Question 1

If labor productivity growth slows down in a country,this will

Accepted Answer

A) accelerate the increase in real GDP per capita. 
B) accelerate the increase in nominal GDP. 
C) slow down the increase in real GDP per capita. 
D) slow down the increase in nominal GDP. 
A) accelerate the increase in real GDP per capita. 
B) accelerate the increase in nominal GDP. 
C) slow down the increase in real GDP per capita. 
D) slow down the increase in nominal GDP.

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

Explain and show graphically how a decrease in government spending affects the equilibrium interest rate and equilibrium quantity of loanable funds in the market for loanable funds.

Accepted Answer

When government spending decreases,gover

Question 4

Which of the following is not a reason why the U.S.economy has been more stable since 1950?

Accepted Answer

A) Goods have become a larger fraction of GDP and services have become a smaller fraction of GDP. 
B) The government has actively pursued policy to combat recessions and prolong expansions. 
C) Unemployment insurance and other government programs curtail the decline in spending that occurs during a recession. 
D) Services have become a larger fraction of GDP and goods have become a smaller fraction of GDP. 
A) Goods have become a larger fraction of GDP and services have become a smaller fraction of GDP. 
B) The government has actively pursued policy to combat recessions and prolong expansions. 
C) Unemployment insurance and other government programs curtail the decline in spending that occurs during a recession. 
D) Services have become a larger fraction of GDP and goods have become a smaller fraction of GDP.

Question 5

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 6

One difference between stocks and bonds is that

Accepted Answer

A) stocks are financial securities,while bonds are labor market securities. 
B) stocks are usually issued in electronic form,while bonds are usually issued in paper form. 
C) stocks represent ownership in companies,while bonds represent ownership in banks. 
D) stocks do not involve a promise to repay a purchaser of the stock,while bonds represent a promise to repay the purchase price of the bond. 
A) stocks are financial securities,while bonds are labor market securities. 
B) stocks are usually issued in electronic form,while bonds are usually issued in paper form. 
C) stocks represent ownership in companies,while bonds represent ownership in banks. 
D) stocks do not involve a promise to repay a purchaser of the stock,while bonds represent a promise to repay the purchase price of the bond.

Question 7

Financial securities that represent promises to repay a fixed amount of funds are known as

Accepted Answer

A) bonds. 
B) stocks. 
C) pension funds. 
D) insurance premiums. 
A) bonds. 
B) stocks. 
C) pension funds. 
D) insurance premiums.

Question 8

Which of the following will result in an increase in labor productivity?

Accepted Answer

A) a decrease in the number of people attending institutions of higher education 
B) a decline in the amount of human capital per worker 
C) an increase in technology 
D) a decline in the capital stock per hour worked 
A) a decrease in the number of people attending institutions of higher education 
B) a decline in the amount of human capital per worker 
C) an increase in technology 
D) a decline in the capital stock per hour worked

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

When production in an economy grows more quickly than the population in that economy,which of the following must be occurring?

Accepted Answer

A) Real GDP is falling. 
B) Incomes are growing at a slower rate than the population. 
C) Real GDP per capita is rising. 
D) Living standards are falling. 
A) Real GDP is falling. 
B) Incomes are growing at a slower rate than the population. 
C) Real GDP per capita is rising. 
D) Living standards are falling.

Question 11

Which of the following is most liquid?

Accepted Answer

A) a mutual fund share 
B) a government bond 
C) a corporate bond 
D) a dollar bill 
A) a mutual fund share 
B) a government bond 
C) a corporate bond 
D) a dollar bill

Question 12

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 13

What is one difference between stocks and bonds?

Accepted Answer

A) Bonds earn a higher rate of return than stocks. 
B) Stocks earn a higher rate of return than bonds. 
C) Bonds are purchased at a bank,while stocks are purchased through the federal government. 
D) Stocks represent partial ownership in a firm,while bonds do not. 
A) Bonds earn a higher rate of return than stocks. 
B) Stocks earn a higher rate of return than bonds. 
C) Bonds are purchased at a bank,while stocks are purchased through the federal government. 
D) Stocks represent partial ownership in a firm,while bonds do not.

Question 14

Which of the following statements describes the experiences of the Whirlpool Corporation since it was established in 1911?

