Assignment:
1. Every time u.e use scarce resources in one via:
A) We always use them in the best nay possible.
B) We forgo the opportunity to use them in other way
C) A free lunch is created.
D) This use implies that no other uses were possible.
2. A buyer is said to have a demand for a good only when:
A) The buyer wants to own the good.
B) The buyer is both willing and able to purchase the good at alternative prices.
C) The price of the good is ion enough.
D) An adequate supply of the good is available for purchase.
3. When the supply of gasoline decreases, cereris paribus, the equilibrium price will increase because.
A) A shortage exists at the old equilibrium price.
B) A surplus exists at the old equilibrium price.
C) The quantity demanded has increased.
D) The quantity supplied has decreased.
4. If output growth exceeds population growth for a country then:
A) Average living standards will increase.
B) GDP must have grown at a very rapid rate.
C) Per capita GDP will decrease.
D) This country must have overcome the problem of scarcity.
5. Which of the following is a progressive tax?
A) Social Security payroll tax.
B) The federal income
C) Local sales tax.
D) Excise taxes.
6. Economic growth:
A) Is an increase in output or real GDP.
B) Causes a contraction in the production-possibilities curve.
C) Involves reduced capacity in the short run.
D) Cannot be sustained over time.
7 Which of the following theories assumes that markets
A) Classical economic theory.
B) Keynesian theory.
C) Supply-side economic theory.
D) The eclectic viewpoint.
8. When the U.S. unemployment rate decreased in the late 1990s, so did:
A) Crime rates.
B) Divorce rates.
C) Child abuse.
D) All of the above.
9. The use of government taxes and spending to alter economic outcomes is known as:
A) Monetary policy.
B) Fiscal policy.
C) Income policy.
D) Foreign-trade policy.
10. Which of the following economic perspectives focuses on the need for government to shift aggregate demand to correct problems of unemployment and inflation?
A) Supply-side.
B) Keynesian.
C) Classical.
D) New Classical.
11. Which of the following will cause an increase in U.S. imports?
A) An increase in U.S. consumer income.
B) An increase in U.S. wealth.
C) An increase in U.S. business expectations.
D) All of the above.
12. If the Fed wishes to reduce the money supply, it could:
A) Raise the discount rate.
B) Sell securities on the open market.
C) Raise the minimum reserve ratio.
D) All of the above.
13. A decrease in restrictions on immigration.:
A) Can help overcome a shortage of skilled
B) Will shift AS to the right.
C) Can help avoid cost-push inflation.
D) All of the above.