1.BasicEconomicconcepts

1.1Scarcity,choiceandopportunitycost

c

Whichofthefollowingwoulddirectlyincrease

thecapitalstockofaneconomy?

(A)Anindividualpurchasessharesofcorporate

stock.

(B)Anindividualpurchaseshigh-riskcorporate

bonds.

(C)Abusinessfirmexpandsitsproduction

facilities.

(D)Abankusescashreservestopurchaseshort-

andlong-tenngovernmentsecurities.

(E)Thegovernmentimplementsaspending

programtocoverprescriptiondrugsfor

Medicarerecipients.

習(xí)題2E

Whichofthefollowingisthemostfundamental

issuethateconomicsaddresses?

(A)Choiceofappropriatetechnology

(B)Reductionofunemployment

(C)Reductionofbudgetdeficit

(D)Promotionofprivatization

(E)Useofscarceresources

習(xí)題3A

Scarcityexistsbecause

(A)humanwantsexceedtheproductivecapacity

oftheeconomy

(B)suppliesoflandandothernaturalresources

areunlimited

(C)physicalcapitaldoesnotdepreciate

(D)populationandlaborforcegrowthare

slowing

(E)innovationcausesunemployment

1.2Productionpossibilitycurves

c

I

I

Anypointinsideaproductionpossibilities

curveis

i

(A)betterthanpointsontheproduction

possibilitiescurve

(B)allocativelyefficientbuttechnologically

inefficient

(C)associatedwithinefficientuseor

unemploymentofsomeresources

(D)associatedwithmovementsalongthe

productionpossibilitiescurve

(E)associatedwithconstantopportunitycosts

習(xí)題2kA

IfproducingeachadditionalunitofgoodX

requiredgivingupever-increasingamounts

ofgoodY,theproductionpossibilitiescurve

betweenXandYwouldbe

(A)bowedoutward

(B)bowedinward

(C)astraightline

(D)horizontal

(E)upwardsloping

習(xí)題3D

Whichofthefollowingconceptscanbeillustrated

usingtheproductionpossibilitiescurve?

I.Choice

II.Scarcity

III.Pricelevel

IV.Opportunitycost

(A)IIonly

(B)IandIIIonly

(C)IIIandIVonly

(D)I,II,andIVonly

(E)II,III.andIVonly

習(xí)題4A

Foraneconomythatisoperatinginsideits

productionpossibilitiescurve,whichofthe

followingistrue?

(A)Itcanincreasetheproductionofbothgoods.

(B)Itspopulationisgrowingfasterthanthe

economy'sabilitytoincreaseproduction.

(C)Itisusingallavailableresourcesefficiently.

(D)Itcannotmovetoapointontheproduction

possibilitiescurvewithavailable

technology.

(E)Itlackstheresourcestoincreaseproduction

beyonditscurrentoutput.

c

s

a

o

o

o

q

v

l

E

v

u

CONSUMERGOODS

Thediagramaboveshowsthreeproduction

possibilitiescurves(PPCs).IfthecurrentPPCis

PPCbwhichofthefollowingchangesindicatesa

recession?

(A)MovementfrompointXtopointY

(B)MovementfrompointYtopointX

(C)MovementfrompointYtopointZ

(D)ShiftfromPPC〔toPPC()

(E)MovementfrompointZtopointX

A

Whichofthefollowingisalwaystrueofan

economyoperatingonitsproductionpossibilities

frontier?

(A)Itsresourcesarefullyemployed.

(B)Itisallocativelyefficient.

(C)Itcannottradewithothernationsbecauseit

isthemostefficientproduceroftradeable

goods.

(D)Itwillnecessarilyoperateonthesamefron-

tierthefollowingyear.

(E)Itmustbeacominaiideconomy.

c

Whichofthefollowingwouldshiftacountry's

productionpossibilitiescurveinward?

(A)Areductioninthecountry'sinflationrate

(B)Areductioninthecountry'srealinterestrate

(C)Areductioninthesizeofthecountry'slabor

force

(D)Anincreaseinthetypicalretirementagein

thecountry

(E)Anincreaseinthecountry'scyclical

unemploymentrate

習(xí)題8c

A(

CS

II

ON-

O

D9

190

4

05812GOODX

(UNITS)

Theopportunitycostofmovingproductionfrom

pointRtopointTis

(A)oneunitofGoodY

(B)fiveunitsofGoodY

(C)sixunitsofGoodY

(D)threeunitsofGoodX

(E)sevenunitsofGoodX

習(xí)題9

Ifacountry'sproductionpossibilitiescurveis

shiftingoutward,whichofthefollowingmust

betrue?

