Econ 362 Mid Term
. Mixster Concrete Company is considering buying a new cement truck. The owners and their accountants decide that this is the profitable thing to do. Before they can buy the truck, the interest rate and the price of the truck change. Inwhich case do these changes both make them less likely to buy the truck? A. Interest rates rise and truck prices rise. b. Interest rates fall and truck prices rise c. Interest rates rise and truck prices fall d. Interest rates fall and truck prices fall.
A
. The table below pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds meat and 10 toys . Refer to Table 24-5. The cost of the basket (a increased from 2004 to 2005 and increased from 2005 to 2006. b. increased from 2004 to 2005 and decreased from 2005 to 2006. c. decreased from 2004 to 2005 and increased from 2005 to 2006, d. decreased from 2004 to 200S and decreased from 2005 to 2006.
A
17. In a simple circular-flow diagram, firms a. purchase resources from households B. Purchase the output produced by households C. Receive income by selling resources to households D. All of the above are correct
A
18. Amy is working part-time. Tavaris is on temporary layoff. Who is included in the Bureau of Labor Statistics' "employed" category? A. Only Amy b. only Tavaris c. both Amy and Tavaris D. neither Amy nor Tavaris
A
26. Rosa deposits $100 in a bank account that pays an annual interest rate of 20 percent. A year later, after Rosa has accumulated $20 in interest, she withdraws her $120. Rosa's purchasing power A. did not change if the inflation rate was 20 percent. b. decreased if the inflation rate was -5 percent. c. increased if the inflation rate was 22 percent. d. More than one of the above is correct.
A
50. On the Internet you find the following offers for opening an online account. Which of them is the best offer if yvou have $2,000 to save for two years? A. An interest rate of 5 percent, with the bank charging you a $15 processing fee at the time you open your ассount b. An interest rate of 3.5 percent, with the bank giving you a $35 bonus to open your account c. An interest rate of 4 percent, with the bank giving you a $20 bonus at the time you open your account d. An interest rate of 4.5 percent, with no processing fee and no bonus
A
8. A bond that never matures is known as a a. perpetuity. b. an intermediary bond. c. an indexed bond. d. a junk bond.
A
A company in Panama pays a U.S. architect to design a factory building. By itself this transaction: A. Increases Panama's imports and so decreases panamas trade balance B. Increases Panama's exports and so decreases the panamas trade balance C. Decreases panamas imports and so increases the panamas trade balance D. Decreases Panama's exports and so increases the panamas trade balance
A
According to purchasing power parity when a country central bank decreases the money supply, a unit of money A. Gains value both in terms of the domestic goods and services it can buy and in terms of the foreign currency it can buy B. Gains value in terms of the domestic goods and services it can buy, but loses value in terms of the foreign currency it can buy C. Loses value in terms of the domestic goods and services it can buy, but gains value in terms of the forigen currency it can buy D. Loses value both in terms of domestic goods and services it can buy and in terms of the forigen currency it can buy
A
An increase in the governments budget surplus means public saving is A. Positive and increasing B. positive and decreasing C. negative and increasing D. negative and decreasing
A
Economist differ in their views of the role of the government and promoting economic growth. At the very least, the government should: A. Lend support to the invisible hand by maintaining property rights and political stability B. Limit foreign investments to industries that don't already exist in the country C. impose trade restrictions to protect the interests of domestic producers and consumers D. subsidize key industries
A
Given that Sarah's income exceeds her expenditure, Sarah is best described as a A. Saver or as a supplier of funds B. Borrower or a demander of funds C. Saver or as a demander of funds D. Borrower or as a supplier of funds
A
If Alan is risk-averse, then he will always A. Choose not to play a game where he has a 50% chance of winning five dollars and a 50% chance of losing five dollars B. Choose not to play a game where he has a 75% chance of winning five dollars in a 25% chance of losing five dollars C. Choose to play a game where he has a 55% chance of winning five dollars in a 45% chance of losing five dollars D. Choose to play a game where he has 25% chance of winning five dollars and a 75% chance of losing five dollars
