For multiple choice, highlight the correct answer; for non-multiple choice write in your response.
1) Resources are all of the following EXCEPT 1) A) scarce and therefore require choices to be made.
B) limited in quantity and can be used in different ways. C) the things we use to produce goods and services.
D) unlimited and in abundance.
2) Who is associated with the following summary of the economic way of thinking: “The theory of economics does not furnish a body of settled conclusions immediately acceptable to policy. It is a method rather than a doctrine, an apparatus of the mind, a technique of thinking which helps its processer draw correct conclusions.” 2)
A) Alfred Marshall B) President Harry Truman
C) John Maynard Keynes D) Adam Smith
Recall the Application about the severity of the recession of 2007-2009 to answer the following question(s).
3) According to this Application, it appears that the severity of the recession of 2007-2009 will rival that of the recession of
3)
A) 1981-1982. B) 1990-1991. C) 1973-1975. D) 2001.
4) Social security payments are examples of 4) A) transfer payments. B) services.
C) nondurable goods. D) durable goods.
5) A trade surplus occurs when 5)
A) a country sells more abroad than it purchases from abroad.
B) foreign firms open more stores in a country than the country opens in foreign countries. C) a country’s firms open more stores abroad than foreign firms open in the country.
D) a country purchases more from abroad than other countries purchase from it.
6) If in the third quarter of 2010 total investment spending was $4,768 billion and depreciation was $3,292 billion, then net investment was equal to6)
A) $1,476 billion. B) $3,292 billion. C) $4,768 billion. D) $8,060 billion.
7) What are the two critical measures of a nation’s economic health? 7) A) production and income B) income and spending
C) wages and raises D) sales and taxes
8) Cost-of-living adjustments are 8) …