Copyright

U.S. and World Economies Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. Which of the following best describes opportunity cost?

Question 2 2. What does it mean if everything in an economy can be quoted in terms of money?

Question 3 3. What does the word 'fiscal' refer to when discussing fiscal policy?

Question 4 4. Keynesian economics believe that insufficient aggregate demand can result in:

Question 5 5. How would a government most likely change its tax rates during a recession? Why?

Page 2

Question 6 6. If the American dollar rose in value in relation to the Japanese Yen, what would likely be the effect?

Question 7 7. What is a progressive tax code?

Question 8 8.

What is the GDP for the following information:

Consumption = 10,000

Investment = 2,000

Government spending = 1,000

Exports = 7,500

Imports = 7,000

Question 9 9. Which of the following workers is MOST likely to be classified as structurally unemployed?

Question 10 10. Scarcity means:

Page 3

Question 11 11. The image shows the supply schedule for Bob's Low-Rider Lawn Mowing services. Which of the following statements is true regarding the supply of lawn cuts at a price of $25?

Question 12 12. Which of the following statements is FALSE regarding the government's fiscal policy toolkit?

Question 13 13. Because resources are scarce, but wants are not:

Question 14 14. What is the rate at which one currency is converted in another called?

Question 15 15. Which of the following most accurately describes the difference between the short-run aggregate supply curve and the long-run aggregate supply curve?

Page 4

Question 16 16. Increasing government spending will likely lead to all of the following, EXCEPT:

Question 17 17. During the time Mary spent studying macroeconomics, she could have instead either made brownies or played the piano. She thinks to herself that if she wasn't studying, then she would have made brownies. In this case, her opportunity cost of studying is equal to which of the following?

Question 18 18. According to the AS/AD Model, what happens to real GDP, prices, and unemployment when Consumption increases?

Question 19 19. What is quantity demanded?

Question 20 20. Which of the following is an inaccurate description of The Federal Reserve?

Page 5

Question 21 21. If the Consumer Price Index rises from 101 to 104, which of the following statements is true?

Question 22 22. What are the factors of production?

Question 23 23. An upward sloping SRAS curve and a vertical LRAS reflect the fact that:

Question 24 24. What is the result when the marginal cost (MC) is less than the average variable cost (AVC)?

Question 25 25. Which of the following correctly describes the curves in the AS/AD Model?

Page 6

Question 26 26. Why do economists use a a demand schedule?

Question 27 27. Which of the following will most likely result, due to the replacement of some portion of the federal personal income tax with a national sales tax?

Question 28 28. This image shows the market demand schedule for bananas. If the price goes from 60 cents to 40 cents, how many more bananas will be purchased per week?

Question 29 29. Increasing individual tax rates through fiscal policy will most likely have which effect on the economy?

Question 30 30. What is the real interest rate when the nominal interest rate on a bank checking account is 1%, and the rate of inflation is 2%?

U.S. and World Economies Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

ILTS Social Science - History (246): Test Practice and Study Guide  /  History Courses
Support