Question

How does the severity of the decline in real GDP during the Obama recession compare to the decline during the Great Depression? ________________. How does it compare to the decline during the Reagan recession? __________________

a. The Obama recession was worse than the Great Depression and the Reagan recession

b. The Obama recession was less severe than the Reagan recession and no where near the severity of the Great Depression

c. The Obama recession was much more severe than the Reagan recession, but no where near the severity of the Great Depression

d. The Obama recession was slightly more severe than the Reagan recession, but no where near the severity of the Great Depression

e. The Obama recession and the Reagan recession were about the same in terms of severity, and were actually close to the severity of the Great Depression

Group of answer choices

a

b

c

d

e

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Question 22 pts

Which of the following is included in the underground economy?

a. All mining operations

b. All industries that only pay workers a bare minimum wage

c. Legal activities that are kept hidden to avoid taxes

d. Economic activities that have a negative impact on the environment

Group of answer choices

a

b

c

d

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Question 32 pts

Which of the following is included in household production?

a. The production of all goods and services sold for home construction, repair, and maintenance

b. Only new housing construction

c. Painting your own house instead of hiring a painter

d. Using your home as your place of business and taking a home office deduction on your income taxes

Group of answer choices

a

b

c

d

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Question 42 pts

If the price of a substitute to your product decreased, the demand for your product would _______________ and the price of your product would _________________________. Choose the answer that fills in both blanks.

a. increase; increase

b. decrease; decrease

c. increase; decrease

d. decrease; increase

e. not change; fall

f. not change; increase

Group of answer choices

a

b

c

d

e

e

f

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Question 52 pts

During a recession, the demand for inferior goods will

a. decline

b. increase in real terms, but decline in nominal terms

c. increase

d. not change at all

e. change, but we cannot tell the direction

Group of answer choices

a

b

c

d

e

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Question 62 pts

A recession ends at

a. the peak
b. the inflection point
c. the point of no return
d. the point of prosperity
e. the trough
f. the due date

Group of answer choices

a

b

c

d

e

f

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Question 72 pts

What is a "real" price?

Group of answer choices

A normal price

A bad price

An inflation-adjusted price

A price that is not adjusted for inflation or deflation

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Question 82 pts

The “end” of the Great Depression troubled a lot of people. Why?

a. It lasted so long that people actually missed it

b. It disappeared without any warning

c. It ended so slowly that the public thought that was no improvement

d. It never really ended; it was merely interrupted by World War II

e. President Roosevelt said that he had ended the depression, but he was lying

f. The end of the depression coincided with massive inflation

Group of answer choices

a

b

c

d

e

f

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Question 92 pts

Consider the statement: “Lower interest rates are good for the economy?" Is this a positive or normative statement? Why?

a. it is a positive statement because it is obviously true
b.   it is a normative statement because it is obviously true
c.   it is a positive statement because it is a question that can be resolve by looking at the facts alone
d.   it is a normative statement because it is a question that can never be resolve by looking at the facts alone
e.   it is positive because it expresses an appealing thought

Group of answer choices

a

b

c

d

e

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Question 102 pts

What will always happen to a government budget deficit in a recession?

a. It will decrease
b. It will increase
c. It will change, but there is no way of predicting the direction
d. It will decline in nominal terms, but increase in real terms
e. It will fluctuate in a cyclical fashion

Group of answer choices

a

b

c

d

e

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Question 112 pts

The Incentives Problem occurs when

a.    Taxes or distribution based on something other than contribution reduce the incentives to work and invest in the economy
b.    Satiation intervenes to reduce the incentive to work and invest in the economy
c.    Government oppresses people to the point where they lose interest in doing anything
d.    Capitalism exploits people and leaves them without any incentive to keep going

Group of answer choices

a

b

c

d

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Question 122 pts

Adam Smith argued that people were motivated to engage in economic activity by

a. The rule of law
b. Their animal passions
c. The Golden Rule
d. Self-interest
e. A desire to help others

Group of answer choices

a

b

c

d

e

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Question 132 pts

Was Columbus rational? ____. Was he wrong? _____ (Choose the answer that fills in each blank)
a. Yes; yes
b. No; no
c. Yes; no
d. No; yes

Group of answer choices

a

b

c

d

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Question 142 pts

Does the Theory of Voluntary Exchange extend to or cover economic transactions that are part of imperialism? Why or why not?

a. Yes, imperialism entails the spread of markets and is therefore beneficial
b. No, because imperialism entails force
c. Yes, because there are no externalities with imperialism
d. No, imperialism is a political concept, not an economic concept

Group of answer choices

a

b

c

d

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Question 152 pts

What do the economists who keep the NIPA do when the income-approach measure of GDP differs from the expenditure-approach measure of GDP?

a. They re-measure until the two are the same

b. They add a “statistical discrepancy” to make them equal

c. They just leave it unequal because there is no reason to believe that the two counts will be the same

d. They resign or are fired because the two measures must be equal, unless they are mis-measured

Group of answer choices

a

b

c

d

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Question 162 pts

The largest component in the Income Approach to measuring GDP is

a. Net exports
b. Investment
c. Government expenditures
d. Consumption
e. Wages
f. Profits
g. Rental income
h. Interest income

Group of answer choices

a

b

c

d

e

f

g

h

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Question 172 pts

In 1928-29, the Soviet Union decided that “collective ownership” of economic property meant

a.   state (i.e., government) ownership
b.   worker ownership
c. peasant ownership
d.   everyone owns everything
e.   no one owns anything

Group of answer choices

a

b

c

d

e

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Question 182 pts

Which economic system provides the most support and promotion for “entrepreneurship?”

a.   socialism
b. communism
c.   capitalism
d.   a traditional economy
e. a slave economy

