macro test 2

which of the following would have the lowest present value?

$100 in three years

a permanent increase in investment leads to a permanently higher growth rate

FALSE

which of the following is false?

a nation cannot increase its standard of living if the population is growing

As unionization increases, one would expect to see an increase in the unemployment rate

TRUE

according to the Romer podcast, which of the following policies will lead to the most discovery and innovation within the domestic economy?

allowing foreign direct investments to many firms

according to the landsburg article "be fruitful and multiply" parents enjoy most of the benefits of children but bear few of the costs. Consequently, most parents have too many children from a societal perspective.

FALSE

which of the following would have the lowest present value?

cannot determine without an interest rate

suppose congress introduces an investment tax credit for firms, what would happen?

interest rates would rise and investment would rise

which of the following is not consistent with the efficient market hypothesis?

managed funds should consistently outperform indexed funds

according to the author of ignoring economics, the gap in unemployment rates between the young and old, skilled, and unskilled and between racial groups is due to:

minimum wage laws

according to the romer podcast, diminishing returns to capital can be offset by:

more discovery and innovation

according to the author of "main street vs. wall street,"

the allocation of resources, the financial sector is inefficiently large and needs to shrink

based on "how the government stoked the mania" which of the following statements is false?

the government...

usually the current price of a stock is the best predictor of its future price

true

you cannot get rich from the stock market by observing publicly available information

true

if one sector of the labor market unionizes and bargains collectively to raise the union wage, then...

unionized employment will increase and non-union wage will decrease

annual income is more evenly distributed than lifetime income

false

hurricane katrina was good for the US economy

false

using the rule of 70, how much larger would rochelle's income be in 35 years if she were to experience a 4% increase in income per year?

four times as large

which best describes the generation of new ideas?

population X incentives X ideas per year