Question 1

Over time,U.S.real GDP has increased:

Accepted Answer

A)  By small,constant increments. 
B)  At a constant geometric rate. 
C)  At an average rate of 3 percent per year. 
D)  At an average rate of 7 percent per year. 
A)  By small,constant increments. 
B)  At a constant geometric rate. 
C)  At an average rate of 3 percent per year. 
D)  At an average rate of 7 percent per year. C

Question 2

The U.S.goal for price stability:

Accepted Answer

A)  Is an inflation rate of 3 to 6 percent. 
B)  Is an inflation rate of zero or less. 
C)  Changes each year based on economic performance. 
D)  Is an inflation rate of fewer than 3 percent. 
A)  Is an inflation rate of 3 to 6 percent. 
B)  Is an inflation rate of zero or less. 
C)  Changes each year based on economic performance. 
D)  Is an inflation rate of fewer than 3 percent. D

Question 3

Nominal GDP is defined as the:

Accepted Answer

A)  Value of output in current dollars. 
B)  Dollar value of services but not goods. 
C)  Output produced by domestically owned factors of production regardless of where the factors are located. 
D)  Value of output in constant prices. 
A)  Value of output in current dollars. 
B)  Dollar value of services but not goods. 
C)  Output produced by domestically owned factors of production regardless of where the factors are located. 
D)  Value of output in constant prices. A

Question 4

If a market basket of goods cost $100 in the base year and $143 in a later year,then average prices have increased by:

Accepted Answer

A)  243 percent. 
B)  143 percent. 
C)  70 percent. 
D)  43 percent. 
A)  243 percent. 
B)  143 percent. 
C)  70 percent. 
D)  43 percent.

Question 5

Table 10.2-Labor force data  
-In Table 10.2,what is the unemployment rate in Year 1?

Accepted Answer

A)  20.0 percent 
B)  41.4 percent 
C)  51.7 percent 
D)  80.0 percent. 
A)  20.0 percent 
B)  41.4 percent 
C)  51.7 percent 
D)  80.0 percent.

Question 6

When a person's nominal income falls in a period of inflation then the person's real income:

Accepted Answer

A)  Definitely falls. 
B)  Definitely rises. 
C)  Depends upon relative price changes. 
D)  Can rise or fall. 
A)  Definitely falls. 
B)  Definitely rises. 
C)  Depends upon relative price changes. 
D)  Can rise or fall.

Question 7

The U.S.stock market and the U.S.bond market are considered by economists to be the most important measures of the economy.

Accepted Answer

A) True 
 B)False

Question 8

The total value of goods and services produced within a nation's borders,measured in constant prices refers to:

Accepted Answer

A)  Nominal GDP. 
B)  Real inflation. 
C)  Per capita GDP. 
D)  Real GDP. 
A)  Nominal GDP. 
B)  Real inflation. 
C)  Per capita GDP. 
D)  Real GDP.

Question 9

Inflation is defined as:

Accepted Answer

A)  The level of prices at full-employment. 
B)  An increase in the price of expensive items,such as cars. 
C)  An increase in the average level of prices. 
D)  An increase in relative prices. 
A)  The level of prices at full-employment. 
B)  An increase in the price of expensive items,such as cars. 
C)  An increase in the average level of prices. 
D)  An increase in relative prices.

Question 10

Business cycles in the United States:

Accepted Answer

A)  Are similar in length but vary greatly in magnitude. 
B)  Vary greatly in length,frequency,and magnitude. 
C)  Are similar in frequency and magnitude. 
D)  Are similar in length and magnitude. 
A)  Are similar in length but vary greatly in magnitude. 
B)  Vary greatly in length,frequency,and magnitude. 
C)  Are similar in frequency and magnitude. 
D)  Are similar in length and magnitude.

Question 11

Which of the following will definitely cause a change in the relative prices of two goods?

Accepted Answer

A)  An increase in the average price of the two goods 
B)  Nominal price changes for the two goods adjusted for inflation 
C)  Different rates of change in the prices of the two goods 
D)  A decrease in the average price of the two goods 
A)  An increase in the average price of the two goods 
B)  Nominal price changes for the two goods adjusted for inflation 
C)  Different rates of change in the prices of the two goods 
D)  A decrease in the average price of the two goods

Question 12

Table 10.2-Labor force data  
-In Table 10.2,what is the unemployment rate in Year 10?

Accepted Answer

A)  84.2 percent 
B)  57.6 percent 
C)  48.5 percent 
D)  15.8 percent. 
A)  84.2 percent 
B)  57.6 percent 
C)  48.5 percent 
D)  15.8 percent.

Question 13

A decline in real GDP for at least two consecutive quarters is referred to as:

Accepted Answer

A)  A recession. 
B)  A depression. 
C)  Deflation. 
D)  Inflation. 
A)  A recession. 
B)  A depression. 
C)  Deflation. 
D)  Inflation.

