ECON 201 HomeWork 1 (solutions)

Question 1

 

1 / 1 point

Which of the following best describes a fiscal policy tool?

   

a) 

 household spending

   

b) 

 bank lending

   

c) 

government spending

   

d) 

financial capital markets

Question 2

 

1 / 1 point

         

 In the circular flow diagram model:

   

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

   

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

   

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

   

d) 

Both (a) and (b) are correct.

Question 3

 

1 / 1 point

         

In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.

   

a) 

command economy

   

b) 

 market-oriented economy

   

c) 

microeconomy

   

d) 

macroeconomy

Question 4

 

1 / 1 point

         

 Which of the following best describes a monetary policy tool?

   

a) 

 taxes

   

b) 

government spending

   

c) 

household savings

   

d) 

 interest rates 

Question 5

 

1 / 1 point

         

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

   

a) 

economic freedom

   

b) 

 the black market

   

c) 

 environmental pollution

   

d) 

government involvement

Question 6

 

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) 

 the macroeconomy

   

b) 

 wage levels

   

c) 

household income

   

d) 

 the firm's income

Question 7

 

1 / 1 point

         

 In countries like _____________ the command economy predominates.

   

a) 

Germany and France

   

b) 

Cuba and North Korea

   

c) 

China and Vietnam

   

d) 

South Africa and Kenya

Question 8

 

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

Question 9

 

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) 

 firm

   

b) 

 government

   

c) 

market

   

d) 

 business sector

Chapter 6 Random

 

Question 10

 

1 / 1 point

 The difference between nominal GDP and real GDP is:

   

a) 

 real GDP excludes imports and exports

   

b) 

 real GDP adjusts for inflation

   

c) 

nominal GDP measures actual productivity

   

d) 

nominal GDP adjusts for inflation 

Question 11

 

1 / 1 point

         

 Consumption is the purchase of goods and services by:

   

a) 

business firms.

   

b) 

 households.

   

c) 

 foreign buyers.

   

d) 

government.

Question 12

 

1 / 1 point

         

Which of the following is true?

   

a) 

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

   

b) 

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

   

c) 

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

   

d) 

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

Question 13

 

1 / 1 point

         

The value of what businesses provide to other businesses is captured in the final products at the end of the __________ chain.

   

a) 

supply

   

b) 

service

   

c) 

value

   

d) 

 production

Question 14

 

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) 

 $600 to $1200

   

b) 

 $6,000 to $12,000

   

c) 

$60 to $120

   

d) 

$60,000 to $120,000

Question 15

 

1 / 1 point

         

 ___________ is about two-thirds of the demand side of GDP, but it moves relatively little over time.

   

a) 

Services

   

b) 

Consumption

   

c) 

 Investment

   

d) 

 Government

Question 16

 

1 / 1 point

         

The nominal value of any economic statistic refers to the number that is actually announced at that time, while the ________________ refers to the statistic after it has been adjusted for inflation.

   

a) 

empirical value 

   

b) 

 real value

   

c) 

 net value

   

d) 

adjusted value

Question 17

 

0 / 1 point

         

 GDP is:

   

a) 

the sum of all currency and coins in circulation.

   

b) 

the value of all final good and services produced anywhere in the world by a nation's firms.

   

c) 

the value of all final goods and services produced by a government.

   

d) 

 the value of all final goods and services produced domestically.

Question 18

 

1 / 1 point

         

The change in inventories, a component of aggregate supply, comprises roughly __________ of GDP.

   

a) 

 20%

   

b) 

 1%

   

c) 

 0.6%

   

d) 

 10%

Question 19

 

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) 

Services

   

b) 

 Durable goods

   

c) 

 Structures

   

d) 

Inventories

Question 20

 

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 21

 

1 / 1 point

         

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

   

a) 

 10%

   

b) 

 33%

   

c) 

90%

   

d) 

 68%

Question 22

 

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

Question 23

 

1 / 1 point

         

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

   

a) 

 food, clothing

   

b) 

 automobiles, furniture

   

c) 

drugs, toys, magazines, books

   

d) 

stocks, bonds

Chapter 6 Problems

 

Question 24

 

1 / 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) 

 47%

   

b) 

 19.4%

   

c) 

 147%

   

d) 

68%

Question 25

 

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) 

219%

   

b) 

 128%

   

c) 

45.4%

   

d) 

120%

 

Question 1

 

1 / 1 point

The two main tools of macroeconomic policy include monetary policy, and fiscal policy, which involves __________ spending.

   

a) 

 business

   

b) 

 government

   

c) 

 capital market

   

d) 

 household

Question 2

 

1 / 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 investment market

   

c) 

 circular flow diagram

   

d) 

 financial capital market

Question 3

 

1 / 1 point

         

  In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:

   

a) 

 all consumers.

   

b) 

 producers and government planning committees.

   

c) 

buyers and sellers.

   

d) 

 producers and input suppliers.

Question 4

 

1 / 1 point

         

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

   

a) 

 financial capital market

   

b) 

 financial investment market

   

c) 

 labor market

   

d) 

 savings market

Question 5

 

1 / 1 point

         

  In which of the following countries will the national government have the greatest influence with respect to the nation's economy?

   

a) 

China

   

b) 

Canada

   

c) 

Chile

   

d) 

 Cuba

 

Question 6

 

1 / 1 point

         

The circular flow diagram of economic activity is a model of the:

   

a) 

 influence of government on business behaviour.

   

b) 

interaction among taxes, prices, and profits.

   

c) 

 role of unions and government in the economy.

   

d) 

 flow of goods, services, and payments between households and firms.

Question 7

 

1 / 1 point

         

Macroeconomics:

   

a) 

 is narrower in scope than microeconomics.

   

b) 

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

   

c) 

 analyzes mergers and acquisitions between firms.

   

d) 

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

Question 8

 

1 / 1 point

         

  In the circular flow diagram model:

   

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

   

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

   

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

   

d) 

Both (a) and (b) are correct.

Question 9

 

1 / 1 point

         

In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.

   

a) 

macroeconomy

   

b) 

microeconomy

   

c) 

command economy

   

d) 

 market-oriented economy

Chapter 6 Random

 

Question 10

 

1 / 1 point

Once every __________, the Census Bureau does a comprehensive survey of housing and residential finance. 

   

a) 

 20 years

   

b) 

5 years

   

c) 

 10 years

   

d) 

month

Question 11

 

1 / 1 point

         

GDP in the United States in 2014 was about __________.

   

a) 

 $1.74 trillion

   

b) 

 $17.4 trillion

   

c) 

$174 trillion

   

d) 

 $174 billion

Question 12

 

1 / 1 point

         

Final goods or services used to compute GDP refer to:

   

a) 

 the sum of all wages paid to laborers.

   

b) 

 the value of outstanding shares of stock of manufacturing firms.

   

c) 

 goods and services purchased by the ultimate users.

   

d) 

 the factors of production used to produce output.

Question 13

 

1 / 1 point

         

  If imports exceed exports, as in recent years, then __________ exists. 

   

a) 

 trade disequilibrium

   

b) 

a trade imbalance

   

c) 

 a trade surplus

   

d) 

 a trade deficit

Question 14

 

1 / 1 point

         

The demand measure of GDP accounting adds together:

   

a) 

consumption, interest, government purchases, and trade balance.

   

b) 

 consumption, investment, government purchases, and trade balance.

   

c) 

wages and salaries, rent, interest, and profit.

   

d) 

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

Question 15

 

1 / 1 point

         

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

   

a) 

 foreign currency

   

b) 

currency rates

   

c) 

 per capita GDP

   

d) 

 an exchange rate

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) 

 businesses

   

c) 

 services

   

d) 

households

Question 17

 

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 18

 

1 / 1 point

         

Durable goods and non-durable goods comprise approximately ________ of the supply side of the GDP.

   

a) 

 1%

   

b) 

 80%

   

c) 

 20%

   

d) 

30%

Question 19

 

1 / 1 point

         

In order to avoid double counting, statisticians just count the __________________.

   

a) 

 intermediate goods and services 

   

b) 

final inventories

   

c) 

 final goods and services 

   

d) 

 durable goods and nondurable goods

Question 20

 

1 / 1 point

         

  Consumption is the purchase of goods and services by:

   

a) 

 households.

   

b) 

government.

   

c) 

 foreign buyers.

   

d) 

business firms.

Question 21

 

1 / 1 point

         

The value of what businesses provide to other businesses is captured in the final products at the end of the __________ chain.

   

a) 

supply

   

b) 

 production

   

c) 

value

   

d) 

service

Question 22

 

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) 

Services

   

b) 

Inventories

   

c) 

 Durable goods

   

d) 

 Structures

Question 23

 

1 / 1 point

         

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

   

a) 

stocks, bonds

   

b) 

drugs, toys, magazines, books

   

c) 

 automobiles, furniture

   

d) 

 food, clothing

Chapter 6 Problems

 

Question 24

 

0 / 1 point

Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals $200 billion, and government spending equals $260 billion, then:

   

a) 

 exports exceed imports by $150 billion.

   

b) 

 exports exceed imports by $50 billion.

   

c) 

imports exceed exports by $50 billion.

   

d) 

 imports exceed exports by $150 billion.

Question 25

 

1 / 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) 

 47%

   

b) 

 147%

   

c) 

68%

   

d) 

 19.4%

 

Question 1

 

1 / 1 point

Which of the following best describes a fiscal policy tool?

   

a) 

 household spending

   

b) 

 bank lending

   

c) 

government spending

   

d) 

financial capital markets

Question 2

 

1 / 1 point

         

 In the circular flow diagram model:

   

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

   

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

   

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

   

d) 

Both (a) and (b) are correct.

Question 3

 

1 / 1 point

         

In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.

   

a) 

command economy

   

b) 

 market-oriented economy

   

c) 

microeconomy

   

d) 

macroeconomy

Question 4

 

1 / 1 point

         

 Which of the following best describes a monetary policy tool?

   

a) 

 taxes

   

b) 

government spending

   

c) 

household savings

   

d) 

 interest rates 

Question 5

 

1 / 1 point

         

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

   

a) 

economic freedom

   

b) 

 the black market

   

c) 

 environmental pollution

   

d) 

government involvement

Question 6

 

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) 

 the macroeconomy

   

b) 

 wage levels

   

c) 

household income

   

d) 

 the firm's income

Question 7

 

1 / 1 point

         

 In countries like _____________ the command economy predominates.

   

a) 

Germany and France

   

b) 

Cuba and North Korea

   

c) 

China and Vietnam

   

d) 

South Africa and Kenya

Question 8

 

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

Question 9

 

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) 

 firm

   

b) 

 government

   

c) 

market

   

d) 

 business sector

Chapter 6 Random

 

Question 10

 

1 / 1 point

 The difference between nominal GDP and real GDP is:

   

a) 

 real GDP excludes imports and exports

   

b) 

 real GDP adjusts for inflation

   

c) 

nominal GDP measures actual productivity

   

d) 

nominal GDP adjusts for inflation 

Question 11

 

1 / 1 point

         

 Consumption is the purchase of goods and services by:

   

a) 

business firms.

   

b) 

 households.

   

c) 

 foreign buyers.

   

d) 

government.

Question 12

 

1 / 1 point

         

Which of the following is true?

   

a) 

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

   

b) 

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

   

c) 

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

   

d) 

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

Question 13

 

1 / 1 point

         

The value of what businesses provide to other businesses is captured in the final products at the end of the __________ chain.

   

a) 

supply

   

b) 

service

   

c) 

value

   

d) 

 production

Question 14

 

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) 

 $600 to $1200

   

b) 

 $6,000 to $12,000

   

c) 

$60 to $120

   

d) 

$60,000 to $120,000

Question 15

 

1 / 1 point

         

 ___________ is about two-thirds of the demand side of GDP, but it moves relatively little over time.

   

a) 

Services

   

b) 

Consumption

   

c) 

 Investment

   

d) 

 Government

Question 16

 

1 / 1 point

         

The nominal value of any economic statistic refers to the number that is actually announced at that time, while the ________________ refers to the statistic after it has been adjusted for inflation.

