Tema
Q:
If the Federal Reserve increases the reserve requirement, banks are required
to:
A. hire more workers to reduce unemployment.
B. keep more money on hand instead of lending it.
C. increase their investment in Treasury securities.
D. charge a higher rate of interest on new loans.
Q:
Gross domestic product is a macroeconomic measure that describes:
A. the increase in prices of consumer goods over a period of time.
B. the percentage of people who are looking for a job but cannot find
one.
C. the total value of goods and services a country produces in a year.
D. the value of the goods produced in a country divided by its
population.
Q:
How does monetary policy affect a country's economy?
A. It adjusts the amount of currency available.
B. It balances tax rates with government spending.
C. It limits the kinds of goods that can be imported.
D. It sets rules that protect workers and consumers.
Q:
One important characteristic of money is that if must be:
A. available in limited amounts.
B. difficult to atore and carry.
C. made of some kind of metal.
D. the same for all countries.
Q:
Which action is an example of an expansionary monetary policy?
A. Raising the reserve requirement
B. Lowering the discount rate
c. Selling Treasury securities
D. Raising the interest on reserve rate
Q:
A long-term period of economic recession that leads to a low GDP and very
high unemployment is a(n)
A. depression
B. trough
c. expansion contraction
Q:
Supply of a product is likely to go down in which situation?
A. New technology makes the product cheaper to produce.
B. The government lowers taxes on the product.
C. Skilled workers join companies that make the product.
D. Businesses expect the product's price to fall.
Q:
An electronics store sells specialty headphones for \( \$ 100 \). They usually sell 5
pairs per day and purchase 150 pairs from their suppliers per month.
According to the law of demand, which outcome would be most likely if the
store raised the price to \( \$ 120 \) ?
A. The store would sell 7 pairs per day.
B. The store would purchase 100 pairs per month.
C. The store would purchase 175 pairs per month.
D. The store would sell 3 pairs per day.
Q:
In a period of economic difficulty, a product with a low elasticity of demand
will:
A. stop being produced until the economy improves.
B. continue to be purchased at about the same rate.
C. increase in sales due to a perceived lack of supply.
D. experience a major decline in sales right away.
Q:
Which situation would most likely cause demand for apples to increase?
A. Apples become more popular in countries with rapidly growing
populations.
B. Farmers announce that the price of apples will fall in the next few
months.
C. Apple cider sales decline as orange juice sales rise significantly.
D. A scientific study reports that apples are unhealthy for small
children.
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