QUIZ! Exam

Daniel Kevins

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What will happen in a market where a nonbinding price ceiling is removed?

THERE WILL BE DOWNWARD PRESSURE ON THE PRICE IN THE LEGAL MARKET.

THE PRODUCTS SOLD WILL IMPROVE IN QUALITY AND BECOME MORE PLENTIFUL.

SELLERS WILL FACE A REDUCED INCENTIVE TO SELL THE PRODUCTS.

THE PRICE AND QUANTITY WILL NOT CHANGE IN THE LEGAL MARKET.

THERE WILL BE INCREASED PRESSURE TO BUY AND SELL THE GOODS ON THE BLACK MARKET.

Why does a shortage that occurs under a binding price ceiling increase over time?

DEMAND BECOMES MORE ELASTIC.

DEMAND BECOMES MORE INELASTIC.

DEMAND AND SUPPLY BOTH BECOME MORE ELASTIC.

DEMAND AND SUPPLY BOTH BECOME MORE INELASTIC.

DEMAND BECOMES MORE ELASTIC, BUT SUPPLY BECOMES MORE INELASTIC.

Flag this QuestionQuestion 32 pts

How do consumers who are subject to a binding price ceiling respond as the time frame shifts from the short run to the long run?

CONSUMERS ARE INCREASINGLY WILLING TO SUBSTITUTE AWAY FROM THE GOOD, AND THEIR ELASTICITY OF DEMAND BECOMES LESS ELASTIC.

THERE ARE NO CHANGES, AND ELASTICITY REMAINS UNCHANGED.

CONSUMERS ARE INCREASINGLY WILLING TO SUBSTITUTE AWAY FROM THE GOOD, AND THEIR ELASTICITY OF DEMAND BECOMES MORE ELASTIC.

CONSUMERS ARE LESS WILLING TO SUBSTITUTE AWAY FROM THE GOOD, AND THEIR ELASTICITY OF DEMAND BECOMES LESS ELASTIC.

CONSUMERS ARE LESS WILLING TO SUBSTITUTE AWAY FROM THE GOOD, AND THEIR ELASTICITY OF DEMAND BECOMES MORE ELASTIC.

Flag this QuestionQuestion 42 pts

The usual stated political goal of rent control is

TO CONDUCT SOCIAL ENGINEERING VIA ECONOMIC RULES.

TO PANDER TO REAL ESTATE LANDLORDS BY ASSURING THEM A LOW OCCUPANCY RATE.

TO PANDER TO THE LOW INCOME VOTERS BY ASSURING THEM ENOUGH LIVING SPACE.

TO ASSIST THE LOW INCOME AT A COST TO SOCIETY, IN CONVENIENT, AFFORDABLE HOUSING.

PRICES THAT ALLOW RATIONING TO THE HIGHEST BIDDER.

Flag this QuestionQuestion 52 pts

Refer to the accompanying table to answer the following questions.

Monthly Rent	Quantity of Apartments Demanded	Quantity of Apartments Supplied
$1,500	136,500	78,100
$1,550	112,750	83,760
$1,600	107,000	87,900
$1,650	100,100	94,250
$1,700	98,450	98,450
$1,750	95,000	118,500
$1,800	92,800	125,600

If rent control is established at $1,750, what would be the amount of disequilibrium in the apartment market?

THERE WOULD BE A SHORTAGE OF 23,500 APARTMENTS.

THERE WOULD BE A SURPLUS OF 23,500 APARTMENTS THAT IS REDUCED, OVER TIME, AS INDIVIDUALS RENT APARTMENTS IN THE ILLEGAL BLACK MARKET.

THERE WOULD BE NEITHER A SHORTAGE NOR A SURPLUS.

THERE WOULD BE A SURPLUS OF 23,500 APARTMENTS THAT IS ELIMINATED THROUGH INDIVIDUALS RENTING APARTMENTS IN THE ILLEGAL BLACK MARKET.

THERE WOULD BE A SURPLUS OF 23,500 APARTMENTS THAT INCREASES AS HOUSES AND CONDOMINIUMS ARE CONVERTED INTO APARTMENTS.

