Macro Exam 2
Madelyn goes to college and reads many books while at school. Her education measures which of the following FOP?
Human Capital.
What is not a characteristic of minimum wage workers?
Full time.
The study of a company's accounting statements and future prospects to determine its value is known as
Fundamental Analysis.
Once a country is wealthy..?
It may be harder for it to grow quickly because of the diminishing returns to capital.
According to the BLS, a husband who chooses to stay home and take care of the household is
Not included in the LF.
The amount today that would be needed, at prevailing interest rates, to produce particular sum in the future is known as
Present value.
National Savings is equal to
Private + Public Saving
If GDP = $1000, consumption = $700, taxes = $50, and the government purchases= $300, how much is savings and investment?
They are both zero. S = I in a closed economy. S = Y - C - G.
the Unemployment rate is
Unemployed/Labor Force x100 (6.46%)
An increase in the budget deficit is
a decrease in public saving.
Our Standard of Living is most closely related to
our productivity because our income is equal to what we produce.
What government policy would fail to lower unemployment rate?
raising minimum wage
Diversification of a portfolio can
reduce firm specific risk.
The Labor Force is
the Unemployed + Unemployed. (105.2 Million in the example)
If the government spending exceeds tax collections,
there is a budget deficit.