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