Archives: Quiz
Chapter 17 What changes nominal variables? What changes real variables
60. According to the classical dichotomy, what changes nominal variables? What changes real variables? 61. Suppose that monetary neutrality holds. Of the following variables, which ones do not change when the money supply increases? a. real interest rates b. inflation […]
Chapter 17 U.S. prices rose at about the same rate as in the 1970s
5. In the 1990s, U.S. prices rose at about the same rate as in the 1970s. a. True b. False 6. The quantity theory of money can explain hyperinflations but not moderate inflation. a. True b. False ANSWER: False POINTS: […]
Chapter 17 When inflation rises, people tend to go to the bank
12. The shoeleather cost of inflation refers to a. the redistributional effects of unexpected inflation. b. the time spent searching for low prices when inflation rises. c. the waste of resources used to maintain lower money holdings. d. the increased […]
Chapter 17 If the real interest rate is 6 percent and the price level
218. If the real interest rate is 6 percent and the price level is falling at a rate of 2 percent, what is the nominal interest rate? a. 4 percent b. 6 percent c. 8 percent d. 10 percent 219. […]
Chapter 17 This means that the rate at which money changed hands
177. During the 2008 financial crisis velocity decreased. This means that the rate at which money changed hands a. decreased. Other things the same, a decrease in velocity decreases the price level. b. decreased. Other things the same, a decrease […]
Chapter 17 The principle of monetary neutrality implies that an increase
137. The principle of monetary neutrality implies that an increase in the money supply will a. increase real GDP and the price level. b. increase real GDP, but not the price level. c. increase the price level, but not real […]
Chapter 17 Economic Variables Whose Values Are Measured
96. Economic variables whose values are measured in goods are called a. dichotomous variables. b. nominal variables. c. classical variables. d. real variables. 97. The price level is a a. relative variable. b. dichotomous variable c. real variable. d. nominal […]
Chapter 17 The primary reason people hold money isa. to keep wealth
20. In the long run, money demand and money supply determine a. the value of money and the real interest rate. b. the value of money but not the real interest rate. c. the real interest rate but not the […]
Chapter 17 Prices in the U.S. have risen on average about
Money Growth and Inflation Multiple Choice – Section 00: Introduction 1. Over the past 80 years, prices in the U.S. have risen on average about a. 2 percent per year. b. 4 percent per year. c. 3.6 percent per year. […]
Chapter 16 Banks Often Choose Hold Reserves Excess Required reserve
7310 The Monetary System The Monetary System 7311 70. During the early 1930s there were a number of bank failures in the United States. What did this do to the money supply? The New York Federal Reserve Bank advocated open […]
Chapter 16 This Buying Would Reduce Reserves b Buying Bonds
The Monetary System 7271 100. Refer to Scenario 29-2. Suppose that the Bank of Tazi changes the reserve requirement to 3 percent. Assuming that the banks still want to hold the same percentage of excess reserves what is the value […]
Chapter 16 Financial Institutions And Central Banks blooms Application 81 December
The Monetary System 7251 60. The Fed increases the reserve requirement, but it wants to offset the effects on the money supply. Which of the following should it do? a. sell bonds to increase reserves b. sell bonds to decrease […]
Chapter 16 When the Fed purchases $1000 worth of government bonds from
The Monetary System 7231 15. When the Fed purchases $1000 worth of government bonds from the public, the U.S. money supply eventually increases by a. more than $1000. b. exactly $1000. c. less than $1000. d. None of the above […]
Chapter 16 Starting from the situation as depicted by the T-account
The Monetary System 7211 75. Refer to Table 29-3. If all banks in the economy have the same reserve ratio as this bank, then an increase in reserves of $150 for this bank has the potential to increase deposits for […]
Chapter 16 Federal Reserve System Meets Discuss Changes The
The Monetary System 7151 Multiple Choice – Section 02: The Federal Reserve System 1. Which of the following institutions is a central bank? a. the Bank of Japan b. the Bank of England c. the Federal Reserve System d. All […]
Chapter 16 Which of the following is not included in M1
The Monetary System 7131 66. Which of the following is not included in M1? a. a $5 bill in your wallet b. $100 in your checking account c. $500 in your savings account d. All of the above are included […]
Chapter 16 Us Paper Money Commodity Money c Us Paper
The Monetary System 7111 25. Treasury Bonds are a. liquid, but not a store of value. b. a store of value, but not liquid. c. both liquid and a store of value. d. neither liquid nor a store of value. […]
