The balance of payments includes which three accounts?
A) the current account, the financial account, and the capital account
B) the capital flows account, the financial account, and the trade account
C) the net investment account, the net exports account, and the net transfers account
D) the balance of trade account, the net foreign investment account, and statistical
discrepancy
Which of the following will raise consumer expenditures?
A) an increase in interest rates
B) a general decline in housing prices
C) an increase in expected future income
D) an increase in the price level
What takes place in the indirect finance market?
A) Part ownership of corporations is sold in the form of stocks.
B) Corporate and government bonds are sold to savers.
C) Deposits of savers are accepted and loans made to borrowers.
D) Government purchases of buildings and equipment are sold to the highest bidder.
In October 2013, Abercrombie & Fitch (ANF) posted a price-earnings ratio of 13. If the
price of the stock at that time was $36 per share, which of the following must have been
true?
A) ANF’s revenues that month were $4.68 million.
B) ANF’s earnings per share was $2.77.
C) ANF’s coupon payment was $23.23 per year.
D) ANF’s dividend yield for the year was 47%.
If whole tomatoes were money, which of the following functions of money would be
the hardest for tomatoes to satisfy?
A) unit of account
B) store of value
C) certificate of gold
D) medium of exchange
The Taylor rule accurately predicted the changes in the federal funds target during the
period
A) when Alan Greenspan was the chairman of the Federal Reserve Board.
B) when Paul Volcker was the chairman of the Federal Reserve Board.
C) when Arthur Burns was the chairman of the Federal Reserve Board.
D) when William McChesney Martin was the chairman of the Federal Reserve Board.
A corporation is owned by its
A) board of directors.
B) stockholders.
C) employees.
D) CEO.
If the federal budget has an actual budget deficit of $100 billion and a cyclically
adjusted budget deficit of $75 billion, then the economy
A) must be at potential real GDP.
B) must be below potential real GDP.
C) must be above potential real GDP.
D) could be below or above potential real GDP.
Policies to promote growth by increasing saving and investment work through
A) decreasing the supply of loanable funds, lowering the interest rate, raising the level
of investment in physical capital.
B) increasing the supply of loanable funds, increasing the interest rate, raising the level
of investment in physical capital.
C) increasing the supply of loanable funds, lowering the interest rate, lowering the level
of investment in physical capital.
D) increasing the supply of loanable funds, lowering the interest rate, raising the level
of investment in physical capital.
The person hired by a corporation’s board of directors to run the day-to-day operations
of the corporation is known as the
A) chairman of the board.
B) chief executive officer.
C) owner-manager.
D) corporate governor.
Figure 4-2
Refer to Figure 4-2. What area represents the decrease in producer surplus when the
market price falls from P2to P1?
A) C + E
B) A + C + E
C) A + B
D) B + D
Figure 16-12
Refer to Figure 16-12. An increase in government purchases of $200 billion causes
aggregate demand to shift ultimately from AD1 to AD2. Assuming a constant price
level, the difference in real GDP between point A and point B will be ________ $200
billion.
A) equal to
B) less than
C) greater than
D) There is insufficient information given here to draw a conclusion.