AnswersEconomicsMacroeconomics

Macroeconomics — Test Answers

21 verified answers1 views
1
Free Preview

Which example best describes how a bank injects money into the economy?

A
A bank opens a savings account for a customer.
B
A bank approves a loan for a customer.
C
A bank buys a company’s rapidly growing stock.
D
A bank buys property in a bustling business district.
2
Free Preview

Bank deposits help the nation’s economy by

A
providing protection for banks on investments.
B
giving banks the money to loan and invest.
C
providing protection for consumers from theft.
D
giving consumers the ability to save money.
5

What is one problem that might commonly occur when one is bartering?

A
Someone wants to barter a good in exchange for a service.
B
Someone wants to trade a valuable item for a less valuable one.
C
Two people want to trade items of equal or nearly equal value.
D
Two people have different ideas about the value of an item.
6

Which federal agency calculates the Consumer Price Index (CPI)?

A
US Department of Commerce
B
US Department of the Treasury
C
US Census Bureau
D
US Bureau of Labor Statistics
9

People might choose to use a debit card rather than cash for purchases because

A
they do not want to carry around large amounts of cash.
B
debit cards have a higher value than cash and can buy more.
C
their banking institutions charge high fees for cash withdrawals.
D
most items cost less when purchased with a debit card.
10

To barter means to

A
sell.
B
earn.
C
trade.
D
create.
11

Which best describes what is represented in the business cycle model?

A
macroeconomic trends
B
the interactions between producers and consumers
C
supply and demand trends
D
the change in production cost
12

Why is gasoline weighted more heavily than tomatoes in a calculation of the annual inflation rate in the United States?

A
Americans purchase many more boxes of tomatoes than barrels of gasoline.
B
Gasoline costs more to produce and purchase than tomatoes.
C
Americans spend more money on gasoline than tomatoes, on average.
D
Gasoline is imported from other nations at a higher rate than tomatoes.
14

Economic interactions involving which of these would most likely be studied in macroeconomics?

A
a family’s finances
B
trade at a duty-free shop on the U.S.-Canadian border
C
a small company’s supply contract for a local town
D
International Monetary Fund policy
16

Which describes an investor’s primary goal of buying a loan?

A
to provide capital to a business
B
to bolster the economy
C
to grow a business
D
to earn a profit off the interest
21

The aim of the study of macroeconomics is to examine

A
the economy’s viability.
B
the interactions between individual producers and consumers.
C
the behavior of factors affecting the economy.
D
the relationship between supply and demand.
22

Which of the following is a characteristic of prosperity in the peak phase of the business cycle?

A
stagnant prices
B
high levels of production
C
ambivalence about the economy
D
reduced incomes
23

When economists determine that a nation’s GDP has declined, they can point to this as a sign of

A
poor leadership.
B
economic shrinkage.
C
economic growth.
D
low unemployment.
24

Economic growth takes place when a country

A
produces a steady number of automobiles.
B
produces more goods and services.
C
measures its gross domestic product (GDP).
D
has a high unemployment rate.

Did you find these answers helpful?