A
If a US dollar purchases four Argentinian pesos and a gallon of milk cost three dollars in the US and six pesos in Argentina what is the real exchange rate A. 2 gallons of Argentinian milk, 1 gallon of US milk B. 3 gallons of Argentinian milk, 2 gallons of US milk C. 2 gallons of Argentinian milk, and 3 gallons of US milk D. 1 gallon of Argentinian milk, 2 gallons of US milk
A
In 1998, the Russian government defaulted on its bonds. According to the open economy macro economic model this should have, A. Increased Russian interest rates and net exports B. Reduced Russian interest rates and net exports C. increased Russian interest rates and reduced Russian exports D. reduced Russian interest rates and increased Russian exports
A
Suppose that monetary neutrality and the Fisher affect both hold. An increase in the money supply growth rate increases A. The inflation rate and the nominal interest rate by the same number of percentage points B. Nominal interest rates but by less than the percentage point increases in the inflation rate C. The inflation rate but not the nominal interest D. Neither the inflation rate nor the nominal interest rate
A
The following data is about the labor market in the city of productionville. If the local government imposed a minimum wage of four dollars in productionville. how many people will be unemployed A. 0 B. 2,000 C. 3,000 D. 10,000
A
Tyler puts $450 into an account when the interest rate is 8% later he checks his balance and finds he has about $612.22. How long did Tyler wait to check his balance? A. Four years B, three years C. five years D.six years
A
When the Fed decreases the discount rate the banks will, A. Borrow more from the Fed and lead more to the public. The money supply increases B. I borrow more from the Fed and lend less to the public. The money supply decreases C. Borrow less from the Fed and lend more to the public. The money supply increases D. Borrow less from the fed and lend less to the public the money supply decreases
A
When the money supply curve shifts from MS1 to MS2 A. The equilibrium value of money decreases B. the equilibrium price level decreases C. the supply of money has decreased D. the demand for goods and services will decrease
A
Which of the following best represents fiat money A. The euro B. a gold bar C. Monopoly money D. baseball cards
A
Which of the following can a country increase in the long run by increasing its money growth rate? A. The nominal wage B. real output C. real interest rates D. the real wage
A
33. Refer to Table 24-4. If 2013 is the base year, then the consumer price index was a. 80.8 in 2012, 100 in 2013, and 107.7 in 2014. b. 80.5 in 2012, 100 in 2013, and 107.3 in 2014. c. 247.5 in 2012, 307.5 in 2013, and 330 in 2014. D. 210 in 2012, 260 in 2013, and 280 in 2014.
A.
15. Suppose the issuer of a bond fails to pay some of the interest or principal that was promised to the bondholders. This failure is referred to as a a. breach. B. default. c. risk. d. term failure.
B
20. Ethan purchases a new house for $170,000. Ethan's purchase of the house contributes $170,000 to which magnitude in the identity Y= C + I + G A. C B. I C. G D. none of thr above
B
21. Michelle bought word-processing software in 2009 for $75. Michelle's cousin, Barry, bought an upgrade of the same software in 2010 for $75. To which problem in the construction of the CPI is this situation most relevant? a. substitution bias B. Unmeasured quality change c. introduction of new goods d. income bias
B
28. Which of the following is an example of an efficiency wage? A. High wage paid to compensate for dangerous work such as coal mining B. An above equilibrium wage offered by a firm to attract a more talented pool of job applicants C. A wage below the minimum wage but supplemented by customer tips D. High wage paid to a college graduate for a high skill job such as electrical engineering
B
30. In a closed economy, if Y and T remained the same, but G rose and C fell but by less than the rise in G, what would happen to public and national saving? A. public and national saving would rise B. Public and national saving would fall c. public saving would rise and national saving would fall d. public saving would fall and national saving would rise
B
31. Net exports equal a. exports plus imports b exports minus imports. c. imports minus exports. d. GDP minus imports.
B
35. Fred operates his own business; Fred would be counted as employed a. in both the household and establishment surveys. b. in the household but not the establishment survey c. in the establishment but not the houschold survey . d. in neither the household nor the establishment survey.
