Macro practice sets – Flashcards

studies show that thousands of people develop lung cancer from second-hand exposure to cigarette smoke. This is an example of

which of the following firms is most likely to have market power?

which of the following is true?

in the short run, an increase in the money supply is likely to lead to

government policies designed to equalize the distribution of economic well-being include

in economics, the cost of something is

trade between the United States and India

which of the following is an important cause of inflation in an economy?

a model can be accurately described as

in the circular-flow diagram, which of the following items flows from firms to households through the markets for the factors of production?

Adam Smith's "invisible hand" refers to

when an economy is operating at a point on its production possibilities frontier, then

on a linear production possibilites frontier, as you move down along the curve (from top to bottom),

a competitive market is a market in which

when the own price of a good or service changes

which of the following is not a determinant of demand?

"as the price of oranges goes up, the demand for oranges comes down, all else equal". the author of this statement

if the demand curve for product B shifts to the left as the price of product A declines, it can be concluded that:

which of the following changes can cause a shift in market demand?

a supply curve slopes upward because

workers at a bicycle assembly plant currently earn the mandatory minimum wage. if the federal government increases the minimum wage by $1 per hour, then it is likely that the

in moving along a supply curve, which of the following is not held constant?

Let us now assume that 1. price of milk goes down and 2. new medical report (that ice cream reduces heart disease: is released at the same time. assuming the ice cream market is in equilibrium to begin with, this will result in

when an economy is operating at a point on its production possibilities frontier, then

on a non-linear (bowed out) production possibilities frontier, as you move down along the curve

the difference between national income and personal income is as follows

in year 2003, Sarah purchased a house built in 1984 for $100,000. She paid the real estate agent $10,000 for her services. which of the following statements is correct?

which of the following statements is true of GDP

for an imaginary economy, the value of the GDP deflator was 140 in 2006 and 149.10 in 2007. the economy's inflation rate (measured by percentage change in price index) between 2006 and 2007 was

if total spending rises from one year to the next, then

when the consumer price index rises, the typical family

the consumer price index and the GDP deflator are two alternative measures of the overall price level. which of the following statements about the two measures is correct?

the price index for a hypothetical economy was 101.8 in 1999 with 1995 as the base year. this implies that

if the nominal interest rate is 8 percent and the inflationary premium charged is 3 percent, then the real interest rate must be

arlo is offered a job in Des Moines, where the CPI is 60, and a job in NY, where the CPI is 125. Arlo's job offer in Des Moines is for $48,000. how much does the NY job have to pay in order for the two salaries to represent the purchasing power?

jill does not currently have a job, but has applied for several jobs in the previous week. Ken is an unpaid stay-at-home dad who has not searched for work in recent years. who does the BLS count as 'not in the labor force' category?

anna says price of her dress was $100. which functions of money is being emphasized here?

small time deposits are included in

if the money multiplier decreases from 20 to 12.5, then

suppose that the required ratio is 5% and the total demand deposit liability of Bank A goes up by $10,000, all else is equal. As a result, Bank A can expand money supply by

suppose that the required ratio is 5% and the total demand deposit liability of Bank A goes up by $10,000, all else is equal. As a result, the banking system as a whole can expand money supply by

the money supply increases when the Fed

if the economy were encountering rapid growth and inflation, appropriate monetary policies would call for:

on the balance sheet of the Federal Reserves, U.S. Treasury deposits at the Fed appears on

in a 100-percent-reseve banking system, if people decided to decrease the amount of currency they held by increasing the amount they held in checkable deposits, then in the end

use AD-AS model. when the aggregate price level decreases,

which of the following factors will cause the aggregate demand curve to shift to the left?

from 2006 to 2008 there was a dramatic fall in the price of houses. if this fall made people feel less wealthy, then it would have shifted

suppose a stock market crash makes people feel poorer. this decrease in wealth would induce people to

other things the same, when the price level rises, interest rates

the discovery of a large amount of previously-undiscoverd oil in the U.S. would shift