Flag this QuestionQuestion 62 pts

Imagine you find yourself in a heat wave and your air conditioner has broken. Unable to find a new one at the store because of a price gouging law, you purchase an air conditioner on the black market. What role did the price gouging law have?

IT INCREASED THE WILLINGNESS OF FIRMS TO SUPPLY AIR CONDITIONERS WHEN THEY WERE OUT OF STOCK AT THE STORES.

IT INCREASED CONSUMER DEMAND FOR AIR CONDITIONERS.

IT DECREASED THE INCENTIVE OF INDIVIDUALS TO SUPPLY THE GOOD ON THE BLACK MARKET.

IT HAD NO EFFECT ON CONSUMERS OR FIRMS IN THIS SITUATION.

IT INCREASED THE INCENTIVE OF INDIVIDUALS TO SUPPLY THE GOOD ON THE BLACK MARKET.

Flag this QuestionQuestion 72 pts

A nonbinding price floor has which of the following consequences?

THERE WILL BE DOWNWARD PRESSURE ON PRICES UNTIL QUANTITY DEMANDED EQUALS QUANTITY SUPPLIED.

THERE WILL BE UPWARD PRESSURE ON PRICES UNTIL QUANTITY DEMANDED EQUALS QUANTITY SUPPLIED.

THERE ARE NO CONSEQUENCES TO A NONBINDING PRICE FLOOR.

THE QUANTITY DEMANDED WILL ALWAYS EXCEED THE QUANTITY SUPPLIED.

THE QUANTITY DEMANDED WILL ALWAYS BE SMALLER THAN THE QUANTITY SUPPLIED.

Flag this QuestionQuestion 82 pts

What will happen in a market where a nonbinding price floor is removed?

THE PRODUCTS SOLD WILL BECOME MORE PLENTIFUL.

THE PRICE OR QUANTITY OF THE PRODUCT SOLD ON THE LEGAL MARKET WILL NOT CHANGE.

THERE WILL BE UPWARD PRESSURE ON THE PRICES.

THERE WILL BE DOWNWARD PRESSURE ON THE PRICES.

THERE WILL BE INCREASED PRESSURE TO BUY AND SELL THE GOOD ON THE BLACK MARKET.

Flag this QuestionQuestion 92 pts

Macroeconomics includes the study of

INDIVIDUAL MARKETS.

THE BEHAVIOR OF THE FIRM.

THE BEHAVIOR OF THE CONSUMER.

CHANGES IN NATIONAL INCOME.

CHANGES IN COMMODITY PRICES.

Flag this QuestionQuestion 102 pts

Which of the following is a topic of microeconomics?

THE LEVEL OF NATIONAL INCOME

THE LEVEL OF EMPLOYMENT IN THE COUNTRY

THE PRICES OF ALL GOODS IN THE COUNTRY

THE PROFIT OF FIRMS IN THE BANKING INDUSTRY

THE LEVEL OF NATIONAL OUTPUT

Flag this QuestionQuestion 112 pts

Which of the following is a sign that an economy is in poor health?

A PROLONGED DECLINE IN TOTAL OUTPUT

FAILURE OF TOTAL OUTPUT TO EQUAL TOTAL INCOME

FAILURE OF OUTPUT TO REMAIN CONSTANT OVER TIME

A SHIFT IN PRODUCTION, FROM GOODS TO SERVICES

A PROLONGED RISE IN TOTAL INCOME

Flag this QuestionQuestion 122 pts

Which of the following is a service?

A VISIT TO YOUR LOCAL BEACH

A VISIT TO YOUR DOCTOR

A TRIP TO THE STORE TO BUY A T-SHIRT

A DELIVERY PIZZA

HAVING TO WRITE A CHECK TO PAY YOUR TAXES

Flag this QuestionQuestion 132 pts

Consumption is approximately ________ of gross domestic product (GDP).

50 PERCENT

90 PERCENT

70 PERCENT

80 PERCENT

40 PERCENT

Flag this QuestionQuestion 142 pts

When you buy a new car built by Ford, it is included in the ________ category of gross domestic product (GDP).