B
37. A closed economy does not engage in international trade, therefore a. national saving is less than investment (S< I). b. net exports (NX) are zero. c. Y-C-G> I d. national saving is zero.
B
40. By not taking into account the possibility of consumer substitution, the CPI a. understates the cost of living. b.overstates the cost of living. c. may overstate or understate the cost of living, depending on how quickly prices rise. d. may overstate or understate the cost of living, regardless of how quickly prices rise.
B
44. Real GDP per person is $10,000 in Country A, $20,000 in Country B, and $30,000 in Country C. The saving rate increases by the same rate in all three countries. Other things equal, we would expect that a. all three countries will grow at the same rate. B. Country A will grow the fastest. c. Country B will grow the fastest. d. Country C will grow the fastest.
B
45. Suppose a person receives an education in her home country. Which of the following will tend to make the increase in GDP of the person's home country larger than the increase in this person's income? a. externalities and brain drain b. externalities but not brain drain c. brain drain but not externalities d. neither externalities nor brain drain
B
47. Refer to Table 29-6. Metropolis National is holding 2% of its deposits as excess reserves. Assume that no banks in the economy want to maintain holdings of excess reserves and that people only hold deposits and no currency. The Fed makes open market purchases of $10,000. The person who sold bonds to the Fed deposits all the funds in metropolis national bank if the bank now loans out all of its excess reserves, by how much will the money supply increase? A. $190,000 B. $200,00 C. $240,000 D. $220,000
B
49. Suppose a country's net capital outflow does not change, but its investment declines by $420 billion. Its saving must have A. fallen by $420 billion, so its net exports have risen. B. fallen by $420 billion, but its net exports are unchanged. c. risen by $420 billion, so its net exports have fallen. d. risen by $420 billion, but its net exports are unchanged.
B
5. An economy's natural rate of unemployment is the a. economy's long-run target level of unemployment. b, amount of unemployment that the economy normally experiences. c. lowest rate of unemployment the economy can achieve.
B
9. Dewey earned a salary of $75,000 in 2001 and $95,000 in 2006. The consumer price index was 177 in 2001 and 266 in 2006. Deweys 2006 salary in 2001 dollars is a. $47,768.36. B. 63.214.29, c. $84,550.00. d. $142,768.36.
B
In answering which of the following questions would you find it necessary to calculate a present value? A. Should Dalton put $4000 today into a five-year certificate of deposit that pays 5% annual interest B. Should ABC corporation buy a factory today for $3 million knowing that the factory will yield a corporation $5 million after three years C. If Keisha puts $4000 today into a bank account that pays 4% interest and how much will she have in the account after four years D. If Russell lends his friend Mya $350, how much will she know him in a year if she insists on paying 4% interest
B
Index funds typically have a A. Higher rate of return and higher cost than managed mutual funds B. Higher rate of return and lower cost than managed mutual funds C. Lower rate of return and higher cost the managed mutual funds D. Lower rate of return and lower costs that managed mutual funds
B
Refer to scenario 26-1. For this economy private savings amounts to A. $6000 B $25,000 C. $14,000 D. -$25,000
B
Refer to table 29-5 the banks leverage ratio is A. 2 B. 50 C. 13.3 D. 7.5
B
The economy of your umrica uses gold as its money. If the government discovers a large reserve of gold on their land the A. Supply of money decreases, the value of money rises and the prices fall b. Supply of money increases the value of money falls and the prices rise C. Demand for money increases, the value of money rises, and the prices rise D. Demand for money decreases, the value of money falls and the prices fall
B
Which of the following accurately describes of the effect of the government budget deficit on an open economy? A. Real interest rates fall, which encourages domestic investment, the currency appreciates pushing trade balance toward deficit B. Real interest rates rise, which causes crowding of domestic investment, the currency appreciates pushing the trade balance toward deficit C. Real interest rates fall which encourages domestic investment, the currency depreciates pushing the trade balance toward surplus D. Real interest rates rise, which causes crowding out of domestic investment, the currency depreciates pushing the trade balance toward surplus
B
You hold bonds issued by the city of Sacramento California. The interest rate you earn each year on these bonds A. It's not subject to federal income tax and so these bonds pay higher interest rate than otherwise comparable bonds issued by the US government B. Is not subject to federal income tax and so these bonds pay a lower interest rate than otherwise comparable bonds issued by the US government C. Is subject to federal income tax and so these bonds pay a higher interest rate than otherwise comparable bonds issued by the US government D. Is subject to federal income tax so these bonds pay a lower interest rate than otherwise comparable bonds issued by the US government
B
. 39. People who buy newly issued stock in a corporation such as Crate and Barrel provide a. debt finance and so become part owners of Crate and Barrel B. debt finance and so become creditors of Crate and Barrel. C. equity finance and so become part owners of Crate and Barrel. d. equity finance and so become creditors of Crate and Barrel.
