Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The demand for durable goods

Accepted Answer

A)  has decreased over time. 
B)  declines by a greater percentage than does GDP during a recession. 
C)  declines by a smaller percentage than does GDP during a recession. 
D)  rises by a greater percentage than does GDP during a recession. 
A)  has decreased over time. 
B)  declines by a greater percentage than does GDP during a recession. 
C)  declines by a smaller percentage than does GDP during a recession. 
D)  rises by a greater percentage than does GDP during a recession.

Question 3

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)  the government begins running a budget surplus 
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)  the government begins running a budget surplus

Question 4

The best measure of the standard of living is

Accepted Answer

A)  nominal GDP. 
B)  real GDP. 
C)  nominal GDP per capita. 
D)  real GDP per capita. 
A)  nominal GDP. 
B)  real GDP. 
C)  nominal GDP per capita. 
D)  real GDP per capita.

Question 5

Suppose that real GDP for 2017 was $10,000 billion and real GDP for 2018 was $11,000 billion.What is the rate of growth of real GDP between 2017 and 2018?

Accepted Answer

A)  1% 
B)  2% 
C)  5% 
D)  10% 
A)  1% 
B)  2% 
C)  5% 
D)  10%

Question 6

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 7

In an open economy,the relationship between GDP (Y)and expenditures is Y = C + I + G.

Accepted Answer

A) True 
 B)False

Question 8

A country with no trade and no borrowing and lending relationships with other countries is known as a(n)

Accepted Answer

A)  planned economy. 
B)  market economy. 
C)  open economy. 
D)  closed economy. 
A)  planned economy. 
B)  market economy. 
C)  open economy. 
D)  closed economy.

Question 9

What factors increase potential GDP? Include a definition of potential GDP in your answer.

Accepted Answer

Potential GDP is the level of GDP attain

Question 10

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 11

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.

Question 12

If GDP grows at a rate of 3% per year,approximately how long will it take for GDP to double in size?

Accepted Answer

A)  12 years 
B)  21 years 
C)  23 years 
D)  35 years 
A)  12 years 
B)  21 years 
C)  23 years 
D)  35 years

Question 13

If consumers decide to be more frugal and save more out of their income,then this will cause

Accepted Answer

A)  a shift in the supply curve for loanable funds to the right. 
B)  a shift in the supply curve for loanable funds to the left. 
C)  a movement to the right along the supply curve for loanable funds. 
D)  a movement to the left along the supply curve for loanable funds. 
A)  a shift in the supply curve for loanable funds to the right. 
B)  a shift in the supply curve for loanable funds to the left. 
C)  a movement to the right along the supply curve for loanable funds. 
D)  a movement to the left along the supply curve for loanable funds.

Question 14

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 15

In an open economy,the country interacts with other economies through both trading of goods and services and borrowing and lending.

Accepted Answer

A) True 
 B)False

Question 16

Scenario 14-1
Consider the following data for a closed economy:
Y = $12 trillion
C = $8 trillion
I = $2 trillion
G = $2 trillion
TR = $2 trillion
T = $3 trillion
-Refer to Scenario 14-1.Based on the information above,what is the level of private saving in the economy?

Accepted Answer

A)  $3 trillion 
B)  $4 trillion 
C)  $5 trillion 
D)  $8 trillion 
A)  $3 trillion 
B)  $4 trillion 
C)  $5 trillion 
D)  $8 trillion

Question 17

As the economy nears the end of an expansion,which of the following do we typically see?

Accepted Answer

A)  rising firm profits 
B)  rising levels of firm investment 
C)  rising interest rates 
D)  falling wages relative to output prices 
A)  rising firm profits 
B)  rising levels of firm investment 
C)  rising interest rates 
D)  falling wages relative to output prices

Question 18

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 19

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 20

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.

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

The demand for durable goods

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

The best measure of the standard of living is

Suppose that real GDP for 2017 was $10,000 billion and real GDP for 2018 was $11,000 billion.What is the rate of growth of real GDP between 2017 and 2018?

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

In an open economy,the relationship between GDP (Y)and expenditures is Y = C + I + G.

A country with no trade and no borrowing and lending relationships with other countries is known as a(n)

What factors increase potential GDP? Include a definition of potential GDP in your answer.

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

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

If GDP grows at a rate of 3% per year,approximately how long will it take for GDP to double in size?

If consumers decide to be more frugal and save more out of their income,then this will cause

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

In an open economy,the country interacts with other economies through both trading of goods and services and borrowing and lending.

Scenario 14-1 Consider the following data for a closed economy: Y = $12 trillion C = $8 trillion I = $2 trillion G = $2 trillion TR = $2 trillion T = $3 trillion -Refer to Scenario 14-1.Based on the information above,what is the level of private saving in the economy?

As the economy nears the end of an expansion,which of the following do we typically see?

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

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

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

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

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

The demand for durable goods

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

The best measure of the standard of living is

Suppose that real GDP for 2017 was $10,000 billion and real GDP for 2018 was $11,000 billion.What is the rate of growth of real GDP between 2017 and 2018?

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

In an open economy,the relationship between GDP (Y)and expenditures is Y = C + I + G.

A country with no trade and no borrowing and lending relationships with other countries is known as a(n)

What factors increase potential GDP? Include a definition of potential GDP in your answer.

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

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

If GDP grows at a rate of 3% per year,approximately how long will it take for GDP to double in size?

If consumers decide to be more frugal and save more out of their income,then this will cause

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

In an open economy,the country interacts with other economies through both trading of goods and services and borrowing and lending.

Scenario 14-1 Consider the following data for a closed economy: Y = $12 trillion C = $8 trillion I = $2 trillion G = $2 trillion TR = $2 trillion T = $3 trillion -Refer to Scenario 14-1.Based on the information above,what is the level of private saving in the economy?

As the economy nears the end of an expansion,which of the following do we typically see?

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

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

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

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 .