Question 1 1 / 1 point
The circular flow diagram of economic activity is a model of the:
- a) flow of goods, services, and payments between households and firms.
- b) role of unions and government in the economy.
- c) interaction among taxes, prices, and profits.
- d) influence of government on business behaviour.
Chapter 1 random definitions
Question 2 1 / 1 point
Which of the following best characterizes the circular flow of income?
- a) Businesses buy resources from the government, and households buy goods and services from businesses.
- b) Households buy factors of production from businesses, and businesses buy goods and services from households.
- c) The government purchases resources from businesses and households and then sells goods and services to businesses and households.
- d) Businesses buy resources from households, and households use their income from the sale of resources to buy goods and services from businesses.
Question 3 1 / 1 point
In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:
- a) producers and input suppliers.
- b) producers and government planning committees.
- c) all consumers.
- d) buyers and sellers.
Question 4 1 / 1 point
If macroeconomics looks at the economy as a whole, it focuses on which of the following?
- a) unemployed people
- b) business firms
- c) households
- d) the division of labor
Chapter 6 Random
Question 5 1 / 1 point
- a) the value of all final goods and services produced by a government.
- b) the sum of all currency and coins in circulation.
- c) the value of all final good and services produced anywhere in the world by a nation’s firms.
- d) the value of all final goods and services produced domestically.
Chapter 6 random easy
Question 6 1 / 1 point
A business cycle reflects changes in economic activity, particularly real GDP. The stages of a business cycle are:
- a) trough, expansion, recession, peak
- b) expansion, trough, recession, peak
- c) expansion, peak, recession, trough
- d) contraction, recession, expansion, boom
Question 7 1 / 1 point
_______________, which can be approximated by the growth of gross domestic product, ultimately determines the prevailing standard of living in a country.
- a) Trade balance
- b) Education
- c) Inflation
- d) Economic growth
Question 8 1 / 1 point
The gap between exports and imports in a nation’s economy is called the ___________.
- a) trade surplus
- b) trade balance
- c) trade inventory
- d) trade deficit
Chapter 6 Problems
Question 9 1 / 1 point
In 1980 Denmark had a GDP of $70 billion (measured in U.S. dollars) and a population of 5.1 million. In 2000, Denmark had a GDP of $160 billion (measured in U.S. dollars) s and a population of 5.3 million. By what percentage did Denmark’s GDP per capita rise between 1980 and 2000?
- a) 219%
- b) 128%
- c) 45.4%
- d) 120%
Chapter 7 Problems
Question 10 1 / 1 point
Country Alpha and Country Beta initially have the same real GDP per capita. Country Alpha experiences no economic growth, while Country Beta grows at a sustained rate of 5 percent. In 14 years, Country Alpha’s GDP will be approximately _________ that of Country Beta.
- a) triple
- b) one-half
- c) one-fourth
- d) double
Chapter 7 Random
Question 11 1 / 1 point
Increased investment alone will guarantee economic growth.
- a) This is a true statement, because growth occurs only with savings.
- b) This is a false statement, because economic growth hinges on the quality and type of investment as well as the human capital and improvements in technology.
- c) This is a true statement, because money is the only resource needed for growth.
- d) This is a false statement, because an economy must rely on capital injections from abroad.
Question 12 1 / 1 point
Which of the following is unlikely to affect the rate of economic growth?
- a) the quantity of available resources
- b) technological change
- c) the level of government spending
- d) the quality of available resources
Question 13 0 / 1 point
A nation’s prosperity is sometimes measured in terms of ___________.
- a) economic output
- b) GDP per capita
- c) GDP
- d) GNP
Chapter 8 Random
Question 14 1 / 1 point
If the unemployment rate is 8 percent, then this means:
- a) 8 percent of the labor force is unemployed.
- b) 8 percent of the population age over sixteen is unemployed.
- c) 8 percent of the population is unemployed.
- d) the number of unemployed persons equals 8 percent of the employed persons.
Question 15 1 / 1 point
A welder who quits his job and moves from Pittsburgh to Madison to try to get a better welding job is said to be:
- a) structurally unemployed.
- b) frictionally unemployed.
- c) cyclically unemployed.
- d) underemployed.
Question 16 1 / 1 point
The type of unemployment that occurs because of a recession is called:
- a) frictional unemployment.
- b) seasonal unemployment.
- c) cyclical unemployment.
- d) the natural rate of unemployment.
Chapter 9 random
Question 17 1 / 1 point
The situation where the buying power of money in terms of goods and services increases is called:
- a) inflation.
- b) deflation.
- c) hyperinflation.
- d) stationary pricing.
Question 18 1 / 1 point
In the 1970s and 1980s, labor unions commonly negotiated wage contracts that had _______________________ which guaranteed that their wages would keep up with inflation.
- a) cost of living adjustments
- b) wage protection clauses
- c) inflation protection plans
- d) inflation ceiling guarantees
Chapter 8 and 9 Problems
Question 19 1 / 1 point
If the price index moves from 107 to 110, the rate of inflation is:
- a) 2.8%
- b) 30%
- c) 3%
- d) 28%
Question 20 0 / 1 point
The unemployment rate in a town in which 65,400 persons are employed and 11,000 are unemployed equals:
- a) 11%.
- b) 16.8%.
- c) 20.2 %.
- d) 14.4%.