exam true/false. write 't' if the statement is true and 'f...
TRANSCRIPT
download instant at http://testbankinstant.comExam
Name___________________________________
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
1) All prices are determined in output markets. 1)Answer: True False
2) Output prices are determined in output markets. 2)Answer: True False
3) Incomes are determined in output markets. 3)Answer: True False
4) Incomes are determined in input markets. 4)Answer: True False
5) Macroeconomics looks at the individual smart choices of consumers and businesses. 5)Answer: True False
6) Macroeconomics looks at the combined market outcomes of all individual choices. 6)Answer: True False
7) Microeconomics analyzes the performance of the whole Canadian economy and the globaleconomy.
7)
Answer: True False
8) Macroeconomics analyzes the performance of the whole Canadian economy and the globaleconomy.
8)
Answer: True False
9) The economist most closely associated with the view that markets are not quick to adjust is J.B. Say. 9)Answer: True False
10) The economist most closely associated with the view that markets are quick to adjust is J.B. Say. 10)Answer: True False
11) The economist most closely associated with the view that markets are quick to adjust is J.M.Keynes.
11)
Answer: True False
12) The economist most closely associated with the view that markets are not quick to adjust is J.M.Keynes.
12)
Answer: True False
13) Say's Law states, "What is true for one is not true for all." 13)Answer: True False
1
download instant at http://testbankinstant.com14) Say's Law states, "What is true for one is true for all." 14)
Answer: True False
15) According to the fallacy of composition, "What is true for one is true for all." 15)Answer: True False
16) According to the fallacy of composition, "What is true for one is not true for all." 16)Answer: True False
17) Businesses are sellers in input markets. 17)Answer: True False
18) Businesses are buyers in input markets. 18)Answer: True False
19) Households are buyers in input markets. 19)Answer: True False
20) Households are sellers in input markets. 20)Answer: True False
21) Say's Law advises, "Be true to your school." 21)Answer: True False
22) The paradox of thrift occurs because if many people choose to save more and spend less, businesseswill lower prices.
22)
Answer: True False
23) The paradox of thrift occurs because if many people choose to save more and spend less,employment and savings will actually fall.
23)
Answer: True False
24) Mortgages issued to people who cannot really afford houses are called variable rate mortgages. 24)Answer: True False
25) Mortgages issued to people who cannot really afford houses are called sub-prime mortgages. 25)Answer: True False
26) The Great Depression lasted for less than 24 months. 26)Answer: True False
27) The effects of the Great Depression lasted over 10 years. 27)Answer: True False
28) In the circular flow of economic life, the government cannot purchase products in output markets. 28)Answer: True False
29) In the circular flow of economic life, the government sets the rules of the game. 29)Answer: True False
2
download instant at http://testbankinstant.com30) In the circular flow of economic life, businesses set the rules of the game. 30)
Answer: True False
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
31) Macroeconomics is concerned with 31)A) shopping.B) why you might work more hours if given a pay raise.C) choices made by business people.D) individual choices.E) the performance of the Canadian economy.
Answer: E
32) Macroeconomics is concerned with 32)A) the global economy.B) why you might work more hours if given a pay raise.C) shopping.D) individual choices.E) choices made by business people.
Answer: A
33) Macroeconomics is concerned with 33)A) the combined outcomes of all individual choices.B) money and the financial system.C) the global economy.D) the Canadian economy.E) all of the above answers.
Answer: E
34) Economists argue that the Great Depression of 1929 was worse than the Great Recession of 2009because in 1929 there were no
34)
A) government blunders.B) stock market crashes.C) falling prices.D) government programs to cushion the blow.E) bank failures.
Answer: D
35) The fallacy of composition suggests 35)A) what is true for one is not true for all.B) all for one and one for all.C) be true to your school.D) the needs of the many outweigh the needs of the few, or the one.E) what goes around, comes around.
Answer: A
3
download instant at http://testbankinstant.com36) Input markets determine 36)
A) incomes.B) all prices.C) connections.D) loans.E) outputs.
