Question 1

An increase in the real interest rate results in which of the following?

Accepted Answer

A) an increase in the demand for loanable funds 
B) a decrease in the demand for loanable funds 
C) an increase in the quantity of loanable funds supplied 
D) Both B and C will occur as a result of an increase in the real interest rate. 
A) an increase in the demand for loanable funds 
B) a decrease in the demand for loanable funds 
C) an increase in the quantity of loanable funds supplied 
D) Both B and C will occur as a result of an increase in the real interest rate.

Question 2

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 3

Table 10-1
  
-Refer to Table 10-1.Using the table above,what is the approximate average annual growth rate from 2015 to 2018?

Accepted Answer

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

Question 4

If technological change increases the profitability of new investments for firms,then the ________ curve for loanable funds will shift to the ________.

Accepted Answer

A) supply; right 
B) supply; left 
C) demand; right 
D) demand; left 
A) supply; right 
B) supply; left 
C) demand; right 
D) demand; left

Question 5

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 6

India's rapid growth can be explained by

Accepted Answer

A) reduced regulations and market-based reforms. 
B) investment in human capital from 1947 through 2017. 
C) the movement of workers from the agricultural sector to the manufacturing sector. 
D) an increase in labor force participation. 
A) reduced regulations and market-based reforms. 
B) investment in human capital from 1947 through 2017. 
C) the movement of workers from the agricultural sector to the manufacturing sector. 
D) an increase in labor force participation.

Question 7

If government saving is negative,then

Accepted Answer

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

Question 8

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 worked 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 worked 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 9

How are unemployment,inflation,and the business cycle related?

Accepted Answer

A recessionary phase of a business cycle

Question 10

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 11

Economist Steve Landsburg has pointed out that Ebenezer Scrooge's change in behavior from miser to spender might actually be detrimental to the economy because

Accepted Answer

A) Scrooge's miserly saving helped contribute to the production of investment goods rather than consumption goods. 
B) Scrooge was happiest when he was saving money,and happiness is the key to economic growth. 
C) saving has to be greater than consumption for the economy to grow. 
D) Scrooge's consumption habits were more detrimental to the environment than were his earlier saving habits. 
A) Scrooge's miserly saving helped contribute to the production of investment goods rather than consumption goods. 
B) Scrooge was happiest when he was saving money,and happiness is the key to economic growth. 
C) saving has to be greater than consumption for the economy to grow. 
D) Scrooge's consumption habits were more detrimental to the environment than were his earlier saving habits.

Question 12

Workers in high-income countries have ________ to work with than do workers in low-income countries.

Accepted Answer

A) less physical capital 
B) more physical capital 
C) more labor 
D) more labor and less physical capital 
A) less physical capital 
B) more physical capital 
C) more labor 
D) more labor and less physical capital

Question 13

Table 10-2
  
-Refer to Table 10-2.Using the table above,what is the approximate growth rate of real GDP from 2017 to 2018?

Accepted Answer

A) -2% 
B) -1% 
C) 1% 
D) 2% 
A) -2% 
B) -1% 
C) 1% 
D) 2%

Question 14

Explain and show graphically how an increase in household saving affects the equilibrium interest rate and the equilibrium quantity of loanable funds.

Accepted Answer

An increase in household saving increase

Question 15

If you invest $10,000 in a bond that earns 8% interest per year,how many years will it take to double your money?

Accepted Answer

A) 1 year and 3 months 
B) 2 years and 6 months 
C) 8 years 
D) 8 years and 9 months 
A) 1 year and 3 months 
B) 2 years and 6 months 
C) 8 years 
D) 8 years and 9 months

Question 16

Figure 10-4  
-Refer to Figure 10-4.Which of the following is consistent with the graph depicted?

Accepted Answer

A) an increase in household income 
B) an increase in transfer payments to households 
C) an increase in the proportion of income after net taxes used for consumption 
D) an increase in tax revenues collected by the government 
A) an increase in household income 
B) an increase in transfer payments to households 
C) an increase in the proportion of income after net taxes used for consumption 
D) an increase in tax revenues collected by the government

Question 17

A recession often begins with a(n)________ in spending by firms on capital goods and a(n)________ in spending on durable goods by households.

Accepted Answer

A) increase; decrease 
B) increase; increase 
C) decrease; increase 
D) decrease; decrease 
A) increase; decrease 
B) increase; increase 
C) decrease; increase 
D) decrease; decrease

Question 18

Accumulating a greater number of inputs will ensure that an economy will experience economic growth.

Accepted Answer

A) True 
 B)False

Question 19

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 20

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.

An increase in the real interest rate results in which of the following?

Human capital refers to which of the following?

Table 10-1 -Refer to Table 10-1.Using the table above,what is the approximate average annual growth rate from 2015 to 2018?

If technological change increases the profitability of new investments for firms,then the curve for loanable funds will shift to the .

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.

India's rapid growth can be explained by

If government saving is negative,then

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

How are unemployment,inflation,and the business cycle related?

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

Economist Steve Landsburg has pointed out that Ebenezer Scrooge's change in behavior from miser to spender might actually be detrimental to the economy because

Workers in high-income countries have ________ to work with than do workers in low-income countries.

Table 10-2 -Refer to Table 10-2.Using the table above,what is the approximate growth rate of real GDP from 2017 to 2018?

Explain and show graphically how an increase in household saving affects the equilibrium interest rate and the equilibrium quantity of loanable funds.

If you invest $10,000 in a bond that earns 8% interest per year,how many years will it take to double your money?

Figure 10-4 -Refer to Figure 10-4.Which of the following is consistent with the graph depicted?

A recession often begins with a(n) in spending by firms on capital goods and a(n) in spending on durable goods by households.

Accumulating a greater number of inputs will ensure that an economy will experience economic growth.

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

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

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

An increase in the real interest rate results in which of the following?

Human capital refers to which of the following?

Table 10-1 -Refer to Table 10-1.Using the table above,what is the approximate average annual growth rate from 2015 to 2018?

If technological change increases the profitability of new investments for firms,then the ________ curve for loanable funds will shift to the ________.

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.

India's rapid growth can be explained by

If government saving is negative,then

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

How are unemployment,inflation,and the business cycle related?

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

Economist Steve Landsburg has pointed out that Ebenezer Scrooge's change in behavior from miser to spender might actually be detrimental to the economy because

Workers in high-income countries have ________ to work with than do workers in low-income countries.

Table 10-2 -Refer to Table 10-2.Using the table above,what is the approximate growth rate of real GDP from 2017 to 2018?

Explain and show graphically how an increase in household saving affects the equilibrium interest rate and the equilibrium quantity of loanable funds.

If you invest $10,000 in a bond that earns 8% interest per year,how many years will it take to double your money?

Figure 10-4 -Refer to Figure 10-4.Which of the following is consistent with the graph depicted?

A recession often begins with a(n)________ in spending by firms on capital goods and a(n)________ in spending on durable goods by households.

Accumulating a greater number of inputs will ensure that an economy will experience economic growth.

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

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

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 technological change increases the profitability of new investments for firms,then the curve for loanable funds will shift to the .

A recession often begins with a(n) in spending by firms on capital goods and a(n) in spending on durable goods by households.