Question 1

Financial securities that represent promises to repay a fixed amount of funds are known as

Accepted Answer

A) bonds. 
B) stocks. 
C) pension funds. 
D) insurance premiums. 
A) bonds. 
B) stocks. 
C) pension funds. 
D) insurance premiums. A

Question 2

Since 1950,the average length of a recession in the United States has been

Accepted Answer

A) such that recessions barely exist. 
B) less than a year. 
C) between 1 and 2 years. 
D) greater than 2 years. 
A) such that recessions barely exist. 
B) less than a year. 
C) between 1 and 2 years. 
D) greater than 2 years. B

Question 3

Economic growth depends more on technological change than on increases on capital per hour worked.

Accepted Answer

A) True 
 B)False  True

Question 4

Public saving in the economy can be increased by

Accepted Answer

A) lowering taxes. 
B) raising government spending. 
C) raising taxes. 
D) raising transfer payments. 
A) lowering taxes. 
B) raising government spending. 
C) raising taxes. 
D) raising transfer payments.

Question 5

Which of the following will increase the real interest rate?

Accepted Answer

A) an increase in the supply of loanable funds 
B) an increase in household saving 
C) an increase in the demand for loanable funds 
D) an increase in the budget surplus 
A) an increase in the supply of loanable funds 
B) an increase in household saving 
C) an increase in the demand for loanable funds 
D) an increase in the budget surplus

Question 6

If real GDP in a closed economy is $40 billion,consumption is $20 billion,and government purchases are $10 billion,what is investment?

Accepted Answer

A) $10 billion 
B) $30 billion 
C) $40 billion 
D) $70 billion 
A) $10 billion 
B) $30 billion 
C) $40 billion 
D) $70 billion

Question 7

What is investment in a closed economy if you have the following economic data?
Y = $10 trillion
C = $5 trillion
TR = $2 trillion
G = $2 trillion

Accepted Answer

A) $2 trillion 
B) $3 trillion 
C) $5 trillion 
D) cannot be determined without information on taxes (T) 
A) $2 trillion 
B) $3 trillion 
C) $5 trillion 
D) cannot be determined without information on taxes (T)

Question 8

If government saving is negative,then

Accepted Answer

A) T > TR. B) G > T. C) T - TR < G. D) Y + TR < C - T. A) T > TR. B) G > T. C) T - TR < G. D) Y + TR < C - T.

Question 9

Which of the following describes the growth in real GDP per person in the United States from 1900 to the present?

Accepted Answer

A) It has decreased. 
B) It has increased by more than eight times. 
C) It has doubled. 
D) It has increased twenty times. 
A) It has decreased. 
B) It has increased by more than eight times. 
C) It has doubled. 
D) It has increased twenty times.

Question 10

What is one difference between stocks and bonds?

Accepted Answer

A) Bonds earn a higher rate of return than stocks. 
B) Stocks earn a higher rate of return than bonds. 
C) Bonds are purchased at a bank, while stocks are purchased through the federal government. 
D) Stocks represent partial ownership in a firm, while bonds do not. 
A) Bonds earn a higher rate of return than stocks. 
B) Stocks earn a higher rate of return than bonds. 
C) Bonds are purchased at a bank, while stocks are purchased through the federal government. 
D) Stocks represent partial ownership in a firm, while bonds do not.

Question 11

Table 14-1
 $$\begin{array} { | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Real GDP } \
\text { (billions of 2000 } \
\text { dollars) }
\end{array} \
\hline 2010 & \$ 8,700 \
\hline 2011 & 8,875 \
\hline 2012 & 9,000 \
\hline 2013 & 9,280 \
\hline
\end{array}$$
-Refer to Table 14-1.Using the table above,what is the approximate growth rate of real GDP from 2012 to 2013?

Accepted Answer

A) 1% 
B) 2% 
C) 3% 
D) 4% 
A) 1% 
B) 2% 
C) 3% 
D) 4%

Question 12

During an expansion,how do inflation and unemployment typically change?

Accepted Answer

A) Inflation and unemployment both rise. 
B) Inflation and unemployment both fall. 
C) Inflation falls and unemployment rises. 
D) Inflation rises and unemployment falls. 
A) Inflation and unemployment both rise. 
B) Inflation and unemployment both fall. 
C) Inflation falls and unemployment rises. 
D) Inflation rises and unemployment falls.

Question 13

The NBER's Business Cycle Dating Committee defines a recession as at least two consecutive quarters of falling real GDP.

Accepted Answer

A) True 
 B)False

Question 14

What type of consumer goods are most affected by the business cycle: durable goods or nondurable goods? Why?

Accepted Answer

Some workers lose income during a recess

Question 15

Which of the following is an example of human capital?

Accepted Answer

A) a computer 
B) a factory building 
C) a college education 
D) a software program 
A) a computer 
B) a factory building 
C) a college education 
D) a software program

Question 16

If the CPI is currently 202,what does this tell you about inflation between last year and this year?

