Question 1

Environmentalists worry that economic growth imposes costs on society.Among these costs are

Accepted Answer

A)  pollution. 
B)  crowding. 
C)  waste disposal. 
D)  All of the above are costs. 
A)  pollution. 
B)  crowding. 
C)  waste disposal. 
D)  All of the above are costs.

Question 2

The estimate of potential GDP would decrease if

Accepted Answer

A)  the rate of capital depreciation increased. 
B)  the labor force decreased. 
C)  the price level grew. 
D)  All of the above would increase potential GDP. 
A)  the rate of capital depreciation increased. 
B)  the labor force decreased. 
C)  the price level grew. 
D)  All of the above would increase potential GDP.

Question 3

If an economy is experiencing deflation,a decrease in the price level,then the most advantageous actions would be

Accepted Answer

A)  borrowing money at a fixed interest rate and buying a house. 
B)  borrowing money at a fixed interest rate and buying land. 
C)  keeping money in a checking account. 
D)  keeping your wealth in gold and other precious metals. 
A)  borrowing money at a fixed interest rate and buying a house. 
B)  borrowing money at a fixed interest rate and buying land. 
C)  keeping money in a checking account. 
D)  keeping your wealth in gold and other precious metals.

Question 4

Changes in relative prices during inflationary periods usually lead to

Accepted Answer

A)  decreases in real income. 
B)  some people gaining real income. 
C)  increases in the purchasing power of money. 
D)  increases in real income. 
A)  decreases in real income. 
B)  some people gaining real income. 
C)  increases in the purchasing power of money. 
D)  increases in real income.

Question 5

If a borrower arbitrarily gains purchasing power as the result of a particular loan agreement,then

Accepted Answer

A)  actual inflation was greater than expected inflation. 
B)  actual inflation was equal to expected inflation. 
C)  actual inflation was less than expected inflation. 
D)  the real interest rate was greater than the nominal interest rate. 
A)  actual inflation was greater than expected inflation. 
B)  actual inflation was equal to expected inflation. 
C)  actual inflation was less than expected inflation. 
D)  the real interest rate was greater than the nominal interest rate.

Question 6

The principal effect of unemployment insurance on the entire U.S.economy is

Accepted Answer

A)  that it spreads the costs of unemployment. 
B)  that it eliminates the social costs of unemployment. 
C)  that it reduces the social costs of unemployment. 
D)  the reduction in the federal debt. 
A)  that it spreads the costs of unemployment. 
B)  that it eliminates the social costs of unemployment. 
C)  that it reduces the social costs of unemployment. 
D)  the reduction in the federal debt.

Question 7

The unemployment rate for married men is usually higher than the rate for teenagers.

Accepted Answer

A) True 
 B)False

Question 8

Variable inflation rates may be more costly socially than low but predictable rates of inflation.

Accepted Answer

A) True 
 B)False

Question 9

Labor productivity is defined as

Accepted Answer

A)  the amount of output a typical worker turns out in an hour of work. 
B)  the amount of output the best worker turns out in a day of work. 
C)  the amount of output improvement in a year of work. 
D)  the amount of average output improvement for a team in a year of work. 
A)  the amount of output a typical worker turns out in an hour of work. 
B)  the amount of output the best worker turns out in a day of work. 
C)  the amount of output improvement in a year of work. 
D)  the amount of average output improvement for a team in a year of work.

Question 10

As capital goods depreciate,the growth of labor productivity will increase.

Accepted Answer

A) True 
 B)False

Question 11

If the population increase in India is smaller than the increase in Indian real GDP,then GDP per capita will

Accepted Answer

A)  decrease. 
B)  increase. 
C)  remain constant. 
D)  increase more slowly than real GDP. 
A)  decrease. 
B)  increase. 
C)  remain constant. 
D)  increase more slowly than real GDP.

Question 12

Does inflation always cause workers losses due to decreases in real wages? Why or why not?

Accepted Answer

During most inflationary periods,all pri

Question 13

Are there key differences between an increase in the capital stock and an improvement in the level of technology?

Accepted Answer

There is no significant difference to an

Question 14

What is a GDP deflator? Why do some economists consider the GDP deflator to be a better measure of overall inflation than the Consumer Price Index?

Accepted Answer

The price index used to deflate nominal

Question 15

When comparing the costs of inflation to society,it is important to distinguish between

Accepted Answer

A)  low versus high rates of inflation. 
B)  expected versus unexpected inflation. 
C)  high price levels and low price levels. 
D)  real versus nominal inflation. 
A)  low versus high rates of inflation. 
B)  expected versus unexpected inflation. 
C)  high price levels and low price levels. 
D)  real versus nominal inflation.