Answer: A
37) When everybody saves their money, aggregate savings decrease. This is an example of 37)A) Say's Law.B) the Fallacy of Combination.C) the Paradox of Thrift.D) the Zero Sum Scenario.E) the Kobayashi Maru Scenario.
Answer: C
38) The economist most closely associated with the "Yes, left alone, markets quickly self-adjust" view is 38)A) J.M. Keynes.B) A.C. Pigou.C) J.K. Rowling.D) J.B. Say.E) G.B. Shaw.
Answer: D
39) The economist most closely associated with the "No, left alone markets fail to quickly self-adjust" is 39)A) John Maynard Keynes.B) Jean-Baptiste Say.C) James Tiberius Kirk.D) Joseph Stiglitz.E) Norm Peterson.
Answer: A
40) Say's Law states: 40)A) What goes up must come down.B) In the long run, we are all dead.C) What is true for one is not true for all.D) The meek shall inherit the earth.E) Supply creates its own demand.
Answer: E
41) According to the paradox of thrift, when everyone saves more, 41)A) government will spend more.B) households will spend more.C) banks will raise interest rates.D) businesses will lay off workers.E) businesses will raise prices.
Answer: D
4
download instant at http://testbankinstant.com42) In the circular flow of economic life, which players are the main buyers in input markets? 42)
A) householdsB) economistsC) governmentsD) banksE) businesses
Answer: E
43) In the circular flow of economic life, which players are the main sellers in input markets? 43)A) householdsB) economistsC) businessesD) banksE) governments
Answer: A
44) In the circular flow of economic life, which players are the main buyers in output markets? 44)A) economistsB) governmentsC) householdsD) businessesE) banks
Answer: C
45) In the circular flow of economic life, which players are the main sellers in output markets? 45)A) economistsB) banksC) householdsD) businessesE) governments
Answer: D
46) What do the Great Depression and Great Recession have in common? 46)A) Both had a stock market crash.B) Both had government programs like employment insurance.C) Both experienced a rise in prices.D) Both were great for depression.
Answer: A
47) Who is to blame for inflating the housing price bubble? 47)A) homeowners B) banks and other financial institutionsC) mortgage lenders D) all of the above
Answer: D
48) During the Great Recession, all of the following indicators fell except 48)A) asset prices. B) stock market values.C) unemployment. D) housing prices.
Answer: C
5
download instant at http://testbankinstant.com49) Say's Law claims that 49)
A) supply is greater than demand. B) demand creates its own supply.C) demand is greater than supply. D) supply creates its own demand.
Answer: D
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
50) J.B. Say would probably vote for the New Democratic Party. 50)Answer: True False
51) Price stability is not a desirable macroeconomic outcome. 51)Answer: True False
52) Market failure happens when government fails to serve the market's interests. 52)Answer: True False
53) Government failure can occur if policymakers make "honest mistakes." 53)Answer: True False
54) Government failure can make business cycles worse. 54)Answer: True False
55) Hands-off economists believe that business cycles can be caused by government mistakes. 55)Answer: True False
56) Hands-on economists believe that business cycles can be caused by normally functioning markets. 56)Answer: True False
57) Hands-off economists believe that business cycles are caused by normally functioning markets. 57)Answer: True False
58) Hands-on economists believe that markets do not quickly self-adjust. 58)Answer: True False
59) Hands-on economists believe that markets quickly self-adjust. 59)Answer: True False
60) Hands-off economists believe that markets do not quickly self-adjust. 60)Answer: True False
61) Hands-off economists believe that markets quickly self-adjust. 61)Answer: True False
62) Hands-off economists believe that government failure is worse than market failure. 62)Answer: True False
63) Hands-on economists believe that government failure is worse than market failure. 63)Answer: True False
6
download instant at http://testbankinstant.com64) Hands-on economists believe that market failure is worse than government failure. 64)
Answer: True False
65) Hands-off economists believe that market failure is worse than government failure. 65)Answer: True False
66) The Conservative Party of Canada seems to believe that left alone, markets will quickly self-adjust. 66)Answer: True False
67) The Conservative Party of Canada (on the political right) believes that government failure is worsethan market failure.
