Question 1

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 2

Which of the following is most likely to be able to sustain economic growth in an economy?

Accepted Answer

A) sustained increases in the labor force participation rate 
B) technological change 
C) increases in capital per hour worked 
D) accumulations of economic resources 
A) sustained increases in the labor force participation rate 
B) technological change 
C) increases in capital per hour worked 
D) accumulations of economic resources

Question 3

During the expansion phase of the business cycle,which of the following eventually increases?

Accepted Answer

A) production 
B) employment 
C) income 
D) all of the above 
A) production 
B) employment 
C) income 
D) all of the above

Question 4

An increase in government purchases,ceteris paribus,will

Accepted Answer

A) increase public saving. 
B) increase the supply of loanable funds. 
C) reduce investment. 
D) reduce real GDP. 
A) increase public saving. 
B) increase the supply of loanable funds. 
C) reduce investment. 
D) reduce real GDP.

Question 5

If Ebenezer Scrooge spends rather than saves his vast wealth,he will

Accepted Answer

A) slow economic growth because he is reducing the amount of funds available for investment. 
B) slow economic growth because he is increasing the amount of funds available for investment. 
C) promote economic growth because he is increasing the amount of funds available for investment. 
D) promote economic growth because he is decreasing the amount of funds available for investment. 
A) slow economic growth because he is reducing the amount of funds available for investment. 
B) slow economic growth because he is increasing the amount of funds available for investment. 
C) promote economic growth because he is increasing the amount of funds available for investment. 
D) promote economic growth because he is decreasing the amount of funds available for investment.

Question 6

Countries with high rates of economic growth tend to have

Accepted Answer

A) a labor force that is more productive. 
B) a lower life expectancy at birth. 
C) low rates of technological advancement. 
D) a declining incidence of business cycle fluctuations. 
A) a labor force that is more productive. 
B) a lower life expectancy at birth. 
C) low rates of technological advancement. 
D) a declining incidence of business cycle fluctuations.

Question 7

Because Whirlpool produces durable goods,the demand for their goods

Accepted Answer

A) is likely to increase during recession. 
B) declines when incomes in the economy are rising. 
C) is consistently high,regardless of the state of the economy. 
D) tends to follow the business cycle. 
A) is likely to increase during recession. 
B) declines when incomes in the economy are rising. 
C) is consistently high,regardless of the state of the economy. 
D) tends to follow the business cycle.

Question 8

Recessions cause the unemployment rate to ________ and the inflation rate to ________.

Accepted Answer

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

Question 9

Which of the following would increase public saving?

Accepted Answer

A) an increase in taxes 
B) an increase in transfers 
C) an increase in government purchases 
D) All of the above would increase public saving. 
A) an increase in taxes 
B) an increase in transfers 
C) an increase in government purchases 
D) All of the above would increase public saving.

Question 10

The Business Cycle Dating Committee,a part of the ________,officially decides when a recession begins and ends.

Accepted Answer

A) federal government 
B) Bureau of Labor Statistics 
C) National Bureau of Economic Research 
D) Federal Reserve 
A) federal government 
B) Bureau of Labor Statistics 
C) National Bureau of Economic Research 
D) Federal Reserve

Question 11

Because ________ in the government budget deficit increase the real interest rate,budget deficits can ________ firm investment.

Accepted Answer

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

Question 12

How has economist Robert Fogel explained that economic growth is connected to life expectancy? Based on this connection,in what country would you expect to have a longer life expectancy,the United States or India? Explain.

Accepted Answer

According to Robert Fogel's research,cou

Question 13

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 14

Labor productivity is

Accepted Answer

A) the quantity of output produced in one hour by several workers. 
B) the quantity of capital one worker can produce in one day. 
C) the quantity of output produced by one worker or by one hour of work. 
D) the quantity of output produced in one hour by one machine. 
A) the quantity of output produced in one hour by several workers. 
B) the quantity of capital one worker can produce in one day. 
C) the quantity of output produced by one worker or by one hour of work. 
D) the quantity of output produced in one hour by one machine.

Question 15

In comparison to a government that runs a balanced budget,when the government runs a budget deficit,

Accepted Answer

A) the equilibrium interest rate will fall. 
B) business investment will fall. 
C) household savings will fall. 
D) none of the above 
A) the equilibrium interest rate will fall. 
B) business investment will fall. 
C) household savings will fall. 
D) none of the above

Question 16

Outline the various actions the government sector could take to promote growth.

