words, it takes time for workers to search for the jobs that are best suit their tastes and skills.the unemployment that results because of changes in technology or changes in the location of jobs.the unemployment that results due to seasonal shifts in labor demand and labor supplythe year-to-year fluctuations in unemployment around its natural rate. That is, it is unemployment that fluctuates with the business cycle. It increases during recession, and falls during expansions
- 34. Multiple ChoiceThere are 4 types of unemployment. Which type of employment is structural unemployment?–refers to the unemployment that results from the time that it takes to match workers with jobs. In other words, it takes time for workers to search for the jobs that are best suit their tastes and skills.the unemployment that results because of changes in technology or changes in the location of jobs.the unemployment that results due to seasonal shifts in labor demand and labor supplythe year-to-year fluctuations in unemployment around its natural rate. That is, it is unemployment that fluctuates with the business cycle. It increases during recession, and falls during expansions
- 35. Multiple ChoiceThere are 4 types of unemployment. Which type of employment is frictional unemployment?–refers to the unemployment that results from the time that it takes to match workers with jobs. In other words, it takes time for workers to search for the jobs that are best suit their tastes and skills.the unemployment that results because of changes in technology or changes in the location of jobs.the unemployment that results due to seasonal shifts in labor demand and labor supplythe year-to-year fluctuations in unemployment around its natural rate. That is, it is unemployment that fluctuates with the business cycle. It increases during recession, and falls during expansions
- 36. Multiple ChoiceAll of the following are points on the business cycle EXCEPTPeaksTroughsExpansionGDP
- 37. Multiple ChoiceThe business cycle describes the fact thatunemployment levels are constantly changingan economy's level of output fluctuates between times of recession and expansion.inflation rates are constantly changing.politicians usually pass laws that cause the economy to react in unpredictable ways.
- 38. Multiple ChoiceGDP is an important economic measurement because itprovides valuable data on unemployment ratesmeasures the combined total of all intermediate and final goods produced.measures all new final goods and services produced by a country.includes all economic activity, including financial transactions and purchases of used goods
- 39. Multiple Choice
Assume that the economy is at full-employment equilibrium in the diagram shown. Which of the following would lead to stagflation?A leftward shift of the short-run aggregate supply curve onlyA rightward shift of the short-run aggregate supply curve onlyA leftward shift of the short-run aggregate demand curve onlyA rightward shift of the short-run aggregate demand curve only - 40. Multiple ChoiceThe Lowest point in the business cyclePeakTroughExpansionContraction
- 41. Multiple ChoiceThe HIGHEST Point in business cyclePeakTroughContractionRecession
- 42. Multiple ChoiceWhich phase of the Business Cycle includes the economy slowing down?ProsperityRecessionDepressionRecovery
- 43. Multiple ChoiceThis group of people suffer when inflation occurs:SaversPeople who can increase their incomesBorrowersGovernment
- 44. Multiple Choice"The Fed" refers to the....Federal Bureau of InvestigationFederal GovernmentFederal Reserve SystemFederal Income Tax
- 45. Multiple Choice
what is the purpose of Monetary Policy?
contribute to economic growth and stability
keep rich people from getting too rich
Functions like Fiscal Policy
give Congress and the political parties more control of the economy
- 46. Multiple Choice
The goals of monetary policy do NOT include the promotion of _____
Moderate long-term interest rates
Stable prices
Maximum employment
High government spending.
- 47. Multiple ChoiceWhich of the following would the FED us to increase the money supply?raise the discount rateraise the required reservesbuy bonds/securitiesprint more money
- 48. Multiple Choice
"The Fed" refers to the....
Federal Bureau of Investigation
Federal Government
Federal Reserve System/Bank
Federal Income Tax
- 49. Multiple ChoiceThe federal government is attempting to encourage spending by consume rs and businesses, a fiscal policy BEST serving this purpose would bedecreasing taxesdecreasing government spendingreducing the investment tax creditbalancing the budget
- 50. Multiple ChoiceIn a recession, the Fed would likelyIncrease the supply of money in the economyDecrease the supply of the money in the economy
- 51. Multiple Choice
Which answer below is something that the FED does NOT do? Remember, the FED has three main fiscal tools to impact money supply.
buy/sell bonds
increase/decrease discount rate
increase/decrease income tax rates
increase/decrease reserve requirement
- 52. Multiple ChoiceThe Federal Reserve System is concerned that the US economy might on the verge of a deflationary period much like the one suffered by Japan. Which of the following actions might the Fed take together will both increase the money supplyOpen-Market sales, decreasing the discount rateIncreasing the reserve requirement, decreasing the discount rateOpen-Market purchases, increase the reserve requirementOpen-Market purchases, decreasing the reserve requirement
- 53. Multiple ChoiceThe IRS lays off thousands of employees every year after April 15 (The deadline for citizens to file tax returns). This is an exampleSeasonal unemploymentCyclical UnemploymentFrictional UnemploymentStructural Unemployment
- 54. Multiple ChoiceWhat is Dr. Seuss's real name?Scott SeussMark Anthony SeussTheodor Seuss GeiselJeremy Seuss Johnson
- 55. Multiple ChoiceWhat was one of the first things he would draw?AirplanesScarecrowsKnights and CastlesNasty Bugs
- 56. Multiple ChoiceWhy did Dr. Seuss have to stop writing books for a little bit?His mother was sickHad to help in the warHis dog Lucky diedHe didn't have enough money
- 57. Multiple ChoiceWhat was the name of Dr. Seuss's wife?Becky PalmerHelen PalmerAmy PalmerSusan Palmer
- 58. Multiple ChoiceWhat year did Dr. Seuss die?1993198919911996
- 59. Multiple ChoiceWhat year did Dr. Seuss win the Pulitzer Prize?1984196919941976
- 60. Multiple ChoiceHow many Academy Awards did Dr. Seuss win?FiveSevenSixThree
- 61. Multiple ChoiceWhat year was Dr. Suess born?1899190419401999
- 62. Multiple ChoiceWhat does the CAT IN THE HAT eat in the bathtub?cakefishsoapshampoo
- 63. Multiple ChoiceWhat color is The Lorax?purplebrownyellowgreen
- 64. Multiple ChoiceWhat is the site of the Christmas heist by the Grinch?WhatvilleWhoville
- 65. Multiple ChoiceHow many different words did Dr. Suess use to write GREEN EGGS AND HAM?48495051
- 66. Multiple Choice
I do not like them here or there. I do not like them _________.
anywhere
house
sheep
three
- 67. Open Ended
Dr. Suess drew this political cartoon in 1941, before America entered the war. How do you think Dr. Suess felt about Adolf Hitler and America not entering the war ?
- Answer choicesTagsAnswer choicesTags