Question 1

If there is public dissaving,investment spending in the economy will decline,holding everything else constant.

Accepted Answer

A) True 
 B)False

Question 2

Use the equations for public and private saving to demonstrate how total saving in the economy equals investment.

Accepted Answer

Private saving is equal to Y + TR - C -

Question 3

Since 1900,real GDP in the United States has grown

Accepted Answer

A) more rapidly than the population. 
B) more slowly than the population. 
C) as rapidly as the population. 
D) in a random unpredictable manner relative to the population. 
A) more rapidly than the population. 
B) more slowly than the population. 
C) as rapidly as the population. 
D) in a random unpredictable manner relative to the population.

Question 4

Give three reasons why the U.S.economy is more stable since 1950.

Accepted Answer

Any two of the following three reasons a

Question 5

If real GDP per capita measured in 2009 dollars was $6,000 in 1950 and $48,000 in 2013,we would say that in the year 2013,the average American could buy ________ times as many goods and services as the average American in 1950.

Accepted Answer

A) 1/8 
B) 4 
C) 8 
D) 12 
A) 1/8 
B) 4 
C) 8 
D) 12

Question 6

As the economy nears the end of a recession,which of the following do we typically see?

Accepted Answer

A) further decreases in consumer spending 
B) increased spending on capital goods by firms 
C) increasing interest rates 
D) all of the above 
A) further decreases in consumer spending 
B) increased spending on capital goods by firms 
C) increasing interest rates 
D) all of the above

Question 7

At the end of World War II in 1945,many economists and business managers expected that the U.S.economy would enter a severe recession.At that time,Sears and Montgomery Ward were the two largest department store chains in the country.Sears CEO Robert Wood expected continuing prosperity and opened new stores.Montgomery Ward CEO Sewell Avery expected falling incomes and rising unemployment and closed a number of existing stores.The results of their actions were seen during the late 1940s,when

Accepted Answer

A) Sears declared bankruptcy and was purchased by Montgomery Ward. 
B) Montgomery Ward weathered the economic downturn in better financial shape than Sears. 
C) Sears rapidly gained market share at Montgomery Ward's expense. 
D) Sears had to close many of the new stores it had opened following the end of the war. 
A) Sears declared bankruptcy and was purchased by Montgomery Ward. 
B) Montgomery Ward weathered the economic downturn in better financial shape than Sears. 
C) Sears rapidly gained market share at Montgomery Ward's expense. 
D) Sears had to close many of the new stores it had opened following the end of the war.

Question 8

Under which of the following circumstances would private saving be positive in a closed economy?

Accepted Answer

A) Y = $10 trillion C = $5 trillion
TR = $2 trillion
G = $2 trillion
Public saving = $1 trillion 
B) Y = $9 trillion C = $5 trillion
TR = $1 trillion
G = $1 trillion
Public saving = $3 trillion 
C) Y = $8 trillion C = $2 trillion
TR = $4 trillion
G = $2 trillion
Public saving = $4 trillion 
D) Y = $6 trillion C = $2 trillion
TR = $8 trillion
G = $3 trillion
Public saving = $1 trillion 
A) Y = $10 trillion C = $5 trillion
TR = $2 trillion
G = $2 trillion
Public saving = $1 trillion 
B) Y = $9 trillion C = $5 trillion
TR = $1 trillion
G = $1 trillion
Public saving = $3 trillion 
C) Y = $8 trillion C = $2 trillion
TR = $4 trillion
G = $2 trillion
Public saving = $4 trillion 
D) Y = $6 trillion C = $2 trillion
TR = $8 trillion
G = $3 trillion
Public saving = $1 trillion

Question 9

In a closed economy,private saving is equal to which of the following? (Y = GDP,C = Consumption,G = Government purchases,T = Taxes,and TR = Transfers)

Accepted Answer

A) Y - C - T 
B) Y - G - T 
C) Y - G - T + TR 
D) Y + TR - C - T 
A) Y - C - T 
B) Y - G - T 
C) Y - G - T + TR 
D) Y + TR - C - T

Question 10

Which of the following will increase investment spending in the economy,holding everything else constant?

Accepted Answer

A) an increase in the federal government surplus 
B) an increase in the budget deficit 
C) an increase in consumer dissavings 
D) an increase in transfer payments 
A) an increase in the federal government surplus 
B) an increase in the budget deficit 
C) an increase in consumer dissavings 
D) an increase in transfer payments

Question 11

The growth rate of real GDP in the United States rises from 4.2% to 4.4%.Explain and calculate how this increase in the growth rate of real GDP affects the number of years it will take for real GDP to double.

Accepted Answer

The "Rule of 70" states that the number

Question 12

Since 1900,real GDP per capita has ________ and this measure ________ the actual growth in standards of living in the United States over this time.

Accepted Answer

A) increased; understates 
B) increased; overstates 
C) decreased; understates 
D) decreased; overstates 
A) increased; understates 
B) increased; overstates 
C) decreased; understates 
D) decreased; overstates

Question 13

Under which of the following circumstances would the government be running a deficit?

Accepted Answer

A) G = $5 trillion T = $5 trillion
TR = $1 trillion 
B) G = $5 trillion T = $7 trillion
TR = $1 trillion 
C) G = $7 trillion T = $7 trillion
TR = $0 
D) G = $7 trillion T = $10 trillion
TR = $3 trillion 
A) G = $5 trillion T = $5 trillion
TR = $1 trillion 
B) G = $5 trillion T = $7 trillion
TR = $1 trillion 
C) G = $7 trillion T = $7 trillion
TR = $0 
D) G = $7 trillion T = $10 trillion
TR = $3 trillion

Question 14

Most economists believe that the return of ________ during the 2007-2009 recession is a key reason why the recession was so severe.

