2301 Econ exam 3

Megan is a landscaper. Which of the following are included in her human capital?

her knowledge of landscaping learned in college, but not her landscaping equipment

A bond is

take deposits from savers, make loans to borrowers, facilitate purchasing of goods and services -a certificate of a loan to a government or a business

The future value of a deposit in a savings account will be larger

-longer a person waits to withdraw -the higher the interest rate -the larger the initial deposit is -All of the above are correct

When a large, well-known corporation wishes to borrow directly from the public it can

-sell bonds

A tax on an imported good is called a

-tariff

A business delivering documents, might need to purchase cell phones, bicycles, and desks?

-these purchases are called capital investment. If you raise the funds to purchase them from others you are a borrower

With which of the ten principles of economics is the study of international trade most closely connected?

-trade can make everyone better off

What is the correct way to compute the future valur of $1 in an account that earns 5% interest for 16 years

1(1+.05) to the 16 power

At an annual interest rate of 14%, about how many years will it take $100 to double in value?

5

What is the future value of $500 one year from today if the interest rate is 6%

530

At an annual interest rate of 10%, about how many years will it take $100 to double in value

7

When opening a print shop you need to buy printers, computers, furniture, and similar items. Economist call these expenditures?

-capital investment

Which of the following is the correct way to compute the future value of $x that earns r present interest for N years

-X(1+r) to the n power

What is the fundamental basis for trade among nations

-Comparative advantage

An important factor in the decline of the US textile industry over the past 100 or so years is

-Foreign competitors that could produce quality textile goods at a low cost

Productivity is the amount of good and services?

-Produced per hour gdp -produced for each hour of a workers time. It is linked to a nations economic policies

Which of the following would not be considered physical capital?

Fertile soil, a trained physicist

Human capital is the ? knowledge through education and learning

Knowledge and skills that people get through education, experience and training

Given that monika's income exceeds her expenditures, Monika is best described as a

Saver or supplier of funds

Mary looks over reports on four of her workers. Jack made 25 baskets in 5 hours. Walter made 36 baskets in 6 hours. Rudy made 40 baskets in 4 hours. Who has the greatest productivity?

Walter

Two of the economy's most important financial intermediaries are -

banks and mutual funds

Industrial machinery is an example of what

factor of production that in the past was an output from the production process physical capital something that influences productivity

Discounting refers directly to

finding the present value of a future sum of money

Productivity is defined as the quantity of

goods and services produced from each unit of labor input

Compounding refers directly to

interest rate being earned on previously earned interest

The primary economic function of the financial system is to

match one person's saving with another person's investment

The equipment and structures available to produce goods and services are called

physical capital

Which of the following items plays a role in determining productivity

physical capital, natural resources, technological knowledge

At the broadest level, the financial system moves the economy's scarce resources from

savers to borrowers

As alternative to selling shares of stock as a means of raising funds, a large company could instead

sell bonds