CONSUMPTION

INVESTMENT

GOVERNMENT PURCHASES

EXPORT

IMPORT

Flag this QuestionQuestion 152 pts

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the following questions. Assume that the base year is 2012.

Good	2012 Price	2012 Quantity	2013 Price	2013 Quantity
A	$2.00	500	$2.50	600
B	$4.00	1,000	$5.00	900
C	$2.00	200	$1.00	300

What was the nominal gross domestic product (GDP) in 2013?

$5,400

$6,300

$6,450

$1,700

$13,600

Flag this QuestionQuestion 162 pts

Good	2015 Price	2015 Quantity	2016 Price	2016 Quantity
A	$2	250	$3	200
B	$3	300	$2	400
C	$4	400	$5	500

What was the inflation rate between the two years?

1 PERCENT

3.2 PERCENT

2 PERCENT

3.8 PERCENT

8.3 PERCENT

Flag this QuestionQuestion 172 pts

If over a period of time real gross domestic product (GDP) decreases while nominal GDP increases, then this implies

A SIGNIFICANT RISE IN THE PRICE LEVEL.

A SIGNIFICANT DROP IN THE PRICE LEVEL.

THAT REAL GDP IS MUCH GREATER THAN NOMINAL GDP.

THAT THE GIVEN PERIOD OCCURS BEFORE THE BASE PERIOD.

THAT THE GIVEN PERIOD YEAR OCCURS AFTER THE BASE PERIOD.

Flag this QuestionQuestion 182 pts

Consider the following data that identifies real gross domestic product (GDP) in comparison to the long-run trend of real GDP to answer the following questions:

Quarter	Real GDP (billions of dollars)	Long-Run Trend of Real GDP (billions of dollars)
1	4,000	4,000
2	4,160	4,120
3	4,326	4,244
4	4,413	4,371
5	4,501	4,502
6	4,591	4,637
7	4,499	4,776
8	4,409	4,919
9	4,673	5,067
10	4,954	5,219
11	5,252	5,376
12	5,376	5,537

Between quarter 2 and quarter 3, real gross domestic product (GDP) grew by what percentage?

4 PERCENT

3 PERCENT

1 PERCENT

2 PERCENT

−2 PERCENT

Flag this QuestionQuestion 192 pts

Nominal gross domestic product (GDP) increased from $15.62 trillion to $16.09 trillion, and the price level increased from 120.0 to 122.4. Rounding to the nearest first decimal, the rate of inflation was

3.0 PERCENT.

1.0 PERCENT.

2.4 PERCENT.

20.0 PERCENT.

2.0 PERCENT.

Flag this QuestionQuestion 202 pts

If nominal gross domestic product (GDP) changed by 6 percent and the price level changed by 2 percent, then real GDP changed by

4 PERCENT.

3 PERCENT.

8 PERCENT.

12 PERCENT.

6 PERCENT.

Flag this QuestionQuestion 212 pts

Gross domestic product (GDP) is not a good measure of the

TOTAL INCOME EARNED BY ALL PEOPLE IN THE COUNTRY.

AVERAGE LIVING STANDARDS OF PEOPLE IN THE COUNTRY WHEN ADJUSTED FOR POPULATION.

OUTPUT PRODUCED BY PEOPLE IN THE COUNTRY.

INCOME INEQUALITY THAT EXISTS BETWEEN PEOPLE IN THE COUNTRY.

OVERALL HEALTH OF THE ECONOMY.

Flag this QuestionQuestion 222 pts

A shortcoming of real gross domestic product (GDP) is it

DOES NOT INCLUDE THE UNDERGROUND ECONOMY.

INCLUDES NONMARKET GOODS.

DOES NOT MEASURE CHANGES IN EMPLOYMENT.

DOES NOT INCLUDE THE VALUE OBTAINED THROUGH PURCHASES OF STOCKS AND BONDS.

DOES NOT ACCOUNT FOR CHANGES IN THE PRICES OF GOODS AND SERVICES.

Flag this QuestionQuestion 232 pts

Which of the following lists the three types of unemployment?