67)
Answer: True False
68) The New Democratic Party (on the political left) believes that government failure is worse thanmarket failure.
68)
Answer: True False
69) When everyone expects housing prices to rise, then housing prices will rise. 69)Answer: True False
70) J.M. Keynes wrote his book after the Great Depression started. 70)Answer: True False
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
71) Which political party is most likely to support a hands-off approach by government? 71)A) New Democratic PartyB) Green PartyC) Liberal Party of CanadaD) Conservative Party of CanadaE) Bloc Quebecois
Answer: D
72) Which political party is least likely to support a hands-on approach by government? 72)A) Liberal Party of CanadaB) Conservative Party of CanadaC) Bloc QuebecoisD) Green PartyE) New Democratic Party
Answer: B
73) Economists who support a hands-off approach believe that 73)A) supply creates its own demand.B) government is part of the solution.C) socialism is better than capitalism.D) markets fail to quickly self-adjust.E) macroeconomic and microeconomic outcomes are different.
Answer: A
7
download instant at http://testbankinstant.com74) Economists who support a hands-on approach believe that 74)
A) supply creates its own demand.B) socialism is better than capitalism.C) government is part of the problem.D) markets quickly self-adjust.E) macroeconomic and microeconomic outcomes are different.
Answer: E
75) Economists who support a hands-off approach believe that 75)A) markets do not exist.B) the world is ending in 2016.C) demand creates its own supply.D) markets will not self-adjust.E) markets will quickly self-adjust.
Answer: E
76) Economists who support a hands-on approach believe that 76)A) demand creates its own supply.B) market failure is worse than government failure.C) external events are the major cause of business cycles.D) markets adjust quickly.E) supply creates its own demand.
Answer: B
77) Economists who support a hands-off approach believe that 77)A) external events are the major cause of business cycles.B) market failure is worse than government failure.C) macroeconomic and microeconomic outcomes are different.D) demand creates its own supply.E) markets fail to adjust quickly.
Answer: A
78) Economists who support a hands-off approach believe that 78)A) hands-on economists are wimps.B) demand creates its own supply.C) governments never fail.D) markets never fail.E) supply creates its own demand.
Answer: E
79) Economists who support a hands-off approach believe that business cycles are caused by 79)A) money.B) external events.C) banking.D) expectations.E) irrational investors.
Answer: B
8
download instant at http://testbankinstant.com80) Economists who support a hands-off approach believe that business cycles are caused by 80)
A) irrational investors.B) banking.C) government policy.D) money.E) expectations.
Answer: C
81) Economists who support a hands-on approach believe that business cycles are caused by 81)A) banking.B) expectations.C) money.D) irrational investors.E) all of the above answers.
Answer: E
82) Economists who support a hands-on approach believe that the major cause of business cycles is 82)A) government policy.B) government failure.C) economists.D) expectations.E) external events
Answer: D
83) According to economists, government failure happens when 83)A) politicians make intentional mistakes and lie to voters.B) policymakers are captured by special interest groups.C) the public interest can not be defined.D) economists lie to politicians.E) a minority government is defeated in the House of Commons.
Answer: B
84) Which outcome is not part of the fundamental macroeconomic question? 84)A) a strong Canadian dollarB) steady growth in living standardsC) low unemploymentD) full employmentE) stable prices
Answer: A
85) Who said, "In the long run, we are all dead?" 85)A) J.M. KeynesB) D. VaderC) J.B. SayD) J.K. RowlingE) G.B. Shaw
Answer: A
9
download instant at http://testbankinstant.com86) During the Great Recession, all of the following measures fell except 86)
A) unemployment.B) asset prices.C) economic growth.D) stock prices.E) housing prices.
Answer: A
87) If J.B. Say were alive today and could vote in Canadian elections, he would probably support the 87)A) Green Party.B) Liberal Party.C) Conservative Party of Canada.D) New Democratic Party.E) Bloc Quebecois.
