Final Practice MQCs - Macro - test bank PE PDF

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3/25/22, 4:37 PM

Final Practice Quiz - Macro: Principles of Economics-T321WSB-6

Final Practice Quiz - Macro Due No due date Points 57 Questions 57 Available until Dec 31, 2021 at 11:59pm Time Limit None Allowed Attempts Unlimited

Instructions This is your practice quiz for the final exam - Macroeconomic section. You'll have 3 attempts. It appeared that there were some issues with the previous practice quizzes so I've created these new ones for you. Good luck with your revision.

This quiz was locked Dec 31, 2021 at 11:59pm.

Attempt History LATEST

Attempt

Time

Score

Attempt 1

4,774 minutes

18 out of 57

Submitted Dec 17, 2021 at 10:50pm

Question 1

1 / 1 pts

The term real GDP refers to a country's actual GDP as opposed to its estimated GDP.

Correct!

False

Question 2

1 / 1 pts

In 2015, government purchases were the largest component of U.S. GDP.

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Correct!

Final Practice Quiz - Macro: Principles of Economics-T321WSB-6

False

Question 3

0 / 1 pts

Bob deposits $100 in a bank account that pays an annual interest rate of 5 percent. A year later, Bob withdraws his $105. If inflation was 2 percent during the year the money was deposited, then Bob's purchasing power has increased by 3 percent.

orrect Answer

You Answered

True False

Question 4

0 / 1 pts

The Bureau of Labor Statistics determines which prices are most important to the typical consumer by surveying consumers.

orrect Answer

You Answered

True

False

Question 5

1 / 1 pts

Like physical capital, human capital is a produced factor of production.

Correct!

True

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Final Practice Quiz - Macro: Principles of Economics-T321WSB-6

The majority of economists believe that future innovations will not be transformational enough to sustain high economic growth rates in the U.S. and western Europe.

Correct!

False

Question 7

1 / 1 pts

The term crowding out refers to decreases in the interest rate caused by government budget surpluses.

Correct!

False

Question 8

1 / 1 pts

Financial crises seldom involve economic downturns.

Correct!

False

Question 9

0 / 1 pts

Most spells of unemployment are short. About half of unemployment spells end with an exit from the labor force.

orrect Answer

You Answered

True False

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Final Practice Quiz - Macro: Principles of Economics-T321WSB-6

Question 10

1 / 1 pts

Frictional unemployment is inevitable because the economy is always changing.

Correct!

True

Question 11

0 / 1 pts

In order for currency to be widely used as a medium of exchange, it is sufficient for the government to designate it as legal tender.

You Answered

orrect Answer

True

False

Question 12

1 / 1 pts

Banks cannot influence the money supply if they are required to hold all deposits in reserve.

Correct!

True

Question 13

0 / 1 pts

The irrelevance of monetary changes for real variables is called monetary neutrality. Most economists accept monetary neutrality as a good description of the economy in the long run, but not the short run.

orrect Answer

True

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You Answered

Final Practice Quiz - Macro: Principles of Economics-T321WSB-6

False

Question 14

1 / 1 pts

In the long run, an increase in the growth rate of the money supply leads to an increase in the real interest rate, but no change in the nominal interest rate.

Correct!

False

Question 15

1 / 1 pts

If a country's imports exceed its exports it has a trade surplus.

Correct!

False

Question 16

0 / 1 pts

When U.S. national saving rises, domestic investment also necessarily rises.

You Answered

orrect Answer

True

False

Question 17

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1 / 1 pts

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Final Practice Quiz - Macro: Principles of Economics-T321WSB-6

Recessions occur at irregular intervals and are almost impossible to predict with much accuracy.

Correct!

True

Question 18

0 / 1 pts

An increase in the actual price level does not shift the short-run aggregate supply curve, but an expected increase in the price level shifts the short-run aggregate supply curve to the left.

orrect Answer

You Answered

True

False

Question 19

0 / 1 pts

For a country such as the U.S., the wealth effect exerts a very important influence on the slope of the aggregate-demand curve, since U.S. wealth is large relative to wealth in most other countries.

You Answered

orrect Answer

True

False

Question 20

1 / 1 pts

During recessions, unemployment insurance payments tend to rise.

Correct!

True

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Question 21

0 / 1 pts

If expected inflation increases, the short-run Phillips curve will shift to the left so that inflation will be higher at any given unemployment rate.

You Answered

orrect Answer

True

False

Question 22

1 / 1 pts

The classical notion of monetary neutrality is consistent both with a vertical long-run aggregate-supply curve and with a vertical long-run Phillips curve.

Correct!

True

Question 23

0 / 1 pts

In the open economy model, the supply of loanable funds comes from national saving and net capital outflow.

You Answered

orrect Answer

True

False

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Final Practice Quiz - Macro: Principles of Economics-T321WSB-6

Other things the same, a higher real exchange rate raises net exports.

Correct!

False

1 / 1 pts

Question 25

Al's Aluminum Company sells $1 million worth of aluminum to Shiny Foil Company, which uses the aluminum to make aluminum foil. Shiny Foil Company sells