FRICTIONAL, STRUCTURAL, AND PRACTICAL

PRACTICAL, STRUCTURAL, AND CYCLICAL

FRICTIONAL, UNAVAILABLE, AND STRUCTURAL

CYCLICAL, PRACTICAL, AND UNAVAILABLE

FRICTIONAL, STRUCTURAL, AND CYCLICAL

Flag this QuestionQuestion 242 pts

Which of the following statements about structural unemployment is true?

STRUCTURAL UNEMPLOYMENT CAN BE ELIMINATED THROUGH GOVERNMENT INTERVENTION.

STRUCTURAL UNEMPLOYMENT IS EQUAL TO ZERO WHEN THE ECONOMY IS IN AN EXPANSION.

STRUCTURAL UNEMPLOYMENT CANNOT BE ELIMINATED.

STRUCTURAL UNEMPLOYMENT IS NOT A BURDEN ON HOUSEHOLD INCOMES.

STRUCTURAL UNEMPLOYMENT IS UNHEALTHY FOR THE LONG-RUN GROWTH OF AN ECONOMY.

Flag this QuestionQuestion 252 pts

Nina has a part-time job as she finishes her degree in fashion design. After obtaining her degree she decides to quit her part-time job to search for a job that better fits her now-improved skill set. Nina has a few interviews, but it is taking time to find the job that suits her best. Nina would be considered

STRUCTURALLY UNEMPLOYED.

CYCLICALLY UNEMPLOYED.

FRICTIONALLY UNEMPLOYED.

OVEREMPLOYED.

A DISCOURAGED WORKER.

Flag this QuestionQuestion 262 pts

Brian Murphy is a political consultant for a candidate in Massachusetts. Mr. Murphy’s candidate is defeated in the November election, and as a result, Mr. Murphy finds himself unemployed. Mr. Murphy’s unemployment is classified as ________ unemployment.

DISCOURAGED

STRUCTURAL

FRICTIONAL

CYCLICAL

LONG-TERM

Flag this QuestionQuestion 272 pts

The Internet has enabled workers and companies to find each other more quickly and to make better matches with substantially lower costs. The result is

LOWER FRICTIONAL UNEMPLOYMENT.

LOWER STRUCTURAL UNEMPLOYMENT.

HIGHER FRICTIONAL UNEMPLOYMENT.

LOWER CYCLICAL UNEMPLOYMENT.

HIGHER STRUCTURAL UNEMPLOYMENT.

Flag this QuestionQuestion 282 pts

In November 2009, the United States was in a deep recession. To help keep the economy afloat, the government extended the period of time one could receive unemployment insurance to 99 weeks. This policy had an unintended consequence because

WORKERS SEARCHED FOR JOBS FOR LONGER, WHICH REDUCED THE UNEMPLOYMENT RATE.

MANY WORKERS QUIT THEIR JOBS SO THEY COULD RECEIVE UNEMPLOYMENT INSURANCE.

WORKERS SPENT MORE TIME SEARCHING FOR THE PERFECT JOBS, WHICH INCREASED FRICTIONAL UNEMPLOYMENT.

EMPLOYERS WERE MORE HESITANT TO FIRE WORKERS, WHICH REDUCED THE UNEMPLOYMENT RATE.

EMPLOYERS WERE MORE HESITANT TO FIRE WORKERS, WHICH INCREASED THE UNEMPLOYMENT RATE.

Flag this QuestionQuestion 292 pts

The root cause of cyclical unemployment is

UNEMPLOYMENT INSURANCE.

LABOR MARKET REGULATIONS.

DELAYS IN MATCHING AVAILABLE WORKERS WITH OPEN JOBS.

DOWNTURNS IN THE BUSINESS CYCLE.

CHANGES IN THE INDUSTRIAL MAKEUP OF THE ECONOMY.

Flag this QuestionQuestion 302 pts

Use the table to answer the following questions:

Group	# in Millions
Relevant population	243
Labor force	154
Not in labor force	89
Employed	142
Unemployed	12

According to the table, the employment rate in this economy is equal to

4.9 PERCENT.

92.2 PERCENT.

63.4 PERCENT.

7.8 PERCENT.

8.5 PERCENT.

Flag this QuestionQuestion 312 pts

Katherine was laid off from her job 11 months ago. After searching for a job for months, Katherine gives up her job search because she feels there are no jobs available for her. Economists would classify Katherine as

UNEMPLOYED.

