Macro/Microeconomics
Economics is the study of
a. how society manages its unlimited resources.
b.how to reduce our wants until we are satisfied.
c. how to allocate resources to best satisfy our unlimited wants.
d.how to avoid having to make trade-offs
c. how to allocate resources to best satisfy our unlimited wants.
Gross domestic product is a measure of the total value of all
A) consumer income in an economy over a period of time.
B) capital accumulation in an economy over a period of time.
C) sales in an economy over a period of time.
D) final goods and services produced in an economy over a period of time.
D) final goods and services produced in an economy over a period of time.
In calculating GDP, household production is
A) included as part of consumption.
B) ignored because it is not a large amount.
C) included under employee compensation.
D) not included because there is no market transaction.
D) not included because there is no market transaction.
_______________is contributed by shareholders who put up money and hold share in the company
a. venture capitalist
b. loan capital
c. overleveraged
d. share capital
d. share capital
Stocks represent ownership in a corporation
a. TRUE
b. FALSE
a. TRUE
Which of the following is a topic studied in Macroeconomics?
A) gross domestic product
B) the wage of auto workers
C) the price of IBM computers
D) the amount of pizza produced
A) gross domestic product
The measure of production that values production using current prices is called
A) underground GDP.
B) nominal GDP.
C) real GDP.
D) value added GDP.
B) nominal GDP.
The federal government is expected to spend $3.95 trillion this year. Will this be counted in GDP?
YES
NO
YES
A sum paid or charged for the use of money or for borrowing money whether it has made a profit or not
a. dividends
b. leverage
c. debenture
d. interest
d. interest
Groups of individuals who invest their money in various types of companies in search of making a profit → borrower
a. TRUE
b. FALSE
b. FALSE
Which of the following is NOT a topic studied in Macroeconomics?
A) gross domestic product
B) the unemployment rate
C) the price of IBM computers
D) the inflation rate
C) the price of IBM computers
Real GDP can be criticized as a measure of economic welfare because it
A) does not include the value of products produced in the household.
B) does not include leisure time available to a society.
C) does not take account of the degradation of environmental quality.
D) All of the above answers are correct.
D) All of the above answers are correct.
A shoe produced in South Korea and sold in the U.S.
a. Included in U.S. GDP
b. Included in South Korea GDP
c. Included in Canadian GDP
b. Included in South Korea GDP
Money owed
a. gearing
b. capital
c. debentures
d. debt
d. debt
Someone who receives something with a promise to return it or its equivalent → borrower
a. TRUE
b. FALSE
a. TRUE
The trend of the economy is
A) the long run growth path of the economy.
B) the long run inflation rate.
C) the long run unemployment rate.
D) the short run production capacity of an economy.
A) the long run growth path of the economy.
2) If Nike, an American corporation, produces sneakers in Thailand this would
A) add to neither U.S. GDP nor Thailand's GDP.
B) add to Thailand's GDP but not to U.S. GDP.
C) count as part of U.S. GDP since it is a U.S. corporation.
D) count for both Thailand's GDP and U.S. GDP.
B) add to Thailand's GDP but not to U.S. GDP.
If Real GDP is $300 million and the population is 10 million, what is the Real GDP per capita?
a. $3,000
b. $300
c. $30
d. $5
c. $30
The state of being obligated to another to repay something
a. borrower
b.indebtedness
c. lender
d. investors
b.indebtedness
another term for capital in the form of shares → Equity
a.TRUE
b. FALSE
a.TRUE
Government policies regarding taxes and expenditures are called
A) fiscal policy.
B) income policies.
C) supply-side policy.
D) monetary policy.
A) fiscal policy.
In 2009, Ozzie purchased a 1999 Ford Escort from his neighbor for his son, purchased a 1999 "one owner" Camry from Larchmont Toyota for his wife, bought a 2009 new Ford for himself, and sold his 1993 Dodge Caravan to his teenage nephew. Which, if any, of these transactions will be included in GDP in 2009?
A) only the purchase of the Ford
B) the purchase of the Ford and the Caravan
C) all four transactions
A) only the purchase of the Ford
Real GDP can be criticized as a measure of economic welfare because it
A) does not include the value of products produced in the household.
B) does not include leisure time available to a society.
C) does not take account of the degradation of environmental quality.
D) All of the above answers are correct.
D) All of the above answers are correct.
the sum of money being borrowed
a. gearing
b. capital
c. leverage
d. principal
d. principal
another word for leverage → Equity
a. TRUE
b. FALSE
b. FALSE