Lomoarc ps d| 3687113
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TEST BANK
MACROECONOMICS
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Macroeconomics, 6e (Williamson)
Chapter 1 Introduction
1.1 Multiple-Choice Questions
1) In 2014, The Per-Capita GDP In The United States, In 2005 Dollars, Was
AboutA) $17,500.
B) $27,500.
C) $50,000
D) $47,500.
Answer: C
LO: 1.2: Explain The Key Features Of Trend Growth And Deviations From Trend In Per Capita
GrossDomestic Product In The United States From 1900 To 1914.
Difficulty: Easy
Classification: Concept
AACSB: Application Of Knowledge
2) Which Of The Following Topics Is NOT A Primary Concern Of Macroeconomists?
A) Fluctuations In The Level Of Economic Activity
B) Differences In Standards Of Living Across Countries
C) Relative Wages Of Skilled And Unskilled Workers
D) Unemploymen
t
Answer: C
LO: 1.1: State The Two Focuses Of Study In Macroeconomics, The Key Differences
BetweenMicroeconomics And Macroeconomics, And The Similarities Between
Microeconomics Difficulty: Moderate
Classification: Concept
AACSB: Analytical
Thinking
3) Primarily, Macroeconomists Use Microeconomic Principles To Study
A) Business Cycles And Trends In The Stock Market.
B) Long-Run Economic Growth And Antitrust Policies.
C) Trends In The Stock Market And Long-Term Economic Growth.
D) Long-Run Economic Growth And Business
Cycles.
Answer: D
LO: 1.1: State The Two Focuses Of Study In Macroeconomics, The Key Differences
BetweenMicroeconomics And Macroeconomics, And The Similarities Between
Microeconomics Difficulty: Moderate
Classification: Concept
AACSB: Application Of Knowledge
4) Which Is A Question Of Interest In This Book?
A) What Causes Growth In The Long Term?
B) How Should A Labor Contract Be Structured?
C) How Should A Government Be Elected?
D) What Is The Impact Of Government Provided Health
Care?
Answer: A
LO: 1.1: State The Two Focuses Of Study In Macroeconomics, The Key Differences
BetweenMicroeconomics And Macroeconomics, And The Similarities Between
Microeconomics Difficulty: Difficult
Classification: Concept
AACSB: Analytical
Thinking
5) Which Is A Question Of Interest In This Book?
A) Where Is The Stock Market Heading?
B) What Is The Optimal Inflation Rate?
C) How Are Stock Options Priced?
D) What Are Commodity Futures?
, lOMoAR cPSD| 36871134
Answer: B
LO: 1.1: State The Two Focuses Of Study In Macroeconomics, The Key Differences
BetweenMicroeconomics And Macroeconomics, And The Similarities Between
Microeconomics Difficulty: Moderate
Classification: Concept
AACSB: Application Of Knowledge
6) Over The Course Of The Twentieth Century, The Typical American
A) Remained Equally As Rich.
B) Became Twice As Rich.
C) Became Five Times As Rich
D) Became Ten Times As
Rich.
Answer: D
LO: 1.2: Explain The Key Features Of Trend Growth And Deviations From Trend In Per Capita
GrossDomestic Product In The United States From 1900 To 1914.
Difficulty: Easy
Classification: Application
AACSB: Analytical
Thinking
7) Which Of The Following Assertions Is False?
A) The Great Depression Was A Typical Business Cycle.
B) Very Rapid Growth Occurred During World War II.
C) Real GDP Per Capita Dipped About 30% During The Great Depression.
D) On Average, The U.S. Economy Grows At A Rate Of
2.1%.Answer: A
LO: 1.2: Explain The Key Features Of Trend Growth And Deviations From Trend In Per Capita
GrossDomestic Product In The United States From 1900 To 1914.
Difficulty: Moderate
Classification: Application
AACSB: Application Of
Knowledge
8) The Business Cycle Component Of The Log Of Real Per-Capita GNP Is Equal To
A) Log Of Actual Real GNP - Log Of Trend GNP.
B) Log Of Trend GNP ÷ Log Of Actual Real GNP.
C) Log Of Trend GNP - Log Of Actual Real GNP.
D) Log Of Actual Real GNP ÷ Log Of Trend
GNP.Answer: A
LO: 1.2: Explain The Key Features Of Trend Growth And Deviations From Trend In Per Capita
GrossDomestic Product In The United States From 1900 To 1914.
Difficulty: Easy
Classification: Concept
AACSB: Analytical
Thinking
9) For The Study Of Economic Growth, It Is Most Helpful To Examine Movements In ;
ForThe Study Of Business Cycles, It Is Most Helpful To Examine Movements In .
A) Trend GNP; Trend GNP
B) Trend GNP; Deviations From Trend In GNP
C) Deviations From Trend In GNP; Trend GNP
D) Deviations From Trend In GNP; Deviations From Trend In
GNPAnswer: B
LO: 1.2: Explain The Key Features Of Trend Growth And Deviations From Trend In Per Capita
GrossDomestic Product In The United States From 1900 To 1914.
