ECONOMICS TUTOR

The International Economy – Grade 12

admin — Mon, 16 May 2011 02:16:50 +0000

1. If there were a decrease in the worldwide production of oil, which of the following

would most likely occur?

A. Global consumption of oil would increase.

B. Economic growth in oil-importing countries would decrease.

C. International spending on research into alternative energy sources would decrease.

D. Global [...]

The National Economy – Grade 12

admin — Mon, 16 May 2011 02:14:16 +0000

1. In the United States, which of the following forms of taxation currently

represents the largest source of tax revenue for the federal government?

A. Property tax

B. Sales tax

C. Corporate income tax

D. Personal income tax

Key

2. Which of the [...]

The Market Economy- Grade 12

admin — Mon, 16 May 2011 02:11:44 +0000

VIDEO ARCADE RENTAL FEES AND SALES

Name of

Game

Machine

Rental Fee

per Month

(in dollars)

Sales

per Month

(in dollars)

[...]

Macro-Economics Professor Study Questions 1

admin — Tue, 26 Apr 2011 01:06:11 +0000

1. For economists, the word “utility” means: A) versatility and flexibility. B) rationality. C) pleasure and satisfaction. D) purposefulness. 2. In economics, the pleasure, happiness, or satisfaction received from a product is called: A) marginal cost. B) rational outcome. C) status fulfillment. D) utility. 3. According to economists, economic self-interest: A) is a reality [...]

Products & Services for Consumers: Samples of Study Questions

admin — Tue, 26 Apr 2011 00:56:08 +0000

Samples of Study Questions After reading assigned article, test yourself: 1. Quality can be defined on two dimensions, _____________ and _______________ quality. A) cost and promotional B) implied and competitive C) service and strategic D) market perceived and performance E) factor and resource 2. Though most products leave the factory at performance quality the [...]

MARKETING: BUILDING CUSTOMER RELATIONSHIPS: Study questions

admin — Tue, 26 Apr 2011 00:50:31 +0000

Samples of Study Questions After reading assigned article, test yourself: 1. ________ is the process of planning and executing the conception, pricing, promotion, and distribution of goods and services to facilitate exchanges that satisfy individual and organizational objectives (Page 350): A) Selling B) Advertising C) Marketing D) Mixing markets 2. Which of the following [...]

Macro Economics Question and Answers

admin — Sat, 12 Mar 2011 22:58:30 +0000

Answer the next question(s) on the basis of the following production possibilities tables for countries Alpha and Beta: 1. Refer to the above tables. The domestic opportunity cost of one unit of X in Alpha is: A. 2 units of Y. B. 4 units of Y. C. 1 unit of Y. D. 3 [...]

The Risk and Term Structure of Interest Rates

admin — Sat, 12 Mar 2011 22:47:15 +0000

The Risk and Term Structure of Interest Rates 5.1 Multiple Choice 1) The term structure of interest rates is A) the relationship among interest rates of different bonds with the same maturity. B) the structure of how interest rates move over time. C) the relationship among the terms to maturity of different bonds. D) [...]

Macro-Economics Study Questions and Answers

admin — Sat, 12 Mar 2011 22:33:15 +0000

1. A nation’s gross domestic product (GDP): A) is the dollar value of the total output produced within the borders of the nation. B) is the dollar value of the total output produced by its citizens, regardless of where they are living. C) can be found by summing C + In + S + [...]

Microeconomics Exam Review Sheet -3

admin — Tue, 08 Mar 2011 12:30:27 +0000

1. Stabilizing a nation’s price level and the purchasing power of its money can be achieved:

A) only with fiscal policy.

B) only with monetary policy.

C) with both fiscal and monetary policy.

D) with neither fiscal nor monetary policy.

2. Other things equal, an excessive increase in the money supply will :

[...]

Microeconomics Exam Review Sheet

admin — Tue, 08 Mar 2011 12:28:28 +0000

1. As it relates to Federal Reserve activities, the acronym FOMC describes the:

A) Federal Open Market Committee.

B) Federal Options Market Committee.

C) Federal Organization for Monetary Control.

D) Federal Organization for Money Creation.

2. In the U.S. economy the money supply is controlled by the:

A) U.S. Treasury.

B) Federal [...]

Macroeconomics . Test review

admin — Tue, 08 Mar 2011 12:27:20 +0000

1. Fiscal policy is carried out primarily by:

A) the Federal government.

B) state and local governments working together.

C) state governments alone.

D) local governments alone.

2. Fiscal policy refers to the:

A) manipulation of government spending and taxes to stabilize domestic output, employment, and the price level.

B) manipulation of government [...]

Microeconomics Exam Review Sheet

admin — Tue, 08 Mar 2011 12:26:20 +0000

Microeconomics Exam Review Sheet

1. For economists, the word “utility” means: A. purposefulness. B. pleasure and satisfaction. C. versatility and flexibility. D. rationality.