Answer: C
88) Those favouring a government hands-off approach argue that 88)A) markets will self-adjust.B) markets will not quickly self-adjust.C) markets will quickly self-adjust.D) markets will quickly-self adjust if left alone by government.
Answer: D
89) Which political party is most likely to support a hands-off approach by government? 89)A) NDP B) Conservative Party of CanadaC) Bloc Québécois D) Liberal Party of Canada
Answer: B
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
90) Gross domestic product is the value of all final products and services produced annually in acountry.
90)
Answer: True False
91) GDP includes all goods produced since January 1, 2000. 91)Answer: True False
92) The inflation rate is measured by the Consumer Price Index. 92)Answer: True False
93) When the price level falls by 20 percent, products that previously cost $60 will now cost $48. 93)Answer: True False
94) When the price level falls by 20 percent, products that previously cost $60 will now cost $40. 94)Answer: True False
95) When the price level rises by 20 percent, products that previously cost $60 will now cost $80. 95)Answer: True False
10
download instant at http://testbankinstant.com96) When the price level rises by 20 percent, products that previously cost $60 will now cost $72. 96)
Answer: True False
97) Tiago graduated, but has given up looking for work. Tiago is considered to be unemployed. 97)Answer: True False
98) Tiago graduated, and is actively looking for work. Tiago is considered to be unemployed. 98)Answer: True False
99) It is desirable to have cyclical ups and downs in GDP. 99)Answer: True False
100) It is desirable to have steady growth in GDP. 100)Answer: True False
101) When the price level falls by 50 percent, products that previously cost $600 will now cost $300. 101)Answer: True False
102) When the price level rises by 10 percent, products that previously cost $50 will now cost $60. 102)Answer: True False
103) Unpredictable changes in the inflation rate are good. 103)Answer: True False
104) Higher and unpredictable inflation rates are good. 104)Answer: True False
105) Lower and predictable inflation rates are good. 105)Answer: True False
106) A fall in the average level of prices is called deflation. 106)Answer: True False
107) A rise in the average level of prices is called deflation. 107)Answer: True False
108) When there is deflation, the average value of money is rising. 108)Answer: True False
109) When there is deflation, the average value of money is falling. 109)Answer: True False
11
download instant at http://testbankinstant.comMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
110) Economists call the final value of all products and services produced annually in a country, 110)A) industrial value of product.B) gross domestic product.C) grand total product.D) national production.E) total product.
Answer: B
111) Gross domestic product measures the final value of all products and services produced 111)A) since January 1, 2000.B) per hour.C) since the country began producing.D) in a year.E) since January 1, 2010.
Answer: D
112) A healthy economy has all of the following except 112)A) smooth, steady growth in GDP.B) unpredictable changes in the price level.C) low unemployment.D) full employment.E) a mild inflation rate.
Answer: B
113) A healthy economy should have 113)A) high GDP per person, high inflation and low unemployment.B) low GDP per person, high inflation and low unemployment.C) low GDP per person, low inflation and low unemployment.D) high GDP per person, low inflation and low unemployment..E) high GDP per person, high inflation and high unemployment.
Answer: D
114) When the price level rises by 5 percent, products that cost $20 last year will now cost 114)A) $100. B) $21. C) $1. D) $25. E) $30.
Answer: B
115) When the price level rises by 10 percent, products that cost $20 last year will now cost 115)A) $25. B) $2. C) $22. D) $200. E) $21.
Answer: C
116) If the inflation rate is 10 percent, products that used to cost $50 cost ________ a year later. 116)A) $100 B) $51 C) $60 D) $55 E) $40
Answer: D
117) If the inflation rate is 10 percent, products that used to cost $80 cost ________ a year later. 117)A) $88 B) $800 C) $81 D) $90 E) $70
Answer: A
12
download instant at http://testbankinstant.com118) Higher GDP per person means 118)
A) higher living standards.B) lower prices.C) a shrinking population.D) a growing population.E) higher unemployment rates.
Answer: A
119) Lower GDP per person means 119)A) lower living standards.B) a growing population.C) higher prices.D) a shrinking population.E) lower unemployment rates.
