Chapter 1,2

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Question 1
An increase in the demand for a product and a reduction in its costs of production would:
Selected Answer: Encourage firms to enter an industry
Question 2
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The centrally planned system used by the former Soviet Union and pre-reform China lacked:
Selected Answer: Entrepreneurship
Question 3
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Issues of the distribution of goods and services and of incomes in a market system are the
primary topics of which fundamental question?
Selected Answer: Who is to receive the output?
Question 4
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If a nation restricts trade with other nations, then the most likely effect is:
Selected Answer: Make consumers in the nation worse off
Question 5
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Laissez-faire capitalism is characterized by:
Selected Answer: Very limited government role in the economy
Question 6
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Developing economic principles or explanations about how individuals behave or institutions
act is referred to as:
Selected Answer: Economic theory
Question 7
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Opportunity cost is best defined as:
Selected Answer: The value of the best forgone alternative
Question 8
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Economics is a social science that studies how individuals, institutions, and society may:
Selected Best use scarce resources to achieve the maximum satisfaction of economic
Answer:
wants
Question 9
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 One major assumption of the economic perspective is:
Selected Answer: That individuals' behavior reflect rational self-interest
Question 10
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Which is not a factor of production?
Selected Answer: Money

3,4

Review Test Submission: Quiz 2

User Niyanthesh Ala Reddy
Course Fall 2016 Principles of Macroeconomics
Test Quiz 2
Started 9/12/16 3:55 PM
Submitted 9/12/16 4:09 PM
Due Date 9/18/16 11:59 PM
Status Completed
Attempt Score 4 out of 4 points
Time Elapsed 14 minutes out of 30 minutes
Results Displayed Submitted Answers
Question 1
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In a free-market economy, a product which entails a positive externality will be:
Selected Answer: Underproduced
Question 2
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If some activity creates external benefits as well as private benefits, then economic theory
suggests that the activity ought to be:
Selected Answer: Subsidized
Question 3
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Excludability means that when someone is consuming a good, then others are excluded from
using the good anymore.
Selected Answer: False
Question 4
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Which of the following situations is not an example of market failure?
Selected Answer: Ben cannot afford to buy a high-end Mercedes Benz luxury car
Question 5
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Charlie is willing to pay $10 for a T-shirt that is priced at $9. If Charlie buys the T-shirt, then
his consumer surplus is
Selected Answer: $1
Question 6
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Which is consistent with the law of demand?
Selected An increase in the price of hamburgers causes a decrease in the quantity of
Answer:
hamburgers demanded
Question 7
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Which of the following is a determinant of demand?
Selected Answer: Income
Question 8
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Which factor will decrease the demand for a product?
Selected Answer: A decrease in the price of a substitute product
Question 9
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For most products, purchases tend to fall with decreases in buyers' incomes. Such products are
known as:
Selected Answer: Normal good
Question 10
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If the price of ground beef increases, the demand for hamburger buns is predicted to:
Selected Answer: Decrease
Tuesday, October 11, 2016 9:17:38 PM EDT

5,6,7

Review Test Submission: Quiz 3

User Niyanthesh Ala Reddy
Course Fall 2016 Principles of Macroeconomics
Test Quiz 3
Started 10/2/16 9:05 PM
Submitted 10/2/16 9:16 PM
Due Date 10/2/16 11:59 PM
 Status Completed
Attempt Score 4 out of 4 points
Time Elapsed 11 minutes out of 30 minutes
Results Displayed Submitted Answers
Question 1
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The service a homeowner performs when she mows her yard is not included in GDP because:
Selected Answer: This is a nonmarket transaction
Question 2
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The "underground economy" is mostly made up of:
Selected Answer: Tax-evasion activities
Question 3
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An example of intermediate goods would be:
Selected Answer: Paper and ink bought by a publishing company
Question 4
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Savings are generated when current consumption is less than current output.
Selected Answer: True
Question 5
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Economists use the word investment to refer to the purchase of assets such as stocks, bonds,
and real estate.
Selected Answer: False
Question 6
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Which of the following is the best example of economic investment?
Selected Answer: Apple builds a new plant to manufacture iPads
Question 7
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What is the main problem with government guarantees that socialize losses and privatize gains?

Selected They encourage overly risky investments by insulating private investors from any
Answer:
losses

Question 8
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Narrow, specifically designated expenditures that are included in more comprehensive legislation are
known as

Selected Answer: earmarks

 Question 9
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The median-voter model implies that:

Selected Answer: many people will be dissatisfied with the size of government in the economy

Question 10
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The field of economics that analyzes government decision making, politics, and elections is called:

Selected Answer: public choice theory

8,9

Review Test Submission: Quiz 4

User Niyanthesh Ala Reddy
Course Fall 2016 Principles of Macroeconomics
Test Quiz 4
Started 10/9/16 12:31 PM
Submitted 10/9/16 12:47 PM
Due Date 10/9/16 11:59 PM
Status Completed
Attempt Score 4 out of 4 points
Time Elapsed 15 minutes out of 30 minutes
Results Displayed Submitted Answers
Question 1
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The growth of per capita income in China is largely the result of:
Selected Answer: An increased use of capital goods
Question 2
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Human capital refers to the:
Selected Answer: Education, training, and skills of workers
Question 3
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The size of the labor force depends on the size of the working-age population and the:
Selected Answer: Participation rate
Question 4
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The factor accounting for the largest increase in the productivity of labor in the United States
 has been:
Selected Answer: Technological advance
Question 5
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Which of the following is a measure of economic growth that is most useful for comparing
living standards?
Selected Answer: Increases in real GDP per capita
Question 6
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If the inflation premium is 3% and the real interest on a loan is 4%, then the nominal interest
rate is:
Selected Answer: 7%
Question 7
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If the Consumer Price Index was 170 in one year and 180 in the next year, then the rate of
inflation is approximately:
Selected Answer: 5.9 percent
Question 8
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Inflation that occurs when total spending is greater than the economy's ability to produce
output at the existing price level is:
Selected Answer: Demand-pull inflation
Question 9
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In calculating the unemployment rate, "discouraged" workers who are not actively seeking
employment are:
Selected Answer: Excluded from the labor force
Question 10
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If the Consumer Price Index for a certain year is 120, this means that the average price of
consumer items in that year was:
Selected Answer: 20% higher than the average price in the base period 1982-84