Until the Great Depression, the dominant school of economic thought was ____________.
A) Classical Economics
B) Keynesian Economics
C) supply-side Economics
D) monetarism
What is A) Classical Economics?
100
There is an inflationary gap when __________.
A) equilibrium GDP is equal to full-employment GDP
B) equilibrium GDP is smaller than full-employment GDP
C) equilibrium GDP is larger than full-employment GDP
D) none of these occur
What is C) equilibrium GDP is larger than full-employment GDP?
100
Out of the three approaches to labor unions, the following approach views the labor unions as illegal:
A) Free-Market
B) Criminal Conspiracy
C) Compulsory Unionism
What is B) Criminal Conspiracy?
100
A mixed economy is a mixture of:
A) Foreign and domestic
B) Private and public
C) Command and control
D) None of the above
What is B) Private and public?
Slavin text in ch.3 on pp.49-51
100
Adam Smith's "Invisible Hand" is NOT:
A) About the profit motive
B) About looking after your self interest
C) About promoting the social interest
D) About market prices
What is C) About promoting the social interest?
Slavin text in ch.3 on p.51
200
Say's law states that:
A) we can have an inflation or a recession, but never both at the same time.
B) the normal state of economic affairs is recession.
C) demand creates its own supply
D) supply creates its own demand
What is D) supply creates its own demand?
200
The automatic stabilizers ___________.
A) help smooth out the business cycle
B) make the business cycle worse
C) eliminate the business cycle
What is A) help smooth out the business cycle?
200
NLRA (National Labor Relations Act) granted the following:
A) Employers the right to ignore unions
B) granted special legal standing and priveleges to unions.
C) makes it mandatory for military/governement workers to join a union.
What is B) granted special legal standing and priveleges to unions?
200
The 'opportunity cost' for a student of attending college for a year is measured by ___________.
A) The benefit received by the student.
B) The tuition paid for the year.
C) The value of the most valued opportunity foregone by attending college.
D) The total money outlays associated with attending college.
What is C) The value of the most valued opportunity foregone by attending college?
Slavin text in ch.2 on p.28
200
If the tea harvest is bad in a particular year, the following will happen in the market for coffee (Substitute for tea):
A) increased price and decreased quantity.
B) increased price and increased quantity.
C) decreased price and increased quantity.
D) decreased price and decreased quantity.
E) no change in equilibrium price and quantity
What is B) increased price and increased quantity?
Slavin text in ch.4 on pp.75-79
300
That we are always tending toward full employment is a belief of _______________.
A) Keynes
B) the Classicals
C) both Keynes and the classicals
D) neither Keynes nor the classicals
What is B) the Classicals?
300
Budget surpluses are most appropriate during ________.
A) depression
B) recessions
C) inflations
What is C) inflations?
300
Clayton Act placed restrictions on the courts ability to _________ strikes and picketing.
A) start
B) encourage
C) Stop
What is C) Stop?
300
A major benefit of automatic stabilizers is that they ...
A) guarantee a balanced budget over the course of the business cycle.
B) have the tendency to reduce the national debt.
C) help increase recessionary gaps in the economy.
D) moderate the effect of fluctuations in the business cycle.
E) require legislative review by Congress before they can be implemented.
What is D) moderate the effect of fluctuations in the business cycle?
Slavin text in ch.12 on pp.285-286
300
Inflation is:
A) a rise in the price of major goods and services.
B) a rise of exactly a specified percentage in the price of every good or service.
C) a rise in the overall price level.
D) a rise in average prices of at least 10 percent a year.
What is C) a rise in the overall price level?
Slavin text in ch.10 on pp.229-230
400
Keynes was concerned mainly with __________.
A) aggregate supply
B) aggregate demand
C) the interest rate
D) inflation
What is B) aggregate demand?
400
Each of the following is an automatic stablizer EXCEPT:
A) unemployment compensation
B) direct taxes
C) welfare payments
D) Social Security benefits
What is D) Social Security benefits?
400
Collective bargaining in union/management negotiations include:
A) mandatory, permissive, illegal
B) arguing, stricking, mudslinging
What is A) mandatory, permissive, illegal?
400
During time of inflation, we want to...
A) raise taxes and run budget deficits
B) raise taxes and run budget surpluses
C) lower taxes and run budget surpluses
D) lower taxes and run budget deficits
What is B) raise taxes and run budget surpluses?
Slavin text in ch.12 on pp.285-288
400
Demand-pull inflation is often summed up as...
A) too many dollars chasing too few goods.
B) the wage-price spiral.
C) profit-push inflation.
D) supply-side cost shock inflation
What is A) too many dollars chasing too few goods?Slavin text in ch.10 on pp.237-239
500
Keynes considered full-employment GDP to be _________.
A) the normal state of economic affairs
B) a rare occurrence
C) an impossibility
D) none of these
What is B) a rare occurrence?
500
Fiscal policy is made by _____________.
A) the President only
B) Congress only
C) both the President & Congress
D) neither the President or Congress
What is C) both the President & Congress?
500
Unions are declining for the following reasons, EXCEPT:
A) illegal immigrant workers
B) temporary workers
C) Congress passed a number of laws to decrease need
D) All are correct
What is D) All are correct?
500
If automatic stabilizers kick in automatically, when real GDP falls, ________________.
A) tax revenues and transfer payments both should fall
B) tax revenues and transfer payments both should rise
C) tax revenues should fall and transfer payments should rise
D) tax revenues should rise and transfer payments should fall
What is C) tax revenues should fall and transfer payments should rise?
Slavin text in ch.12 on pp.282-285
500
The following statements about the U.S. economic problem is correct:
A) The U.S. economic problem is limited to poverty.
B) Scarcity is no longer an economic problem in the U.S.
C) If we all had more money there would be less scarce resources.
D) None is true.
What is D) None is true?
Slavin text in ch.2 on p.26