ECON 2030 EXAM 2 QUESTIONS
AND 100% CORRECT ANSWERS!!
2
When a government declares a money to be "legal tender for all debts, __ " it
is guaranteeing at the money will function as a __
A) private; standard of deferred payment
B) public; medium of exchange
C) private; medium of exchange
D) private; means of unilateral payment
E) public; standard of deferred payment
A
An economy that is operating at full employment is experiencing
A) a zero percent rate of unemployment.
B) no frictional unemployment.
C) no structural unemployment.
D) only structural and cyclical unemployment.
E) only frictional and structural unemployment.
E
11. The term "business cycle" refers to the
A) short-term fluctuations in the unemployment rate.
B) long-term trends in economic growth .
C) short-term fluctuations in the aggregate price level.
D) short-term fluctuations in economic growth.
E) long-term trends in the aggregate price level.
D
, 12. Which of the following would increase the investment component of U.S. GDP?
A) You purchase a new house in Brazil.
B)You purchase 100 shares of General Motors, a U.S. company, stock . C)
General Motors, a U.S. company, builds a new factory in Oklahoma .
D) You purchase a new washing machine produced in the U.S. to use in your home.
E) LSU purchases a new computer produced in the U.S. for Charles to use in his office.
C
13. In periods in which the aggregate price level is decreasing , real GDP will grow _______
nominal GDP.
A) slower than
B) faster than
C) as fast as
B
In 1958, Mary Douglas published an article about the economy of the Lele people of the
Belgian Congo (today called the Democratic Republic of the Congo). In the article she
described the functions of raffia cloth, a well-combed and closely woven cloth of superior
quality, in this society. Among its other uses, raffia cloth was given to a skilled craftsman
(who was not close relative) in payment for a carved drum or bellows. Used in this way,
raffia cloth was serving which of the following functions of money?
A) Standard of value.
B) Means of unilateral payment.
C) Standard of deferred
payment. D)Medium of exchange.
E) Unit of account.
E
The Federal Open Market Committee (FOMC) expresses its monetary policy stance
in terms of its target for the federal funds rate. The federal funds rate is the interest
rate charged by
A) the federal government on loans to commercial banks in the United States.
AND 100% CORRECT ANSWERS!!
2
When a government declares a money to be "legal tender for all debts, __ " it
is guaranteeing at the money will function as a __
A) private; standard of deferred payment
B) public; medium of exchange
C) private; medium of exchange
D) private; means of unilateral payment
E) public; standard of deferred payment
A
An economy that is operating at full employment is experiencing
A) a zero percent rate of unemployment.
B) no frictional unemployment.
C) no structural unemployment.
D) only structural and cyclical unemployment.
E) only frictional and structural unemployment.
E
11. The term "business cycle" refers to the
A) short-term fluctuations in the unemployment rate.
B) long-term trends in economic growth .
C) short-term fluctuations in the aggregate price level.
D) short-term fluctuations in economic growth.
E) long-term trends in the aggregate price level.
D
, 12. Which of the following would increase the investment component of U.S. GDP?
A) You purchase a new house in Brazil.
B)You purchase 100 shares of General Motors, a U.S. company, stock . C)
General Motors, a U.S. company, builds a new factory in Oklahoma .
D) You purchase a new washing machine produced in the U.S. to use in your home.
E) LSU purchases a new computer produced in the U.S. for Charles to use in his office.
C
13. In periods in which the aggregate price level is decreasing , real GDP will grow _______
nominal GDP.
A) slower than
B) faster than
C) as fast as
B
In 1958, Mary Douglas published an article about the economy of the Lele people of the
Belgian Congo (today called the Democratic Republic of the Congo). In the article she
described the functions of raffia cloth, a well-combed and closely woven cloth of superior
quality, in this society. Among its other uses, raffia cloth was given to a skilled craftsman
(who was not close relative) in payment for a carved drum or bellows. Used in this way,
raffia cloth was serving which of the following functions of money?
A) Standard of value.
B) Means of unilateral payment.
C) Standard of deferred
payment. D)Medium of exchange.
E) Unit of account.
E
The Federal Open Market Committee (FOMC) expresses its monetary policy stance
in terms of its target for the federal funds rate. The federal funds rate is the interest
rate charged by
A) the federal government on loans to commercial banks in the United States.