Chapter 15 How does the government measure the economy’s rate of unemployment
239. What is the theory of efficiency wages? Provide four reasons that employers might pay efficiency wages. ANSWER: According to the theory of efficiency wages, firms operate more efficiently if wages are above the equilibrium level. Therefore, it may be […]
Chapter 15 It is only among the least skilled and least experienced members
190. It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment. a. True b. False 191. U.S. Department of Labor data show that minimum-wage workers tend to be young, less […]
Chapter 15 The Bureau of Labor Statistics’ household survey and establishment
130. The Bureau of Labor Statistics’ household survey and establishment survey both yield the same results about total employment. a. True b. False 131. The Bureau of Labor Statistics’ household survey and establishment survey both yield information about unemployment. a. […]
Chapter 15 Data on the unemployment rate in the U.S. since 1960 show
70. Data on the unemployment rate in the U.S. since 1960 show that the economy always has some unemployment and that the amount changes from year to year. a. True b. False 71. Data on the unemployment rate in the […]
Chapter 15 The natural rate of unemployment is closely associated with the
9. The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity. a. True b. False 10. The natural rate of unemployment is the desirable rate of unemployment for an economy. a. True b. […]
Chapter 15 Suppose that efficiency wages become more common in the economy
6. Suppose that efficiency wages become more common in the economy. Imposing efficiency wages a. increases the quantity demanded and decreases the quantity supplied of labor. b. decreases the quantity demanded and increases the quantity supplied of labor. c. increases […]
Chapter 15 When a union raises the wage above the equilibrium level
14. When a union raises the wage above the equilibrium level, it a. reduces both the quantity of labor supplied and the quantity of labor demanded. b. reduces the quantity of labor supplied and raises the quantity of labor demanded. […]
Chapter 15 Workers waiting for jobs to open up is most closely associated
23. Refer to Figure 28-3. If the government imposes a minimum wage of $4, how many workers will be unemployed? a. 0 b. 3,000 c. 4,000 d. 7,000 24. Refer to Figure 28-3. If the government imposes a minimum wage […]
Chapter 15 Wanda quit her job because she was unhappy at work
28. Wanda quit her job because she was unhappy at work. Arnold was fired from his landscaping job because his company was downsizing. Who is eligible for unemployment insurance benefits? a. both Wanda and Arnold b. Wanda but not Arnold […]
Chapter 15 Which of the following is not an explanation for the existence
194. Which of the following is not an explanation for the existence of unemployment in the long run? a. it takes time for workers to search for the jobs that are best suited for them b. minimum-wage laws c. unions […]
Chapter 15 These Individuals Are Called a Detached Workers And
152. Which of the following is not a commonly-cited explanation for the dramatically increasing labor-force participation rates for women from 1950 to the present? a. availability of reliable birth control b. invention of household labor-saving devices such as dishwashers and […]
Chapter 15 The labor-force participation rate of Aridi a in 2012 was
111. Refer to Table 28-2. The labor-force participation rate of Aridia in 2012 was a. 50%. b. 53.3%. c. 56.25%. d. 88.9%. 112. Refer to Table 28-2. The labor-force participation rate of Aridia a. increased both from 2010 to 2011 […]
Chapter 15 President Big ego is running for re-election against Senator Pander
67. President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. You conclude that […]
Chapter 15 Sarah Who Does Not Have Job But
27. Who of the following would be included in the Bureau of Labor Statistics’ “unemployed” category? a. Miguel, who is on temporary layoff b. Reta, who worked only 15 hours last week c. Marisa, who neither has a job nor […]
Chapter 15 Cyclical unemployment refers toa. the relationship
Unemployment Multiple Choice – Section 00: Introduction 1. To maintain their standard of living, most people rely on a. government assistance. b. their personal savings. c. their labor earnings. d. rental income. 2. To maintain their standard of living, most […]
Chapter 14 Thus The Likely Standard Deviation of The Portfolios
The Basic Tools of Finance 6721 25. If stock prices follow a random walk, then stock investors can make large profits by a. buying stocks whose prices have been falling for several days. b. buying stocks whose prices have been […]
Chapter 14 Then he definitely would buy fire insurance provided
