ECN 211 Midterm ASU Questions and
Answers 100% Correct
labor supply choice of household - ANSWER how much we are willing to work
to afford the things we want to buy
labor supply - ANSWER the total hours (adjusted for intensity of effort) that
workers wish to work at a given real wage rate.
stock and flow - ANSWER A stock variable is measured at one specific time,
and represents a quantity existing at that point in time, which may have
accumulated in the past. A flow variable is measured over an interval of time.
Therefore a flow would be measured per unit of time (say a year). It is roughly
analogous to rate or speed in this sense.
transfer payment - ANSWER A redistribution of income in the market system.
These payments are considered to be non-exhaustive because they do not directly
absorb resources or create output.
central bank - ANSWER Institution that manages a state's currency, money
supply, and interest rates. It usually also oversees the commercial banking system
of its country.
federal open meeting committe (fomc) - ANSWER Committee within the
Federal Reserve System (the Fed), that is charged under the United States law
with overseeing the nation's open market operations . This committee makes key
decisions about interest rates and the growth of the United States money supply.
Answers 100% Correct
labor supply choice of household - ANSWER how much we are willing to work
to afford the things we want to buy
labor supply - ANSWER the total hours (adjusted for intensity of effort) that
workers wish to work at a given real wage rate.
stock and flow - ANSWER A stock variable is measured at one specific time,
and represents a quantity existing at that point in time, which may have
accumulated in the past. A flow variable is measured over an interval of time.
Therefore a flow would be measured per unit of time (say a year). It is roughly
analogous to rate or speed in this sense.
transfer payment - ANSWER A redistribution of income in the market system.
These payments are considered to be non-exhaustive because they do not directly
absorb resources or create output.
central bank - ANSWER Institution that manages a state's currency, money
supply, and interest rates. It usually also oversees the commercial banking system
of its country.
federal open meeting committe (fomc) - ANSWER Committee within the
Federal Reserve System (the Fed), that is charged under the United States law
with overseeing the nation's open market operations . This committee makes key
decisions about interest rates and the growth of the United States money supply.
