The demand for a good will increase if:there is an increase in the number of consumers in this markerBecause people respond to incentives, if the price of gasoline rises and stays high for an extended period, we expect people to:use more public transportationConsider the supply curve for cotton shirts. An increase in the price of cotton will:decrease the supply of cotton shirtsSuppose the marker for gasoline is in equilibrium. You have heard that the price of crude oil is falling because of new oil discoveries. You are also aware that the numbers of car and truck drivers is steadily rising. Knowing this, you predict that the quantity of gasoline bought and sold will ____ and the price of gasoline will __________Rise; May rise, Fall or Stay Unchanged Madison1997The demand for textbooks is price-inelastic. Which statement would explain this phenomenonTextbooks are a necessity for most studentsWhich situation demonstrates the benefits principle?Revenue from the federal tax on gasoline is used to maintain and improve the interstate highway systemJessicas income increased by 10% this year. In the same year, Jessica's quantity demanded of milk increased by 10% and her quantity demanded for bread increased bboth milk and bread are normal goods.Which item would NOT be included in this years GDPthe hiring of a new police officerRecent declines in union membership are likely _____ the natural rate of unemploymentto decreaseThe official unemployment rate reported by the government may tend to understate the amount of unemployment because itexcludes discouraged workersEconomist generally believe that during an expansion, an economy shouldrun a budget surplusWhich statement is an example of investment spending in macroeconomicsA dominos pizza store has purchased a new pizza ovenWhich is MOST likely a macroeconomic, not microeconomic, question?Is the national unemployment rate rising or falling?If the value of a country's exports is GREATER than the value of its imports, it is?running a trade surplusAn open economy :trades goods and services with other countriesMoney is an asset that:can easily be used to purchase goods and servicesIf the Fed conducts an open-market sale, bank reserves _____ and the money supply is likely to _____.decrease, decreasePayments to Social Security recipients are indexed to the rate of inflation, as measured by the consumer price index. This means that, when the rate of inflation increases, the ______ Social Security recipients _________payments to; increaseIn the structure of the Federal Reserve, which component is part of the government
I. the Board of Governors
II. the 12 regional Federal Reserve BanksI onlyWhen hyperinflation forces Pedro to change the price stickers on the books in his bookstore very frequently to keep up with the aggregate price level, economists say that Pedro is experiencing a:menu-costWhen the aggregate price level increases, the purchasing power of many assets falls, causing a decrease in consumer spending. This, the _______ effect, is a reason the ________ curve slopes _______wealth, aggregate demand, downwardNominal wages are sticky because:wages are slow to rise when there are labor shortage and slow to fall even when the level of unemployment is significantIn lending to Vanessa, Alison expects the inflation ratite be 8% over the next year. Vanessa agrees to pay Alison a 10% interest rate on the loan, but Vanessa expects inflation to be a 9%. If the actual inflation rate is 9% :the real rate of interest is 1%An increase in government spending on health care is likely to shift the ________ curve to the ________aggregate demand; rightIf the actual inflation rate is less that the expected inflation rate:lenders gain and borrowers loseThe main role of financial systems is to:channel fund from savers into investmentsWhich factor is NOT one of the main features designed to protect depositors and the economy against bank runs?interest rate ceiling on checkable depositsLast week, Stephanie quit her job as a copywriter at an advertising agency. She has spent the past few days browsing the help wanted ads but hasn't found anything that matches her skills. Stephanie is BEST classified as:frictionally unemployedThe consumer price index reflects:changes in the prices of goods and services typically purchased by consumers.Automatic stabilizers act like:automatic expansionary fiscal policy when the economy is in a recession.Suppose scientist provide evidence that chocolate pudding increases the bad cholesterol levels of those who eat it. We would expect to seea decrease in the demand for chocolate puddingThe demand for salt is inelastic, and the supply of salt is elastic. The demand for caviar is elastic, and the supply of caviar is inelastic. Suppose that a tax of 1$ per pound is levied on the sellers of salt, and a tax of $1 per pound is levied on the buyers of caviar. We would expect that most of the burden of these taxes will fall onbuyers of salt and the sellers of caviarJob searchAll of the above are correctAn increase in the MPCincrease the fiscal multiplier, so that changes in government expenditures have a larger effect on aggregate demandWhich of the following both shift aggregate demand left?an increase in taxes and at a given price level consumer feel less wealthyEconomist use the term "money" to refer tothose types of wealth that are regularly accepted by sellers in exchange for goods and serviceIf the cross-price elasticity of two goods is negative, then the two goods arecomplimentsRent controlAll the above are correctIf the Federal Open Market Committee deicides to increases the money supply, the Federal Reservecreates dollar and uses them to purchase government bonds from the publicThe long run aggregate supply curve shows that by itself a permanent change in aggregate demand would lead to a long-run changein the price level, but not outputSuppose the market for loanable funds is in equilibrium. What would happen in the market for loanable funds, other things the same, if the Congress and President increased the maximum contribution limits to 401 (k) and 403 (b) tax-deferred retirement accounts?the interest rate would decrease and the quantity of loanable funds would increase.Which of the following statements is an example of a positive, as opposed to normative, statement?Reducing emissions reduces day missed from school due to asthma.When conducting an open-market sale, the Fedsells government bonds, and in doing so decreases the money supplyThe opportunity cost of holding moneyincreases when the interest rate increases, so people desire to hold less of it.A rational decision maker takes an action only if themarginal benefit is greater than the marginal costWhich of the following items is included in U.S GDPAll of the above are included in U.S GDPSuppose there were a large decline in net exports. If the Fed wanted to stabilize output, it couldbuy bonds to lower interest rates.The theory that the wealthy should contribute more to police protection than the poor because they have more to protect is based onthe benefits principle
