Sophia Marcoeconomics
Milestone 1
1
Which statement below is true of price floors?
If they are above the equilibrium, they are non-binding.
They
... [Show More] generate shortages.
They lead to surpluses.
Rent control is an example of a price floor.
CONCEPT
Surplus and Constraints
2
Which of the following terms is the sum of the amount of resources used to produce goods and
services?
GDP per capita
Income approach
GDP growth
Expenditure approach
CONCEPT
Economic Growth (GDP)
3
Select the statement below that is an example of monetary policy only.
It is how the federal government influences the business cycle.
It influences interest rates and borrowing in the economy.
A tool of this policy is government spending.
It can promote growth when economy is slowing.
CONCEPT
Monetary Policy/Fiscal Policy
4
Determine which statement below about economics is true.
Economics studies decision-making processes.
Economics predicts what the market will do in the future.
As a field of study, economics is pretty much the same around the world.
Macroeconomics studies the decisions of individual consumers and firms.
CONCEPT
What is Economics?
5
Which statement below regarding reasons for studying macroeconomics is false?
Understanding macroeconomics helps one become a better citizen.
Macroeconomics can help you understand the limitations of monetary and fiscal policy but not
individual decision-making.
Macroeconomics helps us understand the economic situation of the United States but has little
application for other countries.
Macroeconomics is the basis for discussions of economics in the media.
CONCEPT
Why Study Macroeconomics?
6
Which of the following make up a country's balance of payments?
Current account and trade deficit
Supply and trade surplus
Capital account and current account
Trade deficit and demand
CONCEPT
International Trade
7
Which of the following could cause a shift in the demand curve?
A change in quantity
A major shift in supply
A change in production capacity
A change in income
CONCEPT
Supply and Demand
8
If the price of a gallon of gasoline in California was $0.99 in 1997 and is currently $3.69, prices
have increased by which factor below?
3.73
-3.73
.72
.27
CONCEPT
Nominal GDP versus Real GDP
9
Which of the following is true regarding recessions?
We cannot see the effects of recession in industrial production.
It is not present in wholesale-retail sales.
It is a decline in economic activity.
It refers to a moment when the economy is expanding rapidly.
CONCEPT
Business Cycles - Expansionary/Recessionary (NBER)
10
Which one of the following is NOT an automatic stabilizer?
The TANF progra [Show Less]