IN THE LABOR FORCE.

UNDEREMPLOYED.

EMPLOYED.

A DISCOURAGED WORKER.

Flag this QuestionQuestion 322 pts

Use the table to answer the following questions:

Group	# in Millions
Relevant population	215
Employed	138
Unemployed	9

According to the table, the labor force is

138 MILLION.

215 MILLION.

77 MILLION.

147 MILLION.

68 MILLION.

Flag this QuestionQuestion 332 pts

Use the table to answer the following questions:

Group	# in Millions
Relevant population	215
Employed	138
Unemployed	9

According to the table, the labor force participation rate is

64.2 PERCENT.

68.4 PERCENT.

35.8 PERCENT.

31.6 PERCENT.

6.1 PERCENT.

Flag this QuestionQuestion 342 pts

If the consumer price index (CPI) was 100 in the period of 1982–1984, then

THERE WOULD BE DEFLATION.

THIS PERIOD WAS THE BASE PERIOD.

THIS PERIOD WAS CHARACTERIZED BY MENU COSTS.

THIS PERIOD WAS ECONOMICALLY OPTIMAL.

THIS PERIOD WAS INFLATIONARY.

Flag this QuestionQuestion 352 pts

Suppose a basket of goods and services has been selected to calculate the consumer price index (CPI) and 2002 has been chosen as the base year. In 2002, the basket’s cost was $76.00; in 2004, the basket’s cost was $79.50; and in 2006, the basket’s cost was $85.00. The value of the CPI was

100 IN 2002.

108 IN 2004.

120 IN 2006.

AT LEAST 118 IN 2007.

NO MORE THAN 90 IN 2001.

Flag this QuestionQuestion 362 pts

In Bovania, milk constitutes 56 percent of the typical basket of goods for a typical consumer. Let’s say the price of milk rises by 7 percent and the prices of all other goods fall by 4 percent. Based on the information given, we can definitely say

THE CONSUMER PRICE INDEX (CPI) IN BOVANIA IS GREATER THAN IN THE PREVIOUS YEAR.

THE CONSUMER PRICE INDEX (CPI) IN BOVANIA IS LESS THAN IN THE PREVIOUS YEAR.

IF CONSUMERS GET A 4 PERCENT PAY RAISE, THEY ARE WORSE OFF IN TERMS OF THEIR REAL INCOME COMPARED TO INFLATION AS MEASURED BY THE BOVANIAN CONSUMER PRICE INDEX (CPI).

THE GROSS DOMESTIC PRODUCT (GDP) DEFLATOR MUST BE HIGHER THAN THE CONSUMER PRICE INDEX (CPI).

THE GROSS DOMESTIC PRODUCT (GDP) DEFLATOR MUST BE LESS THAN THE CONSUMER PRICE INDEX (CPI).

Flag this QuestionQuestion 372 pts

It is rare when prices fall in modern times. However, it is likely that they would fall during severe recessions. In what year is this most likely to have occurred?

2005

2009

2011

2012

2003

Flag this QuestionQuestion 382 pts

In Nation A, the price index rises from 110 to 120 in a particular year. In the same year, the price level rises from 120 to 130 in Nation B. This means

INFLATION IN BOTH NATIONS IS 10 PERCENT.

NATION B SUFFERS FROM HYPERINFLATION.

BOTH NATIONS SUFFER FROM HYPERINFLATION.

NATION A IS EXPERIENCING INFLATION BUT NATION B IS EXPERIENCING DEFLATION.

NATION A IS EXPERIENCING INFLATION OF LESS THAN 9.1 PERCENT AND NATION B IS EXPERIENCING INFLATION OF LESS THAN 8.4 PERCENT.

Flag this QuestionQuestion 392 pts

Refer to the table to answer the following questions:

Year	CPI
1999	80
2000	87
2001	105
2002	112
2003	108
2004	117

As presented in the table, the rate of inflation from 1999–2000 (i.e., during the year 2000) was (rounded to two decimal places)

7.00 PERCENT.

80.00 PERCENT.

87.00 PERCENT.

8.75 PERCENT.

10.00 PERCENT.

Flag this QuestionQuestion 402 pts

The chained consumer price index (CPI) tends to be

A BETTER MEASURE OF PRICES THAN THE TRADITIONAL CPI, NO MATTER WHAT THE CIRCUMSTANCES.

