Question 1

Which would be considered an investment according to economists?

Accepted Answer

A)  the buying of shares of Fidelity mutual funds
B)  the purchase of a new machinery by McCain Food
C)  the selling of Boeing stock by a businessman
D)  the selling of GE corporate bondsE) A) and C)
F) None of the above

Question 2

In reality, all the prices in the economy are inflexible and are not able to change rapidly when demand changes unexpectedly.

Accepted Answer

A) True 
 B)False

Question 3

L. B) the quantity demanded will be 700 cars per week if the demand is DL. C) the quantity demanded will be 1150 cars per week if the demand is DL. D) the quantity demanded will be 1150 cars per week if the demand is DM." class="answers-bank-image d-inline" rel="preload" > Refer to the above diagram (b) , assume that DL represents low demand for the Turbo-car, DM represents the medium level of demand and, DH represents the high level of demand for Turbo-car and, Fancy Auto's optimal output level is 900 cars per week.If the Fancy Auto Company has a fixed price policy of $37,000 per vehicle:

Accepted Answer

A)  the quantity demanded will be 900 cars per week if the demand is DL.
B)  the quantity demanded will be 700 cars per week if the demand is DL.
C)  the quantity demanded will be 1150 cars per week if the demand is DL.
D)  the quantity demanded will be 1150 cars per week if the demand is DM.E) A) and C)
F) All of the above

Question 4

Modern economic growth refers to:

Accepted Answer

A)  an increase in the general price level.
B)  an increase in output per person.
C)  an increase in the output.
D)  an increase in percentage of the population which participates in the labour force.E) None of the above
F) All of the above

Question 5

During the Great Recession, Canada lost:

Accepted Answer

A)  250,000 jobs.
B)  300,000 jobs.
C)  400,000 jobs.
D)  550,000 jobs.E) B) and C)
F) A) and D)

Question 6

If the economy's output and income double in 35 years, we can:

Accepted Answer

A)  not say anything about the average annual rate of growth.
B)  conclude that its average annual rate of growth is about 5.5 percent.
C)  conclude that its average annual rate of growth is about 2 percent.
D)  conclude that its average annual rate of growth is about 4 percent.E) A) and B)
F) All of the above

Question 7

The short-run fluctuations in output and unemployment that we see in the real world are the result of:

Accepted Answer

A)  shocks and events that are going according to the plans.
B)  shocks and events that are not going according to the plans.
C)  the actual demand to be exactly what the firms were expecting.
D)  the actual supply to be exactly what the firms were planning.E) A) and B)
F) A) and D) B

Question 8

To keep track of long-run growth and short-run fluctuations, economists will look at statistics such as:

Accepted Answer

A)  interest rate and, stock market prices.
B)  stock market prices only.
C)  inflation, expected rate of returns on investments.
D)  real and nominal GDP, unemployment and inflation rates.E) All of the above
F) None of the above

Question 9

Which of the following industries is likely to have the least frequent price change?

Accepted Answer

A)  Coin-operated laundry machines
B)  Newspapers
C)  Taxi fares
D)  HaircutsE) B) and C)
F) None of the above

Question 10

Before the start of the Industrial Revolution in the late 1700s, living standards around the world were quite different.

Accepted Answer

A) True 
 B)False

Question 11

A well-functioning financial system helps to promote economic growth and stability.

Accepted Answer

A) True 
 B)False

Question 12

Demand shocks are the expected changes in the demand for goods and services.

Accepted Answer

A) True 
 B)False

Question 13

The Flamingo Corporation issued $30 million in new common stock in 2008.It used $22 million of the proceeds to replace obsolete equipment in its factory and $8 million to repay bank loans.As a result, investment:

Accepted Answer

A)  of $8 million has occurred.
B)  of $22 million has occurred.
C)  of $30 million has occurred.
D)  has not occurred.E) A) and B)
F) A) and C)

Question 14

________ shocks are unexpected changes in the demand for goods and services While, _________ shocks are unexpected changes in the supply of goods and services.

Accepted Answer

A)  Supply; demand.
B)  Investment; savings.
C)  Internal; external.
D)  Demand; supply.E) A) and C)
F) A) and D) D

Question 15

To explain the short-run fluctuations in the real-world economies, economists refer to:

Accepted Answer

A)  the combination of unexpected changes in demand and inflexible prices.
B)  the combination of unexpected changes in demand and flexible prices.
C)  the combination of fully expected changes in demand and inflexible prices.
D)  the combination of flexible prices and changes in the inventories.E) A) and B)
F) B) and C)

Question 16

Refer to the above diagrams, one can conclude that if expectations are always fulfilled, Fancy Auto Company:

Accepted Answer

A)  will never have to adjust the optimal output and employment levels accordingly.
B)  has to adjust the employment level but not the optimal output.
C)  has to adjust the optimal output level but not the employment.
D)  has to adjust both optimal output level and employment accordingly.E) C) and D)
F) A) and C)

Question 17

In response to an unexpected change in demand, if the prices are free to adjust quickly:

