Question 1

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 2

Countries without well-developed financial systems are able to sustain high levels of economic growth.

Accepted Answer

A) True 
 B)False

Question 3

Liquidity refers to

Accepted Answer

A)  the ease with a stock can be traded for a bond. 
B)  the ease with which a financial security can be traded for cash. 
C)  the number of times a dollar changes hands in the creation of GDP in an economy. 
D)  the number of shares of stock a corporation issues. 
A)  the ease with a stock can be traded for a bond. 
B)  the ease with which a financial security can be traded for cash. 
C)  the number of times a dollar changes hands in the creation of GDP in an economy. 
D)  the number of shares of stock a corporation issues.

Question 4

Botswana's rapid growth can be explained by

Accepted Answer

A)  protection of private property and avoiding political instability. 
B)  investment in human capital from 1960 through 2009. 
C)  the movement of workers from the agricultural sector to the manufacturing sector. 
D)  an increase in labor force participation. 
A)  protection of private property and avoiding political instability. 
B)  investment in human capital from 1960 through 2009. 
C)  the movement of workers from the agricultural sector to the manufacturing sector. 
D)  an increase in labor force participation.

Question 5

Explain and show graphically how government deficits can "crowd out" private investment.

Accepted Answer

When the government runs a deficit publi

Question 6

Typically,as an economy begins to emerge from a recessionary phase of the business cycle,

Accepted Answer

A)  unemployment falls immediately. 
B)  unemployment continues to rise. 
C)  inflation begins to fall. 
D)  investment begins to fall. 
A)  unemployment falls immediately. 
B)  unemployment continues to rise. 
C)  inflation begins to fall. 
D)  investment begins to fall.

Question 7

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 8

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.

Question 9

Figure 21-5
  
-Refer to Figure 21-5."Crowding out" of firm investment as a result of a budget deficit is illustrated by the movement from ________ in the graph above.

Accepted Answer

A)  A to B 
B)  B to A 
C)  B to C 
D)  C to A 
A)  A to B 
B)  B to A 
C)  B to C 
D)  C to A

Question 10

According to the National Bureau of Economic Research,the United States experienced ________ recessions since 1950.

Accepted Answer

A)  4 
B)  7 
C)  10 
D)  15 
A)  4 
B)  7 
C)  10 
D)  15

Question 11

Which of the following would contribute to a sustained high rate of economic growth in the long run in an economy?

Accepted Answer

A)  growth in capital per hour accompanied by technological change 
B)  increases in labor force participation rates as workers who are out of the labor force pursue rising wages 
C)  a shift of workers in the economy from the agricultural sector to the nonagricultural sector 
D)  an influx of immigrant labor into an economy without any accompanying technological change 
A)  growth in capital per hour accompanied by technological change 
B)  increases in labor force participation rates as workers who are out of the labor force pursue rising wages 
C)  a shift of workers in the economy from the agricultural sector to the nonagricultural sector 
D)  an influx of immigrant labor into an economy without any accompanying technological change

Question 12

Which of the following would you expect to increase the equilibrium interest rate?

Accepted Answer

A)  an increase in the percentage of income after net taxes that households save 
B)  an increase in the budget deficit 
C)  a decrease in the profitability of investment projects firms are considering 
D)  a change from an income tax to a consumption tax 
A)  an increase in the percentage of income after net taxes that households save 
B)  an increase in the budget deficit 
C)  a decrease in the profitability of investment projects firms are considering 
D)  a change from an income tax to a consumption tax

Question 13

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 14

Which of the following statements describes the experiences of the Boeing Corporation since it was established in 1916?

Accepted Answer

A)  strong uninterrupted growth in demand 
B)  strong growth interrupted by periods of business cycle recession 
C)  little or no growth in the long run, and unaffected by the business cycle 
D)  little or no growth in the long run, but very vulnerable to the business cycle 
A)  strong uninterrupted growth in demand 
B)  strong growth interrupted by periods of business cycle recession 
C)  little or no growth in the long run, and unaffected by the business cycle 
D)  little or no growth in the long run, but very vulnerable to the business cycle

Question 15

During the expansion phase of the business cycle,which of the following eventually increases?

