1) Answer the next question(s) on the basis of the following list of assets:
1> Large ($100,000 and over) time deposits
2> Noncheckable savings deposits
3> Currency (coins and paper money)
4> Small (under $100,000) time deposits
5> Stock certificates
6> Checkable deposits
7>Money market deposit accounts
8>Money market mutual fund balances held by individuals
9>Money market mutual fund balances held by businesses
Refer to the above list. The assets that are not included in either M1 or M2 are:
A.items 1, 5, and 9.
B.items 2, 5, 8, and 9.
C.items 1, 3, 5, 7, and 9.
D.all of the nine items listed.
2) in the past few years, the demand for donuts has greatly increased. this increase in
demand might best be explained by:
a.an increase in the cost of making donuts.
b.an increase in the price of coffee.
c.consumers expecting donut prices to fall.
d.a change in buyer tastes.
3) The labor demand schedule is identical with the:
A.marginal product schedule.
B.marginal resource cost schedule.
C.marginal revenue product schedule.
D.product demand schedule.
4) the market system’s answer to the fundamental question “how will the system
accommodate change?” is essentially:
a.”through government leadership and direction.”
b.”through the guiding function of prices and the incentive function of profits.”
c.”through training and retraining programs.”
d.”through random trial and error.”
5) The prime interest rate usually:
A.rises when the Federal funds rate rises.
B.rises when the discount rate falls.
C.falls when the Federal funds rate rises.
D.falls when the Fed sells bonds in the open market.
6) The current account in a nation’s balance of payments includes:
A.its goods exports and imports, and its services exports and imports.
B.foreign purchases of domestic assets.
C.purchases of foreign assets.
D.all of these.
7) the problems of corporations such as enron and worldcom occurred because:
a.they failed to offer stock to executives to encourage profit-seeking decisions.
b.providing stock as part of executive compensation encouraged fraudulent practices
designed to exaggerate profits and artificially inflate the value of the stock.
c.incompetent auditing failed to identify unprofitable practices.
d.the industries in which those companies operated were no longer profitable.
8)
Refer to the above diagram. If the full-employment level of GDP is A, then it would be
appropriate fiscal policy for government to:
A.decrease spending and increase taxes.
B.decrease spending and decrease taxes.
C.increase spending and increase taxes.
D.increase spending and decrease taxes.
9) the following production possibilities tables for countries alpha and beta:
refer to the above tables. assume that before specialization both nations chose to
produce alternative b. the gains from specialization and trade would be:
a.2 units of x and 2 units of y
b.4 units of x
c.4 units of y
d.6 units of x and 3 units of y
10) average fixed costs can be determined graphically by:
a.summing the marginal costs of any number of units of output and dividing the sum by
that output.
b.the vertical distance between tc and tvc.
c.the vertical distance between avc and mc.
d.the vertical distance between atc and avc.
11) The Federal funds rate is:
A.higher than both the prime interest rate and the discount rate.
B.lower than both the prime interest rate and the discount rate.
C.higher than the prime interest rate but lower than the discount rate.
D.lower than the prime interest rate but higher than the discount rate.
12) a demand curve which is parallel to the horizontal axis is:
a.perfectly inelastic.
b.perfectly elastic.
c.relatively inelastic.
d.relatively elastic.
13) the unemployment rate is the:
a.ratio of unemployed to employed workers.
b.number of employed workers minus the number of workers who are not in the labor
force.
c.percentage of the labor force that is unemployed.
d. percentage of the total population that is unemployed.
14) The view that the antitrust laws need to be strongly enforced to prevent illegal
business behaviors, monopolization of markets, and allocative inefficiency is known as
the:
A.structuralist view of antitrust.
B.behavioralist view of antitrust.
C.laissez-faire perspective on antitrust.
D.active antitrust perspective.