Question 1

Which of the following describes the growth in real GDP per person in the United States from 1900 to the present?

Accepted Answer

A) It has decreased. 
B) It has increased by more than eight times. 
C) It has doubled. 
D) It has increased twenty times.

Question 2

Explain how unemployment changes over the business cycle.Why do these changes occur?

Accepted Answer

The answer of Explain how unemployment changes over the business...

Question 3

In a closed economy,what is the relationship between saving and investment?

Accepted Answer

A) Saving is greater than investment. 
B) Investment is greater than saving. 
C) Investment is equal to saving. 
D) Investment may be greater or smaller than saving.

Question 4

________ are financial securities that represent partial ownership of a firm.

Accepted Answer

A) Stocks 
B) Bonds 
C) Treasury bills 
D) Certificates of deposit

Question 5

Labor productivity will increase if the ________ increases and ________.

Accepted Answer

A) quantity of capital per hour worked; technology improves 
B) quantity of labor per unit of capital; technology improves 
C) quantity of capital per hour worked; immigration increases while capital is fixed 
D) quantity of labor per unit of capital; immigration increases while capital is fixed

Question 6

Which of the following will increase investment spending in the economy,holding everything else constant?

Accepted Answer

A) an increase in the federal government surplus 
B) an increase in the budget deficit 
C) an increase in consumer dissavings 
D) an increase in transfer payments

Question 7

Which of the following will increase the real interest rate?

Accepted Answer

A) an increase in the supply of loanable funds 
B) an increase in household saving 
C) an increase in the demand for loanable funds 
D) an increase in the budget surplus

Question 8

What is human capital?

Accepted Answer

A) a slang term for the underground labor market 
B) manufactured goods that are used to produce other goods 
C) accumulated knowledge and skills acquired by a worker 
D) the manager or owner of a business

Question 9

A government budget surplus from reduced government spending (no change in net taxes)will ________ the level of investment in the economy and ________ the level of saving (private plus public)in the economy.

Accepted Answer

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

Question 10

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

Question 11

Table 10-1
 
-Refer to Table 10-1.Using the table above,what is the approximate average annual growth rate from 2010 to 2013?

Accepted Answer

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

Question 12

Economist Robert Fogel has estimated that by the year 2040,individuals in the United States will be spending

Accepted Answer

A) more time in the workforce and more time in leisure activities than they do today. 
B) less time in the workforce and less time in leisure activities than they do today. 
C) less time in the workforce and more time in leisure activities than they do today. 
D) more time in the workforce and less time in leisure activities than they do today.

Question 13

There is a federal budget deficit when

Accepted Answer

A) the government spends less that it collects in taxes. 
B) the government spends more that it collects in taxes. 
C) the government spends the same amount it collects in taxes. 
D) taxes are too high.

Question 14

________ are financial securities that represent promises to repay a fixed amount of funds.

Accepted Answer

A) Stocks 
B) Bonds 
C) Interest rates 
D) Mutual funds

Question 15

The demand for loanable funds has a ________ slope because the lower the interest rate,the ________ number of investment projects are profitable,and the ________ the quantity of loanable funds demanded.

Accepted Answer

A) negative; greater; greater 
B) negative; greater; lesser 
C) negative; lesser; greater 
D) positive; lesser; lesser

Question 16

The U.S.economy has been more stable since 1950.

Accepted Answer

A) True 
 B)False

Question 17

An increase in public saving has what impact on the market for loanable funds?

Accepted Answer

A) The supply of loanable funds increases. 
B) The demand for loanable funds increases. 
C) The supply of loanable funds decreases. 
D) The demand for loanable funds decreases.

Question 18

What type of consumer goods are most affected by the business cycle: durable goods or nondurable goods? Why?

Accepted Answer

The answer of What type of consumer goods are most...

Question 19

The rule of 70 states that

Accepted Answer

A) it takes an economy 70 years to double its real GDP. 
B) the number of years it takes an economy to double in size is 70 divided by the growth rate. 
C) the number of years it takes an economy to double in size is the growth rate times 70. 
D) the number of years it takes an economy to double in size is the growth rate divided by 70.

Question 20

A period of economic expansion ends with a business cycle trough.

Accepted Answer

A) True 
 B)False

Exam 10: Economic Growth, the Financial System, and Business Cycles

Which of the following describes the growth in real GDP per person in the United States from 1900 to the present?

Explain how unemployment changes over the business cycle.Why do these changes occur?

In a closed economy,what is the relationship between saving and investment?

________ are financial securities that represent partial ownership of a firm.

Labor productivity will increase if the increases and .

Which of the following will increase investment spending in the economy,holding everything else constant?

Which of the following will increase the real interest rate?

What is human capital?

A government budget surplus from reduced government spending (no change in net taxes) will the level of investment in the economy and the level of saving (private plus public) in the economy.

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

Table 10-1 -Refer to Table 10-1.Using the table above,what is the approximate average annual growth rate from 2010 to 2013?

Economist Robert Fogel has estimated that by the year 2040,individuals in the United States will be spending

There is a federal budget deficit when

________ are financial securities that represent promises to repay a fixed amount of funds.

The demand for loanable funds has a slope because the lower the interest rate,the number of investment projects are profitable,and the the quantity of loanable funds demanded.

The U.S.economy has been more stable since 1950.

An increase in public saving has what impact on the market for loanable funds?

What type of consumer goods are most affected by the business cycle: durable goods or nondurable goods? Why?

The rule of 70 states that

A period of economic expansion ends with a business cycle trough.

Exam 10: Economic Growth, the Financial System, and Business Cycles

Which of the following describes the growth in real GDP per person in the United States from 1900 to the present?

Explain how unemployment changes over the business cycle.Why do these changes occur?

In a closed economy,what is the relationship between saving and investment?

________ are financial securities that represent partial ownership of a firm.

Labor productivity will increase if the ________ increases and ________.

Which of the following will increase investment spending in the economy,holding everything else constant?

Which of the following will increase the real interest rate?

What is human capital?

A government budget surplus from reduced government spending (no change in net taxes) will ________ the level of investment in the economy and ________ the level of saving (private plus public) in the economy.

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

Table 10-1 -Refer to Table 10-1.Using the table above,what is the approximate average annual growth rate from 2010 to 2013?

Economist Robert Fogel has estimated that by the year 2040,individuals in the United States will be spending

There is a federal budget deficit when

________ are financial securities that represent promises to repay a fixed amount of funds.

The demand for loanable funds has a ________ slope because the lower the interest rate,the ________ number of investment projects are profitable,and the ________ the quantity of loanable funds demanded.

The U.S.economy has been more stable since 1950.

An increase in public saving has what impact on the market for loanable funds?

What type of consumer goods are most affected by the business cycle: durable goods or nondurable goods? Why?

The rule of 70 states that

A period of economic expansion ends with a business cycle trough.

Labor productivity will increase if the increases and .

A government budget surplus from reduced government spending (no change in net taxes) will the level of investment in the economy and the level of saving (private plus public) in the economy.

The demand for loanable funds has a slope because the lower the interest rate,the number of investment projects are profitable,and the the quantity of loanable funds demanded.