Difficulty: Difficult
Classification: Application
AACSB: Application Of Knowledge
10) A Useful Macroeconomic Model
A) Is Extremely Realistic.
B) Is Simple.
, lOMoAR cPSD| 36871134
C) Never Generates Testable Hypotheses.
D) Provides A Lot Of Intricate
Details.Answer: B
LO: 1.3: Explain Why Models Are Useful In Macroeconomics.
Difficulty: Moderate
Classification: Concept
AACSB: Application Of Knowledge
11) Macroeconomic Models Are
A) Never Wrong.
B) Accurate Descriptions Of The Economy.
C) Simple Abstractions Of Reality.
D) Consistent With All Economic
Data.Answer: C
LO: 1.3: Explain Why Models Are Useful In Macroeconomics.
Difficulty: Easy
Classification: Concept
AACSB: Application Of Knowledge
12) What Characterizes A Competitive Equilibrium?
A) Markets Are Rationed.
B) Governments Stay Out Of The Market.
C) Economic Agents Are Price-Takers.
D) It Is Costly To Experiment With
Policies. Answer: C
LO: 1.3: Explain Why Models Are Useful In Macroeconomics.
Difficulty: Moderate
Classification: Concept
AACSB: Application Of Knowledge
13) What Do We Assume About Households And Firms?
A) They Act Irrationally.
B) They Do What The Government Tells Them To Do.
C) They Look After Each Other.
D) They
Optimize.
Answer: D
LO: 1.3: Explain Why Models Are Useful In Macroeconomics.
Difficulty: Moderate
Classification: Concept
AACSB: Application Of Knowledge
14) According To The Lucas Critique, The Effects Of Changes In Economic Policy
A) Can Be Determined By Looking At Macroeconomic Data.
B) Cannot Always Be Predicted By Looking At Historical Macroeconomic Relationships.
C) Are Easy To Predict.
D) Do Not Require Macroeconomic
Theory.
Answer: B
LO: 1.4: Discuss How Microeconomic Principles Are Important In Constructing Useful
Macroeconomic Models.
Difficulty: Difficult
Classification: Concept
AACSB: Analytical
Thinking
15) Which Aspect Of Macroeconomics Generates The Most Controversy?
A) Economic Growth
B) The Causes Of Business Cycles
C) Supply And Demand
D) Competitive
Equilibrium
Answer: B
LO: 1.5: Explain Why There Is Disagreement Among Macroeconomists, And What They
lOMoAR cPSD| 36871134
TEST BANK
MACROECONOMICS
, lOMoAR cPSD| 36871134
Macroeconomics, 6e (Williamson)
Chapter 1 Introduction
1.1 Multiple-Choice Questions
1) In 2014, The Per-Capita GDP In The United States, In 2005 Dollars, Was
AboutA) $17,500.
B) $27,500.
C) $50,000
D) $47,500.
Answer: C
LO: 1.2: Explain The Key Features Of Trend Growth And Deviations From Trend In Per Capita
GrossDomestic Product In The United States From 1900 To 1914.
Difficulty: Easy
Classification: Concept
AACSB: Application Of Knowledge
2) Which Of The Following Topics Is NOT A Primary Concern Of Macroeconomists?
A) Fluctuations In The Level Of Economic Activity
B) Differences In Standards Of Living Across Countries
C) Relative Wages Of Skilled And Unskilled Workers
D) Unemploymen
t
Answer: C
LO: 1.1: State The Two Focuses Of Study In Macroeconomics, The Key Differences
BetweenMicroeconomics And Macroeconomics, And The Similarities Between
Microeconomics Difficulty: Moderate
Classification: Concept
AACSB: Analytical
Thinking
3) Primarily, Macroeconomists Use Microeconomic Principles To Study
A) Business Cycles And Trends In The Stock Market.
B) Long-Run Economic Growth And Antitrust Policies.
C) Trends In The Stock Market And Long-Term Economic Growth.
D) Long-Run Economic Growth And Business
Cycles.
Answer: D
LO: 1.1: State The Two Focuses Of Study In Macroeconomics, The Key Differences
BetweenMicroeconomics And Macroeconomics, And The Similarities Between
Microeconomics Difficulty: Moderate
Classification: Concept
AACSB: Application Of Knowledge
4) Which Is A Question Of Interest In This Book?
A) What Causes Growth In The Long Term?
B) How Should A Labor Contract Be Structured?
C) How Should A Government Be Elected?
D) What Is The Impact Of Government Provided Health
Care?
Answer: A
LO: 1.1: State The Two Focuses Of Study In Macroeconomics, The Key Differences
BetweenMicroeconomics And Macroeconomics, And The Similarities Between
Microeconomics Difficulty: Difficult
Classification: Concept
AACSB: Analytical
Thinking
5) Which Is A Question Of Interest In This Book?
A) Where Is The Stock Market Heading?
B) What Is The Optimal Inflation Rate?
C) How Are Stock Options Priced?