Question 16

The economic benefits of owning a home are greater when home prices are

Accepted Answer

A)  falling and interest rates are high. 
B)  rising and interest rates are low. 
C)  rising and interest rates are high. 
D)  falling and interest rates are low. 
A)  falling and interest rates are high. 
B)  rising and interest rates are low. 
C)  rising and interest rates are high. 
D)  falling and interest rates are low.

Question 17

High unemployment is socially wasteful.Why?

Accepted Answer

High unemployment is socially wasteful.W

Question 18

In the contemporary United States,labor productivity has been growing at approximately

Accepted Answer

A)  1.5 percent per year 
B)  2.0 percent per year. 
C)  2.6 percent per year. 
D)  3.9 percent per year. 
A)  1.5 percent per year 
B)  2.0 percent per year. 
C)  2.6 percent per year. 
D)  3.9 percent per year.

Question 19

The growth rate of potential GDP is the sum of the growth rates of

Accepted Answer

A)  labor force and population. 
B)  labor force and labor productivity. 
C)  labor force and capital stock. 
D)  labor productivity and capital stock. 
A)  labor force and population. 
B)  labor force and labor productivity. 
C)  labor force and capital stock. 
D)  labor productivity and capital stock.

Question 20

The main cost that low inflation imposes on an economy is that low inflation

Accepted Answer

A)  inevitably leads to high inflation. 
B)  distorts some economic decisions. 
C)  reduces real wages. 
D)  benefits lenders at the expense of borrowers. 
A)  inevitably leads to high inflation. 
B)  distorts some economic decisions. 
C)  reduces real wages. 
D)  benefits lenders at the expense of borrowers.

Environmentalists worry that economic growth imposes costs on society.Among these costs are

The estimate of potential GDP would decrease if

If an economy is experiencing deflation,a decrease in the price level,then the most advantageous actions would be

Changes in relative prices during inflationary periods usually lead to

If a borrower arbitrarily gains purchasing power as the result of a particular loan agreement,then

The principal effect of unemployment insurance on the entire U.S.economy is

The unemployment rate for married men is usually higher than the rate for teenagers.

Variable inflation rates may be more costly socially than low but predictable rates of inflation.

Labor productivity is defined as

As capital goods depreciate,the growth of labor productivity will increase.

If the population increase in India is smaller than the increase in Indian real GDP,then GDP per capita will

Does inflation always cause workers losses due to decreases in real wages? Why or why not?

Are there key differences between an increase in the capital stock and an improvement in the level of technology?

What is a GDP deflator? Why do some economists consider the GDP deflator to be a better measure of overall inflation than the Consumer Price Index?

When comparing the costs of inflation to society,it is important to distinguish between

The economic benefits of owning a home are greater when home prices are

High unemployment is socially wasteful.Why?

In the contemporary United States,labor productivity has been growing at approximately

The growth rate of potential GDP is the sum of the growth rates of

The main cost that low inflation imposes on an economy is that low inflation

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

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Exam 6: The Goals Of Macroeconomic Policy

Environmentalists worry that economic growth imposes costs on society.Among these costs are

The estimate of potential GDP would decrease if

If an economy is experiencing deflation,a decrease in the price level,then the most advantageous actions would be

Changes in relative prices during inflationary periods usually lead to

If a borrower arbitrarily gains purchasing power as the result of a particular loan agreement,then

The principal effect of unemployment insurance on the entire U.S.economy is

The unemployment rate for married men is usually higher than the rate for teenagers.

Variable inflation rates may be more costly socially than low but predictable rates of inflation.

Labor productivity is defined as

As capital goods depreciate,the growth of labor productivity will increase.

If the population increase in India is smaller than the increase in Indian real GDP,then GDP per capita will

Does inflation always cause workers losses due to decreases in real wages? Why or why not?

Are there key differences between an increase in the capital stock and an improvement in the level of technology?

What is a GDP deflator? Why do some economists consider the GDP deflator to be a better measure of overall inflation than the Consumer Price Index?

When comparing the costs of inflation to society,it is important to distinguish between

The economic benefits of owning a home are greater when home prices are

High unemployment is socially wasteful.Why?

In the contemporary United States,labor productivity has been growing at approximately

The growth rate of potential GDP is the sum of the growth rates of

The main cost that low inflation imposes on an economy is that low inflation

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters