Question 1

A firm can fund an expansion of its operations by

Accepted Answer

A) issuing bonds. 
B) buying stock. 
C) paying dividends. 
D) loaning money. 
A) issuing bonds. 
B) buying stock. 
C) paying dividends. 
D) loaning money.

Question 2

What two factors are the keys to determining labor productivity?

Accepted Answer

A) the business cycle and the growth rate of real GDP 
B) the growth rate of real GDP and the interest rate 
C) technology and the quantity of capital per hour worked 
D) the average level of education of the workforce and the price level 
A) the business cycle and the growth rate of real GDP 
B) the growth rate of real GDP and the interest rate 
C) technology and the quantity of capital per hour worked 
D) the average level of education of the workforce and the price level

Question 3

Carefully define the two categories of saving in the economy.

Accepted Answer

There are two categories of saving in th

Question 4

The only way the standard of living of the average person in a country can increase is if ________ increases faster than ________.

Accepted Answer

A) production; population 
B) population; GDP per capita 
C) population; production 
D) population; income 
A) production; population 
B) population; GDP per capita 
C) population; production 
D) population; income

Question 5

Briefly explain how the miserliness of Ebenezer Scrooge might actually be beneficial for economic growth.

Accepted Answer

Ebenezer Scrooge is known for his unwill

Question 6

Which of the following is most likely to be able to sustain economic growth in an economy?

Accepted Answer

A) sustained increases in the labor force participation rate 
B) technological change 
C) increases in capital per hour worked 
D) accumulations of economic resources 
A) sustained increases in the labor force participation rate 
B) technological change 
C) increases in capital per hour worked 
D) accumulations of economic resources

Question 7

The response of investment spending to an increase in the government budget deficit is called

Accepted Answer

A) expansionary investment. 
B) private dissaving. 
C) crowding out. 
D) income minus net taxes. 
A) expansionary investment. 
B) private dissaving. 
C) crowding out. 
D) income minus net taxes.

Question 8

Retained earnings are sufficient to finance a firm's rapid expansion in a high-growth economy.

Accepted Answer

A) True 
 B)False

Question 9

There is a government budget surplus if

Accepted Answer

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

Question 10

Which of the following is a true statement about the length of recessions and expansions in the United States economy?

Accepted Answer

A) Prior to 1900, the length of expansions equaled the length of recessions. 
B) Prior to 1900, the length of expansions were much less than the length of recessions. 
C) Prior to 1900, the length of expansions were much longer than the length of recessions. 
D) Prior to 1900, the length of recessions were brief and almost nonexistent. 
A) Prior to 1900, the length of expansions equaled the length of recessions. 
B) Prior to 1900, the length of expansions were much less than the length of recessions. 
C) Prior to 1900, the length of expansions were much longer than the length of recessions. 
D) Prior to 1900, the length of recessions were brief and almost nonexistent.

Question 11

Which of the following is not a reason why the U.S.economy has been more stable since 1950?

Accepted Answer

A) Goods have become a larger fraction of GDP and services have become a smaller fraction of GDP. 
B) The government has actively pursued policy to combat recessions and prolong expansions. 
C) Unemployment insurance and other government programs curtail the decline in spending that occurs during a recession. 
D) Services have become a larger fraction of GDP and goods have become a smaller fraction of GDP. 
A) Goods have become a larger fraction of GDP and services have become a smaller fraction of GDP. 
B) The government has actively pursued policy to combat recessions and prolong expansions. 
C) Unemployment insurance and other government programs curtail the decline in spending that occurs during a recession. 
D) Services have become a larger fraction of GDP and goods have become a smaller fraction of GDP.

Question 12

One difference between stocks and bonds is that

Accepted Answer

A) stocks are financial securities, while bonds are labor market securities. 
B) stocks are usually issued in electronic form, while bonds are usually issued in paper form. 
C) stocks represent ownership in companies, while bonds represent ownership in banks. 
D) stocks do not involve a promise to repay a purchaser of the stock, while bonds represent a promise to repay the purchase price of the bond. 
A) stocks are financial securities, while bonds are labor market securities. 
B) stocks are usually issued in electronic form, while bonds are usually issued in paper form. 
C) stocks represent ownership in companies, while bonds represent ownership in banks. 
D) stocks do not involve a promise to repay a purchaser of the stock, while bonds represent a promise to repay the purchase price of the bond.

Question 13

The period between a business cycle peak and a business cycle trough is called

Accepted Answer

A) expansion. 
B) recession. 
C) diffusion. 
D) recalculation. 
A) expansion. 
B) recession. 
C) diffusion. 
D) recalculation.

Question 14

Consider the following data for a closed economy:
a.Y = $12 trillion
b.C = $8 trillion
c.I= $3 trillion
d.TR = $2 trillion
e.T = $3 trillion
Use the data provided to calculate the level of private saving and the level of public saving and demonstrate their relationship to investment.

Accepted Answer

Private saving is equal to Y + TR - C -

Question 15

Market economies tend to grow more quickly than centrally-planned economies.

Accepted Answer

A) True 
 B)False

Question 16

Labor productivity will increase if the ________ increases and ________.

