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30 MCQ If total output grows at 4 percent per year while lab

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Sep 19th, 2013
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  1.  
  2. Download: http://solutionzip.com/downloads/30-mcq-if-total-output-grows-at-4-percent-per-year-while-labor-and-capital-grow-at/
  3. Question 1 of 30 3.3334 Points
  4. If total output grows at 4 percent per year while labor and capital grow at 1.5 percent and 2.1 percent pre year, respectively, then:
  5. A. technology grew by 0.4 percent per year.
  6. B. technology declined by 0.4 percent per year.
  7. C. there was no technological progress.
  8. D. technology grew by 3.6 percent per year.
  9. Question 2 of 30 3.3334 Points
  10. In a graph with output on the x-axis and expenditures on the y-axis, a 45-degree line starting from the origin represents the locus of:
  11. A. equilibrium output levels.
  12. B. negative inventory changes.
  13. C. positive inventory changes.
  14. D. autonomous consumption levels.
  15. Question 3 of 30 3.3334 Points
  16. In a closed economy without a government, planned expenditures equal:
  17. A. I+G.
  18. B. NX + I.
  19. C. C + I + G.
  20. D. C + I.
  21. Question 4 of 30 3.3334 Points
  22. The government spending multiplier is positive because ________ in government spending cause ________ in GDP.
  23. A. decreases; decreases
  24. B. decreases; increases
  25. C. increases; decreases
  26. D. increases; no change
  27. Question 5 of 30 3.3334 Points
  28. Assuming a constant level of capital in the economy, a rapid increase in population is likely to:
  29. A. raise both real GDP and real GDP per capita.
  30. B. lower both real GDP and real GDP per capita.
  31. C. raise real GDP, but lower real GDP per capita.
  32. D. lower real GDP, but increase real GDP per capita.
  33. Question 6 of 30 3.3334 Points
  34. In a graph with output on the x-axis and expenditures on the y-axis, a 45-degree line starting from the origin represents the locus of points where:
  35. A. output is less than expenditures.
  36. B. output = expenditures.
  37. C. output is greater than expenditures.
  38. D. output + expenditures = zero.
  39. Question 7 of 30 3.3334 Points
  40. The level of consumption that does not depend on income is called:
  41. A. independent income.
  42. B. autonomous consumption.
  43. C. the consumption function.
  44. D. the marginal propensity to consume.
  45. Question 8 of 30 3.3334 Points
  46. If the economy experiences an increase in the amount of capital stock per worker, then we say that the economy is experiencing:
  47. A. capital deepening.
  48. B. technological progress.
  49. C. capital depreciation.
  50. D. capital widening.
  51. Question 9 of 30 3.3334 Points
  52. If the marginal propensity to consume is 0.75 and marginal propensity to import is 0.15, then the multiplier in an open economy is:
  53. A. 10.
  54. B. 8.3.
  55. C. 2.5.
  56. D. 4.
  57. Question 10 of 30 3.3334 Points
  58. In the Solow Model, an increase in the depreciation rate will result in:
  59. A. a lower output and a higher level of capital.
  60. B. a lower capital and a higher level of output.
  61. C. a higher level of capital and output.
  62. D. a lower level of capital and output.
  63. Question 11 of 30 3.3334 Points
  64. If the marginal propensity to save is 0.15, the marginal propensity to consume:
  65. A. is 0.85.
  66. B. is 1.15.
  67. C. is 0.15.
  68. D. cannot be determined by the given information
  69. Question 12 of 30 3.3334 Points
  70. If the MPC is 0.75, then the spending multiplier is:
  71. A. -3.
  72. B. 4.
  73. C. 3.
  74. D. 0.75.
  75. Question 13 of 30 3.3334 Points
  76. A tax ________ income.
  77. A. increase decreases planned
  78. B. cut increases disposable
  79. C. increase raises national
  80. D. cut decreases disposable
  81. Question 14 of 30 3.3334 Points
  82. When we graph the 45 degree line, what are the labels on the x-axis and the y-axis?
  83. A. output on the x-axis and income on the y-axis
  84. B. output on the x-axis and expenditures on the y-axis
  85. C. expenditures on the x-axis and output on the y-axis
  86. D. income on the x-axis and interest rates on the y-axis
  87. Question 15 of 30 3.3334 Points
  88. If the capital stock remains ________ while labor ________, the new labor will likely be ________ productive than the old labor because of diminishing returns.
