Question 1

Countries without well-developed financial systems are able to sustain high levels of economic growth.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following would encourage economic growth through increases in the capital stock?

Accepted Answer

A) a change from an income tax to a consumption tax 
B) an increase in household saving 
C) a decrease in the government deficit 
D) all of the above 
A) a change from an income tax to a consumption tax 
B) an increase in household saving 
C) a decrease in the government deficit 
D) all of the above

Question 3

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 4

What is the name of the organization that defines business cycle peaks and troughs in the United States?

Accepted Answer

A) the Bureau of Labor Statistics 
B) the Federal Reserve 
C) the National Bureau of Economic Research 
D) the National Peak and Trough Committee 
A) the Bureau of Labor Statistics 
B) the Federal Reserve 
C) the National Bureau of Economic Research 
D) the National Peak and Trough Committee

Question 5

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 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

Explain and show graphically how an increase in government spending affects the equilibrium interest rate in the market for loanable funds.

Accepted Answer

When government spending increases,gover

Question 8

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 9

If the U.S.government decided to regulate the prices of airline tickets to keep them from falling when the economy is weak,there would tend to be a ________ of airline tickets in the market and this would likely ________ the profits of U.S.airlines.

Accepted Answer

A) shortage;increase 
B) shortage;reduce 
C) surplus;increase 
D) surplus;reduce 
A) shortage;increase 
B) shortage;reduce 
C) surplus;increase 
D) surplus;reduce

Question 10

If real GDP grows by 3% in 2009,3.2% in 2010,and 2.5% in 2011,what is the average annual growth rate of real GDP?

Accepted Answer

A) 2.6% 
B) 2.9% 
C) 3.1% 
D) 4.2% 
A) 2.6% 
B) 2.9% 
C) 3.1% 
D) 4.2%

Question 11

Table 14-1
  
-Refer to Table 14-1.Using the table above,what is the approximate average annual growth rate from 2008 to 2011?

Accepted Answer

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

Question 12

Increases in capital per hour worked cannot sustain high rates of economic growth unless accompanied by technological change.

Accepted Answer

A) True 
 B)False

Question 13

If real GDP per capita measured in 2000 dollars was $6,000 in 1950 and $48,000 in 2010,we would say that in the year 2010,the average American could buy ________ times as many goods and services as the average American in 1950.

Accepted Answer

A) 1/8 
B) 4 
C) 8 
D) 12 
A) 1/8 
B) 4 
C) 8 
D) 12

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

Which of the following explains the cause of the change in the unemployment rate at the end of a recession?

Accepted Answer

A) Firms are hesitant to rehire laid off workers as they continue to operate below capacity. 
B) Firms rapidly hire new workers at the first sign of on an increase in demand for their goods. 
C) Discouraged workers return to the labor force and this makes the unemployment rate fall. 
D) Discouraged workers leave the labor force and this makes the unemployment rate rise. 
A) Firms are hesitant to rehire laid off workers as they continue to operate below capacity. 
B) Firms rapidly hire new workers at the first sign of on an increase in demand for their goods. 
C) Discouraged workers return to the labor force and this makes the unemployment rate fall. 
D) Discouraged workers leave the labor force and this makes the unemployment rate rise.

Question 17

Consider the following data for a closed economy:
a.Y = $12 trillion
b.C = $8 trillion
c.I= $3 trillion
d.TR = $2 trillion
e.T = $3 trillion
Use the data provided to calculate the level of private saving and the level of public saving and demonstrate their relationship to investment.

Accepted Answer

Private saving is equal to Y + TR - C -

Question 18

Since 1900,real GDP per capita has ________ and this measure ________ the actual growth in standards of living in the United States over this time.

Accepted Answer

A) increased;understates 
B) increased;overstates 
C) decreased;understates 
D) decreased;overstates 
A) increased;understates 
B) increased;overstates 
C) decreased;understates 
D) decreased;overstates

Question 19

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 20

Which of the following increases labor productivity?

