If real interest rates increase in the U.S. relative to other countries, capital should flow:

into the US and the $ will appreciate

Scarcity exists because

Human wants exceed the productive capacity of the economy

The consumer price index (CPI) measure the

prices of specific goods and services bought by consumers

Which of the following is LEAST likely to promote economic growth?

Increase in consumption of nondurable goods

Which of the following is a correct sequence of the business cycle:

peak ; recession ; trough ; expansion

Which of the following best describes an economy at full employment?

There is frictional, but not cyclical, unemployment.

Which of the following would shift a country's PPC inward?

A reduction in the size of the labor force

Which of the following is an example of frictional unemployment?

A person quits their job to search for another job.

Why does the official unemployment rate often understate the actual unemployment rate?

It does not count underemployed or discouraged workers

The value of a currency tends to appreciate if

demand for the country's exports increases

What is the real interest rate?

The nominal interest rate adjusted for inflation.

Any point inside a production possibilities curve is

Associated with inefficient use of resources or unemployment

Which of the following is true of the opportunity cost of holding cash?

It increases as the interest rate rises

The value of which of the following would be included in U.S. Gross Domestic Product?

A movie ticket bought at a local movie theatre

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AP Macro 1st 9 Weeks Review

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#PPC #Supply #Demand #Equilibrium #FOREX #ForeignExchange #CircularFlow #BusinessCycle #GDP #LaborForce #CPI #Inflation #Multipliers #AD/AS

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Questions 25

Answers

1
GDP stands for ___.
Gross Daily Product
Guaranteed Domestic Product
Gross Domestic Product
Guaranteed Daily Product
2
What class is this?
AP Microeconomics
AP Statistics
AP Underwater Basket-weaving
AP Macroeconomics
3
If real interest rates increase in the U.S. relative to other countries, capital should flow:
out of the US and the $ will depreciate
out of the US and the $ will appreciate
into the US and the $ will appreciate
into the US and the $ will depreciate
4
Scarcity exists because
Innovation causes unemployment
Population and labor force growth rate are slowing
Human wants exceed the productive capacity of the economy
Physical capital does not depreciate
5
The consumer price index (CPI) measure the
prices of specific goods and services bought by consumers
prices of selected raw materials purchased by firms
prices of all consumer goods and services produced in a year
value of current GDP in base-year dollars
6
In a typical circular flow, households ___ goods and services and ___ factors of production.
sell ; sell
sell ; buy
buy ; buy
buy ; sell
7
Which of the following is LEAST likely to promote economic growth?
Increase in consumption of nondurable goods
Investment in tools and machines
Increase in the labor force participation rate
Investment in training of labor
8
Which of the following is a correct sequence of the business cycle:
peak ; recession ; expansion ; trough
peak ; trough ; expansion ; recession
peak ; trough ; recession ; expansion
peak ; recession ; trough ; expansion
9
Which of the following best describes an economy at full employment?
There is cyclical but not structural unemployment.
There is frictional, but not cyclical, unemployment.
The unemployment rate is zero.
There is only cyclical unemployment.
10
What is the fundamental issue in Economics?
Shortages and surpluses
TINSTAAFL
Scarcity
Too much supply
11
Which of the following would shift a country's PPC inward?
A reduction in the size of the labor force
A reduction in the real interest rate
An increase in the typical retirement age of workers
A reduction in the inflation rate
12
Which of the following is an example of frictional unemployment?
A person retires from the workforce.
A person lacks the skill set needed to fill available jobs.
A person loses a job due to a recession.
A person quits their job to search for another job.
13
What does the term Aggregate mean in Economics?
Total
Partial
Consumer amount
Producer amount
14
Inflation occurs when there is a sustained increased in which of the following?
Real gross domestic product
Labor productivity
The average price level
The price of any commodity
15
What is a nation's consumer price index (CPI) in it's index year?
75
100
150
50
16
Why does the official unemployment rate often understate the actual unemployment rate?
It excludes frictionally unemployed workers
It does not count underemployed or discouraged workers
It does not include teenagers without jobs who are looking
It ignore the duration of unemployment
17
Which of the following is the most fundamental issue that economics addresses?
Use of scarce resources
Reduction of budget deficit
Reduction of unemployment
Promotion of privatization
18
Which of the following household purchases would count as Ig under a nation's GDP?
Shares of a company stock
A new car for personal use
A newly constructed house
Government bonds
19
The value of a currency tends to appreciate if
it's citizens increase their travel abroad
demand for the country's exports increases
the country's money supply increases
domestic interest rates decrease
20
What is the real interest rate?
The nominal interest rate adjusted for inflation.
The cost of borrowing using current consumer prices.
The cost of borrowing using current producer prices.
The same number as the nominal interest rate.
21
Any point inside a production possibilities curve is
Better than any point on the PPC
Associated with constant opportunity cost
Allocatively efficient but technologically inefficient
Associated with inefficient use of resources or unemployment
22
Which of the following is true of the opportunity cost of holding cash?
It is zero
It increases as the interest rate rises
It decreases as the price level rises
It is equal to the price level
23
Which type of unemployment occurs where workers lose their jobs because of a recession?
Cyclical
Structural
Frictional
Seasonal
24
The value of which of the following would be included in U.S. Gross Domestic Product?
A movie ticket bought at a local movie theatre
Time volunteering at a local hospital
A new handbag that was made in Italy by a U.S. company.
A savings bond received as a birthday gift
25
Assume that the nominal interest rate is 10% and the expected inflation rate is 5%. What is r%?
10%
0.5%
5%
2%

AP Macro 1st 9 Weeks Review Flashcards | StudBud