C
1. Suppose the price for one gallon of gasoline rises from $3.50 to $4.00 and the price of one gallon of milk rises from $3.00 to $3.20. If the CPI rises from 120 to 132, then people likely will buy a. more gasoline and more milk. b. more gasoline and fewer milk. c. less gasoline and more milk. d. less gasoline and fewer milk.
C
14. The consumer price index was 200 in 2008 and 190 in 2009. The nominal interest rate during this period was 4.5 percent. What was the real interest rate during this period?. a. - 0.75 percent b. - 0.5 percent c. 9.5 percent d. 9.75 percent
C
19. Consternation Corporation has an agreement with its workers to index completely the wage of its employees using the CPI. Consternation Corporation currently pays its production line workers $7.50 an hour and is scheduled to index their wages today. If the CPI is currently 130 and was 125 a year ago, the firm should increase the hourly wages of its workers by A. $0.04 B. $0.29 C.$0.30 D. $0.50
C
22. In an imaginary economy, consumers buy only razors and cologne. The fixed basket consists of 6 razors and 4 bottles of cologe. A razor cost $20 in 2009 and $25 in 2010. A bottle of cologne cost $30 in 2009 and $40 in 2010, Using 2009 as the base year, which of the following statements is correct? A. For the typical consumer, the number of dollars spent on razors is equal to the number dollars spent on cologe in each of the two years b. The consumer price index is 310 in 2010 C. The rate of inflation is 29.17% in 2010. d. None of the above is correct.
C
23. In an imaginary economy, consumers buy only sandwiches and magazines. The fixed basket consists of 20 sandwiches and 30 magazines. In 2006, a sandwich cost $4 and a magazine cost $2. In 2007, a sandwich cost $5. The base year is 2006. If the consumer price index in 2007 was 125, then how much did a magazine cost in 2007? A. $0.83 B. $2.25 C.$2.50 D. $3.00
C
36. Which of the following is a financial-market transaction? a. A saver buys shares in a mutual fund. b. A saver deposits money into a credit union. C. A saver buys a bond a corporation has just issued so it can purchase capital . d. None of the above is correct.
C
41. U.S. GNP a. includes production of foreigners working in the US. and production of U.S. citizens working in foreign countries. b. includes production of foreigners working in the U.S. but excludes production of U.S. citizens working in foreign countries. C. excludes production of foreigners working in the U.S. but includes production by U.S. citizens working in foreign countries. d. excludes production of foreigners working in the U.S. and production by U.S. citizens working in foreign countries.
C
42. To encourage formation of small businesses, the government could provide subsidies; these subsidies a. would be included in GDP because they are part of government purchases. b. would be included in GDP because they are part of investment expenditures. C. would not be included in GDP because they are transfer payments. d. would not be included in GDP because the government raises taxes to pay for them.