Accepted Answer

A) quantity of capital per hour worked; technology improves 
B) quantity of labor per unit of capital; technology improves 
C) quantity of capital per hour worked; immigration increases while capital is fixed 
D) quantity of labor per unit of capital; immigration increases while capital is fixed 
A) quantity of capital per hour worked; technology improves 
B) quantity of labor per unit of capital; technology improves 
C) quantity of capital per hour worked; immigration increases while capital is fixed 
D) quantity of labor per unit of capital; immigration increases while capital is fixed

Question 17

According to the "Rule of 70," it will take 4 years for real GDP per capita to double when the growth rate of real GDP per capita is

Accepted Answer

A) 4 percent. 
B) 12.25 percent. 
C) 17.5 percent. 
D) 28 percent. 
A) 4 percent. 
B) 12.25 percent. 
C) 17.5 percent. 
D) 28 percent.

Question 18

Since 1950

Accepted Answer

A) economic expansions in the United States have been so short that expansions barely exist. 
B) the average length of expansions in the United States have become shorter as compared to before 1950. 
C) the average length of expansions in the United States have become longer as compared to before 1950. 
D) the average length of expansions in the United States are about the same length as compared to before 1950. 
A) economic expansions in the United States have been so short that expansions barely exist. 
B) the average length of expansions in the United States have become shorter as compared to before 1950. 
C) the average length of expansions in the United States have become longer as compared to before 1950. 
D) the average length of expansions in the United States are about the same length as compared to before 1950.

Question 19

Borrowers are ________ of loanable funds,and lenders are ________ of loanable funds.

Accepted Answer

A) demanders; suppliers 
B) suppliers; demanders 
C) suppliers; suppliers 
D) demanders; demanders 
A) demanders; suppliers 
B) suppliers; demanders 
C) suppliers; suppliers 
D) demanders; demanders

Question 20

Which of the following will result in an increase in labor productivity?

Accepted Answer

A) a decrease in the number of people attending institutions of higher education 
B) a decline in the amount of human capital per worker 
C) an increase in technology 
D) a decline in the capital stock per hour worked 
A) a decrease in the number of people attending institutions of higher education 
B) a decline in the amount of human capital per worker 
C) an increase in technology 
D) a decline in the capital stock per hour worked

A firm can fund an expansion of its operations by

What two factors are the keys to determining labor productivity?

Carefully define the two categories of saving in the economy.

The only way the standard of living of the average person in a country can increase is if increases faster than .

Briefly explain how the miserliness of Ebenezer Scrooge might actually be beneficial for economic growth.

Which of the following is most likely to be able to sustain economic growth in an economy?

The response of investment spending to an increase in the government budget deficit is called

Retained earnings are sufficient to finance a firm's rapid expansion in a high-growth economy.

There is a government budget surplus if

Which of the following is a true statement about the length of recessions and expansions in the United States economy?

Which of the following is not a reason why the U.S.economy has been more stable since 1950?

One difference between stocks and bonds is that

The period between a business cycle peak and a business cycle trough is called

Consider the following data for a closed economy: a.Y = $12 trillion b.C = $8 trillion c.I= $3 trillion d.TR = $2 trillion e.T = $3 trillion Use the data provided to calculate the level of private saving and the level of public saving and demonstrate their relationship to investment.

Market economies tend to grow more quickly than centrally-planned economies.

Labor productivity will increase if the increases and .

According to the "Rule of 70," it will take 4 years for real GDP per capita to double when the growth rate of real GDP per capita is

Since 1950

Borrowers are of loanable funds,and lenders are of loanable funds.

Which of the following will result in an increase in labor productivity?

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

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

A firm can fund an expansion of its operations by

What two factors are the keys to determining labor productivity?

Carefully define the two categories of saving in the economy.

The only way the standard of living of the average person in a country can increase is if ________ increases faster than ________.

Briefly explain how the miserliness of Ebenezer Scrooge might actually be beneficial for economic growth.

Which of the following is most likely to be able to sustain economic growth in an economy?

The response of investment spending to an increase in the government budget deficit is called

Retained earnings are sufficient to finance a firm's rapid expansion in a high-growth economy.

There is a government budget surplus if

Which of the following is a true statement about the length of recessions and expansions in the United States economy?

Which of the following is not a reason why the U.S.economy has been more stable since 1950?

One difference between stocks and bonds is that

The period between a business cycle peak and a business cycle trough is called

Consider the following data for a closed economy: a.Y = $12 trillion b.C = $8 trillion c.I= $3 trillion d.TR = $2 trillion e.T = $3 trillion Use the data provided to calculate the level of private saving and the level of public saving and demonstrate their relationship to investment.

Market economies tend to grow more quickly than centrally-planned economies.

Labor productivity will increase if the ________ increases and ________.

According to the "Rule of 70," it will take 4 years for real GDP per capita to double when the growth rate of real GDP per capita is

Since 1950

Borrowers are ________ of loanable funds,and lenders are ________ of loanable funds.

Which of the following will result in an increase in labor productivity?

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

The only way the standard of living of the average person in a country can increase is if increases faster than .

Labor productivity will increase if the increases and .

Borrowers are of loanable funds,and lenders are of loanable funds.