Question 1

What is "human capital," and how does human capital affect labor productivity and economic growth?

Accepted Answer

Human capital is the accumulated knowled

Question 2

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 3

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 4

If,in an economy experiencing inflation,the government decided to tax real interest income rather than nominal interest income,this change would cause the real interest rate to ________ and the equilibrium quantity of loanable funds to ________.

Accepted Answer

A)  fall; rise 
B)  fall; fall 
C)  rise; fall 
D)  rise; rise 
A)  fall; rise 
B)  fall; fall 
C)  rise; fall 
D)  rise; rise

Question 5

At the end of an expansion,wages of workers are usually rising faster than prices.

Accepted Answer

A) True 
 B)False

Question 6

The effect of a recession on a company like Boeing Aircraft is such that

Accepted Answer

A)  sales decline more sharply for Boeing as compared to firms that do not produce durable goods. 
B)  profits fall less sharply as compared to firms that do not produce durable goods. 
C)  the decline in sales is more short-lived as compared to firms that do not produce durable goods. 
D)  there is no difference in the impact of the recession on its profits as compared to firms that do not produce durable goods. 
A)  sales decline more sharply for Boeing as compared to firms that do not produce durable goods. 
B)  profits fall less sharply as compared to firms that do not produce durable goods. 
C)  the decline in sales is more short-lived as compared to firms that do not produce durable goods. 
D)  there is no difference in the impact of the recession on its profits as compared to firms that do not produce durable goods.

Question 7

If real GDP per capita measured in 2000 dollars was $6,000 in 1950 and $48,000 in 2010,we would say that in the year 2010,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 8

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 9

An increase in the demand for loanable funds will occur if there is

Accepted Answer

A)  an increase in the real interest rate. 
B)  a decrease in the real interest rate. 
C)  an increase in expected profits from firm investment projects. 
D)  an increase in the nominal interest rate accompanied by an equal increase in inflation. 
A)  an increase in the real interest rate. 
B)  a decrease in the real interest rate. 
C)  an increase in expected profits from firm investment projects. 
D)  an increase in the nominal interest rate accompanied by an equal increase in inflation.

Question 10

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.

Question 11

When potential GDP increases,is it necessarily the case that real GDP increases as well? Explain.

Accepted Answer

An increase in potential GDP is a result

Question 12

During the recession phase of the business cycle,

Accepted Answer

A)  production is usually rising. 
B)  interest rates are usually falling. 
C)  unemployment is usually falling. 
D)  income is usually rising. 
A)  production is usually rising. 
B)  interest rates are usually falling. 
C)  unemployment is usually falling. 
D)  income is usually rising.

Question 13

Purchases of which of the following goods would be dramatically reduced during a recession?

Accepted Answer

A)  tomatoes 
B)  ink pens 
C)  gasoline 
D)  refrigerators 
A)  tomatoes 
B)  ink pens 
C)  gasoline 
D)  refrigerators

Question 14

The demand for loanable funds is downward sloping because the ________ the interest rate,the ________ the number of profitable investment projects a firm can undertake,and the ________ the quantity demanded of loanable funds.

Accepted Answer

A)  lower; greater; greater 
B)  lower; smaller; greater 
C)  greater; greater; greater 
D)  greater; smaller; greater 
A)  lower; greater; greater 
B)  lower; smaller; greater 
C)  greater; greater; greater 
D)  greater; smaller; greater

Question 15

During a recession,spending on ________ tends to fall more dramatically than spending on ________.

Accepted Answer

A)  necessities; luxuries 
B)  durable goods; nondurable goods 
C)  nondurable goods; durable goods 
D)  food; cars 
A)  necessities; luxuries 
B)  durable goods; nondurable goods 
C)  nondurable goods; durable goods 
D)  food; cars

Question 16

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 17

Which of the following increases labor productivity?

Accepted Answer

A)  an increase in the aggregate hours of work 
B)  decreases in the availability of computers and factory buildings 
C)  inventions of new machinery, equipment, or software 
D)  a decline in the health of the population 
A)  an increase in the aggregate hours of work 
B)  decreases in the availability of computers and factory buildings 
C)  inventions of new machinery, equipment, or software 
D)  a decline in the health of the population

Question 18

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 19

Table 21-1
  
-Refer to Table 21-1.Using the table above,what is the approximate average annual growth rate from 2008 to 2011?

Accepted Answer

A)  1% 
B)  1.5% 
C)  2% 
D)  3% 
A)  1% 
B)  1.5% 
C)  2% 
D)  3%

Question 20

Explain how unemployment changes over the business cycle.Why do these changes occur?

Accepted Answer

Unemployment will fall during an expansi

What is "human capital," and how does human capital affect labor productivity and economic growth?

Which of the following is an example of human capital?

Technological advances generally result in

If,in an economy experiencing inflation,the government decided to tax real interest income rather than nominal interest income,this change would cause the real interest rate to and the equilibrium quantity of loanable funds to .

At the end of an expansion,wages of workers are usually rising faster than prices.

The effect of a recession on a company like Boeing Aircraft is such that

If real GDP per capita measured in 2000 dollars was $6,000 in 1950 and $48,000 in 2010,we would say that in the year 2010,the average American could buy ________ times as many goods and services as the average American in 1950.

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

An increase in the demand for loanable funds will occur if there is

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

When potential GDP increases,is it necessarily the case that real GDP increases as well? Explain.

During the recession phase of the business cycle,

Purchases of which of the following goods would be dramatically reduced during a recession?

The demand for loanable funds is downward sloping because the the interest rate,the the number of profitable investment projects a firm can undertake,and the the quantity demanded of loanable funds.

During a recession,spending on tends to fall more dramatically than spending on .

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

Which of the following increases labor productivity?

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

Table 21-1 -Refer to Table 21-1.Using the table above,what is the approximate average annual growth rate from 2008 to 2011?

Explain how unemployment changes over the business cycle.Why do these changes occur?

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

What is "human capital," and how does human capital affect labor productivity and economic growth?

Which of the following is an example of human capital?

Technological advances generally result in

If,in an economy experiencing inflation,the government decided to tax real interest income rather than nominal interest income,this change would cause the real interest rate to ________ and the equilibrium quantity of loanable funds to ________.

At the end of an expansion,wages of workers are usually rising faster than prices.

The effect of a recession on a company like Boeing Aircraft is such that

If real GDP per capita measured in 2000 dollars was $6,000 in 1950 and $48,000 in 2010,we would say that in the year 2010,the average American could buy ________ times as many goods and services as the average American in 1950.

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

An increase in the demand for loanable funds will occur if there is

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

When potential GDP increases,is it necessarily the case that real GDP increases as well? Explain.

During the recession phase of the business cycle,

Purchases of which of the following goods would be dramatically reduced during a recession?

The demand for loanable funds is downward sloping because the ________ the interest rate,the ________ the number of profitable investment projects a firm can undertake,and the ________ the quantity demanded of loanable funds.

During a recession,spending on ________ tends to fall more dramatically than spending on ________.

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

Which of the following increases labor productivity?

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

Table 21-1 -Refer to Table 21-1.Using the table above,what is the approximate average annual growth rate from 2008 to 2011?

Explain how unemployment changes over the business cycle.Why do these changes occur?

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

If,in an economy experiencing inflation,the government decided to tax real interest income rather than nominal interest income,this change would cause the real interest rate to and the equilibrium quantity of loanable funds to .

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

The demand for loanable funds is downward sloping because the the interest rate,the the number of profitable investment projects a firm can undertake,and the the quantity demanded of loanable funds.

During a recession,spending on tends to fall more dramatically than spending on .