C
By definition equity finance A. Is accomplished when units of government sells bonds B. is accomplished when firms sell bonds C. Is accomplished when firm sell shares of stock D. Involves fair interest rates or dividend yields
C
In a closed economy public savings is the amount of A. Income that households have left after paying for taxes and consumption B. Income that businesses have left after paying for the factors of production C. Tax revenue that the government has left after paying for it spending D. Spending that the government undertakes in excess of all taxes it collects
C
National savings is: A. The total income in the economy that remains after paying for consumption B. The total income in the economy that remains after paying for consumption and government purchases C. Always greater than investment for a closed economy D. Equal to private savings minus public savings
C
Suppose that the bureau of labor statistics reports at the entire adult population of Mankiwland can be categorized as follows 25 million people employed, 3 million people unemployed, 1 million people discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment. What is the unemployment rate? A. 3.3% B. 6.7% C. 10.7% D. 12%
C
The The following table shows some values of the Consumer Price Index and the corresponding inflation rates for 2012-2015 Year CPI Inflation Rate 2012 229.6 2.1% 2013 233.0 2014 236 .1 1.6% 2015 237.0 0.1% 4. Refer to Table 24-14. The value of the Consumer Price Index in 2014 was approximately a. 234.6. b. 235.0. C 236.7. d. 236.9.
C
The bank has $8000 in deposits and $6000 in loans it has loaned out all it can, given the requirement. It follows that the bank reserve requirement is A. 2.5% B. 33.3% C. 25% D. 75%
C
The behavior of market prices overtime indicates that natural resources are A. A limit to economic growth B. Unrelated to economic growth C. Not a limit to economic growth D. The major determinant of productivity
C
Which of the following bonds has the highest interest rate? A. High credit risk and a short term B. Low credit risk and a short term C. A long term and a high credit risk D. The short term and a low credit risk
C
Which of the following is an example of human capital? A. The comfortable chair in your dorm room where you read economics texts B. The amount you get paid each week to work at the library C. The things you have learned this semester D. Any capital goods that require a human to be present to operate
C
You are planning a graduation trip to Mexico. Other things the same, if the dollar appreciates relative to the peso, then the dollar buys A. Fewer pesos. Your hotel room in Mexico require fewer dollars B. Fewer pesos. Your hotel room in Mexico require more dollars C. More pesos. Your hotel room in Mexico will require fewer dollars D. More pesos. Your hotel room in Mexico will require more dollars
C
An understanding of the best ways to produce goods and services is called A. Human capital B. physical capital C. technology D. productivity
C) Technology
10. The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP because A. Some of the income from the factory a cruise to people who do not live in Algeria B. Gross domestic product as income earned within a country by both residence and non-residence where is gross national product is the income earned by residence of a country by producing both at home and abroad C. all the income from the factory is included in Algeria's GDP D. All the above are correctv
D
11. Suppose a basket of goods and services has been selected to calculate the CPI. 2002, the basket's cost was $80;In 2008, the basket's cost was $92; and in 2010, the basket's cost was $108. The base year must be A. 2002 B. 2008 C. One of the yesrs between 2008-2010 D. Not enough info
D
12. According to the definitions of national saving and private saving, if Y, C, and G remained the same, an increase in taxes would A. raise both national saving and private saving. B. Raise national savings and reduce private savings C. Leave national savings and private savings unchanged D. Leave national savings unchanged and reduce private savings
D
16. Matilda just graduated from college. In order to devote all her efforts to college, she didn't hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. Other things the same the unemployment rate a. increases, and the labor-force participation rate decreases. b. and the labor-force participation rate both increases. c. increases, and the labor-force participation rate is unaffected. d and the labor-force participation rate are both unaffected.
D
2. Which of the following is correct? a. Joan takes some of her income and buys mutual fund shares. Joan's purchase will be included in the investment category of GDP . b. If a share of stock in Virtual Pizza Corporation sells for $77, the earmings per share are $5, and the dividend per share is $2, then the P/E ratio is 11. c. In order to use equity finance, a firm must sell about equal values of stocks and bonds. d. None of the above is correct.