Group of answer choices

a

b

c

d

e

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Question 192 pts

Which types of economies have managed to grow and develop at a rate fast enough to meet modern expectations?

a.    Only socialist economies
b.    Only capitalist economies
c.    Socialist and capitalist economies
d.    Capitalist and traditional economies
e.    Socialist and slave economies
f.    Capitalist and slave economies

Group of answer choices

a

b

c

d

e

f

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Question 202 pts

If supply exceeds demand, a surplus will result. The surplus will subsequently cause the market price to

Group of answer choices

Increase

Decrease

Remain the same until a ceteris paribus variable changes

Change, but there is no way of knowing if it will be higher or lower

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Question 212 pts

Equilibrium in a competitive market is

Group of answer choices

Always good

Always bad

Always fair

Neither good or bad or fair or unfair; it is a positive statement about where a market will go and stay

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Question 222 pts

“Barriers to entry” are meant to eliminate or reduce which type of competition?

a. Market competition
b. Arbitrage
c. Product competition
d. The competition of capitals
e. Creative destruction

Group of answer choices

a

b

c

d

e

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Question 232 pts

Which type of competition is most easily shown in a supply and demand graph?

a. Market competition
b. Arbitrage
c. Product competition
d. The competition of capitals
e. Creative destruction

Group of answer choices

a

b

c

d

e

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Question 242 pts

What type of competition seeks to profit from price differentials?

a.   Market competition
b.   Arbitrage
c.   Product competition
d.   The competition of capitals
e. Creative destruction

Group of answer choices

a

b

c

d

e

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Question 252 pts

How does deflation impact the real burden of debt owed by borrowers?

a. it does not change at all

b. it increases the burden

c. it increases debt in nominal terms, but reduces it in real terms

d. it decrease the burden

Group of answer choices

a

b

c

d

Answer 1

Hi,

Hop you are doing well!

Question:

Answer:

How does the severity of the decline in real GDP during the Obama recession compare to the decline during the Great Depression? ________________. How does it compare to the decline during the Reagan recession? __________________

b. The Obama recession was less severe than the Reagan recession and no where near the severity of the Great Depression.

The great recession was more sever than the recession during the Obama presidency. During the 1930, 1931 and 1932 the growth rate of the US economy was -8.5, -6.4, -12.9 respectively. this recession had existed in the US economy for 5 years. But during the 2009 the US economy had shrunk by -2.5 % and this recession has existed for 2 years only.

Which of the following is included in the underground economy?

b. All industries that only pay workers a bare minimum wage.

The informal economy, also known as the underground economy or black market that do not follow the state law and regulation. All industries that only pay workers a bare minimum wage break the law or guidelines of minimum wages for the workers.

Which of the following is included in household production?

c. Painting your own house instead of hiring a painter

Household production is the production of the goods and services by the members of a household, for their own consumption, using their own capital and their own unpaid labor.

If the price of a substitute to your product decreased, the demand for your product would _______________ and the price of your product would _______________________. Choose the answer that fills in both blanks.

b. decrease; decrease

Decreasing price of a substitute to my product will increase the demand fot that product and the demand for my product will decrease that decrease the price level of my product.

During a recession, the demand for inferior goods will

c. increase

During the recession the income level of the consumers are decreased and an inferior good is an economic term that describes a good whose demand drops when people's incomes rise and demand increase when people's income decline. So it will increase the cdemand for inferior goods.

A recession ends at

e. the trough

After trough recovery get start and it is a part of economic cycle.

What is a "real" price?

An inflation-adjusted price

Consider the statement: “Lower interest rates are good for the economy?" Is this a positive or normative statement? Why?

c.   it is a positive statement because it is a question that can be resolve by looking at the facts alone.

What will always happen to a government budget deficit in a recession?

b. It will increase

Normally during the recession the spending of the government increase and other side revenue of the government decrease that increase budget deficit during this period.

The Incentives Problem occurs when

c.    Government oppresses people to the point where they lose interest in doing anything

Adam Smith argued that people were motivated to engage in economic activity by

d. Self-interest

Was Columbus rational? ____. Was he wrong? _____ (Choose the answer that fills in each blank)

b. No; no

I think he was a rational thinker and not wrong.

Does the Theory of Voluntary Exchange extend to or cover economic transactions that are part of imperialism? Why or why not?

b. No, because imperialism entails force

A voluntary exchange between a consumer and a producer makes both parties better off than they were before the exchange other side imperialism a policy of extending a country's power and influence through colonization, use of military force, or other means.

What do the economists who keep the NIPA do when the income-approach measure of GDP differs from the expenditure-approach measure of GDP?

b. They add a “statistical discrepancy” to make them equal

The largest component in the Income Approach to measuring GDP is

e. Wages

In 1928-29, the Soviet Union decided that “collective ownership” of economic property meant

a.   state (i.e., government) ownership.

Which economic system provides the most support and promotion for “entrepreneurship?”

c.   capitalism.

Which types of economies have managed to grow and develop at a rate fast enough to meet modern expectations?

b.    Only capitalist economies

If supply exceeds demand, a surplus will result. The surplus will subsequently cause the market price to

Decrease

Equilibrium in a competitive market is

Always good

Barriers to entry” are meant to eliminate or reduce which type of competition?

a. Market competition

Which type of competition is most easily shown in a supply and demand graph?

a. Market competition

What type of competition seeks to profit from price differentials?

c.   Product competition

How does deflation impact the real burden of debt owed by borrowers?

b. it increases the burden

Deflation is good for lenders and bad for borrowers. During the deflation the debt levels have increased. As a result, it can become harder for borrowers to pay their debts.

Thank You