(A)Thereiscyclicalunemployment.

(B)Thepricelevelisincreasing.

(C)Theaggregatedemandcurveisshiftingtothe

right.

(D)Thelong-runPhillipscurveisshiftingtothe

right.

(E)Thelong-runaggregatesupplycurveis

shiftingtotheright.

習(xí)題1()c

Whenaneconomyproducingtwogoodsis

operatingefficientlyandatfullemployment,

increasingtheproductionofonegoodwill

resultin

(A)aninwardshiftofthepixxiuctionpossibilities

curve

(B)anoutwardshiftoftheproduction

possibilitiescurve

(C)adecreaseintheamountoftheothergood

thatcanbeproduced

(D)anincreaseinthecostsofbothgoods

(E)anincreaseintheamountofresources

available

D

Aproductionpossibilitiescurvethatisconcaveto

theorigin(bowedout)impliesthatasmoreofa

goodisproduced,theopportunitycost

A

/Bremainsconstant

VI

cdecreases

{/

Ddecreasesatfirstandthenincreases

/Eincreases

.{increasesatfirstandthendecreases

1.3Comparativeadvantage,absolute

advantages,specialisation

andtrade

SupposecountriesAlphaniaandBetaniaproduce

electronicsandapparelusingidenticalresources.

WhichofthefollowingistrueifAlphaniaexports

electronicstoandimportsapparelfromBetania

withinafree-tradesystem?

(A)Theopportunitycostofproducingelectronics

ishigherinAlphaniathaninBetania.

(B)Betaniahasacomparativeadvantagein

producingapparel,andAlphaniahas

acomparativeadvantageinproducing

electronics.

(C)Alphaniamustbespecializinginapparel,

whileBetaniaisspecializinginelectronics.

(D)WorkersinAlphaniacanproducemore

apparelperhourthanworkersinBetania.

(E)ConsumersinBetaniabuymoreelectronics

thanconsumersinAlphania.

1.4Demand,supplyandmarket

equilibrium

c

Ifone-fourthofanation'swheatcropisdestroyed

byafloodinagivenseason,thenthepriceof

wheatandthequantitysoldwillchangeinthe

shortruninwhichofthefollowingways?

PriceQuantitySold

(A)DecreaseNochange

(B)DecreaseIncrease

(C)IncreaseDecrease

(D)IncreaseIncrease

(E)NochangeIncrease

習(xí)題2c

Iftheproductiontechnologyofagoodimproves

andatthesametimethenumberofconsumers

willingandabletobuythegoodinthemarket

increases,whichofthefollowingwilldefinitely

occur?

(A)Equilibriumpricewillincrease.

(B)Equilibriumpricewilldecrease.

(C)Equilibriumquantitywillincrease.

(D)Equilibriumquantitywilldecrease.

(E)Equilibriumquantitywillremainthesame.

習(xí)題3、

1c

i

iAsimultaneousincreaseinboththedemandfor

iandthesupplyofagoodinamarketwillleadto

i

iwhichofthefollowingchangesintheequilibrium

i

ipriceandquantityofthegood?

1

i

iPriceOuanlily

1

1(A)IncreaseIncrease

1(B)IndeterminateDecrease

1

1(C)IndeterminateIncrease

1

1(D)IncreaseIndeterminate

1

1(E)DecreaseIncrease

1

c

?

?

?QuantityQuantity

?

?DemandedSupplied

1

1Price(Bushels)(Bushels)

1

1$2.0010,00040,000

1

1$1.7515,00035,000

1

1$1.5020JXX)20JXX)

1

1$1.2525,00015,000

1

1$1.0030,00010,(XX)

1

1$0.7535,0005,000

Thetableaboveshowsthequantitydemandedand

quantitysuppliedforbushelsofwheatatvarious

prices.Whichofthefollowingcombinationsis

theequilibriumpriceandquantityforwheat?

