Question 1

Which of the following statements is true?

Accepted Answer

A) The U.S.economy grew at a higher rate in the 1980s than it did in the 1960s 
B) The Leading Economic Indicators Index is useful for predicting economic recessions,but not economic expansions 
C) The economist most often associated with theories of innovation used to explain business cycles is Milton Friedman 
D) A small reduction in economic growth can have large long-run effects on real GDP 
E) All of the above statements are false 
A) The U.S.economy grew at a higher rate in the 1980s than it did in the 1960s 
B) The Leading Economic Indicators Index is useful for predicting economic recessions,but not economic expansions 
C) The economist most often associated with theories of innovation used to explain business cycles is Milton Friedman 
D) A small reduction in economic growth can have large long-run effects on real GDP 
E) All of the above statements are false

Question 2

Which of the following contributed to the inflation-free economic expansion of the 1990s and early 2000s?

Accepted Answer

A) Fed policies to raise interest rates 
B) An increase in aggregate supply 
C) Improvements in productivity 
D) Improvements in technology 
E) All of the above 
A) Fed policies to raise interest rates 
B) An increase in aggregate supply 
C) Improvements in productivity 
D) Improvements in technology 
E) All of the above

Question 3

Currently,the population of the U.S.is growing at a faster rate than real GDP is growing.

Accepted Answer

A) True 
 B)False

Question 4

The Following Questions Refer to the graph below.  
-An increase in productivity is consistent with which of the following movements?

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 5

In an economy,10 workers can produce 500 units of output and 20 workers produce 800 units of output.Which of the following is true? The average product with

Accepted Answer

A) 10 workers is 500 
B) 10 workers is 5 
C) 20 workers is 800 
D) 20 workers is 300 
E) 20 workers is 40. 
A) 10 workers is 500 
B) 10 workers is 5 
C) 20 workers is 800 
D) 20 workers is 300 
E) 20 workers is 40.

Question 6

Which famous economist is associated with the Sunspot Theory of business cycles?

Accepted Answer

A) Joseph Schumpeter 
B) Milton Friedman 
C) William Stanley Jevons 
D) John Maynard Keynes 
E) Charles Alan Register 
A) Joseph Schumpeter 
B) Milton Friedman 
C) William Stanley Jevons 
D) John Maynard Keynes 
E) Charles Alan Register

Question 7

Saving in an economy is important for economic growth because

Accepted Answer

A) If households don't save,they cannot consume in the future 
B) Without saving,aggregate demand increases 
C) One person's saving is another person's consumption 
D) It is the source of funds for investment 
E) Of none of the above; saving is not important for economic growth 
A) If households don't save,they cannot consume in the future 
B) Without saving,aggregate demand increases 
C) One person's saving is another person's consumption 
D) It is the source of funds for investment 
E) Of none of the above; saving is not important for economic growth

Question 8

Which of the following statements is true about economic growth?

Accepted Answer

A) Economic growth is a short-run process 
B) Growth of an economy is generally a smooth process that occurs over time 
C) Economic growth is a long-run process resulting from the compounding of many events 
D) To measure economic growth,economists analyze changes in the national debt 
E) The U.S.economy has never experienced a year of negative economic growth 
A) Economic growth is a short-run process 
B) Growth of an economy is generally a smooth process that occurs over time 
C) Economic growth is a long-run process resulting from the compounding of many events 
D) To measure economic growth,economists analyze changes in the national debt 
E) The U.S.economy has never experienced a year of negative economic growth

Question 9

Which of the following factors was NOT one of the reasons why a recession started in 2008?

Accepted Answer

A) The collapse of a speculative bubble in the real estate market 
B) A spike in interest rates 
C) A significant rise in the world price of oil 
D) A series of financial fraud schemes in the financial industry 
E) All of the above 
A) The collapse of a speculative bubble in the real estate market 
B) A spike in interest rates 
C) A significant rise in the world price of oil 
D) A series of financial fraud schemes in the financial industry 
E) All of the above

Question 10

The U.S.labor force has not grown substantially during the past four decades.

Accepted Answer

A) True 
 B)False

Question 11

Expectations about the future influence the economic decisions that people make today.

Accepted Answer

A) True 
 B)False

Question 12

Technology refers to the means and methods of production.

Accepted Answer

A) True 
 B)False

Question 13

A decline in the level of economic activity occurs during 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

Question 14

The Following Questions Refer to the graph below.  
-The straight line on the graph represents

Accepted Answer

A) An economic expansion 
B) An economic contraction 
C) A business cycle 
D) A long-run growth trend 
E) A boom period 
A) An economic expansion 
B) An economic contraction 
C) A business cycle 
D) A long-run growth trend 
E) A boom period

Question 15

Countries A and B start out with real GDP equal to $1,000.If country A grows at a rate of 5% while country B grows at a rate of 10%,what is country B's level of real GDP after 3 years?

