Macroeconomics Test Review

Front

When the U.S. government purchases a submarine from a company, the government has made a major transaction in which of the following markets? Options: product market, exchange market, public market, factor market

Back

product market

Front

Which of the following is an example of government transfer payments?
Options: interest payments on the national debt, Medicare payments to the poor and elderly, debt salary payments to the government employees, payments to private Industries involved in construction, none of the above

Back

Medicare payments to the poor and elderly

Front

When the US government hires postal workers and FBI agents, it makes transactions in the which of the following markets?
product,
factor,
public,
property

Back

factor

Front

By comparing real GDP of two time periods a person can measure which of the following? the inflation rate, the economic growth rate, the unemployment rate, the consumer price index

Back

the economic growth rate

Front

Which of these will lead to an increase in the United States gross domestic product? Used textbook sales increase by 20%., The US government bans the purchase of cigarettes., Foreign car companies build new assembly plants in the United States., An increase in US tourism to Cuba

Back

Foreign car companies build new assembly plants in the United States.

Front

When calculating GDP, the purchase of a new factory would be counted as which of the following? consumption, net exports, government, investment

Back

investment

Front

Which of the following would result in a decrease in consumer spending? Decreasing the interest rate, Increasing income taxes, Decreasing the reserve requirement, Increasing government spending

Back

Increasing income taxes

Front

Suppose more men decided to stay at home and raise their pre-school aged children. We would expect which of the following to occur?

Back

The labor force participation rate for males to decrease.

Front

Who would be in favor of inflation? Options: the employee of a local shop who receives a non-adjusted salary, students with a student loan, your grandmother who keeps money under her mattress, creditors

Back

students with a student loan

Front

A market basket is generally used for which of the following?
- comparing prices of standard goods between years to determine inflation
- determining how much GDP is produced every year
- advertising new products for companies
- putting things in while you walk around a store

Back

comparing prices of standard goods between years to determine inflation