200 ❯ Step 5. Build Your Test-Taking Confidence
- In the last 20 years, firms that produce cameras have
begun to produce very few 35-mm cameras and
more digital cameras. This trend is an example of
(A) how central planners dictate which cameras
are produced.
(B) the market system answering the question of
“how” cameras should be produced.
(C) the market system answering the question of
“what” cameras should be produced.
(D) the market system answering the question of
“who” should consume the cameras that are
produced.
(E) how firms fail to respond to improvements in
technology and changes in consumer tastes. - Which of the following transactions would be
included in the official computation of gross
domestic product?
(A) Josh buys a new pair of running shoes.
(B) Nancy offers to babysit her granddaughter.
(C) Max buys his dad’s used car.
(D) Eli cannot go to a concert, so he resells his
ticket to a friend.
(E) Melanie rakes the leaves in her own yard. - Theo loses his job at the public swimming pool
when the pool closes for the winter. This is an
example of
(A) cyclical unemployment.
(B) discouraged worker.
(C) seasonal unemployment.
(D) frictional unemployment.
(E) structural unemployment. - Which of the following is not a scarce economic
resource?
(A) Labor
(B) Capital
(C) Human wants
(D) Land
(E) Natural resources
10. How does an increasing national debt impact
the market for U.S. dollars and the value of the
dollar with respect to other currencies?
MARKET FOR THE VALUE OF THE
DOLLAR DOLLAR
(A) Increased demand Appreciating
(B) Increased supply Appreciating
(C) Decreased supply Depreciating
(D) Decreased demand Depreciating
(E) Increased demand Depreciating- Suppose the price level in the United States has
risen in the past year, but production of goods
and services has remained constant. Based on
this information, which of the following is true?
NOMINAL GDP REAL GDP
(A) Increased Increased
(B) No change Decreased
(C) Decreased Decreased
(D) Increased Decreased
(E) Decreased Increased- Which of the following is not an addition to
national income?
(A) Wages
(B) Salaries
(C) Interest
(D) Depreciation of physical capital
(E) Profits - Which choice produces a faster rate of long-
term economic growth for the United States?
(A) Institution of higher tariffs on imported
goods
(B) More investment in capital infrastructure
and less consumption of nondurable goods
and services
(C) Elimination of mandatory school attend-
ance laws
(D) Annual limits on the number of foreigners
immigrating into the United States
(E) More investment in the military and less
investment in higher education