Accepted Answer

A)  a firm could always operate at its optimal output level.
B)  a firm would experience a decline in its output and employment.
C)  a firm would not be able to adjust its output according to the plan.
D)  a firm would not be able to change its employment accordingly.E) A) and D)
F) A) and C) A

Question 18

According to researchers, there is a direct link between unemployment and:

Accepted Answer

A)  major social problems like higher crime rates, higher rate of depression, heart disease and other illnesses.
B)  major social problems such as high levels of education and, health services.
C)  inflation.
D)  characteristics of structural unemployment.E) A) and B)
F) None of the above

Question 19

Economic growth is best defined as the:

Accepted Answer

A)  increase in consumption level as a percentage of GDP over time.
B)  percentage increase in real GDP over time.
C)  percentage increase in nominal GDP over time.
D)  percentage decrease in the overall price levels over time.E) A) and B)
F) All of the above

Question 20

Which of the following countries had the highest GDP per capita in 2016?

Accepted Answer

A)  China
B)  France
C)  Russia
D)  JapanE) A) and B)
F) None of the above

Exam 6: B: an Introduction to Macroeconomics

Which would be considered an investment according to economists?

Correct Answer
verified

In reality, all the prices in the economy are inflexible and are not able to change rapidly when demand changes unexpectedly.

Correct Answer
verified

Correct Answer
verified

Modern economic growth refers to:

Correct Answer
verified

During the Great Recession, Canada lost:

Correct Answer
verified

If the economy's output and income double in 35 years, we can:

Correct Answer
verified

The short-run fluctuations in output and unemployment that we see in the real world are the result of:

Correct Answer
verified
B

To keep track of long-run growth and short-run fluctuations, economists will look at statistics such as:

Correct Answer
verified

Which of the following industries is likely to have the least frequent price change?

Correct Answer
verified

Before the start of the Industrial Revolution in the late 1700s, living standards around the world were quite different.

Correct Answer
verified

A well-functioning financial system helps to promote economic growth and stability.

Correct Answer
verified

Demand shocks are the expected changes in the demand for goods and services.

Correct Answer
verified

The Flamingo Corporation issued $30 million in new common stock in 2008.It used $22 million of the proceeds to replace obsolete equipment in its factory and $8 million to repay bank loans.As a result, investment:

Correct Answer
verified

shocks are unexpected changes in the demand for goods and services While, _ shocks are unexpected changes in the supply of goods and services.

Correct Answer
verified
D

To explain the short-run fluctuations in the real-world economies, economists refer to:

Correct Answer
verified

Refer to the above diagrams, one can conclude that if expectations are always fulfilled, Fancy Auto Company:

Correct Answer
verified

In response to an unexpected change in demand, if the prices are free to adjust quickly:

Correct Answer
verified
A

According to researchers, there is a direct link between unemployment and:

Correct Answer
verified

Economic growth is best defined as the:

Correct Answer
verified

Which of the following countries had the highest GDP per capita in 2016?

Correct Answer
verified

Exam 6: B: an Introduction to Macroeconomics

Which would be considered an investment according to economists?

Correct AnswerverifiedShow Answer

In reality, all the prices in the economy are inflexible and are not able to change rapidly when demand changes unexpectedly.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Modern economic growth refers to:

Correct AnswerverifiedShow Answer

During the Great Recession, Canada lost:

Correct AnswerverifiedShow Answer

If the economy's output and income double in 35 years, we can:

Correct AnswerverifiedShow Answer

The short-run fluctuations in output and unemployment that we see in the real world are the result of:

Correct AnswerverifiedB

To keep track of long-run growth and short-run fluctuations, economists will look at statistics such as:

Correct AnswerverifiedShow Answer

Which of the following industries is likely to have the least frequent price change?

Correct AnswerverifiedShow Answer

Before the start of the Industrial Revolution in the late 1700s, living standards around the world were quite different.

Correct AnswerverifiedShow Answer

A well-functioning financial system helps to promote economic growth and stability.

Correct AnswerverifiedShow Answer

Demand shocks are the expected changes in the demand for goods and services.

Correct AnswerverifiedShow Answer

The Flamingo Corporation issued $30 million in new common stock in 2008.It used $22 million of the proceeds to replace obsolete equipment in its factory and $8 million to repay bank loans.As a result, investment:

Correct AnswerverifiedShow Answer

________ shocks are unexpected changes in the demand for goods and services While, _________ shocks are unexpected changes in the supply of goods and services.

Correct AnswerverifiedD

To explain the short-run fluctuations in the real-world economies, economists refer to:

Correct AnswerverifiedShow Answer

Refer to the above diagrams, one can conclude that if expectations are always fulfilled, Fancy Auto Company:

Correct AnswerverifiedShow Answer

In response to an unexpected change in demand, if the prices are free to adjust quickly:

Correct AnswerverifiedA

According to researchers, there is a direct link between unemployment and:

Correct AnswerverifiedShow Answer

Economic growth is best defined as the:

Correct AnswerverifiedShow Answer

Which of the following countries had the highest GDP per capita in 2016?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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B

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Correct Answer
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shocks are unexpected changes in the demand for goods and services While, _ shocks are unexpected changes in the supply of goods and services.

Correct Answer
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D

Correct Answer
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A

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Correct Answer
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