Answer: A
120) A person is counted as unemployed if she is 120)A) at home because she has given up looking for a job.B) retired.C) not employed and is actively seeking work.D) a full time student.E) too young to work.
Answer: C
121) If a very small region has 20 people unemployed and 80 people employed, the unemployment rateis
121)
A) 20 percent.B) 25 percent.C) 40 percent.D) 60 percent.E) 33 percent.
Answer: A
122) Inflation is a rise in the 122)A) value of money.B) average price level.C) number of people looking for work.D) number of people employed.E) value of savings.
Answer: B
123) Inflation is a fall in the 123)A) number of people looking for work.B) average price level.C) number of people employed.D) value of money.E) final value of all products and services produced.
Answer: D
13
download instant at http://testbankinstant.com124) When the price level falls by 20 percent, products that used to cost $600 will now cost 124)
A) $580. B) $300. C) $480. D) $120. E) $500.Answer: C
125) It is desirable to have higher GDP per person and 125)A) cyclical ups and downs in GDP.B) a falling value of money.C) a rising price level.D) steady growth in GDP.E) unpredictable changes in prices.
Answer: D
126) The performance of the Canadian economy is measured by the key outcome(s) of 126)A) inflation. B) unemployment.C) GDP. D) All of the above
Answer: D
127) Which of the following individuals would count as unemployed? 127)A) an ex-student who has graduated and is looking for workB) a full-time studentC) an ex-student who has graduated and is workingD) an ex-student who has graduated but is not looking for work
Answer: A
128) Inflation is a rise in the 128)A) standard of living in the economy.B) value of money.C) average price level in the economy.D) quantity of products/services in the economy.
Answer: C
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
129) Consumers can choose to spend or save their income. 129)Answer: True False
130) A macroeconomic choice for consumers is whether to spend or save. 130)Answer: True False
131) A macroeconomic choice for consumers is whether to buy products/services produced in Canada orimported from other countries.
131)
Answer: True False
132) A macroeconomic choice for consumers is whether to buy an iPhone or a Blackberry. 132)Answer: True False
133) The banking system includes the Bank of Canada and chartered banks but does not include trustcompanies.
133)
Answer: True False
14
download instant at http://testbankinstant.com134) Rest of the world players can invest in Canadian businesses. 134)
Answer: True False
135) Monetary policy involves changes in interest rates and the supply of money. 135)Answer: True False
136) A macroeconomic choice for banks is whether to make loans or not. 136)Answer: True False
137) When a consumer household buys shares in a Canadian business, this counts as investmentspending.
137)
Answer: True False
138) Government fiscal policy involves changes in transfer payments. 138)Answer: True False
139) Government fiscal policy involves changes in taxes. 139)Answer: True False
140) Government fiscal policy involves changes in interest rates. 140)Answer: True False
141) Government fiscal policy involves changes in the money supply. 141)Answer: True False
142) Government conducts fiscal policy by changing interest rates. 142)Answer: True False
143) The Bank of Canada is responsible for setting tax rates. 143)Answer: True False
144) The Bank of Canada conducts monetary policy. 144)Answer: True False
145) Government transfers are negative taxes. 145)Answer: True False
146) Business investment spending includes purchasing stocks and bonds. 146)Answer: True False
147) A macroeconomic choice for businesses is whether to produce more pants or more boxer shorts. 147)Answer: True False
148) A macroeconomic choice for businesses is whether or not to build new factories. 148)Answer: True False
15
download instant at http://testbankinstant.comMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
149) The group of macroeconomic players that makes the most choices about investment spending is 149)A) the Bank of Canada and banking system.B) consumers.C) government.D) the rest of the world.E) businesses.
Answer: E
150) The group of macroeconomic players that makes the most choices about setting interest rates is 150)A) businesses.B) consumers.C) the Bank of Canada and banking system.D) the rest of the world.E) government.
Answer: C
151) The group of macroeconomic players that chooses fiscal policy is 151)A) the rest of the world.B) businesses.C) the Bank of Canada and banking system.D) government.E) consumers.
