Question 1

Inflation tends to redistribute real income from lenders to borrowers.

Accepted Answer

A) True 
 B)False

Question 2

Why do environmentalists worry about faster economic growth? Economists concede that faster growth is not always better.Why?

Accepted Answer

Environmentalists worry that the sheer i

Question 3

Recent research suggests that the federal minimum wage law

Accepted Answer

A)  clearly causes significant unemployment. 
B)  causes unemployment for teenagers. 
C)  causes unemployment for high wage workers. 
D)  may not cause much, if any, unemployment. 
A)  clearly causes significant unemployment. 
B)  causes unemployment for teenagers. 
C)  causes unemployment for high wage workers. 
D)  may not cause much, if any, unemployment.

Question 4

If inflation is expected by both borrowers and lenders,then we would expect

Accepted Answer

A)  real rates to be higher than nominal rates of interest. 
B)  real rates to be equal to nominal rates of interest. 
C)  real rates to be lower than nominal rates of interest. 
D)  nominal rates of interest to be less than the expected inflation rate. 
A)  real rates to be higher than nominal rates of interest. 
B)  real rates to be equal to nominal rates of interest. 
C)  real rates to be lower than nominal rates of interest. 
D)  nominal rates of interest to be less than the expected inflation rate.

Question 5

In the United States,labor productivity is approximately

Accepted Answer

A)  $65 per hour. 
B)  $94 per hour. 
C)  $102 per hour. 
D)  $110 per hour. 
A)  $65 per hour. 
B)  $94 per hour. 
C)  $102 per hour. 
D)  $110 per hour.

Question 6

If an investor had a $100,000 long-term capital gain on a $100,000 investment from 1984 to 2010,her real rate of return was most likely

Accepted Answer

A)  equal to the expected rate of inflation. 
B)  positive. 
C)  very near zero.. 
D)  negative. 
A)  equal to the expected rate of inflation. 
B)  positive. 
C)  very near zero.. 
D)  negative.

Question 7

People who failed to look for a job are classified as

Accepted Answer

A)  unemployed. 
B)  underemployed. 
C)  out of the labor force. 
D)  part time employed. 
A)  unemployed. 
B)  underemployed. 
C)  out of the labor force. 
D)  part time employed.

Question 8

If part of the labor force is unemployed,the foregone goods and services are

Accepted Answer

A)  lost until the unemployed find jobs. 
B)  are replaced by unemployment insurance. 
C)  are lost forever. 
D)  are replaced by an equal amount of imports. 
A)  lost until the unemployed find jobs. 
B)  are replaced by unemployment insurance. 
C)  are lost forever. 
D)  are replaced by an equal amount of imports.

Question 9

When a lender underestimates the rate of inflation,

Accepted Answer

A)  purchasing power is redistributed to the lender. 
B)  purchasing power is redistributed to the borrower. 
C)  the real rate of interest will be higher than expected. 
D)  the nominal interest rate was set too low. 
A)  purchasing power is redistributed to the lender. 
B)  purchasing power is redistributed to the borrower. 
C)  the real rate of interest will be higher than expected. 
D)  the nominal interest rate was set too low.

Question 10

If wages rise by 12 percent at the same time prices rise by 3 percent,then the increase in real wages is equal to

Accepted Answer

A)  12 percent. 
B)  9 percent. 
C)  6 percent. 
D)  3 percent. 
A)  12 percent. 
B)  9 percent. 
C)  6 percent. 
D)  3 percent.

Question 11

When you subtract the expected rate of inflation from the nominal rate of interest,you calculate the

Accepted Answer

A)  real rate of interest. 
B)  real rate of inflation. 
C)  expected rate of interest. 
D)  expected rate of price increases. 
A)  real rate of interest. 
B)  real rate of inflation. 
C)  expected rate of interest. 
D)  expected rate of price increases.

Question 12

After a particular loan has been paid off,neither the borrower nor the lender has lost purchasing power.Therefore,it must be t that actual inflation was

Accepted Answer

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

Question 13

Persons who have given up looking for work are classified as

Accepted Answer

A)  unemployed. 
B)  discouraged workers. 
C)  in the labor force. 
D)  temporarily unemployed. 
A)  unemployed. 
B)  discouraged workers. 
C)  in the labor force. 
D)  temporarily unemployed.