   

a) 

empirical value 

   

b) 

 real value

   

c) 

 net value

   

d) 

adjusted value

Question 17

 

0 / 1 point

         

 GDP is:

   

a) 

the sum of all currency and coins in circulation.

   

b) 

the value of all final good and services produced anywhere in the world by a nation's firms.

   

c) 

the value of all final goods and services produced by a government.

   

d) 

 the value of all final goods and services produced domestically.

Question 18

 

1 / 1 point

         

The change in inventories, a component of aggregate supply, comprises roughly __________ of GDP.

   

a) 

 20%

   

b) 

 1%

   

c) 

 0.6%

   

d) 

 10%

Question 19

 

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) 

Services

   

b) 

 Durable goods

   

c) 

 Structures

   

d) 

Inventories

Question 20

 

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 21

 

1 / 1 point

         

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

   

a) 

 10%

   

b) 

 33%

   

c) 

90%

   

d) 

 68%

Question 22

 

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

Question 23

 

1 / 1 point

         

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

   

a) 

 food, clothing

   

b) 

 automobiles, furniture

   

c) 

drugs, toys, magazines, books

   

d) 

stocks, bonds

Chapter 6 Problems

 

Question 24

 

1 / 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) 

 47%

   

b) 

 19.4%

   

c) 

 147%

   

d) 

68%

Question 25

 

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) 

219%

   

b) 

 128%

   

c) 

45.4%

   

d) 

120%

 

Question 1

 

1 / 1 point

The two main tools of macroeconomic policy include monetary policy, and fiscal policy, which involves __________ spending.

   

a) 

 business

   

b) 

 government

   

c) 

 capital market

   

d) 

 household

Question 2

 

1 / 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 investment market

   

c) 

 circular flow diagram

   

d) 

 financial capital market

Question 3

 

1 / 1 point

         

  In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:

   

a) 

 all consumers.

   

b) 

 producers and government planning committees.

   

c) 

buyers and sellers.

   

d) 

 producers and input suppliers.

Question 4

 

1 / 1 point

         

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

   

a) 

 financial capital market

   

b) 

 financial investment market

   

c) 

 labor market

   

d) 

 savings market

Question 5

 

1 / 1 point

         

  In which of the following countries will the national government have the greatest influence with respect to the nation's economy?

   

a) 

China

   

b) 

Canada

   

c) 

Chile

   

d) 

 Cuba

 

Question 6

 

1 / 1 point

         

The circular flow diagram of economic activity is a model of the:

   

a) 

 influence of government on business behaviour.

   

b) 

interaction among taxes, prices, and profits.

   

c) 

 role of unions and government in the economy.

   

d) 

 flow of goods, services, and payments between households and firms.

Question 7

 

1 / 1 point

         

Macroeconomics:

   

a) 

 is narrower in scope than microeconomics.

   

b) 

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

   

c) 

 analyzes mergers and acquisitions between firms.

   

d) 

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

Question 8

 

1 / 1 point

         

  In the circular flow diagram model:

   

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

   

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

   

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

   

d) 

Both (a) and (b) are correct.

Question 9

 

1 / 1 point

         

In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.

   

a) 

macroeconomy

   

b) 

microeconomy

   

c) 

command economy

   

d) 

 market-oriented economy

Chapter 6 Random

 

Question 10

 

1 / 1 point

Once every __________, the Census Bureau does a comprehensive survey of housing and residential finance. 

   

a) 

 20 years

   

b) 

5 years

   

c) 

 10 years

   

d) 

month

Question 11

 

1 / 1 point

         

GDP in the United States in 2014 was about __________.

   

a) 

 $1.74 trillion

   

b) 

 $17.4 trillion

   

c) 

$174 trillion

   

d) 

 $174 billion

Question 12

 

1 / 1 point

         

Final goods or services used to compute GDP refer to:

   

a) 

 the sum of all wages paid to laborers.

   

b) 

 the value of outstanding shares of stock of manufacturing firms.

   

c) 

 goods and services purchased by the ultimate users.

   

d) 

 the factors of production used to produce output.

Question 13

 

1 / 1 point

         

  If imports exceed exports, as in recent years, then __________ exists. 

   

a) 

 trade disequilibrium

   

b) 

a trade imbalance

   

c) 

 a trade surplus

   

d) 

 a trade deficit

Question 14

 

1 / 1 point

         

The demand measure of GDP accounting adds together:

   

a) 

consumption, interest, government purchases, and trade balance.

   

b) 

 consumption, investment, government purchases, and trade balance.

   

c) 

wages and salaries, rent, interest, and profit.

   

d) 

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

Question 15

 

1 / 1 point

         

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

   

a) 

 foreign currency

   

b) 

currency rates

   

c) 

 per capita GDP

   

d) 

 an exchange rate

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) 

 businesses

   

c) 

 services

   

d) 

households

Question 17

 

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 18

 

1 / 1 point

         

Durable goods and non-durable goods comprise approximately ________ of the supply side of the GDP.

   

a) 

 1%

   

b) 

 80%

   

c) 

 20%

   

d) 

30%

Question 19

 

1 / 1 point

         

In order to avoid double counting, statisticians just count the __________________.

   

a) 

 intermediate goods and services 

   

b) 

final inventories

   

c) 

 final goods and services 

   

d) 

 durable goods and nondurable goods

Question 20

 

1 / 1 point

         

  Consumption is the purchase of goods and services by:

   

a) 

 households.

   

b) 

government.

   

c) 

 foreign buyers.

   

d) 

business firms.

Question 21

 

1 / 1 point

         

The value of what businesses provide to other businesses is captured in the final products at the end of the __________ chain.

   

a) 

supply

   

b) 

 production

   

c) 

value

   

d) 

service

Question 22

 

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) 

Services

   

b) 

Inventories

   

c) 

 Durable goods

   

d) 

 Structures

Question 23

 

1 / 1 point

         

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

   

a) 

stocks, bonds

   

b) 

drugs, toys, magazines, books

   

c) 

 automobiles, furniture

   

d) 

 food, clothing

Chapter 6 Problems

 

Question 24

 

0 / 1 point

Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals $200 billion, and government spending equals $260 billion, then:

   

a) 

 exports exceed imports by $150 billion.

   

b) 

 exports exceed imports by $50 billion.

   

c) 

imports exceed exports by $50 billion.

   

d) 

 imports exceed exports by $150 billion.

Question 25

 

1 / 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) 

 47%

   

b) 

 147%

   

c) 

68%

   

d) 

 19.4%

 

Question 1

 

1 / 1 point

Which of the following best describes a fiscal policy tool?

   

a) 

 household spending

   

b) 

 bank lending

   

c) 

government spending

   

d) 

financial capital markets

Question 2

 

1 / 1 point

         

 In the circular flow diagram model:

   

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

   

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

   

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

   

d) 

Both (a) and (b) are correct.

Question 3

 

1 / 1 point

         

In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.

   

a) 

command economy

   

b) 

 market-oriented economy

   

c) 

microeconomy

   

d) 

macroeconomy

Question 4

 

1 / 1 point

         

 Which of the following best describes a monetary policy tool?

   

a) 

 taxes

   

b) 

government spending

   

c) 

household savings

   

d) 

 interest rates 

Question 5

 

1 / 1 point

         

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

   

a) 

economic freedom

   

b) 

 the black market

   

c) 

 environmental pollution

   

d) 

government involvement

Question 6

 

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) 

 the macroeconomy

   

b) 

 wage levels

   

c) 

household income

   

d) 

 the firm's income

Question 7

 

1 / 1 point

         

 In countries like _____________ the command economy predominates.

   

a) 

Germany and France

   

b) 

Cuba and North Korea

   

c) 

China and Vietnam

   

d) 

South Africa and Kenya

Question 8

 

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

Question 9

 

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) 

 firm

   

b) 

 government

   

c) 

market

   

d) 

 business sector

Chapter 6 Random

 

Question 10

 

1 / 1 point

 The difference between nominal GDP and real GDP is:

   

a) 

 real GDP excludes imports and exports

   

b) 

 real GDP adjusts for inflation

   

c) 

nominal GDP measures actual productivity

   

d) 

nominal GDP adjusts for inflation 

Question 11

 

1 / 1 point

         

 Consumption is the purchase of goods and services by:

   

a) 

business firms.

   

b) 

 households.

   

c) 

 foreign buyers.

   

d) 

government.

Question 12

 

1 / 1 point

         

Which of the following is true?

   

a) 

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

   

b) 

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

   

c) 

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

   

d) 

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

Question 13

 

1 / 1 point

         

The value of what businesses provide to other businesses is captured in the final products at the end of the __________ chain.

   

a) 

supply

   

b) 

service

   

c) 

value

   

d) 

 production

Question 14

 

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) 

 $600 to $1200

   

b) 

 $6,000 to $12,000

   

c) 

$60 to $120

   

d) 

$60,000 to $120,000

Question 15

 

1 / 1 point

         

 ___________ is about two-thirds of the demand side of GDP, but it moves relatively little over time.

   

a) 

Services

   

b) 

Consumption

   

c) 

 Investment

   

d) 

 Government

Question 16

 

1 / 1 point

         

The nominal value of any economic statistic refers to the number that is actually announced at that time, while the ________________ refers to the statistic after it has been adjusted for inflation.

   

a) 

empirical value 

   

b) 

 real value

   

c) 

 net value

   

d) 

adjusted value

Question 17

 

0 / 1 point

         

 GDP is:

   

a) 

the sum of all currency and coins in circulation.

   

b) 

the value of all final good and services produced anywhere in the world by a nation's firms.

   

c) 

the value of all final goods and services produced by a government.

   

d) 

 the value of all final goods and services produced domestically.

Question 18

 

1 / 1 point

         

The change in inventories, a component of aggregate supply, comprises roughly __________ of GDP.

   

a) 

 20%

   

b) 

 1%

   

c) 

 0.6%

   

d) 

 10%

Question 19

 

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) 

Services

   

b) 

 Durable goods

   

c) 

 Structures

   

d) 

Inventories

Question 20

 

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 21

 

1 / 1 point

         

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

   

a) 

 10%

   

b) 

 33%

   

c) 

90%

   

d) 

 68%

Question 22

 

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

Question 23

 

1 / 1 point

         

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

   

a) 

 food, clothing

   

b) 

 automobiles, furniture

   

c) 

drugs, toys, magazines, books

   

d) 

stocks, bonds

Chapter 6 Problems

 

Question 24

 

1 / 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) 

 47%

   

b) 

 19.4%

   

c) 

 147%

   

d) 

68%

Question 25

 

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) 

219%

   

b) 

 128%

   

c) 

45.4%

   

d) 

120%

 

Question 1

 

1 / 1 point

The two main tools of macroeconomic policy include monetary policy, and fiscal policy, which involves __________ spending.

   

a) 

 business

   

b) 

 government

   

c) 

 capital market

   

d) 

 household

Question 2

 

1 / 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 investment market

   

c) 

 circular flow diagram

   

d) 

 financial capital market

Question 3

 

1 / 1 point

         

  In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:

   

a) 

 all consumers.

   

b) 

 producers and government planning committees.

   

c) 

buyers and sellers.

   

d) 

 producers and input suppliers.

Question 4

 

1 / 1 point

         

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

   

a) 

 financial capital market

   

b) 

 financial investment market

   

c) 

 labor market

   

d) 

 savings market

Question 5

 

1 / 1 point

         

  In which of the following countries will the national government have the greatest influence with respect to the nation's economy?

   

a) 

China

   

b) 

Canada

   

c) 

Chile

   

d) 

 Cuba

 

Question 6

 

1 / 1 point

         

The circular flow diagram of economic activity is a model of the:

   

a) 

 influence of government on business behaviour.

   

b) 

interaction among taxes, prices, and profits.

   

c) 

 role of unions and government in the economy.

   

d) 

 flow of goods, services, and payments between households and firms.

Question 7

 

1 / 1 point

         

Macroeconomics:

   

a) 

 is narrower in scope than microeconomics.

   

b) 

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

   

c) 

 analyzes mergers and acquisitions between firms.

   

d) 

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

Question 8

 

1 / 1 point

         

  In the circular flow diagram model:

   

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

   

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

   

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

   

d) 

Both (a) and (b) are correct.

