C) above the market wage, causing labor demand to be greater than labor supply. b. Caveat emptor C) A state government cuts taxes to help the economy of the state. B) an increase in quantity demanded. The president has proposed increasing the marginal tax rate for people whose annual earnings exceed $275,000 and lowering the marginal tax rate for those who earn less than $275,000 A. producing more of one good means less of another good can be produced. He faces scarcity because his resources are unlimited A. During a business cycle expansion, total production ________ and total employment ________. Simple economies can be described in terms of three major economic flows. C) any level of the two products that the economy produces is currently possible. If the United States decides to convert automobile factories to tank production, as it did during World War II, but finds that some auto manufacturing facilities are not well suited to tank production, then B) the number of lawn care service companies has increased. Which of the following would increase the unemployment rate? B) increase in demand; increase in quantity demanded Total the statement columns, compute net income (loss), and complete work sheet. Which of the following is a problem inherent in centrally planned economies? C. Maximum combinations of goods and services an economy can produce given unlimited resources. B. d. The cost of the food that you consume while attending college, T/F The price is increasing as quantity increases, the slope of the line representing different prices and their corresponding quantities will be positive, The study of economics This would c. Labor economics D) the unemployment rate consists of only frictional and structural unemployment. Microeconomics is the study of a single unit or a single firm whereas the macroeconomics is.. (a). a. Microeconomics Government agencies. B) far less difficult than with monetary policy. Dear Friends, We are posting prelims marathon MCQs for today. The invisible hand refers to C) oil prices. B. stabilize the price level. The doctrine of lassiez faire is based on the belief that Calculate the predetermined overhead allocation rate for each activity. Question 1. D) Your father buys a new John Deere riding lawn mower. All of the following are sources of comparative advantage except b. B) explicit B) fallen; risen What determines the growth rate of gross domestic product? A) updates the market basket every two years, rather than every 10 years. You earned $30,000 in 2007, and your salary rose to $80,000 in 2016. A) the value of output in 2015 was around $17.3 trillion. A. D) Lily purchases a new massage table for use in her therapy center. D) seasonal unemployment, Structural unemployment is the result of ____________ Which of the following is a macroeconomics question? C) continually declined. Government failure. FortheYearsEndedDecember31,20Y2and20Y1. In the first half of 2011, automobile sales in the United States were lower than they were in the first half of 2010. Zero because you knew when you registered for the class that studying would be required. In terms of the production possibilities curve, inefficiency is represented by C) GDP deflator According to the text, economists consider full employment to occur when A) the value of worn-out equipment, machinery, and buildings. C. Maximum combinations of goods and services an economy can produce given unlimited resources. A) Consumer surplus measures the difference between the highest price a consumer is willing to pay for a product and the price she actually pays. A) welfare benefits B) remain the same. A) Positive analysis uses an economic model to estimate the costs and benefits of different course of actions. \text{Grooming}&\text{\underline{\hspace{15pt}80,000}}\hspace{10pt}&\text{Grooming direct labor hours}&\text{\hspace{10pt}4,000}\\ D. Allocative efficiency. B) The federal government pays the salary of an FBI agent. A. A) Japanese firms excelled in process technology. The study of national economy as whole. A point on a nation's production possibilities curve represents Assume that the price for lawn care has fallen and sales of lawn care services have also fallen. The nominal GDP of the U.S. in 2015 was approximately $17.3 trillion. B. C. Market success. An undesirable combination of goods and services. D) durable goods; nondurable goods, How are intermediate goods treated in the calculation of GDP? D) the level of technology is fixed and unchanging. Question: Question 21 Which of the following exemplifies a macroeconomic question? D) 3.5% \textbf{\hspace{10pt}Activity}&\textbf{Cost}&\hspace{20pt}\textbf{Allocation Base}&\textbf{of Allocation Base}\\ C. Production of nonmilitary goods will decrease. In a market economy, who decides what goods and services will be produced? Question: Which of the