C11V : Macroeconomics

C11V : Macroeconomics
1-Each of the following were elements of the New Deal EXCEPT:
relief, recovery, and reform.

a massive employment program.

unemployment insurance and bank deposit insurance.

a balanced budget.

2-John Maynard Keynes noted that:
we could print all the money we want and still have scarcity.

“to secure the greatest amount of pleasure with the least possible
outlay should be the aim of all economic effort.”

the general notion that scarcity is due to not having enough money
is an illusion.

Both a and c

3-How does a decrease in supply affect equilibrium price and
quantity?
A decrease in supply leads to a lower equilibrium price and a lower
equilibrium quantity.

A decrease in supply leads to a lower equilibrium price and a
higher equilibrium quantity.

A decrease in supply leads to a higher equilibrium price and a
lower equilibrium quantity.

A decrease in supply leads to a higher equilibrium price and a
higher equilibrium quantity.

4-In general, __________ by unanticipated inflation.
creditors and debtors are both helped

creditors and debtors are both hurt

creditors are helped and debtors are hurt

creditors are hurt and debtors are helped

5-Each of the following is an indirect tax EXCEPT the __________
tax.
gasoline

telephone

corporate income

excise

6-Say’s law:
was a basic pillar of classical economics.

was a basic pillar of Keynesian economics.

was formulated during the Great Depression.

proves that we can never have full employment.

7-Barter transactions:
involve directly exchanging goods for other goods.

can occur without the “double coincidence of wants.”

are less costly than transactions involving money.

involve the use of money as a medium of exchange.

8-cross saving is the total of __________ saving.
personal and business

personal and government

business and government

personal, business, and government

9-Lorenz curves tell us about the:
absolute distribution of income.

relative distribution of income.

incidence of malnutrition.

poverty line.

10-Which statement is TRUE?
The U.S. is both the world’s leading creditor nation and the
leading debtor nation.

The U.S. is neither the world’s leading creditor nation nor the
world’s leading debtor nation.

The U.S. is the world’s leading creditor nation and not the world’s
leading debtor nation.

The U.S. is the world’s leading debtor nation and not the world’s
leading creditor nation.