Question

36.

1. In the event of inflation, what is the effect on a two income family whose major asset is a house financed by a fixed rate mortgage?

   	A	not hurt by inflation
   	B	hurt by inflation

35.

1. A telephone receptionist loses his job when a computerized voice mail system is installed at his office. He is _______________.

   A		structurally unemployed
   B		frictionally unemployed
   C		cyclically unemployed
   D		seasonally unemployed

34.

The policy made by the Federal Reserve to regulate the amount of money and credit available in the economy is _______________.

	A	currency policy
	B	fiscal policy
	C	FDIC policy
	D	monetary policy

33.

All of the following are included in GDP EXCEPT ______________.

	A	the value of a new house
	B	the sale of an ice cream cone
	C	the income from a garage sale
	D	the value of a new car

32.

Which of the following taxes would most likely be regressive?

	A	a 10% flat-rate income tax
	B	a 5% sales tax on food
	C	a federal income tax
	D	a corporate income tax

31.

If the demand for a product increases while its supply remains the same, the new equilibrium price will be _______________and the equilibrium quantity will be _______________.

	A	higher, higher
	B	lower, lower
	C	higher, lower
	D	lower, higher

30.

Which of the following groups would you expect to be hurt by trade restrictions?

A		businesses and workers in exporting industries
B		businesses and workers in the protected industries
C		consumers
D		both a and c

29.

What does it mean when the government has a balanced budget?

	A	revenue falls short of government spending
	B	revenue is limited by government spending
	C	revenue equals government spending
	D	revenue exceeds government spending

27.

Unemployment figures are inaccurate because of _______________.

1. discouraged workers
2. underemployed workers
3. retirees on pensions
4. homemakers without incomes

	A	I, II and III
	B	I and II
	C	III and IV
	D	I, II, III and IV
		II, III and IV

25.

Horizontal mergers could lead to monopolies.

A. True

B. False

24.

If production costs increase, there will be a decrease in _______________.

	A	supply
	B	revenues
	C	advertising
	D	demand

23

The role of government in a command economy is to _______________.

	A	encourage the formation of corporations
	B	prevent imports
	C	make major economic decisions
	D	promote economic freedom

Answer 1

Answer) The policy made by the Federal Reserve to regulate the amount of money and credit available in the economy is Monetary policy. Any policy conducted by Fed is Monetary policy.

Hence option D is the correct answer.

29) when the government has a balanced budget revenue equals government spending. When the government spending is higher than revenue then the government is in deficit and when revenue is higher than deficit then government is in surplus.

Hence option C is the correct answer.

24) If production costs increase, there will be a decrease in supply since the costs of producing has increased the producers would produce less.

Hence option A is the correct answer.

31) the demand for a product increases while its supply remains the same, the new equilibrium price will be higher and the equilibrium quantity will be higher.

Hence option A is the correct answer.