Accepted Answer

A) strong uninterrupted growth in demand 
B) long-run 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) long-run 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

For the recessions in the United States since the 1950s,

Accepted Answer

A) inflation has been nonexistent. 
B) the inflation rate rises on average by about 2.5 percentage points 12 months after a recession begins. 
C) the inflation rate falls on average by about 2.5 percentage points 12 months after a recession begins. 
D) deflation occurs. 
A) inflation has been nonexistent. 
B) the inflation rate rises on average by about 2.5 percentage points 12 months after a recession begins. 
C) the inflation rate falls on average by about 2.5 percentage points 12 months after a recession begins. 
D) deflation occurs.

Question 16

Potential GDP in the United States

Accepted Answer

A) does not change over time. 
B) grows as the economy grows. 
C) changes over a given business cycle. 
D) declines over time. 
A) does not change over time. 
B) grows as the economy grows. 
C) changes over a given business cycle. 
D) declines over time.

Question 17

Since 1950,expansions in the United States have become ________,while recessions have become ________.

Accepted Answer

A) longer; longer 
B) shorter; shorter 
C) shorter; longer 
D) longer; shorter 
A) longer; longer 
B) shorter; shorter 
C) shorter; longer 
D) longer; shorter

Question 18

In a closed economy,which of the following equations reflects investment? (Y = GDP,C = Consumption,G = Government purchases,T = Taxes,and TR = Transfers)

Accepted Answer

A) Y - C - G 
B) Y - C - T 
C) Y - T + TR 
D) C + G -T 
A) Y - C - G 
B) Y - C - T 
C) Y - T + TR 
D) C + G -T

Question 19

As the economy nears the end of an expansion,interest rates usually ________ and wages raise more ________ than prices.

Accepted Answer

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

Question 20

Which of the following indicates that the U.S.economy has become more stable since 1950?

Accepted Answer

A) longer recessions 
B) shorter expansions 
C) less severe fluctuations in real GDP 
D) All of the above indicate that the U.S.economy has become more stable since 1950. 
A) longer recessions 
B) shorter expansions 
C) less severe fluctuations in real GDP 
D) All of the above indicate that the U.S.economy has become more stable since 1950.

If labor productivity growth slows down in a country,this will

Human capital refers to which of the following?

Explain and show graphically how a decrease in government spending affects the equilibrium interest rate and equilibrium quantity of loanable funds in the market for loanable funds.

Which of the following is not a reason why the U.S.economy has been more stable since 1950?

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

One difference between stocks and bonds is that

Financial securities that represent promises to repay a fixed amount of funds are known as

Which of the following will result in an increase in labor productivity?

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

When production in an economy grows more quickly than the population in that economy,which of the following must be occurring?

Which of the following is most liquid?

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.

What is one difference between stocks and bonds?

Which of the following statements describes the experiences of the Whirlpool Corporation since it was established in 1911?

For the recessions in the United States since the 1950s,

Potential GDP in the United States

Since 1950,expansions in the United States have become ,while recessions have become .

In a closed economy,which of the following equations reflects investment? (Y = GDP,C = Consumption,G = Government purchases,T = Taxes,and TR = Transfers)

As the economy nears the end of an expansion,interest rates usually and wages raise more than prices.

Which of the following indicates that the U.S.economy has become more stable since 1950?

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

If labor productivity growth slows down in a country,this will

Human capital refers to which of the following?

Explain and show graphically how a decrease in government spending affects the equilibrium interest rate and equilibrium quantity of loanable funds in the market for loanable funds.

Which of the following is not a reason why the U.S.economy has been more stable since 1950?

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

One difference between stocks and bonds is that

Financial securities that represent promises to repay a fixed amount of funds are known as

Which of the following will result in an increase in labor productivity?

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

When production in an economy grows more quickly than the population in that economy,which of the following must be occurring?

Which of the following is most liquid?

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.

What is one difference between stocks and bonds?

Which of the following statements describes the experiences of the Whirlpool Corporation since it was established in 1911?

For the recessions in the United States since the 1950s,

Potential GDP in the United States

Since 1950,expansions in the United States have become ________,while recessions have become ________.

In a closed economy,which of the following equations reflects investment? (Y = GDP,C = Consumption,G = Government purchases,T = Taxes,and TR = Transfers)

As the economy nears the end of an expansion,interest rates usually ________ and wages raise more ________ than prices.

Which of the following indicates that the U.S.economy has become more stable since 1950?

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

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.

Since 1950,expansions in the United States have become ,while recessions have become .

As the economy nears the end of an expansion,interest rates usually and wages raise more than prices.