If you want to purchase a new sports car in four years for $75,000, how much would
you need to have in your bank account now, so after four years you will have $75,000
to buy the car? Assume your bank pays 6 percent interest.
A) $51,226
B) $59,408
C) $60,484
D) $70,755
Bank runs occur when:
A) the FDIC believes that the government will fail.
B) the depositors believe that the FDIC will fail.
C) the government believe that the bank will fail.
D) depositors believe that the bank will fail.
A decrease in government purchases shifts the ________ curve to the ________.
A) aggregate demand; left
B) aggregate supply; left
C) aggregate demand; right
D) aggregate supply; right
Which of the following would be a macroeconomic question?
A) How have the retirement benefits in the auto industry changed over time?
B) How has inflation increased over time?
C) How has the price of gold increased over time?
D) How has the number of commercial airline flights decreased over time?
Which one of the following would lead to an eventual change in the total money
supply?
A) a customer’s cash withdrawal from an ATM
B) a customer moves funds from her checking account to her savings account
C) using a credit card to purchase a new television
D) depositing a paycheck in a bank
The Jackson Tool Company manufactures only tools. In 2010, Jackson Tools
manufactured 20,000 tools, but sold 22,000 tools. In 2010, Jackson Tools’ change in
inventory was:
A) -2,000 tools.
B) 2,000 tools.
C) 18,000 tools.
D) -10,000 tools.
The number of people unemployed equals:
A) the number of people employed minus the labor force.
B) the labor force plus the number of people employed.
C) the labor force minus the number of people employed.
D) the number of people employed divided by the labor force.
Table 13.3
Refer to Table 13.3. People’s Bank excess reserves are $ ________.
A) 100,000
B) 20,000
C) 40,000
D) 60,000
Figure 18.3
Refer to Figure 18.3. With free trade, the equilibrium quantity is:
A) 80.
B) 100.
C) 60.
D) 40.
Recall the Application that questions if the United States can or should adopt a
value-added tax (VAT) to answer the following question(s). The value-added tax is
essentially a sales tax that is levied on each stage of production. Firms pay the value
added tax on their sales and then receive a credit for value-added taxes paid by their
suppliers. Unlike a sales tax, the value-added tax is embedded in the price of
goods.According to this Application, ________ developed countries and ________
developing countries have a value-added tax.
A) virtually all; many
B) very few; most
C) most; very few
D) very few; very few