Answer: D
152) The largest group of macroeconomic players that chooses whether or not to save is 152)A) consumers.B) government.C) Bank of Canada and banking system.D) rest of the world.E) businesses.
Answer: A
153) The group of macroeconomic players that chooses monetary policy is 153)A) businesses.B) government.C) the Bank of Canada.D) consumers.E) the rest of the world.
Answer: C
154) The largest group of macroeconomic players that chooses whether or not to hire Canadian workersis
154)
A) the rest of the world.B) government.C) consumers.D) businesses.E) the Bank of Canada and banking system.
Answer: D
16
download instant at http://testbankinstant.com155) The largest group of macroeconomic players that chooses whether or not to spend on imported
products/services is155)
A) consumers.B) government.C) the rest of world.D) businesses.E) the Bank of Canada and banking system.
Answer: A
156) Fiscal policy is chosen by 156)A) the rest of the world.B) the Bank of Canada and banking system.C) businesses.D) consumers.E) government.
Answer: E
157) Monetary policy is chosen by 157)A) the Bank of Canada.B) businesses.C) consumers.D) government.E) the rest of the world.
Answer: A
158) The group of macroeconomic players that makes the most choices about spending on Canadianexports is
158)
A) the rest of the world.B) businesses.C) government.D) consumers.E) the Bank of Canada and banking system.
Answer: A
159) Fiscal policy includes government changes in 159)A) the supply of money.B) transfer payments.C) exports.D) imports.E) interest rates.
Answer: B
160) Fiscal policy includes government changes in 160)A) taxes.B) imports.C) the supply of money.D) exports.E) interest rates.
Answer: A
17
download instant at http://testbankinstant.com161) Fiscal policy includes government changes in 161)
A) government purchases.B) the supply of money.C) imports.D) exports.E) interest rates.
Answer: A
162) Monetary policy includes changes in 162)A) taxes.B) government purchases.C) interest rates.D) imports.E) exports.
Answer: C
163) Monetary policy includes changes in 163)A) government purchases.B) transfer payments.C) the supply of money.D) exports.E) imports.
Answer: C
164) Purchases of new factories and equipment by businesses are called 164)A) investment spending. B) stock investments.C) exports. D) labour costs.
Answer: A
165) Transfer payments by governments to consumers include 165)A) Employment Insurance for the unemployed.B) Canadian Child Tax Benefit payments to low-income families.C) Old Age Security payments to seniors.D) All of the above
Answer: D
166) Monetary policy is the responsibility of the 166)A) Government of Canada. B) Bank of Nova Scotia.C) Bank of Canada. D) Bank of Montreal.
Answer: C
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
167) Higher GDP per person allows higher living standards. 167)Answer: True False
168) If your income rises faster than the prices of what you buy, your standard of living falls. 168)Answer: True False
169) If your income rises faster than the prices of what you buy, your standard of living rises. 169)Answer: True False
18
download instant at http://testbankinstant.com170) If your income does not rise as fast as the prices of what you buy, your standard of living falls. 170)
Answer: True False
171) If your income does not rise as fast as the prices of what you buy, your standard of living rises. 171)Answer: True False
172) When the unemployment rate is high, employers have an advantage in bargaining over wages. 172)Answer: True False
173) When the unemployment rate is high, workers have an advantage in bargaining over wages. 173)Answer: True False
174) When the unemployment rate is low, workers have an advantage in bargaining over wages. 174)Answer: True False
175) When the unemployment rate is low, employers have an advantage in bargaining over wages. 175)Answer: True False
176) Unemployment tends to be inversely related to growth in GDP. 176)Answer: True False
177) Unemployment tends to be positively related to growth in GDP. 177)Answer: True False
178) When the total value of products/services produced is growing, unemployment falls. 178)Answer: True False
179) When the total value of products/services produced is growing, unemployment rises. 179)Answer: True False
180) "Choose only when additional benefits are greater than additional opportunity costs" is amicroeconomic key to smart choices.
180)
Answer: True False
181) "Choose only when additional benefits are greater than additional opportunity costs" ismacroeconomic MAPS1.