Question 9

 

1 / 1 point

         

In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.

   

a) 

macroeconomy

   

b) 

microeconomy

   

c) 

command economy

   

d) 

 market-oriented economy

Chapter 6 Random

 

Question 10

 

1 / 1 point

Once every __________, the Census Bureau does a comprehensive survey of housing and residential finance. 

   

a) 

 20 years

   

b) 

5 years

   

c) 

 10 years

   

d) 

month

Question 11

 

1 / 1 point

         

GDP in the United States in 2014 was about __________.

   

a) 

 $1.74 trillion

   

b) 

 $17.4 trillion

   

c) 

$174 trillion

   

d) 

 $174 billion

Question 12

 

1 / 1 point

         

Final goods or services used to compute GDP refer to:

   

a) 

 the sum of all wages paid to laborers.

   

b) 

 the value of outstanding shares of stock of manufacturing firms.

   

c) 

 goods and services purchased by the ultimate users.

   

d) 

 the factors of production used to produce output.

Question 13

 

1 / 1 point

         

  If imports exceed exports, as in recent years, then __________ exists. 

   

a) 

 trade disequilibrium

   

b) 

a trade imbalance

   

c) 

 a trade surplus

   

d) 

 a trade deficit

Question 14

 

1 / 1 point

         

The demand measure of GDP accounting adds together:

   

a) 

consumption, interest, government purchases, and trade balance.

   

b) 

 consumption, investment, government purchases, and trade balance.

   

c) 

wages and salaries, rent, interest, and profit.

   

d) 

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

Question 15

 

1 / 1 point

         

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

   

a) 

 foreign currency

   

b) 

currency rates

   

c) 

 per capita GDP

   

d) 

 an exchange rate

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) 

 businesses

   

c) 

 services

   

d) 

households

Question 17

 

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 18

 

1 / 1 point

         

Durable goods and non-durable goods comprise approximately ________ of the supply side of the GDP.

   

a) 

 1%

   

b) 

 80%

   

c) 

 20%

   

d) 

30%

Question 19

 

1 / 1 point

         

In order to avoid double counting, statisticians just count the __________________.

   

a) 

 intermediate goods and services 

   

b) 

final inventories

   

c) 

 final goods and services 

   

d) 

 durable goods and nondurable goods

Question 20

 

1 / 1 point

         

  Consumption is the purchase of goods and services by:

   

a) 

 households.

   

b) 

government.

   

c) 

 foreign buyers.

   

d) 

business firms.

Question 21

 

1 / 1 point

         

The value of what businesses provide to other businesses is captured in the final products at the end of the __________ chain.

   

a) 

supply

   

b) 

 production

   

c) 

value

   

d) 

service

Question 22

 

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) 

Services

   

b) 

Inventories

   

c) 

 Durable goods

   

d) 

 Structures

Question 23

 

1 / 1 point

         

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

   

a) 

stocks, bonds

   

b) 

drugs, toys, magazines, books

   

c) 

 automobiles, furniture

   

d) 

 food, clothing

Chapter 6 Problems

 

Question 24

 

0 / 1 point

Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals $200 billion, and government spending equals $260 billion, then:

   

a) 

 exports exceed imports by $150 billion.

   

b) 

 exports exceed imports by $50 billion.

   

c) 

imports exceed exports by $50 billion.

   

d) 

 imports exceed exports by $150 billion.

Question 25

 

1 / 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) 

 47%

   

b) 

 147%

   

c) 

68%

   

d) 

 19.4%

 

Question 1

 

1 / 1 point

Question 1

 

1 / 1 point

Question 1

 

1 / 1 point

Question 1

 

1 / 1 point

Question 1

Question 1 Question 1

   

1 / 1 point

1 / 1 point 1 / 1 point

Which of the following best describes a fiscal policy tool? Which of the following best describes a fiscal policy tool?

   

a) 

 household spending

   

b) 

 bank lending

   

c) 

government spending

   

d) 

financial capital markets

Question 2

 

1 / 1 point

         
   

a) 

 household spending

   

b) 

 bank lending

   

c) 

government spending

   

d) 

financial capital markets

Question 2

 

1 / 1 point

         
   

a) 

 household spending

       

a) 

 household spending

a) 

 household spending

a) 

 household spending

a) 

 household spending

a) 

a)  a) 

 household spending

 household spending  household spending

   

b) 

 bank lending

       

b) 

 bank lending

b) 

 bank lending

b) 

 bank lending

b) 

 bank lending

b) 

b)  b) 

 bank lending

 bank lending  bank lending

   

c) 

government spending

       

c) 

government spending

c) 

government spending

c) 

government spending

c) 

government spending

c) 

c)  c) 

government spending

government spending government spending

   

d) 

financial capital markets

       

d) 

financial capital markets

d) 

financial capital markets

d) 

financial capital markets

d) 

financial capital markets

d) 

d)  d) 

financial capital markets

financial capital markets financial capital markets

Question 2

 

1 / 1 point

Question 2

Question 2 Question 2

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

 In the circular flow diagram model:  In the circular flow diagram model:

   

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

   

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

   

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

   

d) 

Both (a) and (b) are correct.

Question 3

 

1 / 1 point

         
   

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

   

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

   

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

   

d) 

Both (a) and (b) are correct.

Question 3

 

1 / 1 point

         
   

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

       

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

a) 

a)  a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.  households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

   

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

       

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

b) 

b)  b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.  businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

   

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

       

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

c) 

c)  c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses. households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

   

d) 

Both (a) and (b) are correct.

       

d) 

Both (a) and (b) are correct.

d) 

Both (a) and (b) are correct.

d) 

Both (a) and (b) are correct.

d) 

Both (a) and (b) are correct.

d) 

d)  d) 

Both (a) and (b) are correct.

Both (a) and (b) are correct. Both (a) and (b) are correct.

Question 3

 

1 / 1 point

Question 3

Question 3 Question 3

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers. In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.

   

a) 

command economy

   

b) 

 market-oriented economy

   

c) 

microeconomy

   

d) 

macroeconomy

Question 4

 

1 / 1 point

         
   

a) 

command economy

   

b) 

 market-oriented economy

   

c) 

microeconomy

   

d) 

macroeconomy

Question 4

 

1 / 1 point

         
   

a) 

command economy

       

a) 

command economy

a) 

command economy

a) 

command economy

a) 

command economy

a) 

a)  a) 

command economy

command economy command economy

   

b) 

 market-oriented economy

       

b) 

 market-oriented economy

b) 

 market-oriented economy

b) 

 market-oriented economy

b) 

 market-oriented economy

b) 

b)  b) 

 market-oriented economy

 market-oriented economy  market-oriented economy

   

c) 

microeconomy

       

c) 

microeconomy

c) 

microeconomy

c) 

microeconomy

c) 

microeconomy

c) 

c)  c) 

microeconomy

microeconomy microeconomy

   

d) 

macroeconomy

       

d) 

macroeconomy

d) 

macroeconomy

d) 

macroeconomy

d) 

macroeconomy

d) 

d)  d) 

macroeconomy

macroeconomy macroeconomy

Question 4

 

1 / 1 point

Question 4

Question 4 Question 4

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

 Which of the following best describes a monetary policy tool?  Which of the following best describes a monetary policy tool?

   

a) 

 taxes

   

b) 

government spending

   

c) 

household savings

   

d) 

 interest rates 

Question 5

 

1 / 1 point

         
   

a) 

 taxes

   

b) 

government spending

   

c) 

household savings

   

d) 

 interest rates 

Question 5

 

1 / 1 point

         
   

a) 

 taxes

       

a) 

 taxes

a) 

 taxes

a) 

 taxes

a) 

 taxes

a) 

a)  a) 

 taxes

 taxes  taxes

   

b) 

government spending

       

b) 

government spending

b) 

government spending

b) 

government spending

b) 

government spending

b) 

b)  b) 

government spending

government spending government spending

   

c) 

household savings

       

c) 

household savings

c) 

household savings

c) 

household savings

c) 

household savings

c) 

c)  c) 

household savings

household savings household savings

   

d) 

 interest rates 

       

d) 

 interest rates 

d) 

 interest rates 

d) 

 interest rates 

d) 

 interest rates 

d) 

d)  d) 

 interest rates 

 interest rates   interest rates 

Question 5

 

1 / 1 point

Question 5

Question 5 Question 5

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

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

   

a) 

economic freedom

   

b) 

 the black market

   

c) 

 environmental pollution

   

d) 

government involvement

Question 6

 

1 / 1 point

         
   

a) 

economic freedom

   

b) 

 the black market

   

c) 

 environmental pollution

   

d) 

government involvement

Question 6

 

1 / 1 point

         
   

a) 

economic freedom

       

a) 

economic freedom

a) 

economic freedom

a) 

economic freedom

a) 

economic freedom

a) 

a)  a) 

economic freedom

economic freedom economic freedom

   

b) 

 the black market

       

b) 

 the black market

b) 

 the black market

b) 

 the black market

b) 

 the black market

b) 

b)  b) 

 the black market

 the black market  the black market

   

c) 

 environmental pollution

       

c) 

 environmental pollution

c) 

 environmental pollution

c) 

 environmental pollution

c) 

 environmental pollution

c) 

c)  c) 

 environmental pollution

 environmental pollution  environmental pollution

   

d) 

government involvement

       

d) 

government involvement

d) 

government involvement

d) 

government involvement

d) 

government involvement

d) 

d)  d) 

government involvement

government involvement government involvement

Question 6

 

1 / 1 point

Question 6

Question 6 Question 6

   

1 / 1 point

1 / 1 point 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? In a discussion of economics, which of the following would exert the most influence on an individual firm's decision to hire workers?

   

a) 

 the macroeconomy

   

b) 

 wage levels

   

c) 

household income

   

d) 

 the firm's income

Question 7

 

1 / 1 point

         
   

a) 

 the macroeconomy

   

b) 

 wage levels

   

c) 

household income

   

d) 

 the firm's income

Question 7

 

1 / 1 point

         
   

a) 

 the macroeconomy

       

a) 

 the macroeconomy

a) 

 the macroeconomy

a) 

 the macroeconomy

a) 

 the macroeconomy

a) 

a)  a) 

 the macroeconomy

 the macroeconomy  the macroeconomy

   

b) 

 wage levels

       

b) 

 wage levels

b) 

 wage levels

b) 

 wage levels

b) 

 wage levels

b) 

b)  b) 

 wage levels

 wage levels  wage levels

   

c) 

household income

       

c) 

household income

c) 

household income

c) 

household income

c) 

household income

c) 

c)  c) 

household income

household income household income

   

d) 

 the firm's income

       

d) 

 the firm's income

d) 

 the firm's income

d) 

 the firm's income

d) 

 the firm's income

d) 

d)  d) 

 the firm's income

 the firm's income  the firm's income

Question 7

 

1 / 1 point

Question 7

Question 7 Question 7

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

 In countries like _____________ the command economy predominates.  In countries like _____________ the command economy predominates.