PriceBushelsofWheat

(A)$2.0010,000

(B)$1.7515,000

(C)$1.5020,000

(D)SI.2530,00()

(E)$0.755,000

D

習(xí)題5

Thegraphaboveshowsthedemandforand

supplyofagood.IfthemarketpriceisPhthen

(A)thereisashortage,andthepricewillrise

(B)thereisashortage,andthepricewillfall

(C)thereisasurplus,andthepricewillrise

(D)thereisasurplus,andthepricewillfall

(E)demandwilldecreaseandsupplywill

increase

E

Inthecoffeemarket,whichofthefollowing

changeswillincreasethepriceanddecreasethe

quantityofcoffee?

SuDDlyDemand

(A)IncreaseIncrease

(B)IncreaseDecrease

(C)DecreaseIncrease

(D)NochangeIncrease

(E)DecreaseNochange

1.5Macroeconomicissues:business

cycle,unemployment,inflation,

growth

c

Whichofthefollowingdescribesatypical

businesscycleinthecorrectsequence?

(A)Peak,trough,recession,andexpansion

(B)Peak,trough,expansion,andrecession

(C)Peak,recession,trough,andexpansion

(D)Peak,recession,expansion,andtrough

(E)Peak,expansion,trough,andrecession

B

Whichofthefollowingnecessarilyoccursduring

aneconomicrecession?

(A)Cost-pushinflationdecreases.

(B)Realgrossdomesticproductdecreases.

(C)Cyclicalunemploymentdecreases.

(D)Demand-pullinflationincreases.

(E)Nominalwagesincrease.

Economicgrowthisbestmeasuredbyasustained

increaseinwhichofthefollowing?

(A)Percapitarealgrossdomesticproduct

(B)Governmentbudgetdeficits

(C)Unemploymentinunskilledlabormarkets

(D)Productionofpublicgoods

(E)Nominalgrossdomesticproduct

習(xí)題4B

Asanindicatorofanimpendingrecession,

inventorieswillmostlikely

(A)decreaseasaresultofadecreasein

consumption

(B)increaseasaresultofadecreasein

consumption

(C)increaseasaresultofadecreaseinaggregate

supply

(D)decreaseasaresultofanincreasein

aggregatesupply

(E)remainconstantasaresultofeconomic

uncertainty

2.Measurementofeconomic

performance

2.1Nationalincomeaccounts

B

Anincreaseinwhichofthefollowingwouldmost

likelycausethegrossdomesticproductofa

countrytodecreaseintheshortrun?

(A)Governmentspending

(B)Imports

(C)Moneysupply

(D)Consumptionspendingbyhouseholds

(E)Investmentspendingbydomesticfirms

c

Thevalueofwhichofthefollowingwouldbe

includedintheUnitedStatesgrossdomestic

product?

(A)Timespentvolunteeringatalocalhospital

(B)AUnitedStatessavingsbondreceivedasa

birthdaygift

(C)Amovieticketpurchasedatalocaltheater

(D)AnewhandbagmadeinItalybya

UnitedStatesfirm

(E)Ausedcarsoldatthesamepricepaidforit

習(xí)題3D

RealGrossNominalGross

PeriodDomesticProductDomesticProduct

Year1$100billion$70billion

Year2$120billion$120billion

Year3$130billion$150billion

Whichofthefollowingcanbeconcludedfromthe

dataabove?

(A)Thebaseyearforthepriceindexwasyear1.

(B)Thebaseyearforthepriceindexwasyear3.

(C)Theeconomywasproducinghigher-quality

goodsandservicesinyears2and3thanin

year1.

(D)Theeconomywasexperiencinginflation

duringyears2and3.

(E)Theeconomywasexperiencingdeflation

duringyears1,2,and3.

習(xí)題4

Whichofthefollowingrepresentsaleakagefrom

thecircularflowinaneconomy?

(A)Consumptionspending

(B)Governmentspending

(C)Investmentspending

(D)Unemploymentbenefits

(E)Imports

習(xí)題5c

Inthecircularflowdiagramofamarketeconomy,

whichofthefollowingsuppliesthefactors

ofproduction?

(A)Thebusinesssector

(B)Thegovernment

(C)Thehouseholdsector

(D)Financialsector

(E)Theforeignsector

習(xí)題6kD

Increasesintherealpercapitaincomeof

acountryaremostcloselyassociatedwith

increasesinwhichofthefollowing?