D
27. If in a closcd economy Y= $11 trillion, which of the following combinations would be consistent with national saving of $3 trillion? A. C= $8 trillion, G= $3 trillion b. C= $13 trillion, G= $-1 trillion. c. C= $9 trillion, G= $5 trillion d.C= $7 trillion, G= $1 trillion
D
29. If real GDP doubles and the GDP deflator doubles, then nominal GDP a. remains constant B. doubles c. triples. D. quadruples.
D
3. Suppose an economy produces only eggs and ham. In 2009, 100 dozen eggs are sold at $3 per dozen and s0 pounds of ham sold at $4 per pound. In 2010, the base year, eggs sold at $1.50 per dozen and ham sold at $5 per pound, For 2009. a. nominal GDP is $400, real GDP is $500, and the GDP deflator is 80. B. nominal GDP is $400, real GDP is $500, and the GDP deflator is 125. C. nominal GDP is $500, real GDP is $400, and the GDP deflator is 80, d. nominal GDP is S500, real GDP is $400, and the GDP deflator is 125.
D
32. Suppose a country repealed its investment tax credit. The effects of this are represented by shifting the a. demand for and the supply of loanable funds to the right b. demand for and the supply of loanable funds to the left c. supply of loanable funds to the right and the demand for loanable funds to the left d.None of the above is correct.
D
34. Allied Business Consultants employs five researchers that each work 8-hour days. In one day, the researchers prepared 10 reports for its 2 largest clients. What was Allied Business Consultants' productivity? a. 10 reports b. 5 reports per client c. 1.25 reports per hour d,1/4 report per hour
D
38. Which of the following will increase a country's real GDP per person? A. imposing restrictions on foreign trade and foreign investment B. imposing restrictions on foreign trade and reducing restrictions on foreign investment c. reducing restrictions on foreign trade and imposing restrictions on foreign investment D. reducing restrictions on foreign trade and foreign investment
D
43. Core CPI is the A. CPI including only food, clothing, and energy b, the CPI including only food and energy c. the CPI excluding food, clothing, and energy. D. The CPI excluding food and energy.
D
51. The manager of the bank where you work tells you that your bank has $10 million in excess reserves. She also tells you that the bank has $500 million in deposits and $455 million in loans, Given this information you find that the reserve requirement must be: A. 9% B. 2% C. 10% D. 7%
D
54. A Chinese company exchanges yuan (Chinese currency) for dollars. It uses these dollars to purchase scrapmetal froma U.S. company. As result of these transactions, Chinese net exports- A. Increase, and the US net capital outflow increases B. Increase, and the US net capital outflow decreases C. Decrease, and the US net capital flow increases D. Decreases and US net capital outflow decreases
D
A problem that the Fed faces when it attempts to control the money supply is that A. 100% reserve banking system in the United States makes it difficult for the Fed to carry out its monetary policy B. The Fed hast to get approval of the US treasury department whenever it uses any of its monetary policy tools C. The Fed does not have a tool that it can use to change the money supply by either a small amount or a large amount D. The fed does not control the amount of money the household choose to hold as deposits in banks
D
Fine edge manufactures lawn mowers. In 2015 it had $2 million worth of lawnmowers in inventory. In 2015 at sold $10 million worth of lawnmowers to consumers and had $1 million worth of lawnmowers in inventory. How much did the lawnmowers produce by fine edge add to GDP in 2015 A. 11 million b. $10 million c. $7 million d. 9 million
D
From the appearance of Alex utility function we know that A. If Alex owns a house, then he definitely would buy fire insurance provided the cost of the insurance was reasonable B. Alex would involuntarily exchange a portfolio of stocks with high average return and higher level of risk for a portfolio with a low average return and low level of risk C. Alex is risk averse D. Alex is not risk averse
D
I assume the feds reserve requirement is 5% and all banks beside the bank of cheer are exactly in compliance with the 5% requirement. Further assume that people hold only deposit and no currency. Starting from the situation as it depicted by the ty account, if the bank of cheer decides to make new loans so as to end up with no reserves, then by how much does the money supply eventually increase? A. $17,142.86 B. $24,926.97 C. $26,871.29 D. $24,000
D