A BETTER MEASURE OF PRICES THAN THE TRADITIONAL CPI, BUT ONLY IF INFLATION IS RELATIVELY HIGH.

A BETTER MEASURE OF PRICES THAN THE TRADITIONAL CPI, BUT ONLY IF INFLATION IS RELATIVELY LOW.

EQUALLY AS GOOD AS THE TRADITIONAL CPI, UNDER ALL CONDITIONS.

A POOR MEASURE OF PRICES BUT BETTER THAN THE GROSS DOMESTIC PRODUCT (GDP) DEFLATOR.

Flag this QuestionQuestion 412 pts

Joe Kowalski invents a new product, and this new product becomes cheaper over time. This can be problematic because

THE CONSUMER PRICE INDEX (CPI) WILL INCLUDE JOE’S NEW PRODUCT IMMEDIATELY IF IT IS A CONSUMER GOOD, BUT AS A CONSUMER GOOD, IT WILL NOT BE INCLUDED IN THE GROSS DOMESTIC PRODUCT (GDP) DEFLATOR.

THE PERCENT CHANGE IN THE CONSUMER PRICE INDEX (CPI) WILL BE DISTORTED, BUT THE CHANGE IN THE GROSS DOMESTIC PRODUCT (GDP) DEFLATOR WILL NOT BE, REGARDLESS OF WHETHER THE PRODUCT IS A CONSUMER GOOD OR A PRODUCER GOOD.

IT IS UNLIKELY THE CONSUMER PRICE INDEX (CPI) WILL INCLUDE JOE’S NEW PRODUCT IMMEDIATELY, EVEN IF IT IS A CONSUMER GOOD.

MONEY ILLUSION WILL CAUSE CONSUMERS TO BUY MORE OF THIS GOOD THAN THE CONSUMER PRICE INDEX (CPI) WOULD OTHERWISE REFLECT.

THIS GOOD MIGHT BE PRODUCED IN A GEOGRAPHIC LOCATION THAT IS NOT INCLUDED IN THE CONSUMER PRICE INDEX (CPI).

Flag this QuestionQuestion 422 pts

The textbook shows that the inflation-adjusted movie receipts for Titanic (released in 1997) were $3,205,455,051 in 2015 and the original receipts were $2,186,772,302. The implication is that

PRICES WERE ABOUT THE SAME IN 2015 AS IN 1997.

HYPERINFLATION HAS OCCURRED SINCE 1997.

PRICES WERE ABOUT ONE-THIRD LOWER IN 2015 THAN THEY HAD BEEN IN 1997.

PRICES WERE ROUGHLY 50% HIGHER IN 2015 THAN THEY HAD BEEN IN 1997.

TITANIC WAS A BAD MOVIE AT THE TIME OF ITS RELEASE BUT HAS BECOME MORE POPULAR OVER TIME.

Flag this QuestionQuestion 432 pts

If cheeseburgers become more expensive and consumers switch their purchases away from cheeseburgers but the consumer price index (CPI) still assumes they buy the same amount, then

THE CPI WILL REFLECT UPWARD BIAS.

THE CPI WILL REFLECT DOWNWARD BIAS.

CONSUMERS WILL EXPERIENCE MONEY ILLUSION.

CONSUMERS WILL EXPERIENCE A PRICE CONFUSION PROBLEM.

DEFLATION WILL OCCUR BECAUSE CONSUMERS NO LONGER BUY CHEESEBURGERS.

Flag this QuestionQuestion 442 pts

Wages are often tied to expected rates of inflation; thus, one reason why inflation is important is that

WHEN WAGES RISE FASTER THAN INFLATION, COMPANIES LOSE MONEY.

WHEN WAGES RISE SLOWER THAN INFLATION, WORKERS SUFFER BUT CORPORATE PROFITS INCREASE.