following is a macroeconomics question? Step-by-step explanation. D) about the same difficulty as with monetary policy. The economic term for the costs associated with negotiating and enforcing a contract is a. opportunity costs. Each point on a demand curve shows The conclusion of this statement: A ________ can change over time or across observations. B. how to make money in a market economy. A) stayed roughly the same. D) sometimes by more than and other times by less than, A change in consumption spending caused by income changes is ________ change in spending, and a change in government spending that occurs to improve roads and bridges is ________ change in spending The economy experiences government failure. A) 5 times as much as your grandfather in terms of real income. C) raise taxes by $200 billion. D) The "Lucky Ducky" casino buys a new crabs table for the casino floor. B) an expansionary; a contractionary B) change; underestimates Step-by-step explanation. C) greater on the buyer when the tax is collected from the seller and greater on the seller when the tax is collected from the buyer. A graph that contains two variables with a negative relationship is _________, while a graph that contains two variables with a positive relationship is _________. Solve homework. Option b: This option is incorrect because medium of exchange is a function of money as money is used to exchange goods between buyer and seller. BOOK Market Leader intermediate 3rd edition. C) The purchasing power of your salary remained constant between 2007 and 2016. A) the supply curve shifted to the left resulting in an increase in the equilibrium price. C) there are not enough jobs for everyone who wants one. c. Bill Gates faces scarcity because resources are limited A. B. The term "market" in economics refers to ______________. In cities with rent control, people have an incentive to list their apartments on sites such as Airbnb at rents ________ the controlled rates, because rent control causes a ________ of apartments. A. d. It is an example of the fallacy of composition, The field of economics that deals primarily with the factors that determine wage rates, employment, and unemployment is called: D) consumer price index. D) ice cream is a normal good and hot fudge is an inferior good. B) increase the measured labor force participation rate. Every society faces economic tradeoffs. The purchasing. Micro Economic 100% (2) 176. C) The market system allocates goods and services to those who are able to pay for those products and therefore income is a limiting factor. A: Economics is the study of production, distribution, and consumption when the resources are scarce in. Cadre Management for Indian Economic Services See Answer 14 15 Show transcribed image text Expert Answer Answer no (14). Economics promotes which of the following as the way to make the best decision? C) decrease in demand; decrease in quantity demanded E) Discouraged workers are counted as unemployed. B) ice cream and hot fudge and substitutes. Keynesian economics says that: (a) workers are paid for their ability to work, not for the value of what their labor creates. D) decreases; decreases. A. producers If, in response to a decrease in the price of coffee, the quantity of coffee demanded increases, economists would describe this as_______ d. Dollar cost, T/F The process of analyzing the additional costs or benefits which arise from a decision is known as marginalism, You own the video game Grand Theft Auto V. The opportunity cost of playing this game for the second time D) all of the above. D. Scarcity. O How will the government's budget deficit be affected by public infrastructure projects? A shortage of maths teachers. B. A) The supply curve will shift to the left. D) refrigerator. C. Want the goods and services the most. The money-creating potential in the banking system is simply the amount of new money that can be created using the excess reserves of the bank. Markets are likely to do a better job of allocating resources than government directives. B) government spending and taxes that automatically increase or decrease along with the business cycle. The increase in the amount that the government collects in taxes when the economy expands and the decrease in the amount that the government collects in taxes when the economy goes into a recession is an example of An increase in national defense implies more sacrifices of civilian goods and services. B) one's property rights. E. consumers and firms choosing which goods and services to buy or produce. A) the value of leisure is included in GDP. B) increased income tax rates. A. why something will be producedwhat will be produced Suppose in 2016, you purchase a house built in 2003. Prelims Marathon - Economic Survey - February 28th - 2023. i. It does not consider discouraged workers, and hence it is understated. D) building an online job database that helps workers find jobs. D. Government failure. C) The demand curve will shift to the right. B) The Federal Reserve cuts interest rates to stimulate the economy. Which of the following statements about positive economic analysis is true? d. sensitivity analysis. 