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In the ____________, households work and receive payment from firms.

26/10/2020 Client: arwaabdullah Deadline: 3 days

Question

Question 1 1 / 1 point

In the ____________, households work and receive payment from firms.

a) savings market

b) financial capital market

c) financial investment market

d) labor market

Question 2 1 / 1 point

In a command economy, the __________ either makes most economic decisions itself or at least strongly influences how the decisions are made.

a) government

b) business sector

c) firm

d) market

Question 3 1 / 1 point

Which of the following is generally accepted as a valid criticism of the production of useful goods and services?

a) environmental pollution

b) the black market

c) economic freedom

d) government involvement

Question 4 1 / 1 point

Which of the following best describes a fiscal policy tool?

a) household spending

b) bank lending

c) financial capital markets

d) government spending

Question 5 1 / 1 point

In a discussion of economics, which of the following would exert the most influence on an individual firm's decision to hire workers?

a) wage levels

b) household income

c) the firm's income

d) the macroeconomy

Question 6 1 / 1 point

Macroeconomics:

a) analyzes mergers and acquisitions between firms.

b) is concerned with the expansion of a small business into a large corporation.

c) is concerned with the expansion and contraction of the overall economy.

d) is narrower in scope than microeconomics.

Question 7 1 / 1 point

Which of the following best describes a monetary policy tool?

a) taxes

b) household savings

c) government spending

d) interest rates

Question 8 0 / 1 point

Economic models like the _____________________ are not physical models, but instead are diagrams or graphs or even mathematical equations that represent economic patterns or theories.

a) Specialization Model

b) financial capital market

c) financial investment market

d) circular flow diagram

Question 9 1 / 1 point

Because of their relatively small national economies, which of the following is most likely considered to be the most important factor for Belgium, Korea, and Canada to take full advantage of specialization?

division of labour

international trade

economies of scale

command economy

Chapter 6 Random

Question 10 1 / 1 point

Which of the following is true?

a) During the contractionary phase of the business cycle, the rate of unemployment is generally quite low.

b) A depression is a recession that is mild and relatively brief.

c) The timing of business fluctuations is regular and therefore easily predictable.

d) The expansions and contractions of real world business cycles last varying lengths of time and often differ in magnitude.

Question 11 1 / 1 point

Final goods or services used to compute GDP refer to:

a) the factors of production used to produce output.

b) the sum of all wages paid to laborers.

c) goods and services purchased by the ultimate users.

d) the value of outstanding shares of stock of manufacturing firms.

Question 12 1 / 1 point

The difference between nominal GDP and real GDP is:

a) nominal GDP adjusts for inflation

b) real GDP excludes imports and exports

c) real GDP adjusts for inflation

d) nominal GDP measures actual productivity

Question 13 1 / 1 point

Middle-income countries, which include much of Latin America, Eastern Europe, and some countries in East Asia, have per capita GDP in the range of ___________.

a) $6,000 to $12,000

b) $60,000 to $120,000

c) $600 to $1200

d) $60 to $120

Question 14 1 / 1 point

___________ is a small category that refers to the goods produced by one business that have yet to be sold to consumers, and are either still sitting in warehouses and on store shelves.

a) Durable goods

b) Services

c) Inventories

d) Structures

Question 15 1 / 1 point

For most high-income countries of the world, GDP _________________ over time.

a) has risen gradually

b) has declined slightly

c) has sharply risen

d) has proven to be stable

Question 16 1 / 1 point

On the demand side of GDP, consumption by _____________ is the largest component of GDP, accounting for about two-thirds of the GDP in any year.

a) government

b) households

c) services

d) businesses

Question 17 1 / 1 point

On the supply side of the GDP, Structures account for around __________ of U.S. GDP.

a) 37%

b) 7%

c) 17%

d) 57%

Question 18 1 / 1 point

Consumption in the United States is about ____________ of GDP, and it moves relatively little over time.

a) 10%

b) 90%

c) 33%

d) 68%

Question 19 0 / 1 point

The demand measure of GDP accounting adds together:

a) wages and salaries, rent, interest, and profit.

b) consumption, investment, government purchases, and trade balance.

c) consumption, interest, government purchases, and trade balance.

d) consumption, government purchases, wages and salaries, and trade balance.

Question 20 1 / 1 point

Consumption is the purchase of goods and services by:

a) government.

b) foreign buyers.

c) households.

d) business firms.

Question 21 1 / 1 point

Which of the following are most likely classified by economists as consumer durable goods?

a) automobiles, furniture

b) stocks, bonds

c) drugs, toys, magazines, books

d) food, clothing

Question 22 1 / 1 point

To compare the GDP of two different countries with different currencies, it is necessary to use _________________________.

a) currency rates

b) foreign currency

c) an exchange rate

d) per capita GDP

Question 23 1 / 1 point

_________ are now the largest single component of the supply side of GDP, representing over half of GDP.

a) Nondurable goods

b) Structures

c) Services

d) Durable goods

Chapter 6 Problems

Question 24 1 / 1 point

In 1980 Denmark had a GDP of $70 billion (measured in U.S. dollars) and a population of 5.1 million. In 2000, Denmark had a GDP of $160 billion (measured in U.S. dollars) s and a population of 5.3 million. By what percentage did Denmark’s GDP per capita rise between 1980 and 2000?

a) 45.4%

b) 120%

c) 219%

d) 128%

Question 25 0 / 1 point

In 1990, the GDP of Canada was $680 billion as measured in Canadian dollars, and the exchange rate was that $1 Canadian was worth 85 U.S. cents. In 2000, the GDP of Canada was $1000 billion as measured in Canadian dollars, and the exchange rate was that $1 Canadian was worth 69 U.S. cents. By what percentage did the GDP of Canada increase from 1990 to 2000 in Canadian dollars?

a) 19.4%

b) 47%

c) 68%

d) 147%

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