ECON 203 TEST 2 MATTHEWS OLE MISS Exam comprehensive questions
| FREQUENTLY MOST TESTED QUESTIONS AND VERIFIED
SOLUTIONS/GET IT 100% ACCURATE!! 2026!!
Liquidity - (ANSWER)the ease with which an asset can be converted into the economy's medium of
exchange
Commodity Money - (ANSWER)money that takes the form of a commodity WITH intrinsic value (has
value even if it were not used as money)
- ex: gold
M1 = - (ANSWER)- currency
- demand deposits
- traveler's checks
- other checkable deposits
M2 = - (ANSWER)- everything in M1
- savings deposits
- small time deposits
- money market mutual funds
- a few minor categories
Reserves = - (ANSWER)demand deposits - loans
Required Reserves = - (ANSWER)demands deposits x require reserve ration
Excess Reserves = - (ANSWER)reserves - required reserves
Productivity - (ANSWER)the quantity of goods and services produced from each unit of labor
, ECON 203 TEST 2 MATTHEWS OLE MISS Exam comprehensive questions
| FREQUENTLY MOST TESTED QUESTIONS AND VERIFIED
SOLUTIONS/GET IT 100% ACCURATE!! 2026!!
Determinants of Productivity - (ANSWER)- physical capital
- human capital
- natural resources
- technological knowledge
Physical Capital - (ANSWER)the stock of equipment and structures that are used to produce goods &
services
- physical capital is a produced factor of production (capital is an input)
Diminishing Returns - (ANSWER)the property whereby the benefit from an extra unit of an input declines
as the quantity of the input increases
- when workers have a large quantity of capital to use in producing goods and services, giving them an
additional unit go capital increases their productivity only slightly
- increase in the saving rate leads to higher growth only for awhile
Catch-Up Effect - (ANSWER)the property whereby countries that start off poor tend to grow more rapidly
than countries that start off rich
GDP - (ANSWER)measures income earned within a country by residents and nonresidents
- Foreign investment increases the income of residents and nonresidents (but does not directly impact
residents abroad), thus it has a greater impact on GDP than on GNP.
GNP - (ANSWER)measures income earned by residents at home and abroad.
Financial System - (ANSWER)group of institutions in the economy that help to match one person's saving
with another person's investment
| FREQUENTLY MOST TESTED QUESTIONS AND VERIFIED
SOLUTIONS/GET IT 100% ACCURATE!! 2026!!
Liquidity - (ANSWER)the ease with which an asset can be converted into the economy's medium of
exchange
Commodity Money - (ANSWER)money that takes the form of a commodity WITH intrinsic value (has
value even if it were not used as money)
- ex: gold
M1 = - (ANSWER)- currency
- demand deposits
- traveler's checks
- other checkable deposits
M2 = - (ANSWER)- everything in M1
- savings deposits
- small time deposits
- money market mutual funds
- a few minor categories
Reserves = - (ANSWER)demand deposits - loans
Required Reserves = - (ANSWER)demands deposits x require reserve ration
Excess Reserves = - (ANSWER)reserves - required reserves
Productivity - (ANSWER)the quantity of goods and services produced from each unit of labor
, ECON 203 TEST 2 MATTHEWS OLE MISS Exam comprehensive questions
| FREQUENTLY MOST TESTED QUESTIONS AND VERIFIED
SOLUTIONS/GET IT 100% ACCURATE!! 2026!!
Determinants of Productivity - (ANSWER)- physical capital
- human capital
- natural resources
- technological knowledge
Physical Capital - (ANSWER)the stock of equipment and structures that are used to produce goods &
services
- physical capital is a produced factor of production (capital is an input)
Diminishing Returns - (ANSWER)the property whereby the benefit from an extra unit of an input declines
as the quantity of the input increases
- when workers have a large quantity of capital to use in producing goods and services, giving them an
additional unit go capital increases their productivity only slightly
- increase in the saving rate leads to higher growth only for awhile
Catch-Up Effect - (ANSWER)the property whereby countries that start off poor tend to grow more rapidly
than countries that start off rich
GDP - (ANSWER)measures income earned within a country by residents and nonresidents
- Foreign investment increases the income of residents and nonresidents (but does not directly impact
residents abroad), thus it has a greater impact on GDP than on GNP.
GNP - (ANSWER)measures income earned by residents at home and abroad.
Financial System - (ANSWER)group of institutions in the economy that help to match one person's saving
with another person's investment
