Macroeconomics Midterm Exam 1
1) Famous influential economist of the last century?
() John Adams () Cornwall Stowe
(X) John Maynard Keynes () John Dempsey Cortwright
2) The condition in which our wants are greater than our needs?
() Surplus () Equilibrium
() Annex (X) Scarcity
3) An economist's word for satisfaction one receives from a good or service?
(X) Utility () Optimum
() Cohesion () Pleasure
4) Economics is often times referred to as the study of?
() Commerce () Monetary policy
(X) Scarcity () Capital
5) When two variables such as price and demand move in opposite directions they are
said to be?
() Independent () Positively correlated
(X) Inversely related () Negatively related
6) Defined as the ratio of the change in the variable on the vertical axis to the change in
the variable on the horizontal axis?
() Incline () Ratio influx
() Decline (X) Slope
7) The United States is generally thought to have an_________ economy?
() Pure capitalistic () Pure socialistic
() Mixed socialistic (X) Mixed capitalistic
8) As incomes in America increase, the demand for sneakers decreases.
In this scenario,
sneakers are a (n)?
() Superior good (X) Inferior good
() Commodity good () inelastic good
9) According to the law of supply, as a price for a good rises, the supply of that good?
() Decreases (X) Increases
() Stays stable over time () Moderates over time
10) Government subsidies usually result in?
(X) An increase of the supply of goods () A decrease of the supply of goods
() More government interference () Industry exists
11) When supply of a good equals demand then a state of ________ is attained?
() Stability () Future instability
(X) Equilibrium () Disequilibria
12) As more of a good is produced the associated_________ costs...