Accepted Answer

The government should secure private pro

Question 17

Table 10-2
  
-Refer to Table 10-2.Using the table above,what is the approximate average annual growth rate from 2010 to 2013?

Accepted Answer

A) -1% 
B) 1% 
C) 2% 
D) 4% 
A) -1% 
B) 1% 
C) 2% 
D) 4%

Question 18

Table 10-2
  
-Refer to Table 10-2.Using the table above,what is the approximate growth rate of real GDP from 2012 to 2013?

Accepted Answer

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

Question 19

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.

Question 20

At the end of World War II in 1945,many economists and business managers expected that the U.S.economy would enter a severe recession.At that time,Sears and Montgomery Ward were the two largest department store chains in the country.Sears CEO Robert Wood expected continuing prosperity and opened new stores.Montgomery Ward CEO Sewell Avery expected falling incomes and rising unemployment and closed a number of existing stores.The results of their actions were seen during the late 1940s,when

Accepted Answer

A) Sears declared bankruptcy and was purchased by Montgomery Ward. 
B) Montgomery Ward weathered the economic downturn in better financial shape than Sears. 
C) Sears rapidly gained market share at Montgomery Ward's expense. 
D) Sears had to close many of the new stores it had opened following the end of the war. 
A) Sears declared bankruptcy and was purchased by Montgomery Ward. 
B) Montgomery Ward weathered the economic downturn in better financial shape than Sears. 
C) Sears rapidly gained market share at Montgomery Ward's expense. 
D) Sears had to close many of the new stores it had opened following the end of the war.

If government saving is negative,then

Which of the following is most likely to be able to sustain economic growth in an economy?

During the expansion phase of the business cycle,which of the following eventually increases?

An increase in government purchases,ceteris paribus,will

If Ebenezer Scrooge spends rather than saves his vast wealth,he will

Countries with high rates of economic growth tend to have

Because Whirlpool produces durable goods,the demand for their goods

Recessions cause the unemployment rate to and the inflation rate to .

Which of the following would increase public saving?

The Business Cycle Dating Committee,a part of the ________,officially decides when a recession begins and ends.

Because in the government budget deficit increase the real interest rate,budget deficits can firm investment.

How has economist Robert Fogel explained that economic growth is connected to life expectancy? Based on this connection,in what country would you expect to have a longer life expectancy,the United States or India? Explain.

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

Labor productivity is

In comparison to a government that runs a balanced budget,when the government runs a budget deficit,

Outline the various actions the government sector could take to promote growth.

Table 10-2 -Refer to Table 10-2.Using the table above,what is the approximate average annual growth rate from 2010 to 2013?

Table 10-2 -Refer to Table 10-2.Using the table above,what is the approximate growth rate of real GDP from 2012 to 2013?

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

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 government saving is negative,then

Which of the following is most likely to be able to sustain economic growth in an economy?

During the expansion phase of the business cycle,which of the following eventually increases?

An increase in government purchases,ceteris paribus,will

If Ebenezer Scrooge spends rather than saves his vast wealth,he will

Countries with high rates of economic growth tend to have

Because Whirlpool produces durable goods,the demand for their goods

Recessions cause the unemployment rate to ________ and the inflation rate to ________.

Which of the following would increase public saving?

The Business Cycle Dating Committee,a part of the ________,officially decides when a recession begins and ends.

Because ________ in the government budget deficit increase the real interest rate,budget deficits can ________ firm investment.

How has economist Robert Fogel explained that economic growth is connected to life expectancy? Based on this connection,in what country would you expect to have a longer life expectancy,the United States or India? Explain.

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

Labor productivity is

In comparison to a government that runs a balanced budget,when the government runs a budget deficit,

Outline the various actions the government sector could take to promote growth.

Table 10-2 -Refer to Table 10-2.Using the table above,what is the approximate average annual growth rate from 2010 to 2013?

Table 10-2 -Refer to Table 10-2.Using the table above,what is the approximate growth rate of real GDP from 2012 to 2013?

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

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

Recessions cause the unemployment rate to and the inflation rate to .

Because in the government budget deficit increase the real interest rate,budget deficits can firm investment.