  89. A. variable; decreases; less
  90. B. fixed; decreases; less
  91. C. fixed; decreases; more
  92. D. fixed; increases; more
  93. Question 16 of 30 3.3334 Points
  94. Which of the following would cause an increase in GDP?
  95. A. a higher discount rate
  96. B. an open market sale
  97. C. an open market purchase
  98. D. a higher required reserve ratio
  99. Question 17 of 30 3.3334 Points
  100. Which of the following was the Fed’s primary function when it first was created in 1913?
  101. A. provide a system of check collection and clearing
  102. B. conduct monetary policy
  103. C. to act as a lender of last resort
  104. D. regulate banks
  105. Question 18 of 30 3.3334 Points
  106. An open-market purchase of government bonds by the Fed results in ________ in bank reserves and ________ in the supply of money.
  107. A. a decrease; an increase
  108. B. an increase; a decrease
  109. C. a decrease; a decrease
  110. D. an increase; an increase
  111. Question 19 of 30 3.3334 Points
  112. ????
  113. Which of the following sequence of events follows an expansionary monetary policy?
  114. A. ? interest rate ? ? investment ? ? total demand ? ? real GDP
  115. B. ? interest rate ? ? investment ? ? total demand ? ? real GDP
  116. C. ? interest rate ? ? investment ? ? total demand ? ? real GDP
  117. D. ? interest rate ? ? investment ? ? total demand ? ? real GDP
  118. Question 20 of 30 3.3334 Points
  119. The Fed indirectly controls long-term interest rates by:
  120. A. influencing market expectations about future short-term interest rates.
  121. B. determining the interest rate offered by Treasury Bills.
  122. C. setting the Federal Funds rate in advance.
  123. D. reducing outside lags and increasing inside lags.
  124. Question 21 of 30 3.3334 Points
  125. Mary wants to trade piano lessons for ice-skating lessons. Sarah wants to trade ice-skating lessons for piano lessons. Mary and Sarah have:
  126. A. a double coincidence of wants.
  127. B. the basis for a liquidity exchange.
  128. C. a double incidence of demand.
  129. D. the basis for a double fiat exchange.
  130. Question 22 of 30 3.3334 Points
  131. If the quantity of money demanded is greater than the quantity of money supplied, then the interest rate will:
  132. A. remain constant.
  133. B. equal zero.
  134. C. fall.
  135. D. rise.
  136. Question 23 of 30 3.3334 Points
  137. The central bank of the United States is known as the:
  138. A. Federal Reserve System.
  139. B. Department of the Treasury.
  140. C. Federal Savings and Loan Insurance Corporation.
  141. D. Federal Deposit Insurance Corporation.
  142. Question 24 of 30 3.3334 Points
  143. The amount of time it takes a given policy action to bring about a change in the state of the economy is called the:
  144. A. external lag.
  145. B. stabilization lag.
  146. C. outside lag.
  147. D. inside lag.
  148. Question 25 of 30 3.3334 Points
  149. Which of the following represents an action by the Federal Reserve that is designed to increase the money supply?
  150. A. a decrease in federal spending
  151. B. an increase in the required reserve ratio
  152. C. an increase in the discount rate
  153. D. buying government bonds in the open market
  154. Question 26 of 30 3.3334 Points
  155. Though a powerful tool, the reserve requirement is seldomly used by the Fed to control the money supply because:
  156. A. it causes significant disruptions in the banking system.
  157. B. it takes a long time for the policy to be implemented.
  158. C. using the reserve requirement can be inflationary.
  159. D. it is very difficult for the Fed to monitor the reserve requirement.
  160. Question 27 of 30 3.3334 Points
  161. In terms of the demand for money, the interest rate is:
  162. A. the rate at which current consumption can be exchanged for future consumption.
  163. B. the opportunity cost of holding money.
  164. C. the return on money that is saved for the future.
  165. D. the price of borrowing money.
  166. Question 28 of 30 3.3334 Points
  167. In the money market, the demand and supply of money determine the equilibrium:
  168. A. nominal interest rate.
  169. B. mortgage interest rate.
  170. C. real interest rate.
  171. D. inflation rate.
  172. Question 29 of 30 3.3334 Points
  173. The outside lag associated with economic policy represents:
  174. A. the time that is necessary to recognize and implement policy.
  175. B. the time needed for the Federal Reserve Board to meet.
  176. C. the time it takes for the policy makers to admit that a policy is not working.
  177. D. the time that it takes for a newly implemented policy to take effect.
  178. Question 30 of 30 3.3334 Points
  179. Why would an individual choose to hold money for speculative purposes when the nominal return to holding money is zero?
  180. A. because in the short run, stocks and bonds can have a negative rate of return
  181. B. because in the long run, stocks and bonds get negative rates of return
  182. C. because zero is the best any asset can get
  183. D. because all economies experience deflation regularly, so the real return is still positive
  184.  
  185. Download: http://solutionzip.com/downloads/30-mcq-if-total-output-grows-at-4-percent-per-year-while-labor-and-capital-grow-at/
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