Macroeconomics 1 for eco Samenvattingen, Aantekeningen en Examens

ECO 561 Final September 2018 1. Countercyclical discretionary fiscal policy calls for: 2. Assume the reserve ratio is 25 percent and Federal Reserve Banks buy $4 million of U.S. securities from the public, which deposits this amount into checking accounts. As a result of these transactions, the supply of money is: 3. Because the federal government typically provides disaster relief to farmers, many farmers do not buy crop insurance even through it is federally subsidized. This illustrates: 4. N...

ECO 365 Final Exam 1) An economist who is studying the relationship between the money supply, interest rates, and the rate of inflation is engaged in A. microeconomic research B. macroeconomic research C. theoretical research, because there is no data on these variables D. empirical research, because there is no economic theory related to these variables 2) A basic difference between microeconomics and macroeconomics is that microeconomics A. focuses on the choices of individual consumers, whil...

ECO 365 Final Exam 1). The DeBeers company is a profit-maximizing monopolist that exercises monopoly power in the distribution of diamonds. If the company earns positive economic profits this year, the price of diamonds will: • Exceed the marginal cost of diamonds but equal to the average total cost of diamonds. • Exceed both the marginal cost and the average total cost of diamonds. • Be equal to the marginal cost of diamonds. • Be equal to the average total cost of diamonds. 2)...

ECO 372 Final Exam (New) 1. News Story: Workers at a car-manufacturing plant in Flint, Michigan are laid off because the economy is weak and GM cars aren't selling well. GM isn't sure when the plant will reopen. What type of unemployment describes the workers' situation? § Frictional unemployment § Structural unemployment § Full unemployment § Cyclical unemployment 2. Globalization that allows governments to pursue expansionary policies can be dangerous because it can lead to: ...

ECO 372 Final Exam (New) 1. News Story: Workers at a car-manufacturing plant in Flint, Michigan are laid off because the economy is weak and GM cars aren't selling well. GM isn't sure when the plant will reopen. What type of unemployment describes the workers' situation? § Frictional unemployment § Structural unemployment § Full unemployment § Cyclical unemployment 2. Globalization that allows governments to pursue expansionary policies can be dangerous because it can lead to: § A re...