   

a) 

Germany and France

   

b) 

Cuba and North Korea

   

c) 

China and Vietnam

   

d) 

South Africa and Kenya

Question 8

 

1 / 1 point

         
   

a) 

Germany and France

   

b) 

Cuba and North Korea

   

c) 

China and Vietnam

   

d) 

South Africa and Kenya

Question 8

 

1 / 1 point

         
   

a) 

Germany and France

       

a) 

Germany and France

a) 

Germany and France

a) 

Germany and France

a) 

Germany and France

a) 

a)  a) 

Germany and France

Germany and France Germany and France

   

b) 

Cuba and North Korea

       

b) 

Cuba and North Korea

b) 

Cuba and North Korea

b) 

Cuba and North Korea

b) 

Cuba and North Korea

b) 

b)  b) 

Cuba and North Korea

Cuba and North Korea Cuba and North Korea

   

c) 

China and Vietnam

       

c) 

China and Vietnam

c) 

China and Vietnam

c) 

China and Vietnam

c) 

China and Vietnam

c) 

c)  c) 

China and Vietnam

China and Vietnam China and Vietnam

   

d) 

South Africa and Kenya

       

d) 

South Africa and Kenya

d) 

South Africa and Kenya

d) 

South Africa and Kenya

d) 

South Africa and Kenya

d) 

d)  d) 

South Africa and Kenya

South Africa and Kenya South Africa and Kenya

Question 8

 

1 / 1 point

Question 8

Question 8 Question 8

   

1 / 1 point

1 / 1 point 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? 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

Question 9

 

1 / 1 point

         
   

division of labour

   

 international trade

   

economies of scale

   

command economy

Question 9

 

1 / 1 point

         
   

division of labour

       

division of labour

division of labour division of labour

   

 international trade

       

 international trade

 international trade  international trade

   

economies of scale

       

economies of scale

economies of scale economies of scale

   

command economy

       

command economy

command economy command economy

Question 9

 

1 / 1 point

Question 9

Question 9 Question 9

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

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

   

a) 

 firm

   

b) 

 government

   

c) 

market

   

d) 

 business sector

Chapter 6 Random

   

a) 

 firm

   

b) 

 government

   

c) 

market

   

d) 

 business sector

Chapter 6 Random

   

a) 

 firm

       

a) 

 firm

a) 

 firm

a) 

 firm

a) 

 firm

a) 

a)  a) 

 firm

 firm  firm

   

b) 

 government

       

b) 

 government

b) 

 government

b) 

 government

b) 

 government

b) 

b)  b) 

 government

 government  government

   

c) 

market

       

c) 

market

c) 

market

c) 

market

c) 

market

c) 

c)  c) 

market

market market

   

d) 

 business sector

       

d) 

 business sector

d) 

 business sector

d) 

 business sector

d) 

 business sector

d) 

d)  d) 

 business sector

 business sector  business sector

Chapter 6 Random

Chapter 6 Random

Chapter 6 Random Chapter 6 Random

   

Question 10

 

1 / 1 point

Question 10

 

1 / 1 point

Question 10

 

1 / 1 point

Question 10

 

1 / 1 point

Question 10

Question 10 Question 10

   

1 / 1 point

1 / 1 point 1 / 1 point

 The difference between nominal GDP and real GDP is:  The difference between nominal GDP and real GDP is:

   

a) 

 real GDP excludes imports and exports

   

b) 

 real GDP adjusts for inflation

   

c) 

nominal GDP measures actual productivity

   

d) 

nominal GDP adjusts for inflation 

Question 11

 

1 / 1 point

         
   

a) 

 real GDP excludes imports and exports

   

b) 

 real GDP adjusts for inflation

   

c) 

nominal GDP measures actual productivity

   

d) 

nominal GDP adjusts for inflation 

Question 11

 

1 / 1 point

         
   

a) 

 real GDP excludes imports and exports

       

a) 

 real GDP excludes imports and exports

a) 

 real GDP excludes imports and exports

a) 

 real GDP excludes imports and exports

a) 

 real GDP excludes imports and exports

a) 

a)  a) 

 real GDP excludes imports and exports

 real GDP excludes imports and exports  real GDP excludes imports and exports

   

b) 

 real GDP adjusts for inflation

       

b) 

 real GDP adjusts for inflation

b) 

 real GDP adjusts for inflation

b) 

 real GDP adjusts for inflation

b) 

 real GDP adjusts for inflation

b) 

b)  b) 

 real GDP adjusts for inflation

 real GDP adjusts for inflation  real GDP adjusts for inflation

   

c) 

nominal GDP measures actual productivity

       

c) 

nominal GDP measures actual productivity

c) 

nominal GDP measures actual productivity

c) 

nominal GDP measures actual productivity

c) 

nominal GDP measures actual productivity

c) 

c)  c) 

nominal GDP measures actual productivity

nominal GDP measures actual productivity nominal GDP measures actual productivity

   

d) 

nominal GDP adjusts for inflation 

       

d) 

nominal GDP adjusts for inflation 

d) 

nominal GDP adjusts for inflation 

d) 

nominal GDP adjusts for inflation 

d) 

nominal GDP adjusts for inflation 

d) 

d)  d) 

nominal GDP adjusts for inflation 

nominal GDP adjusts for inflation  nominal GDP adjusts for inflation 

Question 11

 

1 / 1 point

Question 11

Question 11 Question 11

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

 Consumption is the purchase of goods and services by:  Consumption is the purchase of goods and services by:

   

a) 

business firms.

   

b) 

 households.

   

c) 

 foreign buyers.

   

d) 

government.

Question 12

 

1 / 1 point

         
   

a) 

business firms.

   

b) 

 households.

   

c) 

 foreign buyers.

   

d) 

government.

Question 12

 

1 / 1 point

         
   

a) 

business firms.

       

a) 

business firms.

a) 

business firms.

a) 

business firms.

a) 

business firms.

a) 

a)  a) 

business firms.

business firms. business firms.

   

b) 

 households.

       

b) 

 households.

b) 

 households.

b) 

 households.

b) 

 households.

b) 

b)  b) 

 households.

 households.  households.

   

c) 

 foreign buyers.

       

c) 

 foreign buyers.

c) 

 foreign buyers.

c) 

 foreign buyers.

c) 

 foreign buyers.

c) 

c)  c) 

 foreign buyers.

 foreign buyers.  foreign buyers.

   

d) 

government.

       

d) 

government.

d) 

government.

d) 

government.

d) 

government.

d) 

d)  d) 

government.

government. government.

Question 12

 

1 / 1 point

Question 12

Question 12 Question 12

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

Which of the following is true? Which of the following is true?

   

a) 

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

   

b) 

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

   

c) 

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

   

d) 

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

Question 13

 

1 / 1 point

         
   

a) 

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

   

b) 

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

   

c) 

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

   

d) 

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

Question 13

 

1 / 1 point

         
   

a) 

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

       

a) 

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

a) 

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

a) 

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

a) 

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

a) 

a)  a) 

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

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

   

b) 

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

       

b) 

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

b) 

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

b) 

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

b) 

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

b) 

b)  b) 

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

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

   

c) 

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

       

c) 

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

c) 

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

c) 

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

c) 

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

c) 

c)  c) 

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

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

   

d) 

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

       

d) 

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

d) 

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

d) 

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

d) 

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

d) 

d)  d) 

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

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

Question 13

 

1 / 1 point

Question 13

Question 13 Question 13

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

The value of what businesses provide to other businesses is captured in the final products at the end of the __________ chain. The value of what businesses provide to other businesses is captured in the final products at the end of the __________ chain.

   

a) 

supply

   

b) 

service

   

c) 

value

   

d) 

 production

Question 14

 

1 / 1 point

         
   

a) 

supply

   

b) 

service

   

c) 

value

   

d) 

 production

Question 14

 

1 / 1 point

         
   

a) 

supply

       

a) 

supply

a) 

supply

a) 

supply

a) 

supply

a) 

a)  a) 

supply

supply supply

   

b) 

service

       

b) 

service

b) 

service

b) 

service

b) 

service

b) 

b)  b) 

service

service service

   

c) 

value

       

c) 

value

c) 

value

c) 

value

c) 

value

c) 

c)  c) 

value

value value

   

d) 

 production

       

d) 

 production

d) 

 production

d) 

 production

d) 

 production

d) 

d)  d) 

 production

 production  production

Question 14

 

1 / 1 point

Question 14

Question 14 Question 14

   

1 / 1 point

1 / 1 point 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 ___________.  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) 

 $600 to $1200

   

b) 

 $6,000 to $12,000

   

c) 

$60 to $120

   

d) 

$60,000 to $120,000

Question 15

 

1 / 1 point

         
   

a) 

 $600 to $1200

   

b) 

 $6,000 to $12,000

   

c) 

$60 to $120

   

d) 

$60,000 to $120,000

Question 15

 

1 / 1 point

         
   

a) 

 $600 to $1200

       

a) 

 $600 to $1200

a) 

 $600 to $1200

a) 

 $600 to $1200

a) 

 $600 to $1200

a) 

a)  a) 

 $600 to $1200

 $600 to $1200  $600 to $1200

   

b) 

 $6,000 to $12,000

       

b) 

 $6,000 to $12,000

b) 

 $6,000 to $12,000

b) 

 $6,000 to $12,000

b) 

 $6,000 to $12,000

b) 

b)  b) 

 $6,000 to $12,000

 $6,000 to $12,000  $6,000 to $12,000

   

c) 

$60 to $120

       

c) 

$60 to $120

c) 

$60 to $120

c) 

$60 to $120

c) 

$60 to $120

c) 

c)  c) 

$60 to $120

$60 to $120 $60 to $120

   

d) 

$60,000 to $120,000

       

d) 

$60,000 to $120,000

d) 

$60,000 to $120,000

d) 

$60,000 to $120,000

d) 

$60,000 to $120,000

d) 

d)  d) 

$60,000 to $120,000

$60,000 to $120,000 $60,000 to $120,000

Question 15

 

1 / 1 point

Question 15

Question 15 Question 15

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

 ___________ is about two-thirds of the demand side of GDP, but it moves relatively little over time.  ___________ is about two-thirds of the demand side of GDP, but it moves relatively little over time.

   

a) 

Services

   

b) 

Consumption

   

c) 

 Investment

   

d) 

 Government

Question 16

 

1 / 1 point

         
   

a) 

Services

   

b) 

Consumption

   

c) 

 Investment

   

d) 

 Government

Question 16

 

1 / 1 point

         
   

a) 

Services

       

a) 

Services

a) 

Services

a) 

Services

a) 

Services

a) 

a)  a) 

Services

Services Services

   

b) 

Consumption

       

b) 

Consumption

b) 

Consumption

b) 

Consumption

b) 

Consumption

b) 

b)  b) 

Consumption

Consumption Consumption

   

c) 

 Investment

       

c) 

 Investment

c) 

 Investment

c) 

 Investment

c) 

 Investment

c) 

c)  c) 

 Investment

 Investment  Investment

   

d) 

 Government

       

d) 

 Government

d) 

 Government

d) 

 Government

d) 

 Government

d) 

d)  d) 

 Government

 Government  Government

Question 16

 

1 / 1 point

Question 16

Question 16 Question 16

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

The nominal value of any economic statistic refers to the number that is actually announced at that time, while the ________________ refers to the statistic after it has been adjusted for inflation. The nominal value of any economic statistic refers to the number that is actually announced at that time, while the ________________ refers to the statistic after it has been adjusted for inflation.

   

a) 

empirical value 

   

b) 

 real value

   

c) 

 net value

   

d) 

adjusted value

Question 17

 

0 / 1 point

         
   

a) 

empirical value 

   

b) 

 real value

   

c) 

 net value

   

d) 

adjusted value

Question 17

 

0 / 1 point

         
   

a) 

empirical value 

       

a) 

empirical value 

a) 

empirical value 

a) 

empirical value 

a) 

empirical value 

a) 

a)  a) 

empirical value 

empirical value  empirical value 

   

b) 

 real value

       

b) 

 real value

b) 

 real value

b) 

 real value

b) 

 real value

b) 

b)  b) 

 real value

 real value  real value

   

c) 

 net value

       

c) 

 net value

c) 

 net value

c) 

 net value

c) 

 net value

c) 

c)  c) 

 net value

 net value  net value

   

d) 

adjusted value

       

d) 

adjusted value

d) 

adjusted value

d) 

adjusted value

d) 

adjusted value

d) 

d)  d) 

adjusted value

adjusted value adjusted value

Question 17

 

0 / 1 point

Question 17

Question 17 Question 17

   

0 / 1 point

0 / 1 point 0 / 1 point

                             

 GDP is:  GDP is:

   

a) 

the sum of all currency and coins in circulation.

   

b) 

the value of all final good and services produced anywhere in the world by a nation's firms.

   

c) 

the value of all final goods and services produced by a government.

   

d) 

 the value of all final goods and services produced domestically.

Question 18

 

1 / 1 point

         
   

a) 

the sum of all currency and coins in circulation.

   

b) 

the value of all final good and services produced anywhere in the world by a nation's firms.

   

c) 

the value of all final goods and services produced by a government.

   

d) 

 the value of all final goods and services produced domestically.

