FIN201 | QUIZ SMART | SCORE HIGH | GUARANTEED
ACCURACY!
A - Answer: QN=4(18660)Positive analysis of economic policy
a.examines the economic consequences of policies but does not address the question
of whether those consequences are desirable.
b.generates less agreement among economists than normative analysis.
c.is rare in questions of economic policy.
d.examines the economic consequences of policies and addresses the question of
whether those consequences are desirable.
D - Answer: QN=1(18637)When national output rises, the economy is said to be in
a.a deflation
b.an inflation
c.a recession
d.an expansion
A - Answer: QN=14(18643)A country is said to be experiencing deflation when
a.prices of most goods and services are falling over time.
b.prices of most goods and services are rising over time.
c.total output is rising over time.
d.total output is falling over time.
B - Answer: QN=36(18653)In the United States, monetary policy is determined by
a.the Treasury Department.
b.the Federal Reserve.
c.the president.
d.private citizens.
A - Answer: QN=39(18689)If an American construction company built a road in Kuwait,
this activity would be
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,a.included in U.S. GNP only for that portion that was attributable to American capital
and labor.
b.included in U.S. GDP but not in U.S. GNP.
c.fully included in U.S. GDP.
d.excluded from U.S. GNP.
B - Answer: QN=37(18662)Adam Smith's idea of the "invisible hand" says that given a
country's resources and its initial distribution of wealth, the use of markets will
a.eliminate inequalities between the rich and the poor.
b.make people as economically well off as possible.
c.eliminate problems of hunger and dissatisfaction.
d.insulate a nation from the effects of political instability.
B - Answer: QN=68(18683)Capital goods are
a.a type of intermediate good.
b.final goods, and they are not used up during a given year.
c.produced in one year, whereas final goods are produced over a period of more than
one year.
d.produced in the same year as the related final good, whereas intermediate goods are
produced in different years.
B - Answer: QN=415 (19053)The LM curve
a.slopes downward.
b.slopes upward.
c.is vertical.
d.is horizontal.
D - Answer: QN=83(18679)Which of the following is included in U.S. GDP?
a.The purchase of a watch from a Swiss company
b.The sale of a used car
c.The sale of a new car from a manufacturer's inventory
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, d.A newly constructed house
C - Answer: QN=72(18675)The equation total production = total income = total
expenditure is called
a.Say's Law.
b.the total identity.
c.the fundamental identity of national income accounting.
d.the goods-market equilibrium condition.
A - Answer: QN=100(18775)An economy has full-employment output of 5000.
Government purchases are 1000. Desired consumption and desired investment are
given by: C(d) = 3000 - 2000r + 0.10Y & I(d) = 1000 - 4000r, where Y is output and r is
the real interest rate. The real interest rate that clears the goods market is equal to
a.8.33%.
b.25.00%.
c.1.25%.
d.2.50%.
A - Answer: QN=155(18766)Suppose your company is in equilibrium, with its capital
stock at its desired level. A permanent decline in the expected real interest rate now has
what effect on your desired capital stock?
a.Raises it, because the user cost of capital is now lower
b.Lowers it, because the future marginal productivity of capital is lower
c.Lowers it, because the user cost of capital is now higher
d.Raises it, because the future marginal productivity of capital is higher
D - Answer: QN=119(18738)Aunt Agatha has just left her nephew $5000. The most
likely response is for her nephew to
a.increase current consumption, but not future consumption.
b.increase future consumption, but not current consumption.
c.decrease current consumption, but increase future consumption.
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
ACCURACY!
A - Answer: QN=4(18660)Positive analysis of economic policy
a.examines the economic consequences of policies but does not address the question
of whether those consequences are desirable.
b.generates less agreement among economists than normative analysis.
c.is rare in questions of economic policy.
d.examines the economic consequences of policies and addresses the question of
whether those consequences are desirable.
D - Answer: QN=1(18637)When national output rises, the economy is said to be in
a.a deflation
b.an inflation
c.a recession
d.an expansion
A - Answer: QN=14(18643)A country is said to be experiencing deflation when
a.prices of most goods and services are falling over time.
b.prices of most goods and services are rising over time.
c.total output is rising over time.
d.total output is falling over time.
B - Answer: QN=36(18653)In the United States, monetary policy is determined by
a.the Treasury Department.
b.the Federal Reserve.
c.the president.
d.private citizens.
A - Answer: QN=39(18689)If an American construction company built a road in Kuwait,
this activity would be
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
,a.included in U.S. GNP only for that portion that was attributable to American capital
and labor.
b.included in U.S. GDP but not in U.S. GNP.
c.fully included in U.S. GDP.
d.excluded from U.S. GNP.
B - Answer: QN=37(18662)Adam Smith's idea of the "invisible hand" says that given a
country's resources and its initial distribution of wealth, the use of markets will
a.eliminate inequalities between the rich and the poor.
b.make people as economically well off as possible.
c.eliminate problems of hunger and dissatisfaction.
d.insulate a nation from the effects of political instability.
B - Answer: QN=68(18683)Capital goods are
a.a type of intermediate good.
b.final goods, and they are not used up during a given year.
c.produced in one year, whereas final goods are produced over a period of more than
one year.
d.produced in the same year as the related final good, whereas intermediate goods are
produced in different years.
B - Answer: QN=415 (19053)The LM curve
a.slopes downward.
b.slopes upward.
c.is vertical.
d.is horizontal.
D - Answer: QN=83(18679)Which of the following is included in U.S. GDP?
a.The purchase of a watch from a Swiss company
b.The sale of a used car
c.The sale of a new car from a manufacturer's inventory
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
, d.A newly constructed house
C - Answer: QN=72(18675)The equation total production = total income = total
expenditure is called
a.Say's Law.
b.the total identity.
c.the fundamental identity of national income accounting.
d.the goods-market equilibrium condition.
A - Answer: QN=100(18775)An economy has full-employment output of 5000.
Government purchases are 1000. Desired consumption and desired investment are
given by: C(d) = 3000 - 2000r + 0.10Y & I(d) = 1000 - 4000r, where Y is output and r is
the real interest rate. The real interest rate that clears the goods market is equal to
a.8.33%.
b.25.00%.
c.1.25%.
d.2.50%.
A - Answer: QN=155(18766)Suppose your company is in equilibrium, with its capital
stock at its desired level. A permanent decline in the expected real interest rate now has
what effect on your desired capital stock?
a.Raises it, because the user cost of capital is now lower
b.Lowers it, because the future marginal productivity of capital is lower
c.Lowers it, because the user cost of capital is now higher
d.Raises it, because the future marginal productivity of capital is higher
D - Answer: QN=119(18738)Aunt Agatha has just left her nephew $5000. The most
likely response is for her nephew to
a.increase current consumption, but not future consumption.
b.increase future consumption, but not current consumption.
c.decrease current consumption, but increase future consumption.
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