If US net exports are negative than net capital outflow is A. Positive, so foreign assets bought by Americans are greater than American assets bought by foreigners B. Positive, so American assets bought by foreigners are greater than foreign assets bought by Americans C. Negative, so foreign assets bought by Americans are greater than American assets bought by foreigners D. Negative, so American assets bought by foreigners are greater than for an asset bought by Americans
D
If a country experiences capital flight, which of the following curves shifts right? A. Only the demand for loanable funds B. Only the supply of dollars in the market for foreign currency exchange C. Only the net capital outflow curve in the supply of dollars in the market for foreign currency exchange D. The demand for loanable funds, the net capital outflow curve, and the supply of dollars in the market for foreign currency exchange
D
If you are vacationing in Spain and the dollar depreciates relative to the euro and the dollar buys A. More euros. It will take fewer dollars to buy a good that cost €50 B. More euros. It will take more dollars to buy a good that cost €50 C. Less euros. It will take fewer dollars to buy a good that cost €50 D. Less euros. It will take more dollars to buy a good that cost €50
D
In 2013, ABC corporation had total earnings of $200 million and 40 million shares of the corporation stock were outstanding. If the price earning ratio for ABC is 20, then what is the price share of a stock A. $5 B. $10 C. $80 D. $100
D
In one year, you meet 52 people who are each unemployed for one week and 8 people Who are each unemployed for one year. What percentage unemployment spells you encountered ended with one week and therefore was short term and what percentage of the unemployment you encountered in a given week was long-term? A. 52% was short term, 13.3% was long-term B. 52% was short term, 88.9% was long-term C. 86.7% was short term, 13.3% was long-term D. 86.7% was short term, 88.9% was long-term
D
In the long run, the unemployment rate equals A. The sum of the structural and natural rate of unemployment B. the economic rate of unemployment C. the difference between frictional and structural unemployment D. the natural rate of unemployment
D
Last year Jean spent all of her income to purchase 200 units of corn at five dollars per unit. This year, she spent all of her income to purchase 180 units of corn at six dollars per unit A. Janes nominal income and real income decrease this year B. Jane's nominal income decreased this year, but her real income increased C. Jane's nominal income and real income increased this year D. Jane's nominal income increase this year but her real income decreased
D
One year a country has negative net exports. The next year it still has negative net exports and imports have risen more than exports. A. It's trade surplus fell B. its trade surplus Rose C. its trade deficit fell D. its trade deficit Rose
D
Other things the same, an increase in the interest rate makes the quantity of laudable funds demanded A. Rise, and investment spending rise B. Rise, and investment spending fall C. Fall and investment spending rise D. Fall and investment spending fall
D
Refer to figure 27-1. From the appearance of the utility function we know that A. Jasmine enjoys engaging in risky behavior B. Jasmine gains more satisfaction when her wealth increases by X dollars then she loses in satisfaction when her wealth decreases by X dollars C. The property of diminishing marginal utility does not apply to Jasmine D. Jasmine is risk averse
D
Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called a. the natural rate of unemployment. b. cyclical unemployment. c. structural unemployment. d frictional unemployment,
D
Which of the following is not an example of monetary policy A. The federal open market committee decides to sell bonds B. The federal open market committee decides to buy bonds C. The federal reserve reduces the reserve requirement D. The federal reserve facilitates bank transactions by clearing checks
D
two of the economies most important financial intermediaries are A. Suppliers of funds and demanders of funds B. Banks and the bond market C. The stock market and the bond market D. Banks and mutual funds
D
you hold currency from a foreign country. If that country has a lower rate of inflation in the United States, then overtime the foreign currency will buy A. Fewer goods in that country and buy fewer dollars B. Fewer goods in that country but buy more dollars C. More goods in that country but buy fewer dollars D. More goods in that country and buy more dollars
D
The principle of monetary neutrality implies that an increase in the money supply will increase A. Real GDP and the price level B. Real GDP but not the price level C. The price level, but not real GDP D. Neither the price level nor the real GDP
c. the price level, but not real GDP.
