Questions from General Economics

Q: Economic theory would suggest that the profitability of an industry would be

Economic theory would suggest that the profitability of an industry would be a) directly related to the number of firms competing in the industry. b) inversely related to the number of firms competi...

Q: The consumer price index (CPI) is a heavily criticized measure

The consumer price index (CPI) is a heavily criticized measure of inflation because a) the government does nothing to fix its known deficiencies. b) it consistently understates the increase in the c...

Q: The aggregate demand-aggregate supply model examines the impact of discretionary

The aggregate demand-aggregate supply model examines the impact of discretionary fiscal policy and nondiscretionary fiscal policy by focusing on movements of a) interest rates. b) aggregate supply....

Q: The “creation” of money is a) entirely the

The “creation” of money is a) entirely the purview of Congress. b) entirely the purview of the Federal Reserve. c) formally the purview of the Federal Reserve, constitutionally the purview of Cong...

Q: The largest single item in federal spending is a) international

The largest single item in federal spending is a) international aid. b) welfare. c) interest on the debt. d) Social Security.

Q: The portion of the national debt owed to citizens of other countries

The portion of the national debt owed to citizens of other countries a) is economically irrelevant however big it is. b) is economically important, but it has been falling in recent years. c) is e...

Q: The Obama administration's stimulus package was a) almost entirely made

The Obama administration's stimulus package was a) almost entirely made up of tax cuts. b) almost entirely made up of spending on "shovel ready" projects. c) a balance between tax cuts, spending on...

Q: The large increase in the Labor Force Participation Rate is ________ source

The large increase in the Labor Force Participation Rate is ________ source of growth. a) a duplicable b) an unduplicable

Q: State and local pensions for government employees are usually a)

State and local pensions for government employees are usually a) defined benefit plans. b) defined contribution plans. c) entitlements. d) determined year to year.

Q: Using simple linear production possibilities frontiers in a simple two-good

Using simple linear production possibilities frontiers in a simple two-good, two-country model, comparative advantage is evident when a) one country can make more of both goods than the other. b) th...