Econ 102 quiz 2 Study guides, Class notes & Summaries

Econ 102 quiz 4. The supply of money in the U.S. economy is determined primarily by A. decisions made by the Federal Reserve and the U.S. Treasury. B. the actions of the Federal Reserve and the banking system. C. consumers and the banking system. D. the demand for money in the economy. Answer Key: B Question 2 of 10 10.0/ 10.0 Points One of the essential functions that a bank performs is A. purchasing government bonds. B. creating deposits by lending required reserves. C. tr...

ECON 102 Quiz 3. Suppose that the real return on assets is 4% forever. Approximately what is it worth to have a gift from your grandparents when you are young that pays $2000 a year until you die: a. About $2,000 b. About $5,000; c. About $120,000 if you expect to live for another 60 years; d. About $20,000 e. About $8,000 f. About $50,000 Solution: The present value of the sum of all money to be received in the future on this “perpetuity” is given by $2,000 / 0.04 = $50,000 2) Ac...

ECON 102 QUIZ 1. Economics is best defined as the study of A.financial decision-making B.how consumers make purchasing decisions. Correct C.choices made by people faced with scarcity. D.inflation, unemployment, and economic growth Answer Key: C Question 2 of 10 10.0/ 10.0 Points Macroeconomics differs from microeconomics in that A.macroeconomics is the study of individual markets, while microeconomics deals with the nation's economy as a whole. Correct B.microeconomics is the ...

ECON 102 QUIZ 1 QUESTIONS AND ANSWERS. GDP is defined as a. the market value of all goods and services produced within a country in a given period of time. b. the market value of all goods and services produced by the citizens of a country, regardless of where they are living in a given period of time. c. the market value of all final goods and services produced within a country in a given period of time. d. the market value of all final goods and services produced by the citizens of a co...

ECON 102 QUIZ 1 QUESTIONS AND ANSWERS 1. What is the primary goal of financial management? A) Increased earnings B) Maximizing cash flow C) Maximizing shareholder wealth D) Minimizing risk of the firm 2. The partnership form of organization A) avoids the double taxation of earnings and dividends found in the corporate form of organization. B) usually provides limited liability to the partners. C) has unlimited life. D) simplifies decision making. 3. Increased productivity ...

ECON 102 QUIZ 5 Question 1 of 10 Technological progress occurs when the economy gets more output Question 2 of 10 If a firm increases its use of capital while holding constant the number of workers employed, the firm is said to experience Question 3 of 10 Increases in net investment generally result in Question 4 of 10 Nations that borrow from abroad to support current investment will Question 5 of 10 Nations that borrow from abroad to support current consumption Question 6 of 10 Trade deficit...

ECON 102 QUIZ 4 Question 1 of 10 The supply of money in the U.S. economy is determined primarily by Question 2 of 10 One of the essential functions that a bank Question 3 of 10 At lower interest rates the Question 4 of 10 From time to time, the Federal Reserve buys back government bonds from the private sector through a process called Question 5 of 10 Selling government bonds through open market operations allows the Federal Reserve to Question 6 of 10 How can the Federal Reserve act...

ECON 102 QUIZ 2 QUESTIONS AND ANSWERS

ECON 102 QUIZ 3 Question 1 of 10 Which of the following is a problem with the price system that can lead to a breakdown in the coordination of economic activity? Question 2 of 10 If prices are sticky Question 3 of 10 What are some reasons why coordination of economic affairs through the price system may not work perfectly? Question 4 of 10 One reason the aggregate demand curve is downward sloping is because of the Question 5 of 10 Which of the following would cause an increase in aggregate deman...

ECON 102 QUIZ 4 Question 1 of 10 The supply of money in the U.S. economy is determined primarily by Question 2 of 10 One of the essential functions that a bank Question 3 of 10 At lower interest rates the Question 4 of 10 From time to time, the Federal Reserve buys back government bonds from the private sector through a process called Question 5 of 10 Selling government bonds through open market operations allows the Federal Reserve to Question 6 of 10 How can the Federal Reserve act...