Accepted Answer

A)  production 
B)  employment 
C)  income 
D)  all of the above 
A)  production 
B)  employment 
C)  income 
D)  all of the above

Question 16

If the growth rate of real GDP rises from 3% to 4% per year,then the number of years required to double real GDP will decrease from

Accepted Answer

A)  23.3 years to 17.5 years. 
B)  28.0 years to 21.0 years. 
C)  11.2 years to 10.8 years. 
D)  23.3 years to 20.6 years. 
A)  23.3 years to 17.5 years. 
B)  28.0 years to 21.0 years. 
C)  11.2 years to 10.8 years. 
D)  23.3 years to 20.6 years.

Question 17

The quantity of goods and services that can be produced by one worker or by one hour of work is referred to as

Accepted Answer

A)  technology. 
B)  labor productivity. 
C)  real GDP. 
D)  human capital. 
A)  technology. 
B)  labor productivity. 
C)  real GDP. 
D)  human capital.

Question 18

Which of the following is a correct statement?

Accepted Answer

A)  Inflation is measured as the percent change in the CPI. 
B)  The CPI is a widely used measure of the inflation rate. 
C)  Real GDP is our best measure of economic growth. 
D)  The PPI measures inflation as experienced by producers. 
A)  Inflation is measured as the percent change in the CPI. 
B)  The CPI is a widely used measure of the inflation rate. 
C)  Real GDP is our best measure of economic growth. 
D)  The PPI measures inflation as experienced by producers.

Question 19

According to the National Bureau of Economic Research,the recession that began in December 2007

Accepted Answer

A)  lasted 12 months. 
B)  lasted 18 months. 
C)  lasted 27 months. 
D)  had not ended by December 2011. 
A)  lasted 12 months. 
B)  lasted 18 months. 
C)  lasted 27 months. 
D)  had not ended by December 2011.

Question 20

In an open economy,there is interaction with other economies in terms of both trading of goods and services and borrowing and lending.

Accepted Answer

A) True 
 B)False

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

Countries without well-developed financial systems are able to sustain high levels of economic growth.

Liquidity refers to

Botswana's rapid growth can be explained by

Explain and show graphically how government deficits can "crowd out" private investment.

Typically,as an economy begins to emerge from a recessionary phase of the business cycle,

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.

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

Figure 21-5 -Refer to Figure 21-5."Crowding out" of firm investment as a result of a budget deficit is illustrated by the movement from ________ in the graph above.

According to the National Bureau of Economic Research,the United States experienced ________ recessions since 1950.

Which of the following would contribute to a sustained high rate of economic growth in the long run in an economy?

Which of the following would you expect to increase the equilibrium interest rate?

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

Which of the following statements describes the experiences of the Boeing Corporation since it was established in 1916?

During the expansion phase of the business cycle,which of the following eventually increases?

If the growth rate of real GDP rises from 3% to 4% per year,then the number of years required to double real GDP will decrease from

The quantity of goods and services that can be produced by one worker or by one hour of work is referred to as

Which of the following is a correct statement?

According to the National Bureau of Economic Research,the recession that began in December 2007

In an open economy,there is interaction with other economies in terms of both trading of goods and services and borrowing and lending.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 10: Economic Growth, the Financial System, and Business Cycles

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

Countries without well-developed financial systems are able to sustain high levels of economic growth.

Liquidity refers to

Botswana's rapid growth can be explained by

Explain and show graphically how government deficits can "crowd out" private investment.

Typically,as an economy begins to emerge from a recessionary phase of the business cycle,

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.

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

Figure 21-5 -Refer to Figure 21-5."Crowding out" of firm investment as a result of a budget deficit is illustrated by the movement from ________ in the graph above.

According to the National Bureau of Economic Research,the United States experienced ________ recessions since 1950.

Which of the following would contribute to a sustained high rate of economic growth in the long run in an economy?

Which of the following would you expect to increase the equilibrium interest rate?

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

Which of the following statements describes the experiences of the Boeing Corporation since it was established in 1916?

During the expansion phase of the business cycle,which of the following eventually increases?

If the growth rate of real GDP rises from 3% to 4% per year,then the number of years required to double real GDP will decrease from

The quantity of goods and services that can be produced by one worker or by one hour of work is referred to as

Which of the following is a correct statement?

According to the National Bureau of Economic Research,the recession that began in December 2007

In an open economy,there is interaction with other economies in terms of both trading of goods and services and borrowing and lending.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters