“Purchasing power parity is equal value of _____ – a situation in which _____ buys the same amount of goods and services in different currencies.” Answer Options: A. real GDP; real income B. real GDP; money C. money; money D. nominal GDP; nominal income

Economic institutions can shape a culture by: Answer Options: A. Promoting shared rituals and holiday traditions. B. Establishing educational priorities for schools. C. Setting expectations for performance in workplaces. D. Creating laws to punish undesirable behavior.

Classical economists claim that which of the following is true? A. Government expenditures usually spur economic growth, especially during an economic depression. B. Crowding out exists but its effects are unimportant relative to the benefits of government spending. C. It is impossible for ...

“Amanda lost her job because of downsizing at the beginning of the recession and has been searching for another. While unemployed, she has turned to public assistance to make ends meet and provide for her children. Her children’s school has ...

In a pure monopoly, the demand curve _____. A. is horizontal B. is perfectly elastic C. is vertical D. is downward sloping

Workers in Transnational Corporations (TNCs) are paid less compared to their counterparts in the companies’ home countries. The statement is a manifestation of: A. Fostering universal economic growth and development B. Allowing a worldwide distribution of incomes C. Showing cheap labor cost in ...

It describe situations where the prices of all goods and services rise uncontrollably over a defined time period. A. Stagflation B. Inflation C. Hyperinflation D. Deflation

Which school of thought combines the Keynesian concept of rigid prices with the rational expectations theory? A) Classical and Neoclassical B) Keynesian C) Monetarist D) New Keynesian

Which school of thought emphasizes the importance of microeconomic foundations in macrocconomic analysis and believes that markets generally clear through the rational behavior of economic agents? A) Classical and Neoclassical B) Keynesian C) Monetarist D) New Classical

The principle of monetary neutrality implies that an increase in the money supply will increase real GDP and the price level. real GDP, but not the price level. the price level, but not real GDP. neither the price level nor real GDP.

What factors contribute to the rise and fall of oil prices? Select the most correct answer. A) Supply and demand dynamics, geopolitical tensions, global economic conditions B) Seasonal variations and local market conditions C) Predictable patterns based on historical data D) Consumer preferences and ...

True or false: A business cycle is best defined as economic fluctuations around trend growth. True False

You’re a realtor in Morristown, a small city in Eastern Tennessee. Over the last two years, you’ve noticed home prices rise more quickly in your area than other areas of the country. You conclude that the demand for homes has ...

Suppose the government required Crest to produce the efficient level of output. Which of the following describes what would happen to the firm and Crest’s customers? Crest would earn negative profit, forcing it to shut down, and Crest’s customers would gain ...

The United States has a comparative advantage in -skilled labor. This explains why the United States is a net of manufactured goods. high importer high exporter low importer low exporter

When consumers purchase alternative products as a result of a change in the price of an original product, this illustrates the income effect. the marginal effect. the substitution effect. the demand effect.

The demand and supply functions for your college newspaper are respectively, q= 11,000p-1,600 and q=4,000p+500 , where p is the price in dollars. At what price should the newspapers be sold so that there is neither a surplus nor a ...

A business cycle is best defined as a period of high inflation followed by a period of deflation. a short-run temporary upward or downward movement of economic activity or real GDP that occurs around the growth trend the increase in output due to ...

What does the Consumer Price Index (CPI) measure? The CPI measures the rate of inflation. The CPI measures the effect of deflation. The CPI measures the use of factors of production. The CPI measures the public’s demand for goods.

Chain supermarkets and shopping mall stores: discouraged consumerism. Emphasized suburban conformity. encouraged people to move to urban areas. encouraged creativity and individualism.

Income contribution to well-being can be in the form of A. begging on the street. B. having uncomfortable lifestyle. C. improvement in standard of living. D. not being able to satisfy your needs and wants.

When Molson Coors Beverage Company sells Coors beer made in the United States, to Germany, the sales of its product would be classified as a U.S. countertrade arrangement. Export. import. Foreign aid shipment.

Which BEST describes the relationship between the federal government and state/local finances? State and local finances rely very little on federal grants. State and local finances are heavily reliant on federal grants. Federal grants are just about extinct. The federal government does not provide ...

If demand has a small increase and supply has a large decrease, what happens to price and quantity? price goes up and quantity goes down price goes down and quantity goes down price goes up and quantity goes up price goes down and quantity ...

If demand increases and supply stays the same, what happens to price and quantity? price goes up and quantity goes down price goes down and quantity goes up price goes up and quantity goes up price goes down and quantity goes down

The United States Department of Labor maintains a database of previously compiled job analyses for different jobs and occupations. What is the database called? a. BLS b. JobStor c. O*Net d. USDL database

The amount of risk you are willing to take in investments is defined specifically as “risk premium.” True False

Unnecessary debt, like debt on credit and store charge cards, can destroy your investment opportunities. Why? Because you pay more in interest on your debt than you could make on your investments.