INFLATION CREATES UNCERTAINTY ABOUT COSTS AND PRICES, WHICH AFFECTS BOTH EMPLOYEES AND EMPLOYERS.

ALL INFLATION WILL EVENTUALLY LEAD TO HYPERINFLATION, POLITICAL INSTABILITY, AND WAR.

MENU COSTS MEAN RESTAURANTS HAVE TO PRINT NEW MENUS, WHICH IS COSTLY AND UNPLEASANT.

Flag this QuestionQuestion 452 pts

In the equation M × V = P × Y, the variable Y stands for

THE PRICE LEVEL.

THE SIZE OF THE MONEY SUPPLY.

THE RATE OF INFLATION.

NOMINAL GDP.

REAL GDP.

Flag this QuestionQuestion 462 pts

What is one reason why a government will deliberately inflate its national money supply?

THE ACTION BENEFITS RETIREES AND ANYONE ELSE ON A FIXED INCOME.

THE ACTION PROMOTES THE INTERESTS OF DOMESTIC PRODUCERS AT THE EXPENSE OF FOREIGN ONES.

THE ACTION ENABLES THE GOVERNMENT TO BORROW FUNDS TO REMAIN IN OPERATION.

THE ACTION TEMPORARILY BOOSTS THE GROWTH RATE OF A SLUGGISH ECONOMY.

THE ACTION HELPS TO KEEP INFLATION UNDER CONTROL IN THE LONG RUN.

Flag this QuestionQuestion 472 pts

Mortimer loves sushi. He loves sushi so much that he asks his congressional representative to work for passage of a binding price ceiling law. Who would be affected by this law and how?

SELLERS WOULD BENEFIT FROM SUCH A LAW BECAUSE THEY WOULD RECEIVE A HIGHER PRICE FOR THEIR PRODUCTS.

CONSUMERS WOULD BENEFIT FROM SUCH A LAW BECAUSE PRICES WOULD BE LOWER AND ALL WOULD BE ABLE TO PURCHASE SUSHI CHEAPLY.

CONSUMERS WOULD BENEFIT FROM SUCH A LAW BECAUSE THE SUSHI WOULD BE MADE OF HIGHER-QUALITY FISH, AND EACH SERVING WOULD BE LARGER THAN IT HAD BEEN WITH NO BINDING PRICE CEILING IN PLACE.

SOME CONSUMERS WOULD BENEFIT FROM SUCH A LAW BECAUSE PRICES FOR SUSHI WOULD BE LOWER FOR THOSE ABLE TO BUY IT IN THE LEGAL MARKET.

SELLERS WOULD BENEFIT FROM SUCH A LAW BECAUSE THEY WOULD BE ABLE TO SELL HIGHER-QUALITY SUSHI AND THUS CAPTURE A LARGER SHARE OF THE MARKET.

Flag this QuestionQuestion 482 pts

The difference between nominal gross domestic product (GDP) and real GDP is

REAL OUTPUT GROWTH.

THE PRICE LEVEL.

NOMINAL OUTPUT GROWTH.

LONG-RUN TREND GDP.

AVERAGE OUTPUT GROWTH.

Flag this QuestionQuestion 492 pts

Refer to the scenario to answer the following questions.
A government worker surveys a number of households and comes up with the following information: there were a total of 100 people in the households, 10 of the people were children under 16, 60 people had full-time jobs, 10 people had part-time jobs, 5 were stay-at-home parents, 10 were full-time students over the age of 16, and 5 people had no job but were looking for jobs.

According to the information in the survey, the labor force participation rate is

66.7 PERCENT.

75 PERCENT.

83.3 PERCENT.

90 PERCENT.

94.4 PERCENT.

Flag this QuestionQuestion 502 pts

The government can assist in reducing the level of structural unemployment by

PROVIDING UNEMPLOYMENT BENEFITS.

ESTABLISHING GOVERNMENT REGULATIONS ON HIRING EMPLOYEES.

SUBSIDIZING THE RELOCATION OF WORKERS WHO LOSE THEIR JOBS.

INSTITUTING A MINIMUM-WAGE LAW.

INCENTIVIZING COMPANIES TO MOVE THEIR PRODUCTION OVERSEAS.

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