ECO100

  • Question 1

2 out of 2 points

What do goods like gasoline, tobacco, and alcohol typically share in common?
Selected Answer: They are all subject to government excise taxes.
Answers: A progressive tax is imposed on each of them.
A regressive tax is imposed on each of them.
They are all subject to government excise taxes.
They are all subject to government fiscal taxes.
  • Question 2

2 out of 2 points

The U.S. unemployment rate moves up and down as the economy moves in and out of recessions. But over time, the unemployment rate seems to return to a range of ____________.
Selected Answer: 4%-6%
Answers: 2%-4%
4%-6%
6%-8%
8%-10%
  • Question 3

2 out of 2 points

If the government initiates an expansionary monetary policy at the same time that its budget deficit decreases, then the interest rate will ______________________.
Selected Answer: decrease
Answers: increase
either increase or decrease
decrease
remain unchanged
  • Question 4

2 out of 2 points

The type of unemployment that occurs because of a recession is called:
Selected Answer: cyclical unemployment.
Answers: cyclical unemployment.
the natural rate of unemployment.
seasonal unemployment.
frictional unemployment.
  • Question 5

2 out of 2 points

The labor force consists of:
Selected Answer: all adults who are working or actively seeking work.
Answers: discouraged workers, employed workers, plus those actively seeking work.
all adults who are working or actively seeking work.
all adults who are able to work.
all adults who are working, plus those not working.
  • Question 6

2 out of 2 points

The situation where the buying power of money in terms of goods and services increases is called:
Selected Answer: deflation.
Answers: deflation.
inflation.
stationary pricing.
hyperinflation.
  • Question 7

2 out of 2 points

When the share of individual income tax collected by the government from people with higher incomes is smaller than the share of tax collected from people with lower incomes, then the tax is ____________________.
Selected Answer: regressive
Answers: optional
proportional
progressive
regressive
  • Question 8

2 out of 2 points

The government can use _____________ in the form of ____________________ to increase the level of aggregate demand in the economy.
Selected Answer: an expansionary fiscal policy; an increase in government spending
Answers: an expansionary fiscal policy; an increase in government spending
a contractionary fiscal policy; a reduction in taxes
a contractionary fiscal policy; an increase in taxes
an expansionary fiscal policy; an increase in corporate taxes
  • Question 9

2 out of 2 points

The rise in unemployment that occurs because of a recession is known as cyclical unemployment, because it is closely tied to the ______________.
Selected Answer: business cycle
Answers: natural rate of unemployment
business cycle
supply curve
labor supply
  • Question 10

2 out of 2 points

Which of the following is the name used to describe the price index that consists of intermediate goods and finished goods?
Selected Answer: Producer Price Index
Answers: Producer Price Index
Consumer Price Index
Employment Cost Index
Processing Price Index
  • Question 11

2 out of 2 points

Which of the following terms is used to describe the set of policies that relate to government spending, taxation, and borrowing?
Selected Answer: fiscal policies
Answers: financial policies
monetary policies
fiscal policies
economic policies
  • Question 12

2 out of 2 points

When the interest rate in an economy decreases, it is most likely as a result of:
Selected Answer: an increase in the government budget surplus or a decrease in its budget deficit.
Answers: an increase in the government budget surplus or its budget deficit.
a decrease in the government budget surplus or its budget deficit.
an increase in the government budget surplus or a decrease in its budget deficit.
a decrease in the government budget surplus or an increase in its budget deficit.
  • Question 13

2 out of 2 points

When the interest rate in an economy increases, it is likely the result of either:
Selected Answer: a decrease in the government’s budget surplus or an increase in its budget deficit.
Answers: a decrease in the government’s budget surplus or an increase in its budget deficit.
a decrease in the government budget surplus or its budget deficit.
an increase in the government budget surplus or a decrease in its budget deficit.
an increase in the government budget surplus or its budget deficit.
  • Question 14

0 out of 2 points

When inflation begins to climb to unacceptable levels in the economy, the government should:
Selected Answer: use contractionary fiscal policy to shift aggregate demand to the left.
Answers: use contractionary fiscal policy to shift aggregate demand to the right.
use contractionary fiscal policy to shift aggregate demand to the left.
use expansionary fiscal policy to shift aggregate demand to the right.
use expansionary fiscal policy to shift aggregate demand to the left.
  • Question 15

2 out of 2 points

The effects of inflation are seen in:
Selected Answer: goods, services, wages, and income levels
Answers: goods and services only
wages and income levels only
services and wages only
goods, services, wages, and income levels
  • Question 16

2 out of 2 points

Inflation implies that the level of all prices _____________________.
Selected Answer: increase
Answers: decrease
stay the same
increase
none of the above
  • Question 17

2 out of 2 points

With regard to the economy, the term negative inflation is synonymous with which of the following?
Selected Answer: deflation
Answers: recession
depression
deflation
hyperinflation
  • Question 18

2 out of 2 points

A college student who is enrolled in school full time and not seeking employment is considered:
Selected Answer: out of the labor force.
Answers: out of the labor force.
unemployable, and not counted in official statistics.
employed in leisure.
underemployed.
  • Question 19

2 out of 2 points

In the national savings and investment identity framework, an inflow of savings from abroad is, by definition, equal to:
Selected Answer: the trade deficit.
Answers: private sector investment.
the trade surplus.
the trade deficit.
domestic household savings.
  • Question 20

2 out of 2 points

_____________________ are a form of tax and spending rules that can affect aggregate demand in the economy without any additional change in legislation.
Selected Answer: Automatic stabilizers
Answers: Standardized employment budgets
Discretionary fiscal policies
Automatic stabilizers
Budget expenditures

 

"Get Help With Your Essay
. If you need assistance with writing your essay, our professional essay writing service is here to help!

Order Now