Macroeconomics Questions

________ is the ability to produce more of a good or service than competitors when using the same amount ofresources.

What happens to consumption spending and saving when disposable income increases? decreases?

Imports are goods and services bought domestically, but...

If the ________ cost of production for two goods is different between two countries then mutually beneficial trade is possible.

What is the priority among different goals, also called dual mandate?

What is the main Fed tool formanaging the money supply?

Trade that is within a country or between countries is based on the principle of

When Sophie, a French citizen, purchases a Dell computer in Paris, France that was produced in Texas, the purchase is

When Tesla, a U.S. company, purchases Italian-made Pirelli tires for its automobiles, the purchase is

Domestically produced goods and services sold to other countries are referred to as

When a tariff is placed on running shoes, the ________ to local businesses and local consumers are likely to be greater in dollar terms than the ________ to the owner of a shoe factory and its workers.

during the great depression, the unemployment rate in the US was about

the view that unions may be a source of inflation would be best associated with

Assume a nation's current production possibilities are represented by the curve AB in the above diagram. Economic growth would best be indicated by aA) shift in the curve from AB to CD.B) shift in the curve from AB to EF.C) movement from point 1 to point 2.D) movement from point 3 to point 4.

Other things being equal, a decrease in an economy's exports willA) increase domestic aggregate expenditures and the equilibrium level of GDP.B) decrease domestic aggregate expenditures and the equilibrium level of GDP.C) have no effect on domestic GDP because imports will offset the change in exports.D) increase the amount of imports consumed by the private sector.

a minimum wage legislation that sets the wage rate above the equilibrium wage rate in the labor market will have what effect?

If the Consumer Price Index was 90 in one year and 100 in the following year, then the rate of inflation is approximatelyA) 9 percent.B) 10 percent.C) 11 percent.D) 12 percent.

Suppose that investment is increasing and that MPC is 0.75. Most of the increase in real GDP that results is due to ________.A) additional increases in investmentB) an increase in net exportsC) an increase in consumptionD) an increase in government purchases

a sales tax on cigarettes can be considered as what type of tax?

A country does not consume all the goods it produces. There are no exports. Which term in calculating GDP using the expenditure approach accounts for this situation, if any?A) ConsumptionB) Gross InvestmentC) Government PurchasesD) This would not be accounted for without exports.