Accepted Answer

A) $1,000 
B) $1,100 
C) $1,210 
D) $1,300 
E) $1,331 
A) $1,000 
B) $1,100 
C) $1,210 
D) $1,300 
E) $1,331

Question 16

Countries A and B start out with real GDP equal to $1,000.If country A grows at a rate of 5% while country B grows at a rate of 10%,what is country A's level of real GDP after 3 years?

Accepted Answer

A) $1,000 
B) $1,050 
C) $1,158 
D) $1,500 
E) $2,500 
A) $1,000 
B) $1,050 
C) $1,158 
D) $1,500 
E) $2,500

Question 17

The average level of educational attainment in the U.S.has been gradually declining since the mid-1970s.

Accepted Answer

A) True 
 B)False

Question 18

The term investment is used to describe the purchase of consumer goods by households in the economy.

Accepted Answer

A) True 
 B)False

Question 19

What are the two primary determinants of economic growth?

Accepted Answer

A) The availability of resources and productivity factors 
B) Technology and money 
C) The quantity of capital and the quantity of money 
D) The ability to trade and the size of the labor force 
E) Comparative advantage and the law of diminishing returns 
A) The availability of resources and productivity factors 
B) Technology and money 
C) The quantity of capital and the quantity of money 
D) The ability to trade and the size of the labor force 
E) Comparative advantage and the law of diminishing returns

Question 20

In response to an economic recession,monetary theories of the business cycle predict that the Federal Reserve would

Accepted Answer

A) Increase the supply of money to create an expansion 
B) Reduce the supply of money to create an expansion 
C) Raise interest rates to increase real economic growth 
D) Increase the demand for money to bring about economic growth 
E) Lower taxes to avoid a full depression 
A) Increase the supply of money to create an expansion 
B) Reduce the supply of money to create an expansion 
C) Raise interest rates to increase real economic growth 
D) Increase the demand for money to bring about economic growth 
E) Lower taxes to avoid a full depression

Which of the following statements is true?

Which of the following contributed to the inflation-free economic expansion of the 1990s and early 2000s?

Currently,the population of the U.S.is growing at a faster rate than real GDP is growing.

The Following Questions Refer to the graph below. -An increase in productivity is consistent with which of the following movements?

In an economy,10 workers can produce 500 units of output and 20 workers produce 800 units of output.Which of the following is true? The average product with

Which famous economist is associated with the Sunspot Theory of business cycles?

Saving in an economy is important for economic growth because

Which of the following statements is true about economic growth?

Which of the following factors was NOT one of the reasons why a recession started in 2008?

The U.S.labor force has not grown substantially during the past four decades.

Expectations about the future influence the economic decisions that people make today.

Technology refers to the means and methods of production.

A decline in the level of economic activity occurs during which phase of the business cycle?

The Following Questions Refer to the graph below. -The straight line on the graph represents

Countries A and B start out with real GDP equal to $1,000.If country A grows at a rate of 5% while country B grows at a rate of 10%,what is country B's level of real GDP after 3 years?

Countries A and B start out with real GDP equal to $1,000.If country A grows at a rate of 5% while country B grows at a rate of 10%,what is country A's level of real GDP after 3 years?

The average level of educational attainment in the U.S.has been gradually declining since the mid-1970s.

The term investment is used to describe the purchase of consumer goods by households in the economy.

What are the two primary determinants of economic growth?

In response to an economic recession,monetary theories of the business cycle predict that the Federal Reserve would

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

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

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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

Which of the following statements is true?

Which of the following contributed to the inflation-free economic expansion of the 1990s and early 2000s?

Currently,the population of the U.S.is growing at a faster rate than real GDP is growing.

The Following Questions Refer to the graph below. -An increase in productivity is consistent with which of the following movements?

In an economy,10 workers can produce 500 units of output and 20 workers produce 800 units of output.Which of the following is true? The average product with

Which famous economist is associated with the Sunspot Theory of business cycles?

Saving in an economy is important for economic growth because

Which of the following statements is true about economic growth?

Which of the following factors was NOT one of the reasons why a recession started in 2008?

The U.S.labor force has not grown substantially during the past four decades.

Expectations about the future influence the economic decisions that people make today.

Technology refers to the means and methods of production.

A decline in the level of economic activity occurs during which phase of the business cycle?

The Following Questions Refer to the graph below. -The straight line on the graph represents

Countries A and B start out with real GDP equal to $1,000.If country A grows at a rate of 5% while country B grows at a rate of 10%,what is country B's level of real GDP after 3 years?

Countries A and B start out with real GDP equal to $1,000.If country A grows at a rate of 5% while country B grows at a rate of 10%,what is country A's level of real GDP after 3 years?

The average level of educational attainment in the U.S.has been gradually declining since the mid-1970s.

The term investment is used to describe the purchase of consumer goods by households in the economy.

What are the two primary determinants of economic growth?

In response to an economic recession,monetary theories of the business cycle predict that the Federal Reserve would

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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