Macroeconomics - Exam Questions

Macroeconomics - Exam Questions scarcity exists because of: - CORRECT ANSWER-unlimited wants and limited resources the basic difference between macroeconomics and microeconomics is: - CORRECT ANSWER-micro concentrates on the behavior of the individual consumers and firms, while macro focuses on the performance of the entire country additions to human capital can be made through: - CORRECT ANSWER-improved education and on-the-job training an example of physical capital is: a - a $100 bill b - stock certificate c - tractor d - cheeseburger - CORRECT ANSWER-c - a tractor if the price index is 120, it means: - CORRECT ANSWER-prices are 20% higher than in the base year Kathyrn chose to go to college full-time rather than work. Kathryn: - CORRECT ANSWER-is not part of the labor force persons who do not hold a job, but are actively seeking work are considered: - CORRECT ANSWER-unemployed the cost imposed on a firm from changing listed prices is termed: - CORRECT ANSWER-the menu cost of inflation Unemployment rises in __________ and falls in ______________. : - CORRECT ANSWER-contractions; expansions marginal propensity to consume is equal to the change in _____________ divided by the change in _______________. : - CORRECT ANSWER-consumption spending; disposable income The SRAS (short-run aggregate supply) curve is: - CORRECT ANSWER-upward sloping The LRAS (long-run aggregate supply) curve is: - CORRECT ANSWER-vertical A wealthy Mexican business man bought the Thomas English Muffins chain. English muffins baked in the U.S. would be: - CORRECT ANSWER-included in the GDP of the United States Short-run aggregate supply: - CORRECT ANSWER-Reflects how much RGDP suppliers are willing and able to produce at different price levels which of the following is not included in the money supply? a - checkable accts b - travelers' checks c - currency d - money market accts e - credit cards - CORRECT ANSWER-e - credit cards federal funds market rate is: - CORRECT ANSWER-the interest rate charged by banks on short-term or overnight loans to other banks that need to meet reserve requirements a cut in taxes, combined with an increase in transfer payments, would: - CORRECT ANSWER-increase AD (aggregate demand) which of the following is included in M2 but not included in M1? a - currency b - savings accounts c - traveler's checks d - checkable deposits - CORRECT ANSWER-b - savings accounts If gov't policy makers were worried about the *inflationary* potential of the economy, which of the following would be a correct *fiscal policy* change? a - increase discount rate b - decrease gov't purchases of goods/services (spending) c - increase transfer payments d - increase the budget deficit - CORRECT ANSWER-b - decrease gov't purchases of goods/services (spending)