Tutorial 1 Flashcards
Which of the following is NOT a topic studied in Macroeconomics?
A) gross domestic product
B) the unemploymentrate
C) the price of DELL computers
D) the inflation rate
C) the price of DELL computers
Which of the following is a topic studied in Macroeconomics?
A) gross domestic product
B) the wage of auto workers
C) the price of Apple iphone 12
D) the amountof pizza produced
A) gross domestic product
Which of the following is a topic studied in Macroeconomics?
A) the functioning of individual industries
B) aggregate behaviour of households and industries C) the behaviour of individual households
D) the decision-making behaviour of individual business firms
B) aggregate behaviour of households and industries
An increase in the overall price level is known as
A) deflation
B) recession
C) inflation
D) stagflation
C) inflation
5) Aggregate behaviour is
A) the behaviour of each household and firm
B) the behaviour of each individual.
C) the behaviour of all households and firms together
D) nonother above
C) the behaviour of all households and firms together
6) Inflation is a(n)
A) decrease in the overall price level.
B) decrease in the overall level of economic activity C) increase in the overall price level.
D) increase in the overall level of economic activity
C) increase in the overall price level.
7) Deflation occurs when
A) the average price level declines
B) the economic activity declines
C) the economic growth rate declines
D) the unemployment rate declines
A) the average price level declines
A period of very rapid increase in the overall price level is known as
A) stagnation
B) hyperinflation
C) stagflation
D) depression
B) hyperinflation
9) The term business cycle refers to the
A) short-term ups and downs in the price level.
B) long-term trends in the price level.
C) short-term ups and downs in the level of economic activity.
D) long-term trends in the level of economic activity
C) short-term ups and downs in the level of economic activity.
A period during which aggregate output rises is known as a(n)
A) recession
B) inflation
C) hyperinflation
D) expansion
D) expansion
A period when the economy shrinks is known as
A) a recession
B) a contraction
C) a slump
D) all of the above
D) all of the above
In a business cycle, a peak represents the end of represents the end of XXXXX and a trough represents the end of XXXXX .
A) an expansion; a recession
B) a depression; an expansion
C) a trough; a peak
D) a recession; an expansion
A) an expansion; a recession
In a business cycle, a peak represents the end of
A) an expansion
B) a depression
C) a trough
D) a recession
A) an expansion
In a business cycle, a trough represents the end of
A) an expansion
B) an inflation
C) a peak
D) a recession
D) a recession
Between a trough and a peak, the economy goes through a(n)
A) recession
B) bust
C) expansion
D) hyperinflation
C) expansion
Between a peak and a trough, the economy goes through a(n)
A) expansion
B) inflation
C) recession
D) boom
C) recession
Unemployment generally XXXXXX during recessions and XXXXXXX during expansions.
A) falls; rises
B) falls; falls
C) rises; falls
D) rises; rises
C) rises; falls
A prolonged and deep recession is called
A) a business cycle
B) a depression
C) a stagflation
D) a hyperinflation
B) a depression
Unemployment implies that in the labor market
A) there is an excess supply of labour
B) there is an excess demand for labour
C) there are too few workers for the jobs available
D) quantity demanded of labour exceeds quantity supplied
A) there is an excess supply of labour
If output is rising and unemployment is falling, the economy MUST be in a(n)
A) contraction
B) expansion
C) depression
D) hyperinflationary period
B) expansion
Government policies regarding taxes and expenditures are called
A) fiscal policy
B) income policy
C) supply-side policy
D) monetary policy
A) fiscal policy
The Bank of England raising the short-term rate of interest falls under:
A) fiscal policy
B) monetary policy
C) growth policy
D) supply-side policy
B) monetary policy
Policies designed to affect the quantity of money in the economy are known as
A) fiscal policy
B) supply side or growth policy
C) government spending policy
D) monetary policy
D) monetary policy
The diagram that shows the income received and payments made by each sector of the economy is the
A) aggregate demand-aggregate supply diagram.
B) circular flow diagram
C) income flow diagram
D) income-production diagram
B) circular flow diagram
25) A transfer payment is
A) a bonus to get a worker to accept a transfer
B) a cash payment made by the government to people who do not supply goods, services or labour in exchange for the payment
C) a cash payment for transferring a good from one person to another.
D) an in-kind payment for working ʺoff the booksʺ
B) a cash payment made by the government to people who do not supply goods, services or labour in exchange for the payment
In the goods-and-services market, households
A) only supply
B) only demand
C) both supply and demand
D) neither supply nor demand
B) only demand
In the circular flow diagram, firms XXXXX labour and households XXXXX goods and services.
A) demand;supply
B) demand;demand
C) supply; demand
D) supply; supply
Securities issued by the UK Treasury government when it borrows money are known as
A) Treasury shares
B) Treasury stocks
C) Treasury bonds
D) none of the above
C) Treasury bonds
Securities issued by a corporation when it borrows money is a
A) share
B) corporate bond
C) corporate dividend
D) stock
B) corporate bond
To bring the economy out of an inflationary period, Keynes argued that the government should
A) cut both taxes and government spending
B) increase both taxes and government spending
C) increase taxes and/or decrease government spending
D) decrease taxes and/or increase government spending
C) increase taxes and/or decrease government spending
Rapid increases in the price level during periods of recession or high unemployment are known as
A) stagflation
B) stagnation
C) depression
D) inflation