19 If the short-run aggregate supply curve intersects with the aggregate demand curve at a point that is greater than the long-run . A. C) the value of the addition to the capital stock. In a market economy, those who are willing and able to buy what is produced. Should Congress and the president take action to reduce global warming? An economic ________ is a simplified version of some aspect of economic life used to analyze an economic issue. Choose the correct option. Macroeconomics Multiple Choice Questions 1. b. C) the price of sailboats increased and the quantity of sailboats demanded decreased." Determine the following steps in preparing a work sheet in their proper order by writing numbers 1-5 in the blank spaces provided. Automatic stabilizers refer to Please don't take his comments (a) personal, (b) personally. A. central bank prints more money B. increase in household savings C. decrease in borrowing by private firms D. foreign financial investors 1. D. the government, consumers, and producers It is an example of the coincidental fallacy C) What factors determine the price of Oreo cookies? D) The quantity of inkjet printers demanded decreases, Last month, the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit. Answer the following questions by selecting the appropriate answer from the list below. a. A. a. there is a current account deficit. D) changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives. B. C. how to make money in the stock market. \text{Total indirect costs}&\text{\underline{\underline{\$\hspace{5pt}380,000}}}\hspace{10pt}\\ The production possibilities curve between tanks and automobiles will shift outward. e. As a public safety measure, the state of Texas should not pass legislation that allows people with concealed handgun permits to carry concealed weapons on college campuses, A-Positive Chuck is paying Marla $150 per hour to design his new home. A. Which assumptions do you need to make in order to be correct in considering a binomial distribution for your variable? a. Answer: B Diff: 1 Page Ref: 12/12 Topic: Economic Models *: Recurring Which of the following causes the unemployment rate to understate the true extent of joblessness? C. The money you spent on tuition for the class. B) the search process of matching workers with jobs. As a result, _____________ Combinations of production that are unattainable, given current technology and resources. B) Chester buys a first-class ticket from Atlanta to London for his long-awaited vacation. Your grandfather tells you that he earned $7,000/year in his first job in 1961. C) NAFTA. A) the firm has an incentive to increase supply now and decrease supply in the future. Grossprofit.Sellingexpenses..Administrativeexpenses.TotaloperatingexpensesIncomefromoperations.Otherincome..Incomebeforeincometax..Incometaxexpense..Netincome.20Y1$1,500,000510,000$990,000$270,000180,000$450,000$540,00060,000$600,000450,000$150,000$1,250,000475,000$775,000$200,000156,250$356,250$418,75050,000$468,750375,000$93,750. B) The quantity of traditional camera film demanded decreases. Economics is the study of the ________ people make to attain their goals, given their________ resources. D. Laissez faire. B) total consumption of goods is greater. answer choices. b. D) a student who borrows $10,000 at a nominal interest rate of 5% to finance educational expenses. c. determine the objective. D. Higher opportunity costs induce higher output per unit of input. In the long run, most economists agree that a permanent increase in government spending leads to ________ crowding out of private spending B. C) Firms in European countries offer employees higher wages and higher benefits than do firms in the United States. This means The use of fixed costs to extract higher percentage changes in profits as sales activity changes involves. A) The supply of video game consoles would increase and the equilibrium price of video game consoles would decrease. Ford C) the business cycle. The opportunity cost of taking an on-line history class is (D) the economy as a whole. occurred. B) decrease government spending. Increasing the federal tax on gasoline would cause shipping costs in the United States to increase Which of the following is not a durable good? A. unlimited wants exceed limited resources. How can a firm maximize profits, given the state of the economy? b. B) the bread that Subway purchases for its sandwiches Most primitive economies concentrate on producing food and shelter - the basic necessities of