D) What Are Commodity Futures?
, lOMoAR cPSD| 36871134
Answer: B
LO: 1.1: State The Two Focuses Of Study In Macroeconomics, The Key Differences
BetweenMicroeconomics And Macroeconomics, And The Similarities Between
Microeconomics Difficulty: Moderate
Classification: Concept
AACSB: Application Of Knowledge
6) Over The Course Of The Twentieth Century, The Typical American
A) Remained Equally As Rich.
B) Became Twice As Rich.
C) Became Five Times As Rich
D) Became Ten Times As
Rich.
Answer: D
LO: 1.2: Explain The Key Features Of Trend Growth And Deviations From Trend In Per Capita
GrossDomestic Product In The United States From 1900 To 1914.
Difficulty: Easy
Classification: Application
AACSB: Analytical
Thinking
7) Which Of The Following Assertions Is False?
A) The Great Depression Was A Typical Business Cycle.
B) Very Rapid Growth Occurred During World War II.
C) Real GDP Per Capita Dipped About 30% During The Great Depression.
D) On Average, The U.S. Economy Grows At A Rate Of
2.1%.Answer: A
LO: 1.2: Explain The Key Features Of Trend Growth And Deviations From Trend In Per Capita
GrossDomestic Product In The United States From 1900 To 1914.
Difficulty: Moderate
Classification: Application
AACSB: Application Of
Knowledge
8) The Business Cycle Component Of The Log Of Real Per-Capita GNP Is Equal To
A) Log Of Actual Real GNP - Log Of Trend GNP.
B) Log Of Trend GNP ÷ Log Of Actual Real GNP.
C) Log Of Trend GNP - Log Of Actual Real GNP.
D) Log Of Actual Real GNP ÷ Log Of Trend
GNP.Answer: A
LO: 1.2: Explain The Key Features Of Trend Growth And Deviations From Trend In Per Capita
GrossDomestic Product In The United States From 1900 To 1914.
Difficulty: Easy
Classification: Concept
AACSB: Analytical
Thinking
9) For The Study Of Economic Growth, It Is Most Helpful To Examine Movements In ;
ForThe Study Of Business Cycles, It Is Most Helpful To Examine Movements In .
A) Trend GNP; Trend GNP
B) Trend GNP; Deviations From Trend In GNP
C) Deviations From Trend In GNP; Trend GNP
D) Deviations From Trend In GNP; Deviations From Trend In
GNPAnswer: B
LO: 1.2: Explain The Key Features Of Trend Growth And Deviations From Trend In Per Capita
GrossDomestic Product In The United States From 1900 To 1914.
Difficulty: Difficult
Classification: Application
AACSB: Application Of Knowledge
10) A Useful Macroeconomic Model
A) Is Extremely Realistic.
B) Is Simple.
, lOMoAR cPSD| 36871134
C) Never Generates Testable Hypotheses.
D) Provides A Lot Of Intricate
Details.Answer: B
LO: 1.3: Explain Why Models Are Useful In Macroeconomics.
Difficulty: Moderate
Classification: Concept
AACSB: Application Of Knowledge
11) Macroeconomic Models Are
A) Never Wrong.
B) Accurate Descriptions Of The Economy.
C) Simple Abstractions Of Reality.
D) Consistent With All Economic
Data.Answer: C
LO: 1.3: Explain Why Models Are Useful In Macroeconomics.
Difficulty: Easy
Classification: Concept
AACSB: Application Of Knowledge
12) What Characterizes A Competitive Equilibrium?
A) Markets Are Rationed.
B) Governments Stay Out Of The Market.
C) Economic Agents Are Price-Takers.
D) It Is Costly To Experiment With
Policies. Answer: C
LO: 1.3: Explain Why Models Are Useful In Macroeconomics.
Difficulty: Moderate
Classification: Concept
AACSB: Application Of Knowledge
13) What Do We Assume About Households And Firms?
A) They Act Irrationally.
B) They Do What The Government Tells Them To Do.
C) They Look After Each Other.
D) They
Optimize.
Answer: D
LO: 1.3: Explain Why Models Are Useful In Macroeconomics.
Difficulty: Moderate
Classification: Concept
AACSB: Application Of Knowledge
14) According To The Lucas Critique, The Effects Of Changes In Economic Policy
A) Can Be Determined By Looking At Macroeconomic Data.
B) Cannot Always Be Predicted By Looking At Historical Macroeconomic Relationships.
C) Are Easy To Predict.
D) Do Not Require Macroeconomic
Theory.
Answer: B
LO: 1.4: Discuss How Microeconomic Principles Are Important In Constructing Useful
Macroeconomic Models.
Difficulty: Difficult
Classification: Concept
AACSB: Analytical
Thinking
15) Which Aspect Of Macroeconomics Generates The Most Controversy?
A) Economic Growth
B) The Causes Of Business Cycles
C) Supply And Demand
D) Competitive
Equilibrium
Answer: B
LO: 1.5: Explain Why There Is Disagreement Among Macroeconomists, And What They