Question 18

 

1 / 1 point

         
   

a) 

the sum of all currency and coins in circulation.

       

a) 

the sum of all currency and coins in circulation.

a) 

the sum of all currency and coins in circulation.

a) 

the sum of all currency and coins in circulation.

a) 

the sum of all currency and coins in circulation.

a) 

a)  a) 

the sum of all currency and coins in circulation.

the sum of all currency and coins in circulation. the sum of all currency and coins in circulation.

   

b) 

the value of all final good and services produced anywhere in the world by a nation's firms.

       

b) 

the value of all final good and services produced anywhere in the world by a nation's firms.

b) 

the value of all final good and services produced anywhere in the world by a nation's firms.

b) 

the value of all final good and services produced anywhere in the world by a nation's firms.

b) 

the value of all final good and services produced anywhere in the world by a nation's firms.

b) 

b)  b) 

the value of all final good and services produced anywhere in the world by a nation's firms.

the value of all final good and services produced anywhere in the world by a nation's firms. the value of all final good and services produced anywhere in the world by a nation's firms.

   

c) 

the value of all final goods and services produced by a government.

       

c) 

the value of all final goods and services produced by a government.

c) 

the value of all final goods and services produced by a government.

c) 

the value of all final goods and services produced by a government.

c) 

the value of all final goods and services produced by a government.

c) 

c)  c) 

the value of all final goods and services produced by a government.

the value of all final goods and services produced by a government. the value of all final goods and services produced by a government.

   

d) 

 the value of all final goods and services produced domestically.

       

d) 

 the value of all final goods and services produced domestically.

d) 

 the value of all final goods and services produced domestically.

d) 

 the value of all final goods and services produced domestically.

d) 

 the value of all final goods and services produced domestically.

d) 

d)  d) 

 the value of all final goods and services produced domestically.

 the value of all final goods and services produced domestically.  the value of all final goods and services produced domestically.

Question 18

 

1 / 1 point

Question 18

Question 18 Question 18

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

The change in inventories, a component of aggregate supply, comprises roughly __________ of GDP. The change in inventories, a component of aggregate supply, comprises roughly __________ of GDP.

   

a) 

 20%

   

b) 

 1%

   

c) 

 0.6%

   

d) 

 10%

Question 19

 

1 / 1 point

         
   

a) 

 20%

   

b) 

 1%

   

c) 

 0.6%

   

d) 

 10%

Question 19

 

1 / 1 point

         
   

a) 

 20%

       

a) 

 20%

a) 

 20%

a) 

 20%

a) 

 20%

a) 

a)  a) 

 20%

 20%  20%

   

b) 

 1%

       

b) 

 1%

b) 

 1%

b) 

 1%

b) 

 1%

b) 

b)  b) 

 1%

 1%  1%

   

c) 

 0.6%

       

c) 

 0.6%

c) 

 0.6%

c) 

 0.6%

c) 

 0.6%

c) 

c)  c) 

 0.6%

 0.6%  0.6%

   

d) 

 10%

       

d) 

 10%

d) 

 10%

d) 

 10%

d) 

 10%

d) 

d)  d) 

 10%

 10%  10%

Question 19

 

1 / 1 point

Question 19

Question 19 Question 19

   

1 / 1 point

1 / 1 point 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.  ___________ 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) 

Services

   

b) 

 Durable goods

   

c) 

 Structures

   

d) 

Inventories

Question 20

 

1 / 1 point

         
   

a) 

Services

   

b) 

 Durable goods

   

c) 

 Structures

   

d) 

Inventories

Question 20

 

1 / 1 point

         
   

a) 

Services

       

a) 

Services

a) 

Services

a) 

Services

a) 

Services

a) 

a)  a) 

Services

Services Services

   

b) 

 Durable goods

       

b) 

 Durable goods

b) 

 Durable goods

b) 

 Durable goods

b) 

 Durable goods

b) 

b)  b) 

 Durable goods

 Durable goods  Durable goods

   

c) 

 Structures

       

c) 

 Structures

c) 

 Structures

c) 

 Structures

c) 

 Structures

c) 

c)  c) 

 Structures

 Structures  Structures

   

d) 

Inventories

       

d) 

Inventories

d) 

Inventories

d) 

Inventories

d) 

Inventories

d) 

d)  d) 

Inventories

Inventories Inventories

Question 20

 

1 / 1 point

Question 20

Question 20 Question 20

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

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

   

a) 

37%

   

b) 

 7%

   

c) 

 17%

   

d) 

57%

Question 21

 

1 / 1 point

         
   

a) 

37%

   

b) 

 7%

   

c) 

 17%

   

d) 

57%

Question 21

 

1 / 1 point

         
   

a) 

37%

       

a) 

37%

a) 

37%

a) 

37%

a) 

37%

a) 

a)  a) 

37%

37% 37%

   

b) 

 7%

       

b) 

 7%

b) 

 7%

b) 

 7%

b) 

 7%

b) 

b)  b) 

 7%

 7%  7%

   

c) 

 17%

       

c) 

 17%

c) 

 17%

c) 

 17%

c) 

 17%

c) 

c)  c) 

 17%

 17%  17%

   

d) 

57%

       

d) 

57%

d) 

57%

d) 

57%

d) 

57%

d) 

d)  d) 

57%

57% 57%

Question 21

 

1 / 1 point

Question 21

Question 21 Question 21

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

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

   

a) 

 10%

   

b) 

 33%

   

c) 

90%

   

d) 

 68%

Question 22

 

1 / 1 point

         
   

a) 

 10%

   

b) 

 33%

   

c) 

90%

   

d) 

 68%

Question 22

 

1 / 1 point

         
   

a) 

 10%

       

a) 

 10%

a) 

 10%

a) 

 10%

a) 

 10%

a) 

a)  a) 

 10%

 10%  10%

   

b) 

 33%

       

b) 

 33%

b) 

 33%

b) 

 33%

b) 

 33%

b) 

b)  b) 

 33%

 33%  33%

   

c) 

90%

       

c) 

90%

c) 

90%

c) 

90%

c) 

90%

c) 

c)  c) 

90%

90% 90%

   

d) 

 68%

       

d) 

 68%

d) 

 68%

d) 

 68%

d) 

 68%

d) 

d)  d) 

 68%

 68%  68%

Question 22

 

1 / 1 point

Question 22

Question 22 Question 22

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

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

Question 23

 

1 / 1 point

         
   

a) 

Nondurable goods

   

b) 

 Structures

   

c) 

Services

   

d) 

Durable goods

Question 23

 

1 / 1 point

         
   

a) 

Nondurable goods

       

a) 

Nondurable goods

a) 

Nondurable goods

a) 

Nondurable goods

a) 

Nondurable goods

a) 

a)  a) 

Nondurable goods

Nondurable goods Nondurable goods

   

b) 

 Structures

       

b) 

 Structures

b) 

 Structures

b) 

 Structures

b) 

 Structures

b) 

b)  b) 

 Structures

 Structures  Structures

   

c) 

Services

       

c) 

Services

c) 

Services

c) 

Services

c) 

Services

c) 

c)  c) 

Services

Services Services

   

d) 

Durable goods

       

d) 

Durable goods

d) 

Durable goods

d) 

Durable goods

d) 

Durable goods

d) 

d)  d) 

Durable goods

Durable goods Durable goods

Question 23

 

1 / 1 point

Question 23

Question 23 Question 23

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

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

   

a) 

 food, clothing

   

b) 

 automobiles, furniture

   

c) 

drugs, toys, magazines, books

   

d) 

stocks, bonds

Chapter 6 Problems

   

a) 

 food, clothing

   

b) 

 automobiles, furniture

   

c) 

drugs, toys, magazines, books

   

d) 

stocks, bonds

Chapter 6 Problems

   

a) 

 food, clothing

       

a) 

 food, clothing

a) 

 food, clothing

a) 

 food, clothing

a) 

 food, clothing

a) 

a)  a) 

 food, clothing

 food, clothing  food, clothing

   

b) 

 automobiles, furniture

       

b) 

 automobiles, furniture

b) 

 automobiles, furniture

b) 

 automobiles, furniture

b) 

 automobiles, furniture

b) 

b)  b) 

 automobiles, furniture

 automobiles, furniture  automobiles, furniture

   

c) 

drugs, toys, magazines, books

       

c) 

drugs, toys, magazines, books

c) 

drugs, toys, magazines, books

c) 

drugs, toys, magazines, books

c) 

drugs, toys, magazines, books

c) 

c)  c) 

drugs, toys, magazines, books

drugs, toys, magazines, books drugs, toys, magazines, books

   

d) 

stocks, bonds

       

d) 

stocks, bonds

d) 

stocks, bonds

d) 

stocks, bonds

d) 

stocks, bonds

d) 

d)  d) 

stocks, bonds

stocks, bonds stocks, bonds

Chapter 6 Problems

Chapter 6 Problems

Chapter 6 Problems Chapter 6 Problems

   

Question 24

 

1 / 1 point

Question 24

 

1 / 1 point

Question 24

 

1 / 1 point

Question 24

 

1 / 1 point

Question 24

Question 24 Question 24

   

1 / 1 point

1 / 1 point 1 / 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?  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) 

 47%

   

b) 

 19.4%

   

c) 

 147%

   

d) 

68%

Question 25

 

1 / 1 point

         
   

a) 

 47%

   

b) 

 19.4%

   

c) 

 147%

   

d) 

68%

Question 25

 

1 / 1 point

         
   

a) 

 47%

       

a) 

 47%

a) 

 47%

a) 

 47%

a) 

 47%

a) 

a)  a) 

 47%

 47%  47%

   

b) 

 19.4%

       

b) 

 19.4%

b) 

 19.4%

b) 

 19.4%

b) 

 19.4%

b) 

b)  b) 

 19.4%

 19.4%  19.4%

   

c) 

 147%

       

c) 

 147%

c) 

 147%

c) 

 147%

c) 

 147%

c) 

c)  c) 

 147%

 147%  147%

   

d) 

68%

       

d) 

68%

d) 

68%

d) 

68%

d) 

68%

d) 

d)  d) 

68%

68% 68%

Question 25

 

1 / 1 point

Question 25

Question 25 Question 25

   

1 / 1 point

1 / 1 point 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?  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) 

219%

   

b) 

 128%

   

c) 

45.4%

   

d) 

120%

   

a) 

219%

   

b) 

 128%

   

c) 

45.4%

   

d) 

120%

   

a) 

219%

       

a) 

219%

a) 

219%

a) 

219%

a) 

219%

a) 

a)  a) 

219%

219% 219%

   

b) 

 128%

       

b) 

 128%

b) 

 128%

b) 

 128%

b) 

 128%

b) 

b)  b) 

 128%

 128%  128%

   

c) 

45.4%

       

c) 

45.4%

c) 

45.4%

c) 

45.4%

c) 

45.4%

c) 

c)  c) 

45.4%

45.4% 45.4%

   

d) 

120%

       

d) 

120%

d) 

120%

d) 

120%

d) 

120%

d) 

d)  d) 

120%

120% 120%

   

Question 1

 

1 / 1 point

Question 1

 

1 / 1 point

Question 1

 

1 / 1 point

Question 1

 

1 / 1 point

Question 1

Question 1 Question 1 Question 1 Question 1

   

1 / 1 point

1 / 1 point 1 / 1 point

The two main tools of macroeconomic policy include monetary policy, and fiscal policy, which involves __________ spending. The two main tools of macroeconomic policy include monetary policy, and fiscal policy, which involves __________ spending.

