gen ed quiz

Question 1

if the fed raises the interest rate, this will ____ inflation & ____ real GDP in the short run

Answer 1

reduce ; lower

Question 2

which of the following statements correctly distinguish capitalism from socialism?

Answer 2

under capitalism, production is determined by a firm’s desire to minimize cost and maximize profits; in socialism, it is determined to a greater degree by government

Question 3

to fight a recession, congress and the president could ____

Answer 3

decrease taxes to increase aggregate demand

Question 4

the following are important problems associated with the public debt except ____

Answer 4

government borrowing to finance the debt may lead to too much private

Question 5

refer to the above table the unemployment rate in 2012 was

Answer 5

(divide the # of unemployed people by the total # in the labor force then multiply by 100)

Question 6

which of the following is a correct statement

Answer 6

the laboratory for economists is the real world (people) making it difficult to develop generalizations and laws that apply to all in every situation