Macroeconomics Quiz # 21

In texas, people who fall within the top 1 percent of average income pay ____ percent in taxes.

12.5

10.4

8.7

2.9

The difference between the for a good and the is called consumer surplus.

Highest price a consumer is willing to pay; lowest price a consumer is willing to pay

Lowest price a consumer is willing to pay; price the consumer actually pays

Highest price a consumer is willing to pay; price the consumer actually pays

Price the consumer actually pays; actual cost to the producer

Increases in t will reduce the economys gdp by causing a(n) ________ in the ad.

Leakage and left shift

Leakage and right shift

Injection and left shift

Injection and right shift

It can be said that ____ laid the foundation for the industrial revolution.

The discovery of the Americas

Private property rights

The invention of the cotton gind

The discovery of golde

The development of a strong 4udicial system

The two broad sources of potential gdp growth are growth of and growth of .

Hired by all the firms in the economy

The supply of labor; labor productivity

The production function shifts upward

That all the households in the economy plan to work

A shopper at a convenience store is ________ sensitive, but price insensitive.

Producers

Time

Elastic

Inelastic

_________ refers to the technology gap that exists between different social and economic classes.

Telecommuting

Outsourcing

Nanotechnology

Digital divide

An economy grows when it does all of the following except _______.

Acquires more machines to help it produce

Lowers prices

Implements on-the-job training

Improves the quality of labor by education

Develops better technologies

Between 1929 and 1933, government spending _ and net exports _.

Declined; declined

Declined; stayed the same

Stayed the same; declined

Stayed the same; stayed the same

Government salaries paid to soldiers in the military are included in the ________ category of gdp.

Consumption

Investment

Government purchases

None of the above

In 1960 federal spending accounted for about ______ percent of the total economy.

5

10

15

40

The _______, the greater is the amount that a household decides to save.

Greater a household's disposable income and the smaller a household's expected future income

Government benefits

Economic well-being

Income

To say that economists use the scientific method means that they are using ___________.

You should run a natural experiment by analyzing bus ridership and price changes.

No, because it predicts the outcome of increased bus ridership on average.

The larger the sample size the better

An ongoing process to develop models of the world and then test and evaluate those models

U.s. imports are ___ produced in _ and sold in ___.

Goods and services; any other country; the United States

Goods and services; the United States; any other country

Both A and B

None of these

M2 is _ in dollar value than m1; it also contains _ assets.

Larger; less liquid

Liquidity refers to:

Near money includes:

Fiat money:

Empiricism is a principle in economics that _________.

Aggregates data to create graphs.

Gathers data using surveys.

Uses data to test economic models.

Collects data using the scientific method.

Economic _________has affected bread-winning and consumption in american families.

Globalization

Immunization

Polarization

Deprivation

Economic investment refers to _____.

Buying a financial asset for a gain.

Selling a financial asset for a gain.

Postponing purchases of goods and services.

Making new additions to a firm’s stock of capital.

As long as people have different _____, everyone has a comparative advantage in something.

Direct costs

Benefits

Utility

Opportunity costs

Flat taxation is present when a set rate is applied to _______ levels of income.

High

Low

Moderate

All the above

During cost-push inflation, aggregate output _ and the aggregate price level ___.

Ises; rises.

Rises; falls.

Falls; falls.

Falls; rises.

Due to ________, government outlays have risen quickly since 2000.

Less tax revenue.

An aging population.

Increased government borrowing.

Economic expansion

Expansionary monetary policy refers to the ________ to increase real gdp.

Government's increasing spending and lowering taxes

Federal reserve's decreasing the money supply and increasing interest rates

Federal reserve's increasing the money supply and decreasing interest rates

Government's decreasing spending and raising taxes

The amount of capital equipment used up or destroyed is called the ____________.

PDI

CFC

GPDI