Question 1

Technological advances generally result in

Accepted Answer

A) decreased incomes. 
B) increased life expectancy. 
C) increased infant mortality rates. 
D) increased average number of hours worked per day. 
A) decreased incomes. 
B) increased life expectancy. 
C) increased infant mortality rates. 
D) increased average number of hours worked per day.

Question 2

Figure 14-2  
-Refer to Figure 14-2.Which of the following is consistent with the graph depicted above?

Accepted Answer

A) An expected expansion increases the profitability of new investment. 
B) The government runs a budget surplus. 
C) There is a shift from an income tax to a consumption tax. 
D) New government regulations decrease the profitability of new investment. 
A) An expected expansion increases the profitability of new investment. 
B) The government runs a budget surplus. 
C) There is a shift from an income tax to a consumption tax. 
D) New government regulations decrease the profitability of new investment.

Question 3

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.

Question 4

Figure 14-1  
-Refer to Figure 14-1.Which of the following is consistent with the graph depicted above?

Accepted Answer

A) An expected recession decreases the profitability of new investment. 
B) Technological change increases the profitability of new investment. 
C) The government runs a budget surplus. 
D) Households become spendthrifts and begin to save less. 
A) An expected recession decreases the profitability of new investment. 
B) Technological change increases the profitability of new investment. 
C) The government runs a budget surplus. 
D) Households become spendthrifts and begin to save less.

Question 5

In the United States,the average length of expansions from 1950 to 2009 was more than twice as long than they were from 1900 to 1950.

Accepted Answer

A) True 
 B)False

Question 6

Figure 14-4  
-Refer to Figure 14-4.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 7

Long-run economic growth requires all of the following except

Accepted Answer

A) technological change. 
B) increases in capital per hour worked. 
C) government provision of secure property rights. 
D) political instability. 
A) technological change. 
B) increases in capital per hour worked. 
C) government provision of secure property rights. 
D) political instability.

Question 8

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 9

As the economy nears the end of an expansion,which of the following do we typically see?

Accepted Answer

A) rising firm profits 
B) rising levels of firm investment 
C) rising interest rates 
D) falling wages relative to output prices 
A) rising firm profits 
B) rising levels of firm investment 
C) rising interest rates 
D) falling wages relative to output prices

Question 10

In a closed economy,private saving is equal to which of the following? (Y = GDP,C = Consumption,G = Government purchases,T = Taxes,and TR = Transfers)

Accepted Answer

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

Technological advances generally result in

Figure 14-2 -Refer to Figure 14-2.Which of the following is consistent with the graph depicted above?

Figure 14-1 -Refer to Figure 14-1.Which of the following is consistent with the graph depicted above?

In the United States,the average length of expansions from 1950 to 2009 was more than twice as long than they were from 1900 to 1950.

Figure 14-4 -Refer to Figure 14-4.Which of the following is consistent with the graph depicted?

Long-run economic growth requires all of the following except

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

As the economy nears the end of an expansion,which of the following do we typically see?

In a closed economy,private saving is equal to which of the following? (Y = GDP,C = Consumption,G = Government purchases,T = Taxes,and TR = Transfers)

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

Technological advances generally result in

Figure 14-2 -Refer to Figure 14-2.Which of the following is consistent with the graph depicted above?

Figure 14-1 -Refer to Figure 14-1.Which of the following is consistent with the graph depicted above?

In the United States,the average length of expansions from 1950 to 2009 was more than twice as long than they were from 1900 to 1950.

Figure 14-4 -Refer to Figure 14-4.Which of the following is consistent with the graph depicted?

Long-run economic growth requires all of the following except

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

As the economy nears the end of an expansion,which of the following do we typically see?

In a closed economy,private saving is equal to which of the following? (Y = GDP,C = Consumption,G = Government purchases,T = Taxes,and TR = Transfers)

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