Sophia Macroeconomics Milestone 1 -Spring 2022 -Complete Questions and Answers | Graded A

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Sophia Marcoeconomics Milestone 1 1 Which statement below is true of price floors? If they are above the equilibrium, they are non-binding. They generate shortages. They lead to surpluses. Rent... control is an example of a price floor. CONCEPT Surplus and Constraints 2 Which of the following terms is the sum of the amount of resources used to produce goods and services? GDP per capita Income approach GDP growth Expenditure approach CONCEPT Economic Growth (GDP) 3 Select the statement below that is an example of monetary policy only. It is how the federal government influences the business cycle. It influences interest rates and borrowing in the economy. A tool of this policy is government spending. It can promote growth when economy is slowing. CONCEPT Monetary Policy/Fiscal Policy 4 Determine which statement below about economics is true. Economics studies decision-making processes. Economics predicts what the market will do in the future. As a field of study, economics is pretty much the same around the world. Macroeconomics studies the decisions of individual consumers and firms. CONCEPT What is Economics? 5 Which statement below regarding reasons for studying macroeconomics is false? Understanding macroeconomics helps one become a better citizen. Macroeconomics can help you understand the limitations of monetary and fiscal policy but not individual decision-making. Macroeconomics helps us understand the economic situation of the United States but has little application for other countries. Macroeconomics is the basis for discussions of economics in the media. CONCEPT Why Study Macroeconomics? 6 Which of the following make up a country's balance of payments? Current account and trade deficit Supply and trade surplus Capital account and current account Trade deficit and demand CONCEPT International Trade 7 Which of the following could cause a shift in the demand curve? A change in quantity A major shift in supply A change in production capacity A change in income CONCEPT Supply and Demand 8 If the price of a gallon of gasoline in California was $0.99 in 1997 and is currently $3.69, prices have increased by which factor below? 3.73 -3.73 .72 .27 CONCEPT Nominal GDP versus Real GDP 9 Which of the following is true regarding recessions? We cannot see the effects of recession in industrial production. It is not present in wholesale-retail sales. It is a decline in economic activity. It refers to a moment when the economy is expanding rapidly. CONCEPT Business Cycles - Expansionary/Recessionary (NBER) 10 Which one of the following is NOT an automatic stabilizer? The TANF progra [Show More]

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