Question 1

The goal of supply side policies is to _______.

Accepted Answer

A)  increase government involvement in the economy 
B)  create an environment where workers and owners of capital have the maximum incentive and ability to produce and develop goods 
C)  maximize tax revenues of the government 
D)  focus more on wealth redistribution policies 
A)  increase government involvement in the economy 
B)  create an environment where workers and owners of capital have the maximum incentive and ability to produce and develop goods 
C)  maximize tax revenues of the government 
D)  focus more on wealth redistribution policies

Question 2

What economic variable is most closely associated with increasing corporate profits?

Accepted Answer

A)  Exchange rates 
B)  Inflation 
C)  Gross domestic product 
D)  Budget deficits 
A)  Exchange rates 
B)  Inflation 
C)  Gross domestic product 
D)  Budget deficits

Question 3

Which of the following affects a firm's sensitivity of its earnings to the business cycle?
I.Financial leverage
II.Operating leverage
III.Type of product

Accepted Answer

A)  II only 
B)  I and II only 
C)  I and III only 
D)  I, II and III 
A)  II only 
B)  I and II only 
C)  I and III only 
D)  I, II and III

Question 4

A supply side economist would likely agree with which of the following statements?

Accepted Answer

A)  Real output and aggregate employment are primarily determined by aggregate demand. 
B)  Real income will rise when government expenditures and tax rates increase. 
C)  Real output and aggregate employment are primarily determined by tax rates. 
D)  Increasing the money supply will increase real output without causing higher inflation. 
A)  Real output and aggregate employment are primarily determined by aggregate demand. 
B)  Real income will rise when government expenditures and tax rates increase. 
C)  Real output and aggregate employment are primarily determined by tax rates. 
D)  Increasing the money supply will increase real output without causing higher inflation.

Question 5

The Fed funds rate is the __________.

Accepted Answer

A)  interest rate that banks charge their best corporate customers 
B)  interest rate banks charge each other for overnight loans of deposits on reserve at the Fed 
C)  interest rate the Fed charges commercial banks on short term loans 
D)  interest rate that the U.S. Treasury pays on its bills 
A)  interest rate that banks charge their best corporate customers 
B)  interest rate banks charge each other for overnight loans of deposits on reserve at the Fed 
C)  interest rate the Fed charges commercial banks on short term loans 
D)  interest rate that the U.S. Treasury pays on its bills

Question 6

Which of the following are examples of cyclical industries?
I.Maytag
II.Computer chip manufacturers
III.Kellogg's Frosted Flakes
IV.Pfizer

Accepted Answer

A)  I and II only 
B)  I, II and III only 
C)  II, III and IV only 
D)  I, II, III and IV 
A)  I and II only 
B)  I, II and III only 
C)  II, III and IV only 
D)  I, II, III and IV

Question 7

During 2004 China increased its use of global oil by 40%.This followed a 100% increase during the previous 5 years.How do economists refer to this kind of economic event?

Accepted Answer

A)  Demand shock 
B)  Equilibrium event 
C)  Expanding commodity event 
D)  Supply shock 
A)  Demand shock 
B)  Equilibrium event 
C)  Expanding commodity event 
D)  Supply shock

Question 8

Supply side economics tends to focus on _______________.

Accepted Answer

A)  government spending 
B)  price controls 
C)  monetary policy 
D)  increasing productive capacity 
A)  government spending 
B)  price controls 
C)  monetary policy 
D)  increasing productive capacity

Question 9

Portfolio manager Peter Lynch would classify Coca-Cola as _________.

Accepted Answer

A)  an asset play 
B)  a slow grower 
C)  a stalwart 
D)  a turnaround 
A)  an asset play 
B)  a slow grower 
C)  a stalwart 
D)  a turnaround

The goal of supply side policies is to _______.

What economic variable is most closely associated with increasing corporate profits?

Which of the following affects a firm's sensitivity of its earnings to the business cycle? I.Financial leverage II.Operating leverage III.Type of product

A supply side economist would likely agree with which of the following statements?

The Fed funds rate is the __________.

Which of the following are examples of cyclical industries? I.Maytag II.Computer chip manufacturers III.Kellogg's Frosted Flakes IV.Pfizer

During 2004 China increased its use of global oil by 40%.This followed a 100% increase during the previous 5 years.How do economists refer to this kind of economic event?

Supply side economics tends to focus on _______________.

Portfolio manager Peter Lynch would classify Coca-Cola as _________.

Investments: Background and Issues

Asset Classes and Financial Instruments

Securities Markets

Mutual Funds and Other Investment Companies

Risk and Return: Past and Prologue

Efficient Diversification

Capital Asset Pricing and Arbitrage Pricing Theory

The Efficient Market Hypothesis

Behavioral Finance and Technical Analysis

Bond Prices and Yields

Managing Bond Portfolios

Equity Valuation

Financial Statement Analysis

Options Markets

Option Valuation

Futures Markets and Risk Management

Portfolio Performance Evaluation

Globalization and International Investing

Hedge Funds

Taxes,inflation,and Investment Strategy

Investors and the Investment Process

Filters

Exam 12: Macroeconomic and Industry Analysis

The goal of supply side policies is to _______.

What economic variable is most closely associated with increasing corporate profits?

Which of the following affects a firm's sensitivity of its earnings to the business cycle? I.Financial leverage II.Operating leverage III.Type of product

A supply side economist would likely agree with which of the following statements?

The Fed funds rate is the __________.

Which of the following are examples of cyclical industries? I.Maytag II.Computer chip manufacturers III.Kellogg's Frosted Flakes IV.Pfizer

During 2004 China increased its use of global oil by 40%.This followed a 100% increase during the previous 5 years.How do economists refer to this kind of economic event?

Supply side economics tends to focus on _______________.

Portfolio manager Peter Lynch would classify Coca-Cola as _________.

Investments: Background and Issues

Asset Classes and Financial Instruments

Securities Markets

Mutual Funds and Other Investment Companies

Risk and Return: Past and Prologue

Efficient Diversification

Capital Asset Pricing and Arbitrage Pricing Theory

The Efficient Market Hypothesis

Behavioral Finance and Technical Analysis

Bond Prices and Yields

Managing Bond Portfolios

Equity Valuation

Financial Statement Analysis

Options Markets

Option Valuation

Futures Markets and Risk Management

Portfolio Performance Evaluation

Globalization and International Investing

Hedge Funds

Taxes,inflation,and Investment Strategy

Investors and the Investment Process

Filters