Accepted Answer

A) There was deflation in the economy between this year and last year. 
B) Inflation in the economy between this year and last year was 2%. 
C) Inflation in the economy between this year and last year was 102%. 
D) The CPI measures only the level of prices in a given year, not the percentage change in prices from one year to the next. 
A) There was deflation in the economy between this year and last year. 
B) Inflation in the economy between this year and last year was 2%. 
C) Inflation in the economy between this year and last year was 102%. 
D) The CPI measures only the level of prices in a given year, not the percentage change in prices from one year to the next.

Question 17

Because Whirlpool produces durable goods,the demand for their goods

Accepted Answer

A) is likely to increase during recession. 
B) declines when incomes in the economy are rising. 
C) is consistently high, regardless of the state of the economy. 
D) tends to follow the business cycle. 
A) is likely to increase during recession. 
B) declines when incomes in the economy are rising. 
C) is consistently high, regardless of the state of the economy. 
D) tends to follow the business cycle.

Question 18

If taxes are less than transfers plus government spending,then

Accepted Answer

A) there is positive saving. 
B) there is a balanced budget. 
C) there is a budget surplus. 
D) there is public dissaving. 
A) there is positive saving. 
B) there is a balanced budget. 
C) there is a budget surplus. 
D) there is public dissaving.

Question 19

Increases in real GDP since 1900 can actually underestimate growth in the standard of living for Americans since 1900 because

Accepted Answer

A) the level of pollution in 1900 was much higher than it is today. 
B) the crime rate was higher in 1900 than it is today. 
C) goods and services are more expensive today as compared to 1900. 
D) the quality of health care that exists today was not available in 1900. 
A) the level of pollution in 1900 was much higher than it is today. 
B) the crime rate was higher in 1900 than it is today. 
C) goods and services are more expensive today as compared to 1900. 
D) the quality of health care that exists today was not available in 1900.

Question 20

In a closed economy public saving plus private saving is equal to

Accepted Answer

A) investment. 
B) taxes minus transfers. 
C) the budget surplus. 
D) the budget deficit. 
A) investment. 
B) taxes minus transfers. 
C) the budget surplus. 
D) the budget deficit.

Financial securities that represent promises to repay a fixed amount of funds are known as

Since 1950,the average length of a recession in the United States has been

Economic growth depends more on technological change than on increases on capital per hour worked.

Public saving in the economy can be increased by

Which of the following will increase the real interest rate?

If real GDP in a closed economy is $40 billion,consumption is $20 billion,and government purchases are $10 billion,what is investment?

What is investment in a closed economy if you have the following economic data? Y = $10 trillion C = $5 trillion TR = $2 trillion G = $2 trillion

If government saving is negative,then

Which of the following describes the growth in real GDP per person in the United States from 1900 to the present?

What is one difference between stocks and bonds?

Table 14-1 Year Real GDP (billions of 2000 dollars) 2010 \ 8,700 2011 8,875 2012 9,000 2013 9,280 -Refer to Table 14-1.Using the table above,what is the approximate growth rate of real GDP from 2012 to 2013?

During an expansion,how do inflation and unemployment typically change?

The NBER's Business Cycle Dating Committee defines a recession as at least two consecutive quarters of falling real GDP.

What type of consumer goods are most affected by the business cycle: durable goods or nondurable goods? Why?

Which of the following is an example of human capital?

If the CPI is currently 202,what does this tell you about inflation between last year and this year?

Because Whirlpool produces durable goods,the demand for their goods

If taxes are less than transfers plus government spending,then

Increases in real GDP since 1900 can actually underestimate growth in the standard of living for Americans since 1900 because

In a closed economy public saving plus private saving is equal to

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

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Exam 14: Economic Growth, the Financial System, and Business Cycles

Financial securities that represent promises to repay a fixed amount of funds are known as

Since 1950,the average length of a recession in the United States has been

Economic growth depends more on technological change than on increases on capital per hour worked.

Public saving in the economy can be increased by

Which of the following will increase the real interest rate?

If real GDP in a closed economy is $40 billion,consumption is $20 billion,and government purchases are $10 billion,what is investment?

What is investment in a closed economy if you have the following economic data? Y = $10 trillion C = $5 trillion TR = $2 trillion G = $2 trillion

If government saving is negative,then

Which of the following describes the growth in real GDP per person in the United States from 1900 to the present?

What is one difference between stocks and bonds?

Table 14-1 Year Real GDP (billions of 2000 dollars) 2010 \ 8,700 2011 8,875 2012 9,000 2013 9,280 -Refer to Table 14-1.Using the table above,what is the approximate growth rate of real GDP from 2012 to 2013?

During an expansion,how do inflation and unemployment typically change?

The NBER's Business Cycle Dating Committee defines a recession as at least two consecutive quarters of falling real GDP.

What type of consumer goods are most affected by the business cycle: durable goods or nondurable goods? Why?

Which of the following is an example of human capital?

If the CPI is currently 202,what does this tell you about inflation between last year and this year?

Because Whirlpool produces durable goods,the demand for their goods

If taxes are less than transfers plus government spending,then

Increases in real GDP since 1900 can actually underestimate growth in the standard of living for Americans since 1900 because

In a closed economy public saving plus private saving is equal to

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters