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Test Chapter 11,12,13

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25 views3 pages

Test Chapter 11,12,13

Uploaded by

ltdlinh7411
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© © All Rights Reserved
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1.

In a simple-circular flow diagram, total income and total expenditure are:


=> always equal because every transaction has a buyer and a seller
2. Which of the following equation represents national saving in a closed
economy?
=> Y-C-G
3. A German automobile company produces cars in the United states, some of
which are exported to other nations. If the price of cars increases, the GDP
deflator:
=> and the CPI both increase
4. The fall in private investment due to government budget deficit is called:
=> Crowding out
5. What is the basket of goods used to construct the CPI?
=> the goods and services typically bought by consumers, according to Bureau of
Labor Statistics survey
6. Other things the same, the government budget deficit:
=> reduces both public and national savings
7. A higher interest rate induces people to:
=> save more, so the supply of loanable funds slopes upward
8. The GDP deflator reflects:
=> the current level of prices relative to the level of prices in the base year
9. When a country saves a larger portion of its GDP, it will have:
=> more investment, and so have more capital and productivity
10. Which bond would you expect to pay the highest interest rate?
=> A bond issued by a new restaurant chain
11. What would happen in the market for loanable funds if the government were to
increase the tax on interest income?
=> The supply of loanable funds would shift left
12. If the government’s expenditures exceeded its receipts, it would likely:
=> directly sell bonds to the public
13. Stock represents:
=> equity finance, ownership in a firm, a claim to the profits of a firm
14. The inflation rate is calculated:
=> by determining the percentage increase in the price index from the preceding
period
15. The slope of the demand for loanable funds curve represents the:
=> negative relation between the real interest rate and investment
16. The nominal interest rate is the:
=> interest rate usually reported by banks
17. How are the weights on the various goods and services in the CPI basket
determined?
=> A survey is conducted to determine how much of each good and service typical
consumers purchase
18. The market basket used to calculate the CPI in the nation of X is 4 loaves of
bread, 6 gallons of milk, 2 shirts and 2 pants. In 2011, bread cost 4.00 per loaf,
milk cost 1.50 per gallon, shirts cost 6.00 each and pants cost 10.00 per pair. In
2012, bread cost 1.50 per loaf, milk cost 2.00 per gallon, shirts cost 7.00 each and
pants cost 12.00 per pair. What was the inf. Rate as measured by the CPI, for X
between 2011 and 2012?
=> 24.4%
19. Macro includes the study of topics such as:
=> National output, the inflation rate and the trade deficit
20. Which of the following is correct?
=> The value of intermediate goods are not included in GDP
21. If the current market interest rate for loanable funds is below the equilibrium
level, then there is a:
=> shortage of loanable funds and the interest rate will rise
22. The consumer price index is used to:
=> monitor changes in the cost of living
23. Supposed that in a closed economy, GDP is equal to 10.000, taxes are equal to
2,00. Consumption equal 6,500 and government expenditure equal 2,500. What are
private saving and public saving?
=> 1500 and -500
24. The term “inflation” is used to describe a situation in which:
=> The overall level of prices in the economy is increasing
25. In the language of macroeconomics, investment refers to:
=> The purchase of new capital
26. Which of the following is not always correct in a closed economy?
=> Private saving equals investment
27. Over the last few decades, Americans have chosen to cook less at home and eat
more at restaurant. This changes in behavior, by itself,
=> increased measured GDP
28. The country of Hyrkania does not trade with any other countries, its GDP is 20
billion, its government purchases 33 billion worth of goods and services each year,
collect 3 billion in taxes, and provide 2 billion in transfer payments to households.
Private savings in Hyrkania is 4 billion. What is investment in Hyrkania?
=> 2 billion
29. Alfred’s income exceeds his expenditures. Alfred is a:
=> saver who supplies money to the financial system
30. Which of the following is not included in GDP?
=> unpaid cleaning and maintenance of houses
31. If GDP rises,
=> income and production must both rise
32. Compare to bonds, stock offers the holder
=> Partial ownership
33. What would happen in the market for loanable funds if the government were to
increase the tax on interest income?
=> Interest rates would rise
34. Which of the following is correct?
=> None of the above are correct
35. Darla, a Canadian citizen, only works in the United states. The value added to
production from her employment is:
=> included only in US’s GDP

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