Question 1. The total amount of income earned by U.S. resource suppliers in a year, plus taxes on production and imports, is measured by:
gross domestic product.
national income.
personal income.
disposable income.
Question 2. The foreign purchases effect:
shifts the aggregate demand curve rightward.
shifts the aggregate demand curve leftward.
shifts the aggregate supply curve rightward.
moves the economy along a fixed aggregate demand curve.
Question 3. Final goods and services refer to:
goods and services that are unsold and therefore added to inventories.
goods and services whose value has been adjusted for changes in the price level.
goods and services purchased by ultimate users, rather than for resale or further processing.
the excess of U.S. exports over U.S. imports.
Question 4. Other things being equal, if a once-competitive firm attains a high degree of monopoly power, its resource demand curve will:
become perfectly inelastic.
remain perfectly elastic.
become more elastic.
become more inelastic.
Question 5. The demand for a resource will increase if the:
price of the resource increases.
quantity of the resource decreases.
price of the product the firm is producing increases.
price of the product the firm is producing decreases.
Question 6. The aggregate supply curve (short-run):
graphs as a horizontal line.
is steeper above the full-employment output than below it.
slopes downward and to the right.
presumes that changes in wages and other resource prices match changes in the price level.
Question 7. Derived demand is the demand:
That arises because of monopoly control of resources in a market
For a product based on the tastes and preferences of consumers
Derived from consumer satisfaction with a product
For a resource to produce a product
Question 8. The phase of the business cycle in which real GDP declines is called:
the peak.
an expansion.
a recession.
the trough.
Question 9. The GDP is the:
monetary value of all final goods and services produced within a nation in a particular year.
national income minus all nonincome charges against output.
monetary value of all economic resources used in producing a year's output.
monetary value of all goods and services, final and intermediate, produced in a specific year.
Question 10. The smallest component of aggregate spending in the United States is:
net exports.
government purchases.
investment.
consumption.