1. T / F When the economy is booming the inflation rate tends to rise.

2. T / F Both final and intermediate goods are counted when measuring GDP.

3. T / F Exchange rates are always set by central banks

4. T / F Investments are determined by consumers.

5. T / F Improvements in technology can shift the entire supply curve to the right.

6. T / F The Consumer Price Index is used to adjust Social Security payments.

7. T / F Government fiscal policies focus on changes in the money supply.

8. T / F A yield curve is a graph that shows the relationship of interest rates to maturities of a financial asset, such as a U.S. Treasury bond..

9. T / F The most important function of money is as a medium of exchange.

10. T / F ATM fees are an example that Americans will pay for convenience.

11. T / F Larry Aircraft, an aerospace engineer in Long Beach, lost his job because of defense cutbacks. Therefore, he is frictionally unemployed.

12. T / F Mary Martin is a Detroit auto worker was laid off because of the sharp decline in GDP, that caused a severe decrease in auto sales. This is a case of cyclical unemployment.

13. T / F When Magic Johnson, a skilled basketball player, in unable to locate work after completing his basketball career and re-entering the job market this is called frictional unemployment.

14. T / F Cyclical unemployment is when Oil Can Boyd, from Texas, finds he can no longer get work in the oil fields because of automated drilling techniques.

15. T / F The revenue from Heidi Fleiss's call-girl operations was included in official GDP.

16. T / F The four factors of production are land, labor, capital and entrepreneurial ability.

17. T / F The total market value of all final goods and services produced in an economy during a one year period is Net National product.

18. T / F Discouraged workers are officially classified as unemployed.

19. T / F Supervising member banks is the most important function of the Fed.

20. T / F The opportunity cost of holding money is lost interest income.

21. T / F Monetary policy is bases on control of the money supply

22. T / F An example of substitutes is ‘butter and margarine’.

23. T / F Consumer tastes cannot shift the demand curve for a good/service.

24. T / F Housing Permits is an example of a leading economic indicator.

25. T / F Cigarette demand is generally considered to be inelastic

We don't do tests for you here. We'll be glad to critique your thoughts on individual questions. You should be able to get 15 of those 26 by using common sense, without cracking a book.

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