Questions from General Economics


Q: Which of the following tools would have likely have the impact of

Which of the following tools would have likely have the impact of raising short-term interest rates the most? a) Cutting the Fed Funds target by one-quarter point b) Buying $1 million dollars in bon...

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Q: In determining whether the distribution of federal spending among various agencies was

In determining whether the distribution of federal spending among various agencies was correct, an economist would want to make sure a) that each agency manager got what (s) he thought was needed in...

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Q: To counter the slowing rate of economic growth, liberal economists would

To counter the slowing rate of economic growth, liberal economists would recommend a) taxation and spending policies that decrease aggregate demand. b) taxation and spending policies that increase a...

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Q: The consensus among economists is that NAFTA’s impact on the U.

The consensus among economists is that NAFTA’s impact on the U.S. economy is a) enormously positive. b) enormously negative. c) marginal in net though it has increased both imports and exports. d)...

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Q: One unsettling consequence of setting a tax on tobacco sufficiently high to

One unsettling consequence of setting a tax on tobacco sufficiently high to reduce consumption would be a) it would likely reduce Medicare costs. b) it would likely increase tobacco revenues to farm...

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Q: On a graph of real gross domestic product over time, recessions

On a graph of real gross domestic product over time, recessions appear as a) relatively short and shallow drops on an otherwise increasing path. b) long, sharp declines on an otherwise increasing pa...

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Q: A 60-month car loan (where no down payment was

A 60-month car loan (where no down payment was made) with a 6 percent interest rate and a monthly payment of $500 would allow the borrower to buy a a) $35,500 car. b) $30,000 car. c) $25,863 car. d...

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Q: Income inequality, when measured as the percentage of total income going

Income inequality, when measured as the percentage of total income going to the top 1 percent, increased most rapidly during the a) 1950s. b) 1960s. c) 1980s and 1990s. d) 2000s.

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Q: When choosing to limit trade, a country can impose a tax

When choosing to limit trade, a country can impose a tax on imported goods. This is called a) an estate tax. b) a tariff. c) a quota. d) a capital gains tax.

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Q: Local telephone service was once an area in which consumers had no

Local telephone service was once an area in which consumers had no choices. Many young people no longer use “landlines,” preferring instead to use their cellular phones. This means that the market has...

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