   

a) 

 business

   

b) 

 government

   

c) 

 capital market

   

d) 

 household

Question 2

 

1 / 1 point

         
   

a) 

 business

   

b) 

 government

   

c) 

 capital market

   

d) 

 household

Question 2

 

1 / 1 point

         
   

a) 

 business

       

a) 

 business

a) 

 business

a) 

 business

a) 

 business

a) 

a)  a) 

 business

 business  business

   

b) 

 government

       

b) 

 government

b) 

 government

b) 

 government

b) 

 government

b) 

b)  b) 

 government

 government  government

   

c) 

 capital market

       

c) 

 capital market

c) 

 capital market

c) 

 capital market

c) 

 capital market

c) 

c)  c) 

 capital market

 capital market  capital market

   

d) 

 household

       

d) 

 household

d) 

 household

d) 

 household

d) 

 household

d) 

d)  d) 

 household

 household  household

Question 2

 

1 / 1 point

Question 2

Question 2 Question 2 Question 2 Question 2

   

1 / 1 point

1 / 1 point 1 / 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.   Economic models like the _____________________ are not physical models, but instead are diagrams or graphs or even mathematical equations that represent economic patterns or theories.     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 investment market

   

c) 

 circular flow diagram

   

d) 

 financial capital market

Question 3

 

1 / 1 point

         
   

a) 

Specialization Model

   

b) 

 financial investment market

   

c) 

 circular flow diagram

   

d) 

 financial capital market

Question 3

 

1 / 1 point

         
   

a) 

Specialization Model

       

a) 

Specialization Model

a) 

Specialization Model

a) 

Specialization Model

a) 

Specialization Model

a) 

a)  a) 

Specialization Model

Specialization Model Specialization Model

   

b) 

 financial investment market

       

b) 

 financial investment market

b) 

 financial investment market

b) 

 financial investment market

b) 

 financial investment market

b) 

b)  b) 

 financial investment market

 financial investment market  financial investment market

   

c) 

 circular flow diagram

       

c) 

 circular flow diagram

c) 

 circular flow diagram

c) 

 circular flow diagram

c) 

 circular flow diagram

c) 

c)  c) 

 circular flow diagram

 circular flow diagram  circular flow diagram

   

d) 

 financial capital market

       

d) 

 financial capital market

d) 

 financial capital market

d) 

 financial capital market

d) 

 financial capital market

d) 

d)  d) 

 financial capital market

 financial capital market  financial capital market

Question 3

 

1 / 1 point

Question 3

Question 3 Question 3 Question 3 Question 3

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

  In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:   In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:     In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:

   

a) 

 all consumers.

   

b) 

 producers and government planning committees.

   

c) 

buyers and sellers.

   

d) 

 producers and input suppliers.

Question 4

 

1 / 1 point

         
   

a) 

 all consumers.

   

b) 

 producers and government planning committees.

   

c) 

buyers and sellers.

   

d) 

 producers and input suppliers.

Question 4

 

1 / 1 point

         
   

a) 

 all consumers.

       

a) 

 all consumers.

a) 

 all consumers.

a) 

 all consumers.

a) 

 all consumers.

a) 

a)  a) 

 all consumers.

 all consumers.  all consumers.

   

b) 

 producers and government planning committees.

       

b) 

 producers and government planning committees.

b) 

 producers and government planning committees.

b) 

 producers and government planning committees.

b) 

 producers and government planning committees.

b) 

b)  b) 

 producers and government planning committees.

 producers and government planning committees.  producers and government planning committees.

   

c) 

buyers and sellers.

       

c) 

buyers and sellers.

c) 

buyers and sellers.

c) 

buyers and sellers.

c) 

buyers and sellers.

c) 

c)  c) 

buyers and sellers.

buyers and sellers. buyers and sellers.

   

d) 

 producers and input suppliers.

       

d) 

 producers and input suppliers.

d) 

 producers and input suppliers.

d) 

 producers and input suppliers.

d) 

 producers and input suppliers.

d) 

d)  d) 

 producers and input suppliers.

 producers and input suppliers.  producers and input suppliers.

Question 4

 

1 / 1 point

Question 4

Question 4 Question 4 Question 4 Question 4

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

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

   

a) 

 financial capital market

   

b) 

 financial investment market

   

c) 

 labor market

   

d) 

 savings market

Question 5

 

1 / 1 point

         
   

a) 

 financial capital market

   

b) 

 financial investment market

   

c) 

 labor market

   

d) 

 savings market

Question 5

 

1 / 1 point

         
   

a) 

 financial capital market

       

a) 

 financial capital market

a) 

 financial capital market

a) 

 financial capital market

a) 

 financial capital market

a) 

a)  a) 

 financial capital market

 financial capital market  financial capital market

   

b) 

 financial investment market

       

b) 

 financial investment market

b) 

 financial investment market

b) 

 financial investment market

b) 

 financial investment market

b) 

b)  b) 

 financial investment market

 financial investment market  financial investment market

   

c) 

 labor market

       

c) 

 labor market

c) 

 labor market

c) 

 labor market

c) 

 labor market

c) 

c)  c) 

 labor market

 labor market  labor market

   

d) 

 savings market

       

d) 

 savings market

d) 

 savings market

d) 

 savings market

d) 

 savings market

d) 

d)  d) 

 savings market

 savings market  savings market

Question 5

 

1 / 1 point

Question 5

Question 5 Question 5 Question 5 Question 5

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

  In which of the following countries will the national government have the greatest influence with respect to the nation's economy?   In which of the following countries will the national government have the greatest influence with respect to the nation's economy?     In which of the following countries will the national government have the greatest influence with respect to the nation's economy?

   

a) 

China

   

b) 

Canada

   

c) 

Chile

   

d) 

 Cuba

 

Question 6

 

1 / 1 point

         
   

a) 

China

   

b) 

Canada

   

c) 

Chile

   

d) 

 Cuba

 

Question 6

 

1 / 1 point

         
   

a) 

China

       

a) 

China

a) 

China

a) 

China

a) 

China

a) 

a)  a) 

China

China China

   

b) 

Canada

       

b) 

Canada

b) 

Canada

b) 

Canada

b) 

Canada

b) 

b)  b) 

Canada

Canada Canada

   

c) 

Chile

       

c) 

Chile

c) 

Chile

c) 

Chile

c) 

Chile

c) 

c)  c) 

Chile

Chile Chile

   

d) 

 Cuba

 

       

d) 

 Cuba

 

d) 

 Cuba

 

d) 

 Cuba

 

d) 

 Cuba

 

d) 

d)  d) 

 Cuba

 

 Cuba  Cuba

   

Question 6

 

1 / 1 point

Question 6

Question 6 Question 6 Question 6 Question 6

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

The circular flow diagram of economic activity is a model of the: The circular flow diagram of economic activity is a model of the:

   

a) 

 influence of government on business behaviour.

   

b) 

interaction among taxes, prices, and profits.

   

c) 

 role of unions and government in the economy.

   

d) 

 flow of goods, services, and payments between households and firms.

Question 7

 

1 / 1 point

         
   

a) 

 influence of government on business behaviour.

   

b) 

interaction among taxes, prices, and profits.

   

c) 

 role of unions and government in the economy.

   

d) 

 flow of goods, services, and payments between households and firms.

Question 7

 

1 / 1 point

         
   

a) 

 influence of government on business behaviour.

       

a) 

 influence of government on business behaviour.

a) 

 influence of government on business behaviour.

a) 

 influence of government on business behaviour.

a) 

 influence of government on business behaviour.

a) 

a)  a) 

 influence of government on business behaviour.

 influence of government on business behaviour.  influence of government on business behaviour.

   

b) 

interaction among taxes, prices, and profits.

       

b) 

interaction among taxes, prices, and profits.

b) 

interaction among taxes, prices, and profits.

b) 

interaction among taxes, prices, and profits.

b) 

interaction among taxes, prices, and profits.

b) 

b)  b) 

interaction among taxes, prices, and profits.

interaction among taxes, prices, and profits. interaction among taxes, prices, and profits.

   

c) 

 role of unions and government in the economy.

       

c) 

 role of unions and government in the economy.

c) 

 role of unions and government in the economy.

c) 

 role of unions and government in the economy.

c) 

 role of unions and government in the economy.

c) 

c)  c) 

 role of unions and government in the economy.

 role of unions and government in the economy.  role of unions and government in the economy.

   

d) 

 flow of goods, services, and payments between households and firms.

       

d) 

 flow of goods, services, and payments between households and firms.

d) 

 flow of goods, services, and payments between households and firms.

d) 

 flow of goods, services, and payments between households and firms.

d) 

 flow of goods, services, and payments between households and firms.

d) 

d)  d) 

 flow of goods, services, and payments between households and firms.

 flow of goods, services, and payments between households and firms.  flow of goods, services, and payments between households and firms.

Question 7

 

1 / 1 point

Question 7

Question 7 Question 7 Question 7 Question 7

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

Macroeconomics: Macroeconomics:

   

a) 

 is narrower in scope than microeconomics.

   

b) 

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

   

c) 

 analyzes mergers and acquisitions between firms.

   

d) 

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

Question 8

 

1 / 1 point

         
   

a) 

 is narrower in scope than microeconomics.

   

b) 

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

   

c) 

 analyzes mergers and acquisitions between firms.

   

d) 

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

Question 8

 

1 / 1 point

         
   

a) 

 is narrower in scope than microeconomics.

       

a) 

 is narrower in scope than microeconomics.

a) 

 is narrower in scope than microeconomics.

a) 

 is narrower in scope than microeconomics.

a) 

 is narrower in scope than microeconomics.

a) 

a)  a) 

 is narrower in scope than microeconomics.

 is narrower in scope than microeconomics.  is narrower in scope than microeconomics.

   

b) 

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

       

b) 

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

b) 

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

b) 

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

b) 

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

b) 

b)  b) 

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

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

   

c) 

 analyzes mergers and acquisitions between firms.

       

c) 

 analyzes mergers and acquisitions between firms.

c) 

 analyzes mergers and acquisitions between firms.

c) 

 analyzes mergers and acquisitions between firms.

c) 

 analyzes mergers and acquisitions between firms.

c) 

c)  c) 

 analyzes mergers and acquisitions between firms.

 analyzes mergers and acquisitions between firms.  analyzes mergers and acquisitions between firms.

   

d) 

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

       

d) 

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

d) 

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

d) 

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

d) 

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

d) 

d)  d) 

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

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

Question 8

 

1 / 1 point

Question 8

Question 8 Question 8 Question 8 Question 8

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

  In the circular flow diagram model:   In the circular flow diagram model:     In the circular flow diagram model:

   

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

   

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

   

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

   

d) 

Both (a) and (b) are correct.

Question 9

 

1 / 1 point

         
   

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

   

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

   

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

   

d) 

Both (a) and (b) are correct.

Question 9

 

1 / 1 point

         
   

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

       

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

a) 

a)  a) 

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

 households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.  households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

   

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

       

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

b) 

b)  b) 

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

 businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.  businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.

   

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

       

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

c) 

c)  c) 

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses. households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.

   

d) 

Both (a) and (b) are correct.

       

d) 

Both (a) and (b) are correct.

d) 

Both (a) and (b) are correct.

d) 

Both (a) and (b) are correct.

d) 

Both (a) and (b) are correct.

d) 

d)  d) 

Both (a) and (b) are correct.

Both (a) and (b) are correct. Both (a) and (b) are correct.

Question 9

 

1 / 1 point

Question 9

Question 9 Question 9 Question 9 Question 9

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers. In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.

   

a) 

macroeconomy

   

b) 

microeconomy

   

c) 

command economy

   

d) 

 market-oriented economy

Chapter 6 Random

   

a) 

macroeconomy

   

b) 

microeconomy

   

c) 

command economy

   

d) 

 market-oriented economy

Chapter 6 Random

   

a) 

macroeconomy

       

a) 

macroeconomy

a) 

macroeconomy

a) 

macroeconomy

a) 

macroeconomy

a) 

a)  a) 

macroeconomy

macroeconomy macroeconomy

   

b) 

microeconomy

       

b) 

microeconomy

b) 

microeconomy

b) 

microeconomy

b) 

microeconomy

b) 

b)  b) 

microeconomy

microeconomy microeconomy

   

c) 

command economy

       

c) 

command economy

c) 

command economy

c) 

command economy

c) 

command economy

c) 

c)  c) 

command economy

command economy command economy

   

d) 

 market-oriented economy

       

d) 

 market-oriented economy

d) 

 market-oriented economy

d) 

 market-oriented economy

d) 

 market-oriented economy

d) 

d)  d) 

 market-oriented economy

 market-oriented economy  market-oriented economy

Chapter 6 Random

Chapter 6 Random

Chapter 6 Random Chapter 6 Random

       

Question 10

 

1 / 1 point

Question 10

 

1 / 1 point

Question 10

 

1 / 1 point

Question 10

 

1 / 1 point

Question 10

Question 10 Question 10 Question 10 Question 10

   

1 / 1 point

1 / 1 point 1 / 1 point

Once every __________, the Census Bureau does a comprehensive survey of housing and residential finance.  Once every __________, the Census Bureau does a comprehensive survey of housing and residential finance. 

