Econ in class quiz questions
Because baby boomers are retiring, investing in firms that produce goods and services for senior citizens is definitely a sure road to riches. T or F
False
(Table: Consumer Price Index) Refer to the CPI values in the table for the years 2005 to 2010. What was the approximate inflation rate over the period 2009 to 2010?
1.68%
Figure: Labor Market) Refer to the figure. If this market is initially in equilibrium when a $10 minimum wage is imposed, the quantity of labor employed will fall by:
20
(Table: Consumer Price Index) Refer to the CPI values in the table for the years 2005 to 2010. In which year was the inflation rate the highest?
2008
A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. What is this country's unemployment rate?
25%
(Table: Employment, Unemployment, and Labor Force Participation) Refer to the table. What is the unemployment rate of the country in 2009?
3.9%
(Figure: Loanable Funds Market) Refer to the figure of the loanable funds market. The equilibrium interest rate in this market is:
4.5%
A real return of 10% per year means that a $10,000 investment will grow to $20,000 in:
7 years
A small country has an aggregate production function given by Y = AK1/2. What would need to happen to the aggregate production function to represent an advance in technology?
A would need to increase
A decrease in the inflation rate from 10% to 3% implies that disinflation has occurred. T or F
True
According to the Fisher effect, a 5% decrease in the expected inflation rate results in:
a 5% decrease in the nominal interest rate.
A binding interest rate ceiling creates _____ savings.
a shortage of
According to Nobel laureate Milton Friedman, "inflation is _____."
always and everywhere a monetary phenomenon
A mutual fund is:
an investment fund that pools money from many investors and invests that money in the stocks of many firms.
A decrease in investment demand:
decreases both the amount saved and the interest rate
An unemployed person is one who:
does not have a job but is actively looking for one.
A passive fund is a fund that:
invests in the companies that constitute a broad market index.
A major problem with inflation is that after it starts:
it is difficult to stop without experiencing high unemployment.
A bond is a(n):
liability for the issuer.
According to the efficient markets hypothesis, stock prices:
reflect all publicly available information about the stock market.
An initial public offering is:
the first time a corporation sells stock to the public in order to raise capital.