Macroeconomics Comprehensive Final

Typically, during the recession phase of the business cycle, inflation _____ and wages ______.

• • rises and rises

• • falls and falls

• • rises and falls

• • falls and rises

Which of the following factors would not shift the supply curve?

• • Changes in the number of consumers in the market.

• • Changes in technology.

• • Changes in input prices.

• • Changes in the number of producers in the market.

A ________ market is one in which goods and services are bought and sold illegally.

• balanced

• black

• equal

• perfect

If the demand curve increases but the supply curve decreases, price increases but quantity depends on the size of the shift, or is indeterminant.

• True

• False

Price stability is a desirable goal for the economy since it makes it ________ for consumers and businesses to plan their budgets accordingly.

• harder

• better

• easier

• none of the above

The United States is considered an ____________ economy.

• close

• open

• command

• free market

A _____________ is a market that consists of many buyers known as consumers and sellers known as producers.

• monopoly

• competitive market

• oligopoly

• none of the above

A _______________is a self-imposed limit on the quantity of exports.

• • Voluntary export restriction

• Export subsidy

• Quota

• Tariff

__________would be a perfect example of a mixed economy. The country has benefited economically from adopting market-based principles, but also enjoys a fair amount of state intervention.

• North Korea

• Canada

• China

• C. or D.

Assume Great Value chicken noodle soup is an inferior good. If your income increases, then your demand for Great Value chicken noodle soup will increase

• True

• False