Accepted Answer

A) an increase in the aggregate hours of work 
B) decreases in the availability of computers and factory buildings 
C) inventions of new machinery,equipment,or software 
D) a decline in the health of the population 
A) an increase in the aggregate hours of work 
B) decreases in the availability of computers and factory buildings 
C) inventions of new machinery,equipment,or software 
D) a decline in the health of the population

Countries without well-developed financial systems are able to sustain high levels of economic growth.

Which of the following would encourage economic growth through increases in the capital stock?

Which of the following is most liquid?

What is the name of the organization that defines business cycle peaks and troughs in the United States?

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

Countries with high rates of economic growth tend to have

Explain and show graphically how an increase in government spending affects the equilibrium interest rate in the market for loanable funds.

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

If the U.S.government decided to regulate the prices of airline tickets to keep them from falling when the economy is weak,there would tend to be a of airline tickets in the market and this would likely the profits of U.S.airlines.

If real GDP grows by 3% in 2009,3.2% in 2010,and 2.5% in 2011,what is the average annual growth rate of real GDP?

Table 14-1 -Refer to Table 14-1.Using the table above,what is the approximate average annual growth rate from 2008 to 2011?

Increases in capital per hour worked cannot sustain high rates of economic growth unless accompanied by technological change.

If real GDP per capita measured in 2000 dollars was $6,000 in 1950 and $48,000 in 2010,we would say that in the year 2010,the average American could buy ________ times as many goods and services as the average American in 1950.

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

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

Which of the following explains the cause of the change in the unemployment rate at the end of a recession?

Consider the following data for a closed economy: a.Y = $12 trillion b.C = $8 trillion c.I= $3 trillion d.TR = $2 trillion e.T = $3 trillion Use the data provided to calculate the level of private saving and the level of public saving and demonstrate their relationship to investment.

Since 1900,real GDP per capita has and this measure the actual growth in standards of living in the United States over this time.

Human capital refers to which of the following?

Which of the following increases labor productivity?

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

Countries without well-developed financial systems are able to sustain high levels of economic growth.

Which of the following would encourage economic growth through increases in the capital stock?

Which of the following is most liquid?

What is the name of the organization that defines business cycle peaks and troughs in the United States?

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

Countries with high rates of economic growth tend to have

Explain and show graphically how an increase in government spending affects the equilibrium interest rate in the market for loanable funds.

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

If the U.S.government decided to regulate the prices of airline tickets to keep them from falling when the economy is weak,there would tend to be a ________ of airline tickets in the market and this would likely ________ the profits of U.S.airlines.

If real GDP grows by 3% in 2009,3.2% in 2010,and 2.5% in 2011,what is the average annual growth rate of real GDP?

Table 14-1 -Refer to Table 14-1.Using the table above,what is the approximate average annual growth rate from 2008 to 2011?

Increases in capital per hour worked cannot sustain high rates of economic growth unless accompanied by technological change.

If real GDP per capita measured in 2000 dollars was $6,000 in 1950 and $48,000 in 2010,we would say that in the year 2010,the average American could buy ________ times as many goods and services as the average American in 1950.

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

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

Which of the following explains the cause of the change in the unemployment rate at the end of a recession?

Consider the following data for a closed economy: a.Y = $12 trillion b.C = $8 trillion c.I= $3 trillion d.TR = $2 trillion e.T = $3 trillion Use the data provided to calculate the level of private saving and the level of public saving and demonstrate their relationship to investment.

Since 1900,real GDP per capita has ________ and this measure ________ the actual growth in standards of living in the United States over this time.

Human capital refers to which of the following?

Which of the following increases labor productivity?

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

If the U.S.government decided to regulate the prices of airline tickets to keep them from falling when the economy is weak,there would tend to be a of airline tickets in the market and this would likely the profits of U.S.airlines.

Since 1900,real GDP per capita has and this measure the actual growth in standards of living in the United States over this time.