Question 14

The business cycle is the alternating periods of economic growth and contraction.

Accepted Answer

A) True 
 B)False

Question 15

A decline in an economy's level of output can lead to:

Accepted Answer

A)  A lower standard of living. 
B)  A decrease in unemployment. 
C)  Higher opportunity costs. 
D)  Increased consumer confidence. 
A)  A lower standard of living. 
B)  A decrease in unemployment. 
C)  Higher opportunity costs. 
D)  Increased consumer confidence.

Question 16

Table 10.2-Labor force data  
-In Table 10.2,what is the number of unemployed in Year 1?

Accepted Answer

A)  20 million 
B)  30 million 
C)  140 million 
D)  170 million 
A)  20 million 
B)  30 million 
C)  140 million 
D)  170 million

Question 17

The price of one good compared to the price of other goods refers to:

Accepted Answer

A)  Relative price. 
B)  Inflation. 
C)  Deflation. 
D)  The income effect. 
A)  Relative price. 
B)  Inflation. 
C)  Deflation. 
D)  The income effect.

Question 18

Which of the following is an essential part of the market mechanism?

Accepted Answer

A)  Changing relative prices 
B)  Constant prices 
C)  Falling average prices 
D)  Rising average prices 
A)  Changing relative prices 
B)  Constant prices 
C)  Falling average prices 
D)  Rising average prices

Question 19

The labor force is smaller than the total population because the labor force does not include:

Accepted Answer

A)  People who have jobs. 
B)  The very young and old. 
C)  People looking for a job. 
D)  Teachers. 
A)  People who have jobs. 
B)  The very young and old. 
C)  People looking for a job. 
D)  Teachers.

Question 20

If a market basket of goods cost $100 in the base year and $110 in a later year,then average prices have increased by:

Accepted Answer

A)  110 percent. 
B)  100 percent. 
C)  90 percent. 
D)  10 percent. 
A)  110 percent. 
B)  100 percent. 
C)  90 percent. 
D)  10 percent.

Over time,U.S.real GDP has increased:

The U.S.goal for price stability:

Nominal GDP is defined as the:

If a market basket of goods cost $100 in the base year and $143 in a later year,then average prices have increased by:

Table 10.2-Labor force data -In Table 10.2,what is the unemployment rate in Year 1?

When a person's nominal income falls in a period of inflation then the person's real income:

The U.S.stock market and the U.S.bond market are considered by economists to be the most important measures of the economy.

The total value of goods and services produced within a nation's borders,measured in constant prices refers to:

Inflation is defined as:

Business cycles in the United States:

Which of the following will definitely cause a change in the relative prices of two goods?

Table 10.2-Labor force data -In Table 10.2,what is the unemployment rate in Year 10?

A decline in real GDP for at least two consecutive quarters is referred to as:

The business cycle is the alternating periods of economic growth and contraction.

A decline in an economy's level of output can lead to:

Table 10.2-Labor force data -In Table 10.2,what is the number of unemployed in Year 1?

The price of one good compared to the price of other goods refers to:

Which of the following is an essential part of the market mechanism?

The labor force is smaller than the total population because the labor force does not include:

If a market basket of goods cost $100 in the base year and $110 in a later year,then average prices have increased by:

The Challenge of Economics

The US Economy

Supply and Demand

Consumer Demand

Supply Decisions

Competition

Monopoly

The Labor Market

Government Intervention

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Economic Growth

Theory and Reality

International Trade

Filters

Exam 10: The Business Cycle

Over time,U.S.real GDP has increased:

The U.S.goal for price stability:

Nominal GDP is defined as the:

If a market basket of goods cost $100 in the base year and $143 in a later year,then average prices have increased by:

Table 10.2-Labor force data -In Table 10.2,what is the unemployment rate in Year 1?

When a person's nominal income falls in a period of inflation then the person's real income:

The U.S.stock market and the U.S.bond market are considered by economists to be the most important measures of the economy.

The total value of goods and services produced within a nation's borders,measured in constant prices refers to:

Inflation is defined as:

Business cycles in the United States:

Which of the following will definitely cause a change in the relative prices of two goods?

Table 10.2-Labor force data -In Table 10.2,what is the unemployment rate in Year 10?

A decline in real GDP for at least two consecutive quarters is referred to as:

The business cycle is the alternating periods of economic growth and contraction.

A decline in an economy's level of output can lead to:

Table 10.2-Labor force data -In Table 10.2,what is the number of unemployed in Year 1?

The price of one good compared to the price of other goods refers to:

Which of the following is an essential part of the market mechanism?

The labor force is smaller than the total population because the labor force does not include:

If a market basket of goods cost $100 in the base year and $110 in a later year,then average prices have increased by:

The Challenge of Economics

The US Economy

Supply and Demand

Consumer Demand

Supply Decisions

Competition

Monopoly

The Labor Market

Government Intervention

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Economic Growth

Theory and Reality

International Trade

Filters