Test Bank For Principles of Macroeconomics 13th Edition By
Karl E. Case; Ray C. Fair; Sharon E.
Which of the following is NOT a topic studied in Macroeconomics?
A) the unemployment rate
B) gross domestic product
C) the price of Dell computers
D) the inflation rate - ANSWER: C) the price of Dell computers
Government policymakers would like to have high ___________ and low
_____________.
A) unemployment and output growth; inflation
B) output growth; unemployment and inflation
C) output growth and inflation; unemployment
D) inflation; unemployment and output growth - ANSWER: B) output growth;
unemployment and inflation
In the circular flow diagram, firms ___________ labor and households ________
goods and services.
A) supply; demand
B) supply; supply
C) demand; supply
D) demand; demand - ANSWER: D) demand; demand
Which of the following is NOT a correct statement?
A) Shareholders earn dividends but bondholders don't.
B) Bondholders earn dividends but shareholders don't.
C) Companies can issue shares and issue bonds.
D) The government issues bonds but does not issue shares. - ANSWER: B)
Bondholders earn dividends but shareholders don't.
According to Classical economists, if the quantity of labor demanded exceeds the
quantity supplied, there is:
A) shortage of labor and wages will fall.
B) surplus of labor and wages will fall.
C) surplus of labor and wages will rise.
D) shortage of labor and wages will rise. - ANSWER: D) shortage of labor and wages
will rise.
The value of what KFC produces in Japan is included in the U.S. ________ and in the
Japanese ________
A) GDP; GDP
B) GNP; GDP
C) GDP; GNP
D) GNP; GNP - ANSWER: GNP; GDP
, Which of the following would NOT be counted in 2016's GDP?
A) the commissions earned by a sales associate in selling home theater systems built
prior to 2016.
B) the 2016 salary of a used furniture salesperson.
C) the value of a 1976 convertible you purchase from a dealer in 2016.
D) the value of a laser printer manufactured in 2016 but not sold in 2016. - ANSWER:
C) the value of a 1976 convertible you purchase from a dealer in 2016.
The equation for GDP using the expenditure approach is:
A) GDP= C + I + G + EX - IM
B) GDP= C + I + G - EX - IM
C) GDP= C + I + G + EX + IM
D) GDP= C + I + G + (IM - EX) - ANSWER: A) GDP= C + I + G + EX - IM
Refer to Table 6.1. The value for gross private domestic investment in billions of
dollars is
A) 300
B) 375
C) 425
D) 450 - ANSWER: C) 425
Refer to Table 6.1. The value for net exports in billions of dollars is
A) 150
B) 250
C) 650
D) 800 - ANSWER: A) 150
Refer to Table 6.1. The value of gross domestic product in billions of dollars is
A) 3,000
B) 3,075
C) 3,125
D) 3,750 - ANSWER: B) 3,075
Refer to Table 6.9. Assume that this economy produces only 2 goods Good X and
Good Y. The value for this economy's nominal GDP in year 1 is
A) $140
B) $160
C) $180
D) $200 - ANSWER: A) $140
Refer to Table 6.9. Assume that this economy produces only two goods Good X and
Good Y. If year 1 is the base year , the value for this economy's real GDP in year 2 is
A) $168
B) $179
C) $202
D) $214 - ANSWER: A) $168
Karl E. Case; Ray C. Fair; Sharon E.
Which of the following is NOT a topic studied in Macroeconomics?
A) the unemployment rate
B) gross domestic product
C) the price of Dell computers
D) the inflation rate - ANSWER: C) the price of Dell computers
Government policymakers would like to have high ___________ and low
_____________.
A) unemployment and output growth; inflation
B) output growth; unemployment and inflation
C) output growth and inflation; unemployment
D) inflation; unemployment and output growth - ANSWER: B) output growth;
unemployment and inflation
In the circular flow diagram, firms ___________ labor and households ________
goods and services.
A) supply; demand
B) supply; supply
C) demand; supply
D) demand; demand - ANSWER: D) demand; demand
Which of the following is NOT a correct statement?
A) Shareholders earn dividends but bondholders don't.
B) Bondholders earn dividends but shareholders don't.
C) Companies can issue shares and issue bonds.
D) The government issues bonds but does not issue shares. - ANSWER: B)
Bondholders earn dividends but shareholders don't.
According to Classical economists, if the quantity of labor demanded exceeds the
quantity supplied, there is:
A) shortage of labor and wages will fall.
B) surplus of labor and wages will fall.
C) surplus of labor and wages will rise.
D) shortage of labor and wages will rise. - ANSWER: D) shortage of labor and wages
will rise.
The value of what KFC produces in Japan is included in the U.S. ________ and in the
Japanese ________
A) GDP; GDP
B) GNP; GDP
C) GDP; GNP
D) GNP; GNP - ANSWER: GNP; GDP
, Which of the following would NOT be counted in 2016's GDP?
A) the commissions earned by a sales associate in selling home theater systems built
prior to 2016.
B) the 2016 salary of a used furniture salesperson.
C) the value of a 1976 convertible you purchase from a dealer in 2016.
D) the value of a laser printer manufactured in 2016 but not sold in 2016. - ANSWER:
C) the value of a 1976 convertible you purchase from a dealer in 2016.
The equation for GDP using the expenditure approach is:
A) GDP= C + I + G + EX - IM
B) GDP= C + I + G - EX - IM
C) GDP= C + I + G + EX + IM
D) GDP= C + I + G + (IM - EX) - ANSWER: A) GDP= C + I + G + EX - IM
Refer to Table 6.1. The value for gross private domestic investment in billions of
dollars is
A) 300
B) 375
C) 425
D) 450 - ANSWER: C) 425
Refer to Table 6.1. The value for net exports in billions of dollars is
A) 150
B) 250
C) 650
D) 800 - ANSWER: A) 150
Refer to Table 6.1. The value of gross domestic product in billions of dollars is
A) 3,000
B) 3,075
C) 3,125
D) 3,750 - ANSWER: B) 3,075
Refer to Table 6.9. Assume that this economy produces only 2 goods Good X and
Good Y. The value for this economy's nominal GDP in year 1 is
A) $140
B) $160
C) $180
D) $200 - ANSWER: A) $140
Refer to Table 6.9. Assume that this economy produces only two goods Good X and
Good Y. If year 1 is the base year , the value for this economy's real GDP in year 2 is
A) $168
B) $179
C) $202
D) $214 - ANSWER: A) $168
