Navigation » List of Schools » Prince George Community College » Economics » Econ 1030 – Principles of Microeconomics » Summer 2021 » Test 4
Below are the questions for the exam with the choices of answers:
Question #1
A increase the price level by more than real output.
B reduce the price level by more than real output.
C increase real output by more than the price level.
D reduce real output by more than the price level.
Question #2
A rightward shift of the aggregate supply curve along a fixed aggregate demand curve.
B rightward shift of the aggregate demand curve along a fixed aggregate supply curve.
C leftward shift of the aggregate demand curve and a leftward shift of the aggregate supply curve.
D rightward shift of the aggregate demand curve and a rightward shift of the aggregate supply curve.
Question #3
A leftward shift of the AS curve.
B leftward shift of the AD curve.
C rightward shift of the AD curve.
D rightward shift of the AS curve.
Question #4
A leftward shift of the AS curve along an upsloping AD curve.
B rightward shift of the AD curve along an upsloping AS curve.
C leftward shift of the AS curve along a downsloping AD curve.
D rightward shift of the AD curve along a downsloping AS curve.
Question #5
A slopes upward and to the right.
B slopes downward and to the right.
C is vertical.
D is horizontal.
Question #6
A per-unit production costs.
B real output per unit of input
C the changes in real wealth caused by price level changes.
D the amount of capital goods used per worker.
Question #7
A Production bottlenecks occurring when producers near full plant capacity.
B Deregulation of industry.
C A reduction in business taxes.
D An increase in the price of imported resources.
Question #8
A 75
B 40
C 85
D 60
Question #9
A Increased consumer optimism regarding future economic conditions.
B A reduced amount of excess capacity.
C An appreciation of the U.S. dollar.
D Increased government spending on military equipment.
Question #10
A Increased fear that a recession will cause workers to lose their jobs.
B A reduction in household borrowing because of tighter lending practices.
C An increase in personal income tax rates.
D An increase in stock prices that increases consumer wealth.
Question #11
A A change in the price level.
B An increase in personal income tax rates.
C Depreciation of the international value of the dollar.
D A decline in the interest rate at each possible price level.
Question #12
A demonstrate why real output and the price level are inversely related.
B include input prices and resource productivity.
C explain shifts in the aggregate demand curve.
D explain why the aggregate demand curve is downsloping.
Question #13
A decrease both U.S. imports and U.S. exports.
B increase both U.S. imports and U.S. exports.
C increase the amount of U.S. real output purchased.
D increase U.S. imports and decrease U.S. exports.
Question #14
A a lower price level will decrease the real value of many financial assets and therefore reduce spending.
B a higher price level will increase the real value of many financial assets and therefore increase spending.
C an increase in the price level will increase the demand for money, increase interest rates, and reduce consumption and investment spending.
D a higher price level will decrease the real value of many financial assets and therefore reduce spending.
Question #15
A an increase in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending.
B an increase in the price level will increase the demand for money, reduce interest rates, and decrease consumption and investment spending.
C a decrease in the supply of money will increase interest rates and reduce interest-sensitive consumption and investment spending.
D an increase in the price level will decrease the demand for money, reduce interest rates, and increase consumption and investment spending.
Question #16
A downsloping because of the interest-rate, real-balances, and foreign purchases effects.
B vertical under conditions of full employment.
C downsloping because production costs decrease as real output rises.
D horizontal when there is considerable unemployment in the economy.
Question #17
A have no perceptible impact on the U.S. economy.
B cause inflation in the U.S. economy.
C stimulate real output and employment in the U.S. economy.
D depress real output and employment in the U.S. economy.
Question #18
A a country’s net exports to rise.
B the multiplier to decrease.
C a country’s net exports to fall.
D a country’s exports and imports to both fall
Question #19
A consumption.
B investment.
C exports.
D saving.
Question #20
A upward and increase aggregate expenditures.
B downward and increase aggregate expenditures.
C downward and decrease aggregate expenditures.
D upward and decrease aggregate expenditures.
Question #21
A the aggregate level of saving will decline.
B domestic output will increase.
C the price level will fall.
D the business sector will lay off workers.
Question #22
A automatically changes in response to changes in real GDP.
B does not respond to changes in interest rates.
C does not change when real GDP changes.
D changes by less in percentage terms than changes in real GDP.