181)
Answer: True False
182) One of the macroeconomic MAPS focuses on the relationship between additional benefits andadditional opportunity costs.
182)
Answer: True False
183) One of the macroeconomic MAPS focuses on the connections between Canada and the rest of theworld.
183)
Answer: True False
184) One of the macroeconomic MAPS focuses on the connections between input markets and outputmarkets for both demand and supply sides.
184)
Answer: True False
19
download instant at http://testbankinstant.com185) One of the macroeconomic MAPS focuses on the connections between banks and the input and
output markets of the circular flow.185)
Answer: True False
186) One of the MAPS focuses on the connections between banks and the input and output markets ofthe circular flow.
186)
Answer: True False
187) MAPS focus on the background information you can safely ignore in learning how to think like amacroeconomist.
187)
Answer: True False
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
188) A higher GDP per person usually indicates 188)A) a growing population.B) a higher living standard.C) a lower living standard.D) a shrinking population.E) none of the above answers.
Answer: B
189) When unemployment is low, 189)A) workers compete against many other unemployed workers.B) workers have an advantage in bargaining over wages.C) jobs are hard to find.D) employers can choose from a large pool of applicants for a job.E) employers have an advantage in bargaining over wages.
Answer: B
190) When unemployment is high, 190)A) workers can choose from a large pool of available jobs.B) employers compete against many other employers for new workers.C) jobs are easy to find.D) employers have an advantage in bargaining over wages.E) workers have an advantage in bargaining over wages.
Answer: D
191) When unemployment is high, 191)A) workers have an advantage in bargaining over wages.B) employers compete against many other employers for new workers.C) jobs are easy to find.D) workers compete against many other unemployed workers.E) workers can choose from a large pool of available jobs.
Answer: D
20
download instant at http://testbankinstant.com192) When unemployment is low, 192)
A) employers have an advantage in bargaining over wages.B) employers compete against many other employers for new workers.C) jobs are hard to find.D) employers can choose from a large pool of applicants for a job.E) workers compete against many other unemployed workers.
Answer: B
193) When there is inflation, 193)A) average prices fall.B) the value of money rises.C) the purchasing power of your savings rises.D) your standard of living falls if your income rises faster than the prices of what you buy.E) the purchasing power of your savings falls.
Answer: E
194) When there is inflation, 194)A) your standard of living rises if the prices of what you buy rise faster than your income.B) your standard of living falls if your income rises faster than the prices of what you buy.C) average prices fall.D) the value of money falls.E) the purchasing power of your savings rises.
Answer: D
195) When there is inflation, 195)A) the purchasing power of your savings rises.B) the value of money rises.C) average prices fall.D) your standard of living rises if your income rises faster than the prices of what you buy.E) your standard of living falls if your income rises faster than the prices of what you buy.
Answer: D
196) Which of the following is not a macroeconomic MAPS? Focus on the connections between 196)A) money and the input and output markets of the circular flow.B) Canada and the rest of the world.C) expectations and the input and output markets of the circular flow.D) input markets and output markets for both demand and supply sides.E) additional benefits and additional opportunity costs.
Answer: E
197) Which of the following is not a macroeconomic MAPS? Focus on the connections between 197)A) government and the input and output markets of the circular flow.B) money and the input and output markets of the circular flow.C) input markets and output markets for both demand and supply sides.D) banks and the input and output markets of the circular flow.E) Canada and the rest of the world.
Answer: A
21
download instant at http://testbankinstant.com198) The amount of unemployment in the economy matters to your personal economic success because
it affects your ability to198)
A) bargain for better working conditions. B) find a job.C) bargain for higher wages. D) All of the above
Answer: D
199) When unemployment increases, 199)A) the chance of finding a job decreases. B) the economy is growing.C) GDP increases. D) All of the above
Answer: A
200) Which of the following is not part of the MAcroeconomics Positioning System (MAPS)? 200)A) connection between households and consumersB) connection between input and output marketsC) connection between money/banks/expectations and input and output marketsD) connections between Canada and the rest of the world
Answer: A
22