1. Which of the following observations would be consistent with a price floor in a market?
A. A smaller quantity of the good is bought and sold after the price floor becomes effective than before the price floor became effective.
B. A smaller quantity of the good is demanded after the price floor becomes effective than before the price floor became effective.
C. A larger quantity of the good is supplied after the price floor becomes effective than before the price floor became effective.
D. All of the other choices are correct.
2. If the Fed lowers the federal funds rate, which of the following occurs?
A. Investment increases.
B. Consumption expenditure decreases.
C. The price of the dollar on the foreign exchange market increases.
D. Government expenditure on goods and services increases.
E. Net exports decrease.
3. Gross domestic product is equal to the market value of all the final goods and services ________ in a given period of time.
(I think it's B?)
A. produced and consumed within a country
B. produced within a country
C. consumed by the citizens of a country
D. consumed within a country
E. produced by the citizens of a country
4. Investment is defined as the purchase of
A. the purchase of new capital goods but not additions to inventories.
B. financial assets and inventories only.
C. additions to inventories only.
D. the purchase of new capital goods and additions to inventories.
E. any financial asset only.
5. When the CPI rises ________, the inflation rate is ________.
A. rapidly; low
B. slowly; high
C. rapidly; either high, low, or zero depending on whether production of output is increasing, decreasing, or not changing.
D. steadily; zero
E. rapidly; high
6. U.S. net exports include
A. sales of Hollywood movies to the rest of the world.
B. the production of Ford Mustangs in China that are sold in China.
C. the sale of shares of Nike stock on the New York Stock Exchange.
D. Honda automobiles produced and sold in Japan.
E. the sale of U.S. government securities to U.S. citizens.
7. If the CPI this year is 240 and the CPI in the previous year was 200, what is the annual inflation rate?
A. 40.0 percent
B. 20.0 percent
C. 16.7 percent
D. -16.7 percent
E. 50 percent
1. Which of the following observations would be consistent with a price floor in a market?
A. A smaller quantity of the good is bought and sold after the price floor becomes effective than before the price floor became effective.
B. A smaller quantity of the good is demanded after the price floor becomes effective than before the price floor became effective.
C. A larger quantity of the good is supplied after the price floor becomes effective than before the price floor became effective.
D. All of the other choices are correct.
2. If the Fed lowers the federal funds rate, which of the following occurs?
A. Investment increases.
B. Consumption expenditure decreases.
C. The price of the dollar on the foreign exchange market increases.
D. Government expenditure on goods and services increases.
E. Net exports decrease.
3. Gross domestic product is equal to the market value of all the final goods and services ________ in a given period of time.
(I think it's B?)
A. produced and consumed within a country
B. produced within a country
C. consumed by the citizens of a country
D. consumed within a country
E. produced by the citizens of a country
4. Investment is defined as the purchase of
A. the purchase of new capital goods but not additions to inventories.
B. financial assets and inventories only.
C. additions to inventories only.
D. the purchase of new capital goods and additions to inventories.
E. any financial asset only.
5. When the CPI rises ________, the inflation rate is ________.
A. rapidly; low
B. slowly; high
C. rapidly; either high, low, or zero depending on whether production of output is increasing, decreasing, or not changing.
D. steadily; zero
E. rapidly; high
6. U.S. net exports include
A. sales of Hollywood movies to the rest of the world.
B. the production of Ford Mustangs in China that are sold in China.
C. the sale of shares of Nike stock on the New York Stock Exchange.
D. Honda automobiles produced and sold in Japan.
E. the sale of U.S. government securities to U.S. citizens.
7. If the CPI this year is 240 and the CPI in the previous year was 200, what is the annual inflation rate?
A. 40.0 percent
B. 20.0 percent
C. 16.7 percent
D. -16.7 percent
E. 50 percent
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