Econ quiz 3

_____ workers are those adults in jail or other similar situations.

Institutionalized

_____ occur when stock prices rise far faster and far higher than can be accounted for by the fundamental prospects of the company.

Speculative bubbles

For _________, a mutual fund pools money from many customers and invests that money in many firms.

a managerial fee

Which event would definitely cause the equilibrium quantity of savings to decrease?

a simultaneous decrease in the demand for loanable funds and a decrease in the supply of loanable funds

When a company decides to go public and issues stock for the first time, this is called:

an initial public offering (IPO), and it is done so that the company can raise capital.

The amount that people save for retirement:

can be affected by simple psychological factors and effective marketing.

Short-term unemployment caused by ordinary difficulties of matching employee to employer is:

frictional unemployment.

Which factor is one of the four major factors that economists believe determine the supply of savings?

impatience

Which condition could break the bridge between savers and borrowers?

insecure property rights

All else equal, _____ interest rates usually result in less _____.

lower; savings

A passive mutual fund:

mimics a broad stock market index.

A tariff acts as a negative productivity shock by:

moving capital and labor away from industries where it produces the goods for which it has a comparative advantage.

For a managerial fee, a _____ pools money from many customers and invests that money in many firms.

mutual fund

When we add the structural rate of unemployment to frictional unemployment, we get the:

natural unemployment rate.

The value of an asset is:

related to the future cash flows the firm will earn.

In the AD/SRAS model, prices and wages are:

sticky

What can increase structural unemployment?

stronger unions

All else equal, if consumers decide to save more, the:

supply curve in the market for loanable funds will shift to the right.

The panic in the shadow banking system that led to the financial crisis of 2007-2008 was exacerbated by all of these conditions except:

the overregulation of the shadow banking system.

In today's economy, if the people with the best ideas are not also the people with the most savings:

they will have to borrow funds to bring their ideas to fruition.

It has been said that consumers often want immediate satisfaction and therefore must be compensated for saving their money. Which preference best captures this phenomenon?

time preference

Cyclical unemployment is defined as:

unemployment correlated with the business cycle.

An association of workers that bargains collectively with employers over wages, benefits, and working conditions is the definition of a:

union