STRAIGHTERLINE MACROECONOMICS TOPIC 1 TO 6

  

1.True or false. People are forced to make choices because there is always competition.

  

2.True or false. Economics is the study of the efficient allocation of abundant resources.

3.   

True or false. Students and retired people travel by bus more often than business executives because they are poor.

  

4.True or false. In a market economic system, individuals allocate their labor, land, and capital resources according to firms and government requirements.

5.  "A given change in business investment spending will cause a larger change in equilibrium national income." This statement expresses an important Keynesian concept called the  

6   

True or false. If MPS = 1/3, the value of the expenditure multiplier is 5.0.

  

7.What is the appropriate fiscal policy when an economy goes into recession?

8.   

If the Federal Reserve has a target of interest rates to be at 4% when they are currently at 6%, can the Federal Reserve decrease high levels of inflation, and if so, how?

9.   

If the federal funds rate is at 2% and the target is for 5%, what is the effect on prime rate?

10.   

Which of the following is not one of the factors affecting the declining labor force participation rate in the United States from 2005 to 2015?

11.   

Changes in the level of productivity for workers can be measured by comparing which of the following?

12.   

The drought that California has been suffering from since 2012 has had what kind of impact on the agricultural economy?

13.  

When a multinational corporation expands operations in a developing country, all of the following occur as a result, except

14.   

True or false. Workers on a dairy farm would not benefit from a tariff on imported milk in the United States.

15.   

According to the Department of Commerce, in 2010 the United States received $236 billion in foreign direct investments, and invested how much abroad?

16.  A common characteristic of undocumented immigrants migrating to a developed country is that they often obtain