Question #23
A declined by 40 percent; rose to 50 percent
B declined by 21 percent; rose to 27 percent
C declined by 27 percent; rose to 25 percent
D increased by 21 percent; fell to 2 percent
Question #24
A Government spending policy has no ability to affect the level of output.
B The economy is at full employment.
C Prices are fixed.
D Prices are fully flexible.
Question #25
A Bank panic of 1907
B Spectacular economic growth during World War II.
C Great Depression.
D Economic expansion of the 1920s
Question #26
A firms were optimistic about future sales.
B the investment demand curve shifted inward.
C purchases of capital from abroad increased, and these were not reflected in investment spending figures for that period.
D the investment demand curve was positively sloped during this period.
Question #27
A level of business inventories.
B change in GDP resulting from a change in spending.
C change in the rate of inflation from a change in the interest rate.
D full-employment unemployment rate
Question #28
A consumption is typically several times as large as saving.
B a decline in the MPC can cause GDP to rise by several times that amount.
C an increase in investment can cause GDP to change by a larger amount.
D a change in consumption can cause a larger increase in investment.
Question #29
A innovation occurs at an irregular pace.
B capital goods are durable, expected profits are highly variable, and innovation occurs at an irregular pace.
C capital goods are durable.
D expected profits are highly variable.
Question #30
A low rate of growth of nominal GDP.
B high nominal interest rate.
C low nominal interest rate.
D decrease in nominal wages.
Question #31
A 18 percent.
B 6 percent.
C 12 percent.
D 24 percent.
Question #32
A usually higher than the nominal interest rate.
B the percentage increase in purchasing power that the lender receives on a loan.
C the percentage increase in money that the lender receives on a loan.
D also called the after-tax interest rate.
Question #33
A have no effect on the location of the investment-demand curve.
B decrease the market price of real capital goods.
C shift the investment-demand curve to the left.
D shift the investment-demand curve to the right.
Question #34
A expected rate of return on capital goods and the real interest rate.
B level of saving and the real interest rate.
C interest rate and the expected price level.
D marginal propensity to consume and the real interest rate.
Question #35
A shift the investment demand curve to the right.
B increase the amount of investment spending.
C shift the investment schedule downward.
D shift the investment demand curve to the left.
Question #36
A 2 percent.
B 80 percent.
C 8 percent.
D 20 percent.
Question #37
A the nominal interest rate and the level of investment spending..
B the price level and the level of investment spending..
C the real interest rate and the level of investment spending..
D the level of investment spending and real GDP..
Question #38
A a movement down along a stable consumption function.
B an upward shift of the consumption schedule.
C an upward shift of the saving schedule.
D a downshift of the saving schedule.
Question #39
A The expectation of future shortages of essential consumer goods.
B A currently low level of household debt.
C A currently small stock of durable goods in the possession of consumers.
D The expectation of a future decline in the consumer price index.
Question #40
A wealth effect.
B multiplier effect.
C Keynes effect.
D interest-rate effect.
Question #41
A 9
B mone of these
C 10
D 1
Question #42
A 0.1
B -0.9
C 1
D 1.1
Question #43
A the MPC equals 1.
B saving equals income.
C saving is zero.
D the APC is zero.
Question #44
A income exceeds consumption.
B consumption exceeds income.
C saving exceeds consumption.
D saving exceeds income.
Question #45
A An increase in consumer indebtedness.
B A decrease in disposable income.
C An increase in stock prices.
D A decrease in stock prices.
Question #46
A the slope of the consumption schedule or line.
B 1 divided by the slope of the consumption schedule or line.
C 1 divided by the slope of the savings schedule or line.
D the slope of the savings schedule or line.
Question #47
A consumption/income.
B change in consumption/change in income.
C income/consumption.
D change in income/change in consumption.
Question #48
A that consumption depends primarily on the level of business investment.
B that the MPC increases in proportion to GDP.
C that households consume more when interest rates are low.
D the amounts households intend to consume at various possible levels of aggregate income.
Question #49
A all the points where the MPC is constant.
B all the points at which saving and income are equal.
C the amounts households will plan to save at each possible level of income.
D all the points at which consumption and income are equal.
Question #50
A consume is three-fifths.
B consume is two-fifths.
C save is three-fifths.
D consume is one-half.
Question #51
A level of bank credit.
B level of income.
C interest rate.
D price level.