2. Joe sold gold coins for $1000 that he bought a year ago for $1000. He says, “At least I didn’t lose any money on my financial investment.” His economist friend points out that in [...]

MACROECONOMICS – TEST -1

admin — Tue, 08 Mar 2011 12:24:34 +0000

1. The study of economics is primarily concerned with:

A) keeping private businesses from losing money.

B) keeping economics professors from starving to death.

C) choices that are made in seeking to use scarce resources efficiently.

D) determining the most equitable (fair) distribution of the government’s money.

2. Even though the [...]

Macroeconomics -Test

admin — Tue, 08 Mar 2011 12:23:25 +0000

1. The goldsmith’s ability to create money was based on the fact that: A. withdrawals of gold tended to exceed deposits of gold in any given time period. B. consumers and merchants preferred to use gold for transactions, rather than paper money. C. the goldsmith was required to keep 100 percent gold reserves. -D. paper money in [...]

Macro Economics -Money and Banking

admin — Tue, 08 Mar 2011 12:20:57 +0000

1) The Fed uses three policy tools to manipulate the money supply: ________, which affect reserves and the monetary base; changes in ________, which affect the monetary base; and changes in ________, which affect the money multiplier.

A)open market operations; borrowed reserves; margin requirements

B) open market operations; borrowed reserves; reserve requirements

[...]

Macro Economics : The Economizing Problem

admin — Tue, 08 Mar 2011 12:19:17 +0000

The Economizing Problem

1. Economics is primarily the study of:

a. how scarcity can be eliminated

b. how firms manipulate prices

c. how government influence resource allocation decisions

d. the problem of scarce resources relative to human wants

Answer: d

Feedback: The fundamental economic problem is one of scarce resources [...]

Economic Growth: An Introduction to Scarcity and Choice

admin — Tue, 08 Mar 2011 12:17:58 +0000

Economic Growth: An Introduction to Scarcity and Choice

True/False Questions

1. Since 1973, the growth rate of per capita GDP in the U.S. has been lower than it was in previous periods.

ANSWER: T

2. The three primary resources are land, labor, and capital.

ANSWER: T

3. The production possibilities curve [...]

Macroeconomics Test- with Answers

admin — Tue, 08 Mar 2011 12:15:02 +0000

1. Suppose the total market value of all final goods and services produced in a particular country in 2006 is $500 billion and the total market value of final goods and services sold is $450 billion. We can conclude that: A. GDP in 2006 is $450 billion. B. NDP in 2006 is $450 billion. -C. GDP in 2006 [...]

Macroeconomics Test-Money & Banking

admin — Tue, 08 Mar 2011 05:24:10 +0000

1. Money functions as:

A. a store of value. B. a unit of account. C. a medium of exchange. D. all of these.

2. If you are estimating your total expenses for school next semester, you are using money primarily as:

A. a medium of exchange. B. a store of value. C. a [...]

Macroeconomics Test-Macroeconomic Relationships

admin — Tue, 08 Mar 2011 05:22:32 +0000

1. With an MPS of .4, the MPC will be:

A. 1.0 minus .4. B. .4 minus 1.0. C. the reciprocal of the MPS. D. .4.

2. The consumption schedule shows:

A. that the MPC increases in proportion to GDP. B. that households consume more when interest rates are low. C. that consumption [...]

Macroeconomics Test -Aggregate Demand and Aggregate Supply

admin — Tue, 08 Mar 2011 05:21:35 +0000

1. The aggregate demand curve is:

A. vertical if full employment exists. B. horizontal when there is considerable unemployment in the economy. C. downsloping because of the interest-rate, real-balances, and foreign purchases effects. D. downsloping because production costs decrease as real output rises.

2. The foreign purchases effect suggests that an increase in [...]

Macroeconomics Test -Fiscal Policy

admin — Tue, 08 Mar 2011 05:20:48 +0000

1. Fiscal policy is carried out primarily by:

A. the Federal government. B. state and local governments working together. C. state governments alone. D. local governments alone.

2. Countercyclical discretionary fiscal policy calls for:

A. surpluses during recessions and deficits during periods of demand-pull inflation. B. deficits during recessions and surpluses during periods [...]

Macroeconomics Test -1

admin — Tue, 08 Mar 2011 05:19:39 +0000

Question 1 (Multiple Choice) Monopoly or market power is the ability of a firm to:

A) shift its demand curve to the right. B) shift its demand curve to the left. C) set its price. D) achieve economies of scale.

Correct Answer: C

Question 2 (Multiple Choice) A contractionary fiscal policy is shown as a:

[...]

