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| 1 | |
Which of the following macroeconomic policies are structural? |
| | A) | A reduction in income taxes. |
| | B) | Provision of additional cash to the banking system. |
| | C) | A request by a developing country to the International Monetary Fund for a loan. |
| | D) | Decision by the government to cut spending. |
| | E) | Decision by the central bank to raise interest rates. |
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| 2 | |
Which of the following would be considered an example of monetary policy? |
| | A) | A broad government initiative to reduce the country's reliance on agriculture and promote high-technology industries. |
| | B) | A reduction in income tax rates. |
| | C) | Provision of additional cash to the banking system. |
| | D) | An attempt to reduce the government budget deficit by reducing spending. |
| | E) | A decision by a developing country to reduce government control of the economy and to become more market-oriented. |
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| 3 | |
Which of the following would be studied by macroeconomists? |
| | A) | The effect of government subsidies on wheat prices. |
| | B) | The impact of the minimum wage on families below the poverty level. |
| | C) | Inflation in developing countries. |
| | D) | The effect of rent controls on housing prices in Toronto. |
| | E) | The anticompetitive effects of banking mergers. |
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| 4 | |
In Econland population and average labour productivity are constant. If a larger proportion of the population become employed workers, then total output will _____ and output per person will ______. |
| | A) | increase; increase |
| | B) | decrease; decrease |
| | C) | remain constant; remain constant |
| | D) | decrease; remain constant |
| | E) | remain constant; decrease |
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| 5 | |
In Econland population increased from 2 million to 4 million, the number of employed workers increased from 1 million to 2 million, but average labour productivity decreased from $25,000 per worker per year to $20,000 per worker per year. Total output in Econland _____ and the average standard of living _____. |
| | A) | decreased; decreased |
| | B) | decreased; increased |
| | C) | increased; remained constant |
| | D) | increased; increased |
| | E) | increased; decreased |
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| 6 | |
A decrease in the federal income tax is an example of ______ policy. |
| | A) | aggregation |
| | B) | fiscal |
| | C) | monetary |
| | D) | structural |
| | E) | productivity |
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| 7 | |
A decision by a government to sell businesses that currently are operated by the government to private investors is an example of ________ policy. |
| | A) | aggregation |
| | B) | fiscal |
| | C) | monetary |
| | D) | structural |
| | E) | productivity |
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| 8 | |
To aggregate 300 tonnes of steel, 5,000 bushels of wheat, and 1 million barrels of crude oil, economists add together the _____ of the three products |
| | A) | units |
| | B) | dollar value |
| | C) | physical volume |
| | D) | weight |
| | E) | number of tonnes, bushels, and barrels |
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| 9 | |
Aggregation allows economists to ______ at the cost of ________. |
| | A) | study monetary policy issues; neglecting fiscal policy issues |
| | B) | make positive statements; ignoring normative analysis |
| | C) | make normative statements; ignoring positive analysis |
| | D) | see the details; obscuring the big picture |
| | E) | see the big picture; obscuring the details |
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| 10 | |
In Econland exports equal 25% of total output, while imports equal 20% of total output. Econland has: |
| | A) | a budget surplus. |
| | B) | a budget deficit. |
| | C) | a trade surplus. |
| | D) | a trade deficit. |
| | E) | balanced trade. |
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