Question 1

What term is used to describe an erratic short-run fluctuation in economic activity around the long-run trend?

Accepted Answer

A) Economic depression 
B) Economic boom 
C) Business cycle 
D) Recession 
E) Diminishing returns 
A) Economic depression 
B) Economic boom 
C) Business cycle 
D) Recession 
E) Diminishing returns C

Question 2

When economic output hits a short-run economic low,the economy is in which phase of the business cycle?

Accepted Answer

A) Expansion 
B) Peak 
C) Contraction 
D) Trough 
E) Depression 
A) Expansion 
B) Peak 
C) Contraction 
D) Trough 
E) Depression D

Question 3

Which of the following focuses primarily on aggregate supply variables?

Accepted Answer

A) Theory of expectations 
B) Exogenous theories 
C) Monetary theories 
D) Real business cycle theories 
E) Jevons' sunspot theory 
A) Theory of expectations 
B) Exogenous theories 
C) Monetary theories 
D) Real business cycle theories 
E) Jevons' sunspot theory D

Question 4

An erratic short-run fluctuation in economic activity around the long-run trend is called a business cyclE.

Accepted Answer

A) True 
 B)False

Question 5

The primary determinants of economic growth include the availability of resources and productivity factors.

Accepted Answer

A) True 
 B)False

Question 6

The Following Questions Refer to the graph below.  
-An increase in labor resources will cause which of the following shifts on the graph?

Accepted Answer

A) BF to AG 
B) AG to BF 
C) D to C 
D) C to D 
E) D to E 
A) BF to AG 
B) AG to BF 
C) D to C 
D) C to D 
E) D to E

Question 7

On average,the U.S.economy has grown about 3.12% annually since 1960.

Accepted Answer

A) True 
 B)False

Question 8

The components of the Index of Leading Economic Indicators tend to change prior to changes in the economy as a wholE.

Accepted Answer

A) True 
 B)False

Question 9

Given modern data collection techniques,it is very easy to identify when the economy is about to move into the next phase of a business cyclE.

Accepted Answer

A) True 
 B)False

Question 10

The U.S.economy grew at a faster rate in the 1980s relative to the 1960s.

Accepted Answer

A) True 
 B)False

Question 11

Which set of theories can be used to explain all business cycles?

Accepted Answer

A) Exogenous theories 
B) Theories of innovation 
C) Inventory theories 
D) Monetary theories 
E) None of the abovE.No one theory can explain every business cycle 
A) Exogenous theories 
B) Theories of innovation 
C) Inventory theories 
D) Monetary theories 
E) None of the abovE.No one theory can explain every business cycle

Question 12

In economics,the past is a very poor predictor of the futurE.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is cited as contributing to the recent slowdown in economic growth?

Accepted Answer

A) Slower rates of technological advancement 
B) Changes in composition of the labor force 
C) Low rates of saving and investment 
D) Government regulation and public debt 
E) All of the above 
A) Slower rates of technological advancement 
B) Changes in composition of the labor force 
C) Low rates of saving and investment 
D) Government regulation and public debt 
E) All of the above

Question 14

"Crowding out" occurs when government borrowing to finance its debt diverts funds away from the private sector.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following economists is associated with the business cycle theory of innovations?

Accepted Answer

A) John Maynard Keynes 
B) William Stanley Jones 
C) Joseph Schumpeter 
D) Ansel Sharp 
E) Adam Smith 
A) John Maynard Keynes 
B) William Stanley Jones 
C) Joseph Schumpeter 
D) Ansel Sharp 
E) Adam Smith

Question 16

Jevons' sunspot theory of the business cycle is widely used by economists today to forecast future levels of economic activity.

Accepted Answer

A) True 
 B)False

Question 17

Capital accumulation in an economy is dependent upon savers to provide funds for investors.

Accepted Answer

A) True 
 B)False

Question 18

The rate of economic growth affects everyone living in an economy.