life. D. Production of nonmilitary goods will decrease. A) higher; higher B) in non-licensed shops and warehouses. A) a demand curve has shifted to the left. The automobile industry was experiencing the effects of _______ B. decisions; household 60 seconds. Is the economy experiencing a decline in the rate of inflation? a. D) a slowdown in the economy. A. B) European countries offer higher unemployment benefits than the United States. Depreciation is _________ c. The overall price level in the economy B) real GDP per person D. The best alternative use of your time. C) cyclical unemployment As a result, GDP ________ because ________. Works through central planning by government. C) equity A) What determines the minimum wage? D) the nominal interest rate. All of these O b. D. it intensified competition. The result is a shift in the aggregate demand curve to the left. Which of the following is a positive economic statement? C) entrepreneurship. A) Their value is not counted separately, but included as part of the value of the final good for which they are an input. D) automatic monetary policy, Since the Social Security system began in 1935, the number of workers per retiree has __________ Which one of the following is not a key people behind macroeconomics? A) climate and natural resources. A. income; available You'll get a detailed solution from a subject matter expert that helps you learn core concepts. C) lower; higher D. the choices people make to attain their goals, given their scarce resources. \text{Admission}&\text{\$\hspace{10pt}60,000}\hspace{10pt}&\text{Number of admissions}&\text{\hspace{5pt}20,000}\\ A. D) zero because there is no classroom time involved if you are enrolled in the course. A. Where in Oceania are outrigger canoes used? Mike has been unemployed for over a year. D) lower; lower, Contractionary fiscal policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be ________ and real GDP to be ________. C) discretionary monetary policy. In the past two decades the United States lost its comparative advantage in automobiles to Japan. D) technology. A)Government must maintain the current level of defense spending to keep the nation safe B)The minimum wage should be increased to give people a decent wage C)Americans should buy American products in order to boost the national economy Which of the following economic activities are included in the subject-matter of Economics? These firms are reacting to which of the three key economic ideas? d. Cannot be calculated, T/F The phrase "there's no such thing as a free lunch" is a common way of expressing the concept of efficient markets, "Statistics tell us that ice cream sales increase during the summer months. What were the macroeconomic principles or models that influenced your decision making?] Historically, there have been three basic types of economic system: traditional, command, and market. Answer: B Use the following diagram to answer questions 36-39: 36. D. None of these choices are correct. Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ________ and real GDP to be ________. Expert Answer Option b deals with a microeconomi View the full answer Transcribed image text: Which of the following is NOT a macroeconomic question? C. The government should subsidize solar power for homeowners. b. consumers E. consumers and producers. A) falls; Marla's work takes place in the underground economy once she's married Nonetheless, you continue along your career path looking for a new job because _____________ Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy? D) the plastic bags that Subway purchases to wrap its sandwiches. Fill in the columns for the GDP deflator and for the percent . D) only change GDP if the development occurs within the borders of the United States. B) automobile E. consumers and firms choosing which goods and services to buy or produce. What factor was most responsible for the development of Japan's comparative advantage in automobiles? Which of the following is not one of the three core economic issues that must be resolved? The data is listed per quarter, and the real GDP data was calculated using 2009 as the base year. A) decrease the required reserve ratio. C. do have an economic problem but are solving it. According to a deputy commissioner of police, "Commerce does very little of what we recommend. A) personal income minus personal taxes. C) clothing An oligopolistic industry consists of only two firms, Angel& D) ceteris paribus. Which of the following is a macroeconomics question? B) What determines the production of video game consoles? Marco's consumer surplus from the purchase is The demand for bottled water by individuals. A) an increase in the number of people in the labor force D. Is one that allows trade with other countries. D) the same whether the tax is collected from the buyer or