Econ Final Set 2

Daniel has $300 in a bank account. Some years ago he put $213.20 into this account, and it has earned 5 percent interest every year since then. How many years ago did Daniel open his account? a. 4 years b. 5 years c. 6 years d. 7 years

7 years

Which of the following is an example of barter? a. A parent gives a teenager a $10 bill in exchange for her babysitting services. b. A homeowner gives an exterminator a check for $50 in exchange for extermination services. c. A barber gives a plumber a haircut in exchange for the plumber fixing the barber's leaky faucet. d. All of the above are examples of barter.

A barber gives a plumber a haircut in exchange for the plumber fixing the barber's leaky faucet.

Which of the following is correct? a. The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy. b. The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and a complex economy can achieve zero unemployment. c. The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and a complex economy can achieve zero unemployment. d. The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy.

The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy.

Countries with more than 80 percent of their population living within 100 kilometers of a coast will have an average GDP per person that is a. around four times a country with less than 20 percent of the population living near the coast. b. around ten times a country with less than 20 percent of the population living near the coast. c. around twenty times a country with less than 20 percent of the population living near the coast. d. around fifty times a country with less than 20 percent of the population living near the coast.

around four times a country with less than 20 percent of the population living near the coast.

Assume the bonds below have the same term and principal and that the state or local government that issues the municipal bond has a good credit rating. Which list has bonds correctly ordered from the one that pays the highest interest rate to the one that pays the lowest interest rate? a. corporate bond, municipal bond, U.S. government bond b. corporate bond, U.S. government bond, municipal bond c. municipal bond, U.S. government bond, corporate bond d. U.S. government bond, municipal bond, corporate bond

corporate bond, U.S. government bond, municipal bond

Minimum-wage laws a. create unemployment. b. do not apply in states with right-to-work laws. c. affect highly-educated workers more than high school dropouts. d. cause labor shortages, which further raise wages above equilibrium.

create unemployment.

Job search a. and firms paying wages above equilibrium to improve worker health both create frictional unemployment b. creates frictional unemployment, while firms paying wages above equilibrium to improve worker health creates structural unemployment. c. creates structural unemployment, while firms paying wages above equilibrium to improve worker health creates frictional unemployment. d. and firms paying wages above equilibrium to improve worker health both create structural unemployment.

creates frictional unemployment, while firms paying wages above equilibrium to improve worker health creates structural unemployment.

Suppose that in some country the price of silver increased from $30 per ounce to $31 per ounce during a time when the overall price level increased by 5 percent. During this period, the real price of silver a. increased. b. decreased. c. stayed the same. d. might have increased, decreased or stayed the same; more information is needed to be sure.

decreased.

Duane owns his own real estate company. The Bureau of Labor Statistics counts Duane as a. unemployed and in the labor force. b. unemployed and not in the labor force. c. employed and in the labor force d. employed and not in the labor force.

employed and in the labor force.

Institutions that help to match one person's saving with another person's investment are collectively called the a. Federal Reserve system. b. banking system. c. monetary system. d. financial system.

financial system.

Suppose that the Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to a. frictional unemployment created by efficiency wages. b. structural unemployment created by efficiency wages. c. frictional unemployment created by sectoral shifts. d. structural unemployment created by sectoral shifts.

frictional unemployment created by sectoral shifts.

Money is the most liquid asset available because a. it is a store of value. b. it is a medium of exchange. c. it is a unit of account. d. it has intrinsic value.

it is a medium of exchange.

Larry buys stock in A to Z Express Company. Curly Corporation builds a new factory. Whose transaction would be an act of investment in the language of macroeconomics? a. only Larry's b. only Curly Corporation's c. Larry's and Curly Corporation's d. neither Larry's nor Curly Corporation's

only Curly Corporation's

Suppose that college professors at public universities are unionized. If public university college professors change their minds and vote not to be unionized, the quantity of public university college professors demanded will a. rise. The supply of workers in other similar professions will also rise. b. rise. The supply of workers in other similar professions will fall. c. fall. The supply of workers in other similar professions will rise. d. fall. The supply of workers in other similar professions will also fall.

rise. The supply of workers in other similar professions will fall.

If there is a surplus of loanable funds, then a. the quantity demanded is greater than the quantity supplied and the interest rate will rise. b. the quantity demanded is greater than the quantity supplied and the interest rate will fall. c. the quantity supplied is greater than the quantity demanded and the interest rate will rise. d. the quantity supplied is greater than the quantity demanded and the interest rate will fall.

the quantity supplied is greater than the quantity demanded and the interest rate will fall.