Accepted Answer

A) True 
 B)False

Question 19

The U.S.economy has never experienced a year of negative economic growth.

Accepted Answer

A) True 
 B)False

Question 20

Why is economic growth an important economic and social issue?

Accepted Answer

A) Economic growth leads to improvements in our standard of living 
B) Lower levels of unemployment and poverty can be achieved through economic growth 
C) A growing economy provides consumers with more choices and opportunities 
D) All of the above 
E) Economic growth is not an important economic issue 
A) Economic growth leads to improvements in our standard of living 
B) Lower levels of unemployment and poverty can be achieved through economic growth 
C) A growing economy provides consumers with more choices and opportunities 
D) All of the above 
E) Economic growth is not an important economic issue

What term is used to describe an erratic short-run fluctuation in economic activity around the long-run trend?

When economic output hits a short-run economic low,the economy is in which phase of the business cycle?

Which of the following focuses primarily on aggregate supply variables?

An erratic short-run fluctuation in economic activity around the long-run trend is called a business cyclE.

The primary determinants of economic growth include the availability of resources and productivity factors.

The Following Questions Refer to the graph below. -An increase in labor resources will cause which of the following shifts on the graph?

On average,the U.S.economy has grown about 3.12% annually since 1960.

The components of the Index of Leading Economic Indicators tend to change prior to changes in the economy as a wholE.

Given modern data collection techniques,it is very easy to identify when the economy is about to move into the next phase of a business cyclE.

The U.S.economy grew at a faster rate in the 1980s relative to the 1960s.

Which set of theories can be used to explain all business cycles?

In economics,the past is a very poor predictor of the futurE.

Which of the following is cited as contributing to the recent slowdown in economic growth?

"Crowding out" occurs when government borrowing to finance its debt diverts funds away from the private sector.

Which of the following economists is associated with the business cycle theory of innovations?

Jevons' sunspot theory of the business cycle is widely used by economists today to forecast future levels of economic activity.

Capital accumulation in an economy is dependent upon savers to provide funds for investors.

The rate of economic growth affects everyone living in an economy.

The U.S.economy has never experienced a year of negative economic growth.

Why is economic growth an important economic and social issue?

Alleviating Human Misery: The Role of Economic Reasoning

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Pollution Problems: Must We Foul Our Own Nests

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

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Exam 11: Economic Growth: Why Is the Economic Road so Bumpy

What term is used to describe an erratic short-run fluctuation in economic activity around the long-run trend?

When economic output hits a short-run economic low,the economy is in which phase of the business cycle?

Which of the following focuses primarily on aggregate supply variables?

An erratic short-run fluctuation in economic activity around the long-run trend is called a business cyclE.

The primary determinants of economic growth include the availability of resources and productivity factors.

The Following Questions Refer to the graph below. -An increase in labor resources will cause which of the following shifts on the graph?

On average,the U.S.economy has grown about 3.12% annually since 1960.

The components of the Index of Leading Economic Indicators tend to change prior to changes in the economy as a wholE.

Given modern data collection techniques,it is very easy to identify when the economy is about to move into the next phase of a business cyclE.

The U.S.economy grew at a faster rate in the 1980s relative to the 1960s.

Which set of theories can be used to explain all business cycles?

In economics,the past is a very poor predictor of the futurE.

Which of the following is cited as contributing to the recent slowdown in economic growth?

"Crowding out" occurs when government borrowing to finance its debt diverts funds away from the private sector.

Which of the following economists is associated with the business cycle theory of innovations?

Jevons' sunspot theory of the business cycle is widely used by economists today to forecast future levels of economic activity.

Capital accumulation in an economy is dependent upon savers to provide funds for investors.

The rate of economic growth affects everyone living in an economy.

The U.S.economy has never experienced a year of negative economic growth.

Why is economic growth an important economic and social issue?

Alleviating Human Misery: The Role of Economic Reasoning

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Pollution Problems: Must We Foul Our Own Nests

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

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