Question 14

Technological change and labor productivity are negatively related.

Accepted Answer

A) True 
 B)False

Question 15

Full employment is defined by all economists as precisely 5 percent of the labor force.

Accepted Answer

A) True 
 B)False

Question 16

An increase in capital stock will shift the production function

Accepted Answer

A)  downward. 
B)  rightward. 
C)  upward. 
D)  outward. 
A)  downward. 
B)  rightward. 
C)  upward. 
D)  outward.

Question 17

An economy can increase its total output of goods and services if it

Accepted Answer

A)  increases the hours of work or output per hour. 
B)  increases the hours of work or decreases output per hour. 
C)  decreases hours of work or decreases output per hour. 
D)  decreases hours of work and decreases output per hour. 
A)  increases the hours of work or output per hour. 
B)  increases the hours of work or decreases output per hour. 
C)  decreases hours of work or decreases output per hour. 
D)  decreases hours of work and decreases output per hour.

Question 18

Which of the following groups would be most optimistic about the effects of economic growth?

Accepted Answer

A)  Environmentalists 
B)  Psychologists 
C)  Economists 
D)  All would be similar in their views 
A)  Environmentalists 
B)  Psychologists 
C)  Economists 
D)  All would be similar in their views

Question 19

The incentive to lend increases as the real rate of interest decreases.

Accepted Answer

A) True 
 B)False

Question 20

How is the unemployment rate calculated? Describe the three principal types of unemployment.

Accepted Answer

The unemployment rate is a percentage ob

Inflation tends to redistribute real income from lenders to borrowers.

Why do environmentalists worry about faster economic growth? Economists concede that faster growth is not always better.Why?

Recent research suggests that the federal minimum wage law

If inflation is expected by both borrowers and lenders,then we would expect

In the United States,labor productivity is approximately

If an investor had a $100,000 long-term capital gain on a $100,000 investment from 1984 to 2010,her real rate of return was most likely

People who failed to look for a job are classified as

If part of the labor force is unemployed,the foregone goods and services are

When a lender underestimates the rate of inflation,

If wages rise by 12 percent at the same time prices rise by 3 percent,then the increase in real wages is equal to

When you subtract the expected rate of inflation from the nominal rate of interest,you calculate the

After a particular loan has been paid off,neither the borrower nor the lender has lost purchasing power.Therefore,it must be t that actual inflation was

Persons who have given up looking for work are classified as

Technological change and labor productivity are negatively related.

Full employment is defined by all economists as precisely 5 percent of the labor force.

An increase in capital stock will shift the production function

An economy can increase its total output of goods and services if it

Which of the following groups would be most optimistic about the effects of economic growth?

The incentive to lend increases as the real rate of interest decreases.

How is the unemployment rate calculated? Describe the three principal types of unemployment.

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

Inflation tends to redistribute real income from lenders to borrowers.

Why do environmentalists worry about faster economic growth? Economists concede that faster growth is not always better.Why?

Recent research suggests that the federal minimum wage law

If inflation is expected by both borrowers and lenders,then we would expect

In the United States,labor productivity is approximately

If an investor had a $100,000 long-term capital gain on a $100,000 investment from 1984 to 2010,her real rate of return was most likely

People who failed to look for a job are classified as

If part of the labor force is unemployed,the foregone goods and services are

When a lender underestimates the rate of inflation,

If wages rise by 12 percent at the same time prices rise by 3 percent,then the increase in real wages is equal to

When you subtract the expected rate of inflation from the nominal rate of interest,you calculate the

After a particular loan has been paid off,neither the borrower nor the lender has lost purchasing power.Therefore,it must be t that actual inflation was

Persons who have given up looking for work are classified as

Technological change and labor productivity are negatively related.

Full employment is defined by all economists as precisely 5 percent of the labor force.

An increase in capital stock will shift the production function

An economy can increase its total output of goods and services if it

Which of the following groups would be most optimistic about the effects of economic growth?

The incentive to lend increases as the real rate of interest decreases.

How is the unemployment rate calculated? Describe the three principal types of unemployment.

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