Economics Sample Questions and answers-17

admin — Tue, 08 Mar 2011 05:18:34 +0000

1. Monopolistic competition is characterized by a: A) few dominant firms and low entry barriers. B) large number of firms and substantial entry barriers. C) large number of firms and low entry barriers. D) few dominant firms and substantial entry barriers.

2. Monopolistic competition resembles pure competition because: A) both industries emphasize nonprice competition. [...]

Economics Sample Questions and answers-16

admin — Tue, 08 Mar 2011 05:17:50 +0000

1. Pure monopoly means: A) any market in which the demand curve to the firm is downsloping. B) a standardized product being produced by many firms. C) a single firm producing a product for which there are no close substitutes. D) a large number of firms producing a differentiated product.

2. Pure monopolists may [...]

Economics Sample Questions and answers-15

admin — Tue, 08 Mar 2011 05:17:12 +0000

1. Which of the following industries most closely approximates pure competition? A) agriculture B) farm implements C) clothing D) steel

2. In which of the following industry structures is the entry of new firms the most difficult? A) pure monopoly B) oligopoly C) monopolistic competition D) pure competition

3. An industry comprised of a [...]

Economics Sample Questions and answers-14

admin — Tue, 08 Mar 2011 05:16:27 +0000

1. Which of the following constitutes an implicit cost to the Johnston Manufacturing Company? A) payments of wages to its office workers B) rent paid for the use of equipment owned by the Schultz Machinery Company C) depreciation charges on company-owned equipment D) economic profits resulting from current production

2. Costs to an economist: [...]

Economics Sample Questions and answers-13

admin — Tue, 08 Mar 2011 05:15:50 +0000

1. Which of the following is correct? When the price of normal good Z falls: A) both income and substitution effects cause the consumer to buy more. B) both income and substitution effects cause the consumer to buy less. C) the income effect causes the consumer to buy less, but the substitution effect causes [...]

Economics Sample Questions and answers-12

admin — Tue, 08 Mar 2011 05:15:03 +0000

1. The income and substitution effects explain why: A) the elasticity of demand can be unity. B) product demand curves are downsloping. C) product supply curves are upsloping. D) equilibrium is always achieved in a competitive market.

2. The price elasticity of demand coefficient indicates: A) buyer responsiveness to price changes. B) the extent [...]

Economics Sample Questions and answers-11

admin — Tue, 08 Mar 2011 05:14:03 +0000

1. Which of the following is an asset on the consolidated balance sheet of the Federal Reserve Banks? A) loans to commercial banks B) Federal Reserve Notes in circulation C) Treasury deposits D) reserves of commercial banks Ans: A

2. Reserves must be deposited in the Federal Reserve Banks by: A) only commercial banks [...]

Economics Sample Questions and answers-10

admin — Tue, 08 Mar 2011 05:13:30 +0000

1. Which of the following statements is not correct? A) The actual reserves of a commercial bank equal its excess plus its required reserves. B) A bank’s assets plus its net worth equal its liabilities. C) When borrowers repay bank loans, the supply of money is reduced. D) A single commercial bank can safely [...]

Economics Sample Questions and answers-9

admin — Tue, 08 Mar 2011 05:12:24 +0000

1. If you are estimating your total expenses for school next semester, you are using money primarily as: A) a medium of exchange. B) a store of value. C) a unit of account. D) an economic investment. Ans: C

2. A $200 price tag on a cashmere sweater in a department store window is [...]

Economics Sample Questions and answers-8

admin — Tue, 08 Mar 2011 05:11:42 +0000

1. Discretionary fiscal policy refers to: A) any change in government spending or taxes which destabilizes the economy. B) the authority which the President has to change personal income tax rates. C) changes in taxes and government expenditures made by Congress to stabilize the economy. D) the changes in taxes and transfers which occur [...]

Economics Sample Questions and answers-8

admin — Tue, 08 Mar 2011 05:11:14 +0000

1. The aggregate demand curve is: A) vertical if full employment exists. B) horizontal when there is considerable unemployment in the economy. C) downsloping because of the interest-rate, wealth or real balances, and foreign purchases effects. D) downsloping because production costs decrease as real output increases. Ans: C

2. The interest-rate and real balances [...]

Economics Sample Questions and answers-7

admin — Tue, 08 Mar 2011 05:10:37 +0000

1. The multiplier effect means that: A) consumption is typically several times as large as saving. B) a small change in consumption demand can cause a much larger increase in investment. C) a small increase in investment can cause national income to change by a larger amount. D) a small decline in the MPC [...]

Economics Sample Questions and answers-6

admin — Tue, 08 Mar 2011 05:09:48 +0000

1. The view that the market system will ensure full employment is associated with: A) Keynesian economics. B) GDP gap analysis. C) classical economics. D) the aggregate expenditures model. Ans: C

2. Say’s law indicates that: A) a stable, inflexible interest rate will guarantee perpetual full employment. B) falling prices will decrease the purchasing [...]

