In a perfectly competitive market, firms take: a. the money wage as exogenous, the price level as endogenous. b. the money wage and price level as exogenous, the quantity of labor as endogenous. c. the money wage and price level as endogenous. d. the quantity of labor as exogenous. ANSWER B
Date: September 10th, 2020
During the antebellum period, U.S. consumers increased their demand for mass-produced, standardized and simple goods. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Assume the marginal propensity to consume is .8 . To offset a fall in income of 1,000, the government should a. increase taxes by $200. b. raise taxes by $250. c. increase government spending and taxes by 1,000. d. cut taxes by $200. e. both c and d. ANSWER C
Date: September 10th, 2020
The period between a business cycle peak and the subsequent trough is called a. a recession. b. a complete cycle. c. an expansion. d. a change in economic trend. ANSWER A
Date: September 10th, 2020
An increase in the saving rate results in a higher steady state ________. A) growth rate of capital B) growth rate of output per worker C) level of consumption per worker D) level of capital per worker ANSWER D
Date: September 10th, 2020
What was the typical policy of the British colonies toward the practice of “squatting” or freely settling and cultivating the land without any formal transfer of ownership? (a) Squatting was encouraged by colonial officials as a way to encourage settlement of the land. (b) Squatting was discouraged by colonial officials because of the legal ownership […]
Date: September 10th, 2020
Compared to adaptive expectations, rational expectations would imply that the transition between the short-run and the long-run will take: a. the same amount of time. b. a longer period of time. c. a variable period of time. d. less time. ANSWER D
Date: September 10th, 2020
Most state governments in the United States operate under constitutional provisions that severely restrict expenditures financed by borrowing. Suppose this were to change, so that state governments’ access to credit markets was no different from the federal government. What consequences would you predict for the nation’s aggregate debt burden? ANSWER The aggregate debt burden […]
Date: September 10th, 2020
Suppose that Firestone Tires buys raw rubber for $5,000 and then uses this to make tires it sells for $20,000 . As a result, GDP has risen by: a. $20,000 b. $5,000 c. $15,000 d. $25,000 ANSWER A
Date: September 10th, 2020
Which of the following was NOT a part of the American system of manufacturing? (a) Interchangeable and standardized parts (b) Use of indentured servants (c) Mass production (d) High capital intensities of production ANSWER (b)
Date: September 10th, 2020