Accepted Answer

A) high tariffs 
B) financial instability 
C) rapid inflation 
D) high interest rates 
A) high tariffs 
B) financial instability 
C) rapid inflation 
D) high interest rates

Question 15

Since 1950,recessions in the United States

Accepted Answer

A) have not occurred. 
B) have become more severe than before 1950. 
C) have become less severe than before 1950. 
D) are about as severe as they were before 1950. 
A) have not occurred. 
B) have become more severe than before 1950. 
C) have become less severe than before 1950. 
D) are about as severe as they were before 1950.

Question 16

Technological advances generally result in

Accepted Answer

A) decreased incomes. 
B) increased life expectancy. 
C) increased infant mortality rates. 
D) increased average number of hours worked per day. 
A) decreased incomes. 
B) increased life expectancy. 
C) increased infant mortality rates. 
D) increased average number of hours worked per day.

Question 17

Which of the following is most liquid?

Accepted Answer

A) a mutual fund share 
B) a government bond 
C) a corporate bond 
D) a dollar bill 
A) a mutual fund share 
B) a government bond 
C) a corporate bond 
D) a dollar bill

Question 18

If labor productivity growth slows down in a country,this means that the growth rate in ________ has declined.

Accepted Answer

A) labor force participation 
B) the quantity of goods or services that can be produced by one hour of work 
C) the working-age population 
D) nominal GDP 
A) labor force participation 
B) the quantity of goods or services that can be produced by one hour of work 
C) the working-age population 
D) nominal GDP

Question 19

Human capital refers to which of the following?

Accepted Answer

A) the quantity of goods and services that can be produced by one worker or by one hour of work 
B) the accumulated knowledge and skills workers acquire from education and training or from their life experiences 
C) manufactured goods that are used to produce other goods and services 
D) physical equipment that is made by human laborers, not machines 
A) the quantity of goods and services that can be produced by one worker or by one hour of work 
B) the accumulated knowledge and skills workers acquire from education and training or from their life experiences 
C) manufactured goods that are used to produce other goods and services 
D) physical equipment that is made by human laborers, not machines

Question 20

How would the equilibrium interest rate respond to a change from an income tax to a consumption tax?

Accepted Answer

A) The equilibrium interest rate would rise. 
B) The equilibrium interest rate would fall. 
C) The equilibrium interest rate would be unaffected. 
D) The equilibrium interest rate may rise or fall based on whether the demand or supply of loanable funds changes. 
A) The equilibrium interest rate would rise. 
B) The equilibrium interest rate would fall. 
C) The equilibrium interest rate would be unaffected. 
D) The equilibrium interest rate may rise or fall based on whether the demand or supply of loanable funds changes.

If there is public dissaving,investment spending in the economy will decline,holding everything else constant.

Use the equations for public and private saving to demonstrate how total saving in the economy equals investment.

Since 1900,real GDP in the United States has grown

Give three reasons why the U.S.economy is more stable since 1950.

If real GDP per capita measured in 2009 dollars was $6,000 in 1950 and $48,000 in 2013,we would say that in the year 2013,the average American could buy ________ times as many goods and services as the average American in 1950.

As the economy nears the end of a recession,which of the following do we typically see?

Under which of the following circumstances would private saving be positive in a closed economy?

In a closed economy,private saving is equal to which of the following? (Y = GDP,C = Consumption,G = Government purchases,T = Taxes,and TR = Transfers)

Which of the following will increase investment spending in the economy,holding everything else constant?

The growth rate of real GDP in the United States rises from 4.2% to 4.4%.Explain and calculate how this increase in the growth rate of real GDP affects the number of years it will take for real GDP to double.

Since 1900,real GDP per capita has and this measure the actual growth in standards of living in the United States over this time.

Under which of the following circumstances would the government be running a deficit?

Most economists believe that the return of ________ during the 2007-2009 recession is a key reason why the recession was so severe.

Since 1950,recessions in the United States

Technological advances generally result in

Which of the following is most liquid?

If labor productivity growth slows down in a country,this means that the growth rate in ________ has declined.

Human capital refers to which of the following?

How would the equilibrium interest rate respond to a change from an income tax to a consumption tax?

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

If there is public dissaving,investment spending in the economy will decline,holding everything else constant.

Use the equations for public and private saving to demonstrate how total saving in the economy equals investment.

Since 1900,real GDP in the United States has grown

Give three reasons why the U.S.economy is more stable since 1950.

If real GDP per capita measured in 2009 dollars was $6,000 in 1950 and $48,000 in 2013,we would say that in the year 2013,the average American could buy ________ times as many goods and services as the average American in 1950.

As the economy nears the end of a recession,which of the following do we typically see?

Under which of the following circumstances would private saving be positive in a closed economy?

In a closed economy,private saving is equal to which of the following? (Y = GDP,C = Consumption,G = Government purchases,T = Taxes,and TR = Transfers)

Which of the following will increase investment spending in the economy,holding everything else constant?

The growth rate of real GDP in the United States rises from 4.2% to 4.4%.Explain and calculate how this increase in the growth rate of real GDP affects the number of years it will take for real GDP to double.

Since 1900,real GDP per capita has ________ and this measure ________ the actual growth in standards of living in the United States over this time.

Under which of the following circumstances would the government be running a deficit?

Most economists believe that the return of ________ during the 2007-2009 recession is a key reason why the recession was so severe.

Since 1950,recessions in the United States

Technological advances generally result in

Which of the following is most liquid?

If labor productivity growth slows down in a country,this means that the growth rate in ________ has declined.

Human capital refers to which of the following?

How would the equilibrium interest rate respond to a change from an income tax to a consumption tax?

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

Since 1900,real GDP per capita has and this measure the actual growth in standards of living in the United States over this time.