(A)Thelaborforce

(B)Thepricelevel

(C)Themoneysupply

(D)Productivity

(E)Taxrates

E

?

?

Acountry'srealgrossdomesticproductisthe

annualvalueofallfinalgoodsandservices

thatare

(A)purchasedinthatcountry,adjustedfor

changesinthepricelevel

(B)producedinthatcountry,expressed

incurrentprices

(C)producedinthatcountry,lessexports

(D)producedinthatcountry,lessdepreciation

(E)producedinthatcountry,adjustedfor

changesinthepricelevel

Ashort-runincreaseinnationalincomecouldbe

causedbyadecreaseinwhichofthefollowing?

i

(A)Consumption

(B)Investment

(C)Imports

(D)Governmentspending

(E)Exports

Supposethatinaparticularcountry,nominal

grossdomesticproduct(GDP)grewby8percent,

andtheGDPdeflatorincreasedby10percent.

Thecountry'sgrowthrateofrealGDPwouldbe

approximatelyequalto

(A)-2%

(B)-0.8%

(C)0.8%

(D)2%

(E)18%

習(xí)題B

Thecircular-flowmodelindicatesthatfinalgoods

areproducedby

(A)firmsandsoldinthefactormarkets

(B)firmsandsoldintheproductmarkets

(C)firmsandsoldintheresourcemarkets

(D)householdsandsoldinthefactormarkets

(E)householdsandsoldintheproductmarkets

Thetablebelowshowsacountry's

macroeconomicdatain2013.

Consumptionspending$175billion

Individualincometaxes$32billion

Privateinvestment$30billion

spending

Corporatetaxes$25billion

Exports$75billion

Governmentpurchases$40billion

Imports$100billion

Thecountry'sgrossdomesticproductis

(A)$220billion

(B)S282billion

(C)$304billion

(D)$309billion

(E)$347billion

習(xí)題12

Grossprivatedomesticinvestmentincludeswhich

ofthefollowing?

(A)Changesinbusinessinventories

(B)Nationaldefensespending

(C)Newdurablegoodspurchasedbyhouseholds

(D)Transferpayments

(E)Depreciationofgovernmentgoods

A

Grossprivatedomesticinvestmentincludeswhich

ofthefollowing?

(A)Changesinbusinessinventories

(B)Nationaldefensespending

(C)Newdurablegoodspurchasedbyhouseholds

(D)Transferpayments

(E)Depreciationofgovernmentgocxis

習(xí)題14D

In2007,thenominalgrossdomesticproduct

(GDP)was$50billionandtheGDPdeflator

was200.ThusrealGDPwas

(A)$150billion

(B)$100billion

(C)$50billion

(D)$25billion

(E)$4billion

D

YearNominalGDPGDPDeflator

1980$14.00070

1990$18,00010()

2000$22,000220

2010$50,000200

2015$60,0(X)300

Accordingtothedataabove,inwhichyearwas

realgrossdomesticproduct(GDP)thelargest?

(A)1980

(B)1990

(C)2000

(D)2010

(E)2015

習(xí)題16

Anincreaseininventorieswillincreasewhich

componentofgrossdomesticproduct?

(A)Personalconsumptionexpenditures

(B)Investmentexpenditures

(C)Governmentpurchases

(D)Exports

(E)Imports

E

Allofthefollowingmayresultinincreasesinreal

grossdomesticproductinthelongrunEXCEPT

(A)technicalprogress

(B)investmentinhumancapital

(C)discoveryofnewnaturalresources

(D)decreaseincorporatetaxes

(E)decreaseinfactorproductivity

c

Assumethatanation'srealgrossdomestic

product(GDP)growsatahigherratethanits

populationoveragivenperiodoftime.Itcan

beconcludedthat

(A)thepopulationwillgrowatafasterrateinthe

future

(B)thepricelevelhasdecreased

(C)realGDPpercapitahasincreased

(D)realGDPwillriseataslowerrateinthe

future

(E)realGDPwillriseatafasterrateinthefuture

習(xí)題19

Adecreaseintaxeswillnecessarilyresultinan

increaseinwhichofthefollowing?

