I Know It All
DOUBLE RAAC POINTS! If the union and the employer are unable to reach an agreement, the union may
A. sue the employer in court.
B. strike.
C. retreat.
D. raise dues.
B. strike.
Imagine Ryan and Ezra are brothers, and their parents ask them to clean the house and wash the car over the weekend, they would benefit from:
A. Splitting the tasks fifty-fifty.
B. Specializing in their comparative advantage.
C. Specializing in their absolute advantage.
D. None of the above.
B. Specializing in their comparative advantage.
If the exchange rate is 25 Russian rubles per U.S. dollar, we know that there are:
A. 25 dollars per ruble.
B. 25 rubles for one euro.
C. 4 cents per ruble.
D. None of the above.
C. 4 cents per ruble
DOUBLE RAAC POINTS! Outsourcing is the term used to describe:
A. work done by unionized labor.
B. work done by nonunion labor.
C. work done for a company by employees residing in a foreign country.
D. work done for a company by employees of an outside company.
D. work done for a company by employees of an outside company.
DOUBLE RAAC POINTS! When there is a sharp decline in real GDP, usually for a long period of time, it is called a(n)
A. expansion.
B. peak.
C. recession.
D. depression.
D. depression.
The American Federation of Labor (AFL) and the Congress of Industrial Organizations (CIO)
A. consisted of workers with similar skills.
B. merged in the 1950s.
C. have developed a strong relationship that continues today.
D. have doubled their membership over the years.
B. merged in the 1950s.
If a country exports more than it imports, then:
A. a trade surplus exists.
B. a trade deficit exists.
C. a balance of trade exists.
D. it does not have a comparative advantage.
A. a trade surplus exists.
DOUBLE RAAC POINTS! In the exchange equation, if M increases and V and Q remain the same, then
A. P will increase by the same percentage as M.
B. P will be unchanged.
C. P will decrease by the same percentage as M.
D. P will decrease.
A. P will increase by the same percentage as M.
The simple quantity theory of money is used to:
A. indicate CPI differences from one year to the next.
B. predict hyperinflation.
C. show that prices will fall if the money supply falls.
D. illustrate how your investment doubles if you divide the interest rate by 70.
C. show that prices will fall if the money supply falls.
DOUBLE RAAC POINTS! If there were a sharp increase in demand for Hershey’s chocolate bars, we might expect
A. an increase in demand for workers.
B. a decrease in demand for workers.
C. no change in the demand for workers.
D. none of the above.
A. an increase in demand for workers.
The study of how society chooses to use scarce resources to satisfy its unlimited wants and needs is called:
A. Microeconomics
B. Macroeconomics
C. Economics
D. All of the Above
C. Economics
DOUBLE RAAC POINTS! The North American Free Trade Agreement (NAFTA):
A. eliminates trade barriers among the member countries.
B. increases trade barriers among the member countries.
C. discourages international trade.
D. applies to 25 countries.
A. eliminates trade barriers among the member countries.
Using the exchange equation, if M = 10, V = 20, and q = 200, then P =
A. 200.
B. 100.
C. 10.
D. 1.
D. 1
DOUBLE RAAC POINTS! Gross domestic product is
A. the total market value of final goods and services produced in a year.
B. the total market value of final goods and services produced by U.S. citizens in a year.
C. the total market value of final goods and services produced within the borders of the United States in a year.
D. the total market value of all goods produced by citizens within and outside the United States in a year.
C. the total market value of final goods and services produced within the borders of the United States in a year.
Give me an example of opportunity cost.
Answers may vary; Need an example showing one sacrificing something for an alternative.
Colton can spend his day cooking four meals or designing two web pages. Fiona can spend her day cooking four meals or designing four web pages. The opportunity cost of one meal for Fiona is
A. 20 web pages.
B. 1 web page.
C. 1/20 web page.
D. 1 meal.
B. 1 web page.
Aggregate demand curves and aggregate supply curves are useful to show
A. whether an increase in the price level originates on the demand side or supply side.
B. rates of unemployment in the economy.
C. the inflation rate.
D. the velocity of money.
A. whether an increase in the price level originates on the demand side or supply side.
DOUBLE RAAC POINTS! Write the formula for computing GDP in words and in symbols.
Words: GDP equals consumption, plus investment, plus government purchases, plus exports, minus imports. Symbols: GDP = C + I + G + EX - IM
The term per capita means
A. per year.
B. state center.
C. per person.
D. each business.
C. per person.
The demand for labor could decrease if
A. the products that workers make become popular.
B. there is a decrease in the number of foreign workers.
C. there is a decrease in demand for the products that workers make.
D. there is a decrease in the supply of labor available.
C. there is a decrease in demand for the products that workers make.
Colton can spend his day cooking four meals or designing two web pages. Fiona can spend her day cooking four meals or designing four web pages.
Colton has a comparative advantage in
A. both meals and web pages.
B. neither meals nor web pages.
C. meals.
D. web pages.
C. meals.
The factors responsible for economic growth, causing a PPF to shift to the right, include
A. more natural resources and labor.
B. capital investment and increased human capital.
C. technological advances and incentives.
D. all of the above.
D. all of the above.
When a good or service has been counted in GDP more than once, we refer to that as
A. twin counting.
B. duplicate counting.
C. double counting.
D. multiple counting.
C. double counting.
4. Another name for nominal wage is
A. real wage.
B. money wage.
C. minimal wage.
D. both a and b.
B. money wage.
If minimum wage is set above the equilibrium wage rate, it will
A. shift the demand curve for labor to the right.
B. result in fewer workers entering the labor market.
C. result in employers being willing to hire fewer workers.
D. cause a shortage in the labor market.
C. result in employers being willing to hire fewer workers.