   

a) 

 20 years

   

b) 

5 years

   

c) 

 10 years

   

d) 

month

Question 11

 

1 / 1 point

         
   

a) 

 20 years

   

b) 

5 years

   

c) 

 10 years

   

d) 

month

Question 11

 

1 / 1 point

         
   

a) 

 20 years

       

a) 

 20 years

a) 

 20 years

a) 

 20 years

a) 

 20 years

a) 

a)  a) 

 20 years

 20 years  20 years

   

b) 

5 years

       

b) 

5 years

b) 

5 years

b) 

5 years

b) 

5 years

b) 

b)  b) 

5 years

5 years 5 years

   

c) 

 10 years

       

c) 

 10 years

c) 

 10 years

c) 

 10 years

c) 

 10 years

c) 

c)  c) 

 10 years

 10 years  10 years

   

d) 

month

       

d) 

month

d) 

month

d) 

month

d) 

month

d) 

d)  d) 

month

month month

Question 11

 

1 / 1 point

Question 11

Question 11 Question 11 Question 11 Question 11

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

GDP in the United States in 2014 was about __________. GDP in the United States in 2014 was about __________.

   

a) 

 $1.74 trillion

   

b) 

 $17.4 trillion

   

c) 

$174 trillion

   

d) 

 $174 billion

Question 12

 

1 / 1 point

         
   

a) 

 $1.74 trillion

   

b) 

 $17.4 trillion

   

c) 

$174 trillion

   

d) 

 $174 billion

Question 12

 

1 / 1 point

         
   

a) 

 $1.74 trillion

       

a) 

 $1.74 trillion

a) 

 $1.74 trillion

a) 

 $1.74 trillion

a) 

 $1.74 trillion

a) 

a)  a) 

 $1.74 trillion

 $1.74 trillion  $1.74 trillion

   

b) 

 $17.4 trillion

       

b) 

 $17.4 trillion

b) 

 $17.4 trillion

b) 

 $17.4 trillion

b) 

 $17.4 trillion

b) 

b)  b) 

 $17.4 trillion

 $17.4 trillion  $17.4 trillion

   

c) 

$174 trillion

       

c) 

$174 trillion

c) 

$174 trillion

c) 

$174 trillion

c) 

$174 trillion

c) 

c)  c) 

$174 trillion

$174 trillion $174 trillion

   

d) 

 $174 billion

       

d) 

 $174 billion

d) 

 $174 billion

d) 

 $174 billion

d) 

 $174 billion

d) 

d)  d) 

 $174 billion

 $174 billion  $174 billion

Question 12

 

1 / 1 point

Question 12

Question 12 Question 12 Question 12 Question 12

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

Final goods or services used to compute GDP refer to: Final goods or services used to compute GDP refer to:

   

a) 

 the sum of all wages paid to laborers.

   

b) 

 the value of outstanding shares of stock of manufacturing firms.

   

c) 

 goods and services purchased by the ultimate users.

   

d) 

 the factors of production used to produce output.

Question 13

 

1 / 1 point

         
   

a) 

 the sum of all wages paid to laborers.

   

b) 

 the value of outstanding shares of stock of manufacturing firms.

   

c) 

 goods and services purchased by the ultimate users.

   

d) 

 the factors of production used to produce output.

Question 13

 

1 / 1 point

         
   

a) 

 the sum of all wages paid to laborers.

       

a) 

 the sum of all wages paid to laborers.

a) 

 the sum of all wages paid to laborers.

a) 

 the sum of all wages paid to laborers.

a) 

 the sum of all wages paid to laborers.

a) 

a)  a) 

 the sum of all wages paid to laborers.

 the sum of all wages paid to laborers.  the sum of all wages paid to laborers.

   

b) 

 the value of outstanding shares of stock of manufacturing firms.

       

b) 

 the value of outstanding shares of stock of manufacturing firms.

b) 

 the value of outstanding shares of stock of manufacturing firms.

b) 

 the value of outstanding shares of stock of manufacturing firms.

b) 

 the value of outstanding shares of stock of manufacturing firms.

b) 

b)  b) 

 the value of outstanding shares of stock of manufacturing firms.

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

   

c) 

 goods and services purchased by the ultimate users.

       

c) 

 goods and services purchased by the ultimate users.

c) 

 goods and services purchased by the ultimate users.

c) 

 goods and services purchased by the ultimate users.

c) 

 goods and services purchased by the ultimate users.

c) 

c)  c) 

 goods and services purchased by the ultimate users.

 goods and services purchased by the ultimate users.  goods and services purchased by the ultimate users.

   

d) 

 the factors of production used to produce output.

       

d) 

 the factors of production used to produce output.

d) 

 the factors of production used to produce output.

d) 

 the factors of production used to produce output.

d) 

 the factors of production used to produce output.

d) 

d)  d) 

 the factors of production used to produce output.

 the factors of production used to produce output.  the factors of production used to produce output.

Question 13

 

1 / 1 point

Question 13

Question 13 Question 13 Question 13 Question 13

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

  If imports exceed exports, as in recent years, then __________ exists.    If imports exceed exports, as in recent years, then __________ exists.      If imports exceed exports, as in recent years, then __________ exists. 

   

a) 

 trade disequilibrium

   

b) 

a trade imbalance

   

c) 

 a trade surplus

   

d) 

 a trade deficit

Question 14

 

1 / 1 point

         
   

a) 

 trade disequilibrium

   

b) 

a trade imbalance

   

c) 

 a trade surplus

   

d) 

 a trade deficit

Question 14

 

1 / 1 point

         
   

a) 

 trade disequilibrium

       

a) 

 trade disequilibrium

a) 

 trade disequilibrium

a) 

 trade disequilibrium

a) 

 trade disequilibrium

a) 

a)  a) 

 trade disequilibrium

 trade disequilibrium  trade disequilibrium

   

b) 

a trade imbalance

       

b) 

a trade imbalance

b) 

a trade imbalance

b) 

a trade imbalance

b) 

a trade imbalance

b) 

b)  b) 

a trade imbalance

a trade imbalance a trade imbalance

   

c) 

 a trade surplus

       

c) 

 a trade surplus

c) 

 a trade surplus

c) 

 a trade surplus

c) 

 a trade surplus

c) 

c)  c) 

 a trade surplus

 a trade surplus  a trade surplus

   

d) 

 a trade deficit

       

d) 

 a trade deficit

d) 

 a trade deficit

d) 

 a trade deficit

d) 

 a trade deficit

d) 

d)  d) 

 a trade deficit

 a trade deficit  a trade deficit

Question 14

 

1 / 1 point

Question 14

Question 14 Question 14 Question 14 Question 14

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

The demand measure of GDP accounting adds together: The demand measure of GDP accounting adds together:

   

a) 

consumption, interest, government purchases, and trade balance.

   

b) 

 consumption, investment, government purchases, and trade balance.

   

c) 

wages and salaries, rent, interest, and profit.

   

d) 

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

Question 15

 

1 / 1 point

         
   

a) 

consumption, interest, government purchases, and trade balance.

   

b) 

 consumption, investment, government purchases, and trade balance.

   

c) 

wages and salaries, rent, interest, and profit.

   

d) 

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

Question 15

 

1 / 1 point

         
   

a) 

consumption, interest, government purchases, and trade balance.

       

a) 

consumption, interest, government purchases, and trade balance.

a) 

consumption, interest, government purchases, and trade balance.

a) 

consumption, interest, government purchases, and trade balance.

a) 

consumption, interest, government purchases, and trade balance.

a) 

a)  a) 

consumption, interest, government purchases, and trade balance.

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

   

b) 

 consumption, investment, government purchases, and trade balance.

       

b) 

 consumption, investment, government purchases, and trade balance.

b) 

 consumption, investment, government purchases, and trade balance.

b) 

 consumption, investment, government purchases, and trade balance.

b) 

 consumption, investment, government purchases, and trade balance.

b) 

b)  b) 

 consumption, investment, government purchases, and trade balance.

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

   

c) 

wages and salaries, rent, interest, and profit.

       

c) 

wages and salaries, rent, interest, and profit.

c) 

wages and salaries, rent, interest, and profit.

c) 

wages and salaries, rent, interest, and profit.

c) 

wages and salaries, rent, interest, and profit.

c) 

c)  c) 

wages and salaries, rent, interest, and profit.

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

   

d) 

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

       

d) 

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

d) 

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

d) 

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

d) 

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

d) 

d)  d) 

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

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

Question 15

 

1 / 1 point

Question 15

Question 15 Question 15 Question 15 Question 15

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

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

   

a) 

 foreign currency

   

b) 

currency rates

   

c) 

 per capita GDP

   

d) 

 an exchange rate

Question 16

 

1 / 1 point

         
   

a) 

 foreign currency

   

b) 

currency rates

   

c) 

 per capita GDP

   

d) 

 an exchange rate

Question 16

 

1 / 1 point

         
   

a) 

 foreign currency

       

a) 

 foreign currency

a) 

 foreign currency

a) 

 foreign currency

a) 

 foreign currency

a) 

a)  a) 

 foreign currency

 foreign currency  foreign currency

   

b) 

currency rates

       

b) 

currency rates

b) 

currency rates

b) 

currency rates

b) 

currency rates

b) 

b)  b) 

currency rates

currency rates currency rates

   

c) 

 per capita GDP

       

c) 

 per capita GDP

c) 

 per capita GDP

c) 

 per capita GDP

c) 

 per capita GDP

c) 

c)  c) 

 per capita GDP

 per capita GDP  per capita GDP

   

d) 

 an exchange rate

       

d) 

 an exchange rate

d) 

 an exchange rate

d) 

 an exchange rate

d) 

 an exchange rate

d) 

d)  d) 

 an exchange rate

 an exchange rate  an exchange rate

Question 16

 

1 / 1 point

Question 16

Question 16 Question 16 Question 16 Question 16

   

1 / 1 point

1 / 1 point 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.    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.      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) 

 businesses

   

c) 

 services

   

d) 

households

Question 17

 

1 / 1 point

         
   

a) 

 government

   

b) 

 businesses

   

c) 

 services

   

d) 

households

Question 17

 

1 / 1 point

         
   

a) 

 government

       

a) 

 government

a) 

 government

a) 

 government

a) 

 government

a) 

a)  a) 

 government

 government  government

   

b) 

 businesses

       

b) 

 businesses

b) 

 businesses

b) 

 businesses

b) 

 businesses

b) 

b)  b) 

 businesses

 businesses  businesses

   

c) 

 services

       

c) 

 services

c) 

 services

c) 

 services

c) 

 services

c) 

c)  c) 

 services

 services  services

   

d) 

households

       

d) 

households

d) 

households

d) 

households

d) 

households

d) 

d)  d) 

households

households households

Question 17

 

1 / 1 point

Question 17

Question 17 Question 17 Question 17 Question 17

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

  For most high-income countries of the world, GDP _________________ over time.   For most high-income countries of the world, GDP _________________ over time.     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 18

 

1 / 1 point

         
   

a) 

 has risen gradually

   

b) 

 has declined slightly

   

c) 

 has sharply risen

   

d) 

 has proven to be stable

Question 18

 

1 / 1 point

         
   

a) 

 has risen gradually

       

a) 

 has risen gradually

a) 

 has risen gradually

a) 

 has risen gradually

a) 

 has risen gradually

a) 

a)  a) 

 has risen gradually

 has risen gradually  has risen gradually

   

b) 

 has declined slightly

       

b) 

 has declined slightly

b) 

 has declined slightly

b) 

 has declined slightly

b) 

 has declined slightly

b) 

b)  b) 

 has declined slightly

 has declined slightly  has declined slightly

   

c) 

 has sharply risen

       

c) 

 has sharply risen

c) 

 has sharply risen

c) 

 has sharply risen

c) 

 has sharply risen

c) 

c)  c) 

 has sharply risen

 has sharply risen  has sharply risen

   

d) 

 has proven to be stable

       

d) 

 has proven to be stable

d) 

 has proven to be stable

d) 

 has proven to be stable

d) 

 has proven to be stable

d) 

d)  d) 

 has proven to be stable

 has proven to be stable  has proven to be stable

Question 18

 

1 / 1 point

Question 18

Question 18 Question 18 Question 18 Question 18

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

Durable goods and non-durable goods comprise approximately ________ of the supply side of the GDP. Durable goods and non-durable goods comprise approximately ________ of the supply side of the GDP.