Economics Sample Questions and answers-5

admin — Tue, 08 Mar 2011 05:08:45 +0000

1. The immediate determinant of the volume of output and employment is the: A) composition of consumer spending. B) ratio of public goods to private goods production. C) level of total spending. D) size of the labor force. Ans: C

2. The phase of the business cycle in which real domestic output declines is [...]

Economics Sample Questions and answers-4

admin — Tue, 08 Mar 2011 05:07:55 +0000

Economics Sample Questions and answers-3

admin — Tue, 08 Mar 2011 05:07:21 +0000

1. A market: A) reflects upsloping demand and downsloping supply curves. B) entails the exchange of goods, but not services. C) is an institution which brings together buyers and sellers. D) always entails face-to-face contact between buyer and seller. Ans: C

2. The demand curve shows the relationship between: A) money income and quantity [...]

Economics Sample Questions and answers-2

admin — Tue, 08 Mar 2011 05:06:12 +0000

1. The study of economics exists because: A) government interferes with the efficient allocation of scarce resources. B) resources are scarce in relation to human material wants. C) the market system is an obstacle to the efficient use of plentiful resources to satisfy constrained wants. D) resources are overly abundant as compared to wants; [...]

Economics Sample Questions and answers-1

admin — Tue, 08 Mar 2011 05:05:21 +0000

1. Economics may best be defined as: A) the interaction between macro and micro considerations. B) the study of the behavior of people and institutions in the production, distribution, and consumption of scarce goods. C) the empirical testing of value judgments through the use of induction and deduction. D) the use of policy to [...]

Macro-Economics Study Questions and suggested Answers – Macroeconomics

admin — Tue, 08 Mar 2011 05:03:13 +0000

INTRODUCTION

901. Which of the following is one of the three central problems that every economic system must solve?

a) How far should people be allowed to go in protecting their own property?

b) How are society’s scarce resources to be allocated?

c) How fair is it for some individuals to live in poverty while others [...]

Macro-Economics Study Questions and Answers – Intro

admin — Tue, 08 Mar 2011 05:00:20 +0000

901. Which of the following is one of the three central problems that every economic system must solve?

a) How far should people be allowed to go in protecting their own property?

b) How are society’s scarce resources to be allocated?

c) How fair is it for some individuals to live in poverty while others are surrounded by [...]

Macro-Economics Study Questions and Answers – Monetary Policy in a Closed Economy

admin — Tue, 08 Mar 2011 04:57:40 +0000

The main policy-making body of the Federal Reserve System in the

a. Federal Advisory Council

b. Council of Economic Advisors

*c. Board of Governors

d. Federal Banking Committee

The most important and widely used monetary took of the Fed is

*a. Open market operations

b. The reserve requirement

c. The discount rate

d. [...]

Macro-Economics Study Questions and Answers – Money

admin — Tue, 08 Mar 2011 04:56:23 +0000

1. A $20 bill is a:

A. gold certificate.

B. Treasury note.

C. Treasury bill.

D. Federal Reserve Note.

2. Which of the following is not part of the M2 money supply?

A. money market mutual fund balances

B. money market deposit accounts

C. currency

D. large ($100,000 or more) time deposits

3. [...]

Macro-Economics Study Questions and Answers – Monetary Policy

admin — Tue, 08 Mar 2011 04:54:38 +0000

1. The desire to hold money for transactions purposes arises because:

A. receipts of income and expenditures are not perfectly synchronized. B. people fear that prices will rise. C. households want money on hand in case a good financial investment opportunity arises. D. low interest rates reduce the opportunity cost of holding [...]

Macro-Economic Study Questions and Answers – Money Creation

admin — Tue, 08 Mar 2011 04:53:32 +0000

1. The goldsmith’s ability to create money was based on the fact that:

A. withdrawals of gold tended to exceed deposits of gold in any given time period. B. consumers and merchants preferred to use gold for transactions, rather than paper money. C. the goldsmith was required to keep 100 percent gold reserves. [...]

Macro-Economic Study Questions and Answers – Money & Banking

admin — Tue, 08 Mar 2011 04:52:29 +0000

1. Money functions as:

A. a store of value. B. a unit of account. C. a medium of exchange. D. all of these.

2. If you are estimating your total expenses for school next semester, you are using money primarily as:

A. a medium of exchange. B. a store of value. C. a [...]

Macro-Economic Study Questions and Answers -1

admin — Tue, 08 Mar 2011 04:47:35 +0000

Macro-Economic Study Questions and Answers -1

1. The physical export of motorcycles from the United States to Mexico best illustrates a:

A) trade flow.

B) resource flow.

C) financial flow.

D) technology flow.

2. The spending by Americans while traveling in Europe best illustrates a:

A) trade flow.

B) labor flow.

C) financial flow.

[...]