Test #3 on Chapters 3 & 4

Answer the questions below and then click "submit" to send your answers.

  1. The market demand for a good is derived by summing all the individual demands.
  2. Your answer:
    True False


  3. A long-run supply curve is more price sensitive than a short-run supply curve.
  4. Your answer:
    True False


  5. Price does not change in a market-day supply curve
  6. Your answer:
    True False


  7. A change in flour prices shifts the supply curve for bread.
  8. Your answer:
    True False


  9. The short run is depicted by a vertical supply curve.
  10. Your answer:
    True False


  11. Belgium, according to economists, is in a recession when its
  12. Your answer:
    real GDP declines for at least nine months
    real GDP declines for at least three months
    real GDP declines for at least six months
    nominal GDP declines for at least six months
    nominal GDP declines for at least nine months


  13. Economists segment the business cycle into phases and the phase characterized by a relatively high level of real GDP, full employment, and inflation identifies
  14. Your answer:
    prosperity
    demand-pull inflation
    recovery
    stagflation
    expansion


  15. A measure comparing the prices of consumer goods and services that a household purchases to the prices of those goods and services purchased in a base year is the
  16. Your answer:
    Producer Price Index
    Consumer Price Deflator
    Consumer Price Index
    GDP Price Deflator
    Consumer Deflator Index


  17. Ireland’s nominal GDP can increase when
  18. Your answer:
    only Irish prices increase
    only Irish output increases
    only Irish output and prices decrease
    any combination of Irish output and/or prices increase
    only Irish output and prices increase


  19. Which of the following will not cause the aggregates supply curve to shift?
  20. Your answer:
    an increase in the number of entrepreneurs
    an increase in capital stock
    a chage in the price level
    a decrease in the number of workers
    a decrease in the amount of natural resource base


  21. Which of the following will not cause the aggregates demand curve to shift?
  22. Your answer:
    a change in the price level
    an increase in the purchase of capital gods caused by a change in expectations
    a decrease in the construction of new houses caused by an increase in interest rates
    an increase in government spending for interstate highways
    an increase in the sales of exports resulting from a change in the exchange rate


  23. Historical note: Since the end of World War II, the U.S. economy has experienced
  24. Your answer:
    100 recessions
    approximately one recession each year
    11 recessions
    one recession
    no recessions


  25. Economists segment the business cycle into phases and the phase in which real GDP declines, inflation moderates, and unemployment emerges is the
  26. Your answer:
    recession
    deceleration
    stagflation
    downturn
    depression


  27. Population growth will most likely lead to increased bottled water demand, short-term
  28. Your answer:
    surpluses, and a resultant price increase
    shortages, and a resultant price decrease
    surpluses, and a resultant price decrease
    shortages, and a resultant price increase


  29. If aggregates supply keeps decreasing while aggregate demand does not change, there will come a time when
  30. Your answer:
    demand-dull inflation will occur
    demand-push inflation will occur
    cost-pull inflation will occur
    the economy will reach full employment
    cost-push inflation will occur


Name:

Email address:

Class:

NOTE TO THE STUDENT: If the answers are sent successfully, you will see another page come up in the web browser. If you don't see this page, it is possible that an error occurred during transfer and you should either resubmit your answers or notify your instructor.


Generated by QuizMaker 2.0.

QuizMaker 2.0 for QuizServer authored by Ritchard Shadian. © 1998 University of Hawaii. Developed for the University of Hawaii Office of Technology Transfer and Economic Development in cooperation with Maui Community College. All rights reserved. Any copying, distribution, or preparation of derivative works is strictly prohibited.