   

a) 

 1%

   

b) 

 80%

   

c) 

 20%

   

d) 

30%

Question 19

 

1 / 1 point

         
   

a) 

 1%

   

b) 

 80%

   

c) 

 20%

   

d) 

30%

Question 19

 

1 / 1 point

         
   

a) 

 1%

       

a) 

 1%

a) 

 1%

a) 

 1%

a) 

 1%

a) 

a)  a) 

 1%

 1%  1%

   

b) 

 80%

       

b) 

 80%

b) 

 80%

b) 

 80%

b) 

 80%

b) 

b)  b) 

 80%

 80%  80%

   

c) 

 20%

       

c) 

 20%

c) 

 20%

c) 

 20%

c) 

 20%

c) 

c)  c) 

 20%

 20%  20%

   

d) 

30%

       

d) 

30%

d) 

30%

d) 

30%

d) 

30%

d) 

d)  d) 

30%

30% 30%

Question 19

 

1 / 1 point

Question 19

Question 19 Question 19 Question 19 Question 19

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

In order to avoid double counting, statisticians just count the __________________. In order to avoid double counting, statisticians just count the __________________.

   

a) 

 intermediate goods and services 

   

b) 

final inventories

   

c) 

 final goods and services 

   

d) 

 durable goods and nondurable goods

Question 20

 

1 / 1 point

         
   

a) 

 intermediate goods and services 

   

b) 

final inventories

   

c) 

 final goods and services 

   

d) 

 durable goods and nondurable goods

Question 20

 

1 / 1 point

         
   

a) 

 intermediate goods and services 

       

a) 

 intermediate goods and services 

a) 

 intermediate goods and services 

a) 

 intermediate goods and services 

a) 

 intermediate goods and services 

a) 

a)  a) 

 intermediate goods and services 

 intermediate goods and services   intermediate goods and services 

   

b) 

final inventories

       

b) 

final inventories

b) 

final inventories

b) 

final inventories

b) 

final inventories

b) 

b)  b) 

final inventories

final inventories final inventories

   

c) 

 final goods and services 

       

c) 

 final goods and services 

c) 

 final goods and services 

c) 

 final goods and services 

c) 

 final goods and services 

c) 

c)  c) 

 final goods and services 

 final goods and services   final goods and services 

   

d) 

 durable goods and nondurable goods

       

d) 

 durable goods and nondurable goods

d) 

 durable goods and nondurable goods

d) 

 durable goods and nondurable goods

d) 

 durable goods and nondurable goods

d) 

d)  d) 

 durable goods and nondurable goods

 durable goods and nondurable goods  durable goods and nondurable goods

Question 20

 

1 / 1 point

Question 20

Question 20 Question 20 Question 20 Question 20

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

  Consumption is the purchase of goods and services by:   Consumption is the purchase of goods and services by:     Consumption is the purchase of goods and services by:

   

a) 

 households.

   

b) 

government.

   

c) 

 foreign buyers.

   

d) 

business firms.

Question 21

 

1 / 1 point

         
   

a) 

 households.

   

b) 

government.

   

c) 

 foreign buyers.

   

d) 

business firms.

Question 21

 

1 / 1 point

         
   

a) 

 households.

       

a) 

 households.

a) 

 households.

a) 

 households.

a) 

 households.

a) 

a)  a) 

 households.

 households.  households.

   

b) 

government.

       

b) 

government.

b) 

government.

b) 

government.

b) 

government.

b) 

b)  b) 

government.

government. government.

   

c) 

 foreign buyers.

       

c) 

 foreign buyers.

c) 

 foreign buyers.

c) 

 foreign buyers.

c) 

 foreign buyers.

c) 

c)  c) 

 foreign buyers.

 foreign buyers.  foreign buyers.

   

d) 

business firms.

       

d) 

business firms.

d) 

business firms.

d) 

business firms.

d) 

business firms.

d) 

d)  d) 

business firms.

business firms. business firms.

Question 21

 

1 / 1 point

Question 21

Question 21 Question 21 Question 21 Question 21

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

The value of what businesses provide to other businesses is captured in the final products at the end of the __________ chain. The value of what businesses provide to other businesses is captured in the final products at the end of the __________ chain.

   

a) 

supply

   

b) 

 production

   

c) 

value

   

d) 

service

Question 22

 

1 / 1 point

         
   

a) 

supply

   

b) 

 production

   

c) 

value

   

d) 

service

Question 22

 

1 / 1 point

         
   

a) 

supply

       

a) 

supply

a) 

supply

a) 

supply

a) 

supply

a) 

a)  a) 

supply

supply supply

   

b) 

 production

       

b) 

 production

b) 

 production

b) 

 production

b) 

 production

b) 

b)  b) 

 production

 production  production

   

c) 

value

       

c) 

value

c) 

value

c) 

value

c) 

value

c) 

c)  c) 

value

value value

   

d) 

service

       

d) 

service

d) 

service

d) 

service

d) 

service

d) 

d)  d) 

service

service service

Question 22

 

1 / 1 point

Question 22

Question 22 Question 22 Question 22 Question 22

   

1 / 1 point

1 / 1 point 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.   ___________ 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.     ___________ 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) 

Services

   

b) 

Inventories

   

c) 

 Durable goods

   

d) 

 Structures

Question 23

 

1 / 1 point

         
   

a) 

Services

   

b) 

Inventories

   

c) 

 Durable goods

   

d) 

 Structures

Question 23

 

1 / 1 point

         
   

a) 

Services

       

a) 

Services

a) 

Services

a) 

Services

a) 

Services

a) 

a)  a) 

Services

Services Services

   

b) 

Inventories

       

b) 

Inventories

b) 

Inventories

b) 

Inventories

b) 

Inventories

b) 

b)  b) 

Inventories

Inventories Inventories

   

c) 

 Durable goods

       

c) 

 Durable goods

c) 

 Durable goods

c) 

 Durable goods

c) 

 Durable goods

c) 

c)  c) 

 Durable goods

 Durable goods  Durable goods

   

d) 

 Structures

       

d) 

 Structures

d) 

 Structures

d) 

 Structures

d) 

 Structures

d) 

d)  d) 

 Structures

 Structures  Structures

Question 23

 

1 / 1 point

Question 23

Question 23 Question 23 Question 23 Question 23

   

1 / 1 point

1 / 1 point 1 / 1 point

                             

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

   

a) 

stocks, bonds

   

b) 

drugs, toys, magazines, books

   

c) 

 automobiles, furniture

   

d) 

 food, clothing

Chapter 6 Problems

   

a) 

stocks, bonds

   

b) 

drugs, toys, magazines, books

   

c) 

 automobiles, furniture

   

d) 

 food, clothing

Chapter 6 Problems

   

a) 

stocks, bonds

       

a) 

stocks, bonds

a) 

stocks, bonds

a) 

stocks, bonds

a) 

stocks, bonds

a) 

a)  a) 

stocks, bonds

stocks, bonds stocks, bonds

   

b) 

drugs, toys, magazines, books

       

b) 

drugs, toys, magazines, books

b) 

drugs, toys, magazines, books

b) 

drugs, toys, magazines, books

b) 

drugs, toys, magazines, books

b) 

b)  b) 

drugs, toys, magazines, books

drugs, toys, magazines, books drugs, toys, magazines, books

   

c) 

 automobiles, furniture

       

c) 

 automobiles, furniture

c) 

 automobiles, furniture

c) 

 automobiles, furniture

c) 

 automobiles, furniture

c) 

c)  c) 

 automobiles, furniture

 automobiles, furniture  automobiles, furniture

   

d) 

 food, clothing

       

d) 

 food, clothing

d) 

 food, clothing

d) 

 food, clothing

d) 

 food, clothing

d) 

d)  d) 

 food, clothing

 food, clothing  food, clothing

Chapter 6 Problems

Chapter 6 Problems

Chapter 6 Problems Chapter 6 Problems

       

Question 24

 

0 / 1 point

Question 24

 

0 / 1 point

Question 24

 

0 / 1 point

Question 24

 

0 / 1 point

Question 24

Question 24 Question 24 Question 24 Question 24

   

0 / 1 point

0 / 1 point 0 / 1 point

Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals $200 billion, and government spending equals $260 billion, then: Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals $200 billion, and government spending equals $260 billion, then:

   

a) 

 exports exceed imports by $150 billion.

   

b) 

 exports exceed imports by $50 billion.

   

c) 

imports exceed exports by $50 billion.

   

d) 

 imports exceed exports by $150 billion.

Question 25

 

1 / 1 point

         
   

a) 

 exports exceed imports by $150 billion.

   

b) 

 exports exceed imports by $50 billion.

   

c) 

imports exceed exports by $50 billion.

   

d) 

 imports exceed exports by $150 billion.

Question 25

 

1 / 1 point

         
   

a) 

 exports exceed imports by $150 billion.

       

a) 

 exports exceed imports by $150 billion.

a) 

 exports exceed imports by $150 billion.

a) 

 exports exceed imports by $150 billion.

a) 

 exports exceed imports by $150 billion.

a) 

a)  a) 

 exports exceed imports by $150 billion.

 exports exceed imports by $150 billion.  exports exceed imports by $150 billion.

   

b) 

 exports exceed imports by $50 billion.

       

b) 

 exports exceed imports by $50 billion.

b) 

 exports exceed imports by $50 billion.

b) 

 exports exceed imports by $50 billion.

b) 

 exports exceed imports by $50 billion.

b) 

b)  b) 

 exports exceed imports by $50 billion.

 exports exceed imports by $50 billion.  exports exceed imports by $50 billion.

   

c) 

imports exceed exports by $50 billion.

       

c) 

imports exceed exports by $50 billion.

c) 

imports exceed exports by $50 billion.

c) 

imports exceed exports by $50 billion.

c) 

imports exceed exports by $50 billion.

c) 

c)  c) 

imports exceed exports by $50 billion.

imports exceed exports by $50 billion. imports exceed exports by $50 billion.

   

d) 

 imports exceed exports by $150 billion.

       

d) 

 imports exceed exports by $150 billion.

d) 

 imports exceed exports by $150 billion.

d) 

 imports exceed exports by $150 billion.

d) 

 imports exceed exports by $150 billion.

d) 

d)  d) 

 imports exceed exports by $150 billion.

 imports exceed exports by $150 billion.  imports exceed exports by $150 billion.

Question 25

 

1 / 1 point

Question 25

Question 25 Question 25 Question 25 Question 25

   

1 / 1 point

1 / 1 point 1 / 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?  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) 

 47%

   

b) 

 147%

   

c) 

68%

   

d) 

 19.4%

   

a) 

 47%

   

b) 

 147%

   

c) 

68%

   

d) 

 19.4%

   

a) 

 47%

       

a) 

 47%

a) 

 47%

a) 

 47%

a) 

 47%

a) 

a)  a) 

 47%

 47%  47%

   

b) 

 147%

       

b) 

 147%

b) 

 147%

b) 

 147%

b) 

 147%

b) 

b)  b) 

 147%

 147%  147%

   

c) 

68%

       

c) 

68%

c) 

68%

c) 

68%

c) 

68%

c) 

c)  c) 

68%

68% 68%

   

d) 

 19.4%

       

d) 

 19.4%

d) 

 19.4%

d) 

 19.4%

d) 

 19.4%

d) 

d)  d) 

 19.4%

 19.4%  19.4%

   

Answers

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