the seller. c. The price of gasoline B) The demand curve for inkjet printers shifts to the left. D) taxes. B) there is a one-time increase in the price level. D. The full employment of resources to achieve a particular combination of goods and services. Suppose real GDP is $12.6 trillion and potential GDP is $12.4 trillion. D) risen; fallen. Find the following limits: (a) limnn\lim _{n \rightarrow \infty} \alpha_nlimnn, (b) limnn\lim _{n \rightarrow \infty} \beta_nlimnn, (c) limn(3n+4n)\lim _{n \rightarrow \infty}\left(3 \alpha_n+4 \beta_n\right)limn(3n+4n), (d) limnnn\lim _{n \rightarrow \infty} \alpha_n \beta_nlimnnn, (e) limnn/n\lim _{n \rightarrow \infty} \alpha_n / \beta_nlimnn/n, (f) limnnn\lim _{n \rightarrow \infty} \sqrt{\beta_n-\alpha_n}limnnn. Government intervention may achieve a more optimal outcome than the market mechanism when addressing In this initiative, you can attempt 10 subjective MCQs on a daily basis. The government should reduce the tax burden to help small business. a. D) simplify some aspect of economic life. a. The market mechanism may best be defined as A) inflation. B) a job retraining program All points outside the curve. B) the firm has an incentive to decrease supply now and increase supply in the future. A. of disabled individuals to a less restrictive facility) also B) more than 5 times as much as your grandfather in terms of real income. Which of the following is an example of spending on goods and services in the circular flow model? Buyers will bear the entire burden of a unit tax if the demand curve for a product is B. What factors determine the price of carrots? D. Government intervention. When Chuck and Marla get married, Marla continues to work on designing the home, but she no longer charges Chuck for her work. D) an increase in oil prices. Explain the pitfall of this statement. MACROECONOMICS FREE-RESPONSE QUESTIONS MACROECONOMICS Section II Total Time1 hour . C) goods and services. there is a capital account surplus. C) implementing an unemployment insurance policy What is the impact of competition on the profits of a business? C) the ups and downs in inflation. A) frictional unemployment Bill Gates does not face scarcity because he is a billionaire The price of steel declined by 3% last year. Given that, the question "According to the Bureau of Economic Analysis, what has been the average annual level of inflation (as measured by the GDP Deflator) over the past 10 years?" Each of us only has 24 hours in a day, and we must allocate our time in a given day among competing alternatives. By definition, economics is the study of B) the economy produces only two products. C. A movement from inside the production possibilities curve to a point on the production possibilities curve. . The country is experiencing a serious rise in inflation which the government wants to control through fiscal policy. The best alt. C. Opportunity cost. The study of regional economy as whole. Deadweight loss refers to The tuition you pay Use the supply schedule below to answer the following question: Price $10 $20 Quantity Supplied 100 This problem has been solved! D) below; shortage. What goods and services to producehow will these goods and services be produced; and who receives them? a. Ockham's razor When the invisible hand does not produce optimal outcomes for the economy, there is evidence of B-Postive B) there has been an upward movement along a demand curve. C) Yvette pays $50 to join a softball league. Full employment is not considered to be zero unemployment, because Stability c. Efficiency d. Growth A Economics is best defined as the study of a. There are no problems and everyone, including consumers, is satisfied. D) the firm will not change supply until it knows for certain what will happen to its price. C) a strong foreign currency exchange rate. The size of the underground economy would tend to decrease if the government of a country __________________ A. do not have an economic problem. C) $140. It converts normative analysis into positive B) Persons who collect unemployment benefits report themselves to be searching for a job. What goods and services to produce; how will these goods and services be produced; and who receives them? Que10. B) an increase in the unemployment rate is a corporation unresponsive to the demands of its customers? C.. Capital, as economists use the term, refers to. A. b. Which of the following is a normative economic statement? Profits are always very high and persistent A. Suppose a drought resulted in a major reduction in the California lettuce crop. Th View the full answer Technological advancements have led to lower prices and an increase in the sale of color laser printers. Economic development c. As less and less time is spent on one activity, the opportunity cost of that activity in terms of other activities rises