(A)Nominalgrossdomesticproduct

(B)Unemployment

(C)Exports

(D)Marginalpropensitytosave

(E)Moneysupply

2.2Inflationmeasurementand

adjustment

I

I

Theconsumerpriceindex(CPI)measuresthe

(A)valueofcurrentgrossdomesticproductin

base-yeardollars

(B)pricesofallconsumergoodsandservices

producedintheeconomy

(C)pricesofselectedrawmaterialspurchased

byfirms

(D)pricesofaspecificgroupofgoodsand

servicespurchasedbyconsumers

(E)pricesofimports,butnotexports

B

?

Lastyearbothaborrowerandalenderexpected

aninflationrateof3percentwhentheysigneda

long-termloanagreementwithfixednominal

interestratesof5percent.Iftheactualinflation

ratewerelowerthanexpected,thenwhichofthe

followingwouldbetrue?

i

(A)Theborrowerwouldbenefit.

(B)Thelenderwouldbenefit.

(C)Therealinterestratewouldbelower

thanexpected.

(D)Thenominalinterestratewouldbe

higherthanexpected.

(E)Thenominalinterestratewouldincrease.

i

i

i

Whichofthefollowingisacauseof

hyperinflation?

i

(A)Rapidgrowthofrealgrossdomesticproduct

(B)Rapidgrowthofthemoneysupply

(C)Unanticipateddecreaseinaggregatedemand

(D)Unanticipatedincreaseinaggregatesupply

(E)Unanticipatedriseinrealinterestrates

習(xí)題4B

Inflationoccurswhenthereisasustainedincrease

inwhichofthefollowing?

(A)Realgrossdomesticproduct

(B)Theaveragepricelevel

(C)Thepriceofanycommodity

(D)Laborproductivity

(E)Theunemploymentrate

Tlicconsumerpriceindex(CPI)iscriticizedfor

(A)overstatingthetrueburdenofinflation

becauseitdoesnotrecognizeconsumers?

abilitytosubstitutegoodsandservicesas

priceschange

(B)overstatingthetrueburdenofinflation

becauseitrecognizesconsumers*abilityto

substitutegoodsandservicesasprices

change

(C)understatingthetrueburdenofinflation

becauseitdoesnotrecognizeconsumers*

abilitytosubstitutegoodsandservicesas

priceschange

(D)understatingthetrueburdenofinflation

becauseitrecognizesconsumers'abilityto

substitutegoodsandservicesasprices

change

(E)overstatingthetrueburdenofintlation

becauseitreflectsthepricesofboth

intermediategoodsandfinalgoods

Publicpolicythatgeneratesanunexpectedincrease

inconsumerpriceswillinflictshort-runcostson

allofthefollowingEXCEPT

(A)borrowers

(B)workerswithfixedincomes

(C)saversholdingnon-interest-bearingmoney

(D)taxpayersshiftedintohighertaxbrackets

(E)peoplewhoseincomesarenotadjustedfor

inflation

習(xí)題7

ANNUALCONSUMERPRICEINDEX(CPI)

YearCPI

192920

1984100

1995120

Thetableaboveshowstheconsumerprice

indexforselectedyears.Onthebasisofthese

data,howmuchdiditcostin1995tobuythe

samegoodsandservicesthatcostS50in1929?

zA

(

\B$25

$100

zc\

f

\7S125

/D\

t

v7$250

/E

<

\S300

習(xí)題8D

Therealinterestrateearnedisthe

(A)sameasthenominalinterestratewhen

inflationismoderate

(B)costofborrowingincurrentconsumerprices

(C)costofborrowingincurrentprcxlucerprices

(D)costofborrowingadjustedfortherateof

changeinthepricelevel

(E)nominalinterestrateadjustedforthegrowth

rateoftheeconomy

習(xí)題9

Whenpurchasingherhouse,Ms.Jonestook

outa15-yearmortgageloanfromalocalbank

atafixedinterestrateof7percent.Therateof

expectedinflationatthetimewas3percent.Ifthe

actualrateofinflationwas4.5percent,whichof

thefollowingistrue?

(A)Thebankgainedbecausetherealrateof

interestincreasedby1.5%.

(B)Thebankgainedbecausetherealrateof

interestbecame3.5%.

(C)Thebanklostbecausetherealrateofinterest

decreasedby1.5%.

(D)Ms.Jonesgainedbecausethenominalrateof

interestincreasedby1.5%.

(E)Ms.Joneslostbecauseth