The Basic Tools of Finance 6661 23. Refer to Figure 27-3. Suppose Paul begins with $900 in wealth. Starting from there, a. Paul would be willing to accept a coin–flip bet that would result in him winning $200 if the […]
Chapter 14 How long will it take for the value of a savings
The Basic Tools of Finance 6621 156. According to the rule of 70, if the interest rate is 5 percent, how long will it take for the value of a savings account to double? a. about 3.5 years b. about […]
Chapter 14 You put $150 in the bank two years ago and forgot about
The Basic Tools of Finance 6561 38. You put $150 in the bank two years ago and forgot about it. The bank sends you a notice that you now have $169.34 in your account. What interest rate did you earn? […]
Chapter 14 Most financial decisions involve two related elements
The Basic Tools of Finance Multiple Choice – Section 00: Introduction 1. Most financial decisions involve two related elements: a. advice and consent. b. investment and taxes. c. time and risk. d. saving and consumption. 2. The field of finance […]
Chapter 13 If the quantity of loanable funds demanded exceeds the quantity
Saving, Investment, and the Financial System 6419 6. Other things the same, when the interest rate rises, a. people would want to lend more, making the supply of loanable funds increase. b. people would want to lend less, making the […]
Chapter 13 Scenario 263 This Economys Government Running Aa
Saving, Investment, and the Financial System 6399 63. A budget surplus a. occurs when the government has debt equal to zero. b. causes government debt to increase. c. exists when government spending is greater than tax revenues. d. reduces the […]
Chapter 13 Which of the following equations represents GDP for an open economy
Saving, Investment, and the Financial System 6379 22. Which of the following equations represents GDP for an open economy? a. Y = C + I + G + NX b. NX = I – G c. I = Y – […]
Chapter 13 Which of the following statements about mutual funds is correct
Saving, Investment, and the Financial System 6359 161. Index funds a. buy all the stocks in a given stock index. b. promise to beat the market by a certain percentage known as an index. c. provide a return that is […]
Chapter 12 Likewise There Will Little Incentive For Foreigners
Production and Growth 6251 49. Economists generally believe that inward–oriented policies are more likely to foster growth than outward-oriented policies. a. True b. False 50. Economists generally believe that policies such as reducing barriers to trade are likely to foster […]
Chapter 12 The president of a poor country has announced that he will implement
Production and Growth 6231 150. The president of a poor country has announced that he will implement the following measures which he claims are designed to increase growth: 1. Reduce corruption in the legal system; 2. Reduce reliance on market […]
Chapter 12 Other Things The Same This Decrease Will
Production and Growth 6211 104. If a newly elected government takes actions that makes its country’s courts more efficient and less corrupt, then a. producers will have greater confidence that they will benefit from their efforts. b. producers are likely […]
Chapter 12 Europeans purchased stock in American companies that used the funds
Production and Growth 6191 57. The catch-up effect refers to the idea that a. saving will always catch–up with investment spending. b. it is easier for a country to grow fast and so catch-up if it starts out relatively poor. […]
Chapter 12 The traditional view of the production process is that capital
Production and Growth 6171 11. The traditional view of the production process is that capital is subject to a. constant returns. b. increasing returns. c. diminishing returns. d. diminishing returns for low levels of capital, and increasing returns for high […]
Chapter 12 Amy discovers a way to produce water heaters so they are less
Production and Growth 6151 121. Amy discovers a way to produce water heaters so they are less expensive and use less natural gas. Amy’s discovery is a. physical capital. If Amy’s discovery leads to lower natural gas prices, it has […]
Chapter 12 Which of the following are included in her physical capital
Production and Growth 6131 72. Megan is a landscaper. Which of the following are included in her physical capital? a. her knowledge of landscaping learned in college and her landscaping equipment b. her knowledge of landscaping learned in college, but […]
Chapter 12 GDP And Country Had The Higher Level
Production and Growth 6111 24. In one day Portal Computer Company made 400 laptops with 1200 hours of labor. What was its productivity? a. 1/3 laptop per hour b. 3 hours per laptop c. 1200 laptops d. 400 laptops 25. […]
Chapter 12 GDP Per Persona Population Growth And Real
Production and Growth 6091 34. The United Kingdom is a. an advanced economy, and over the past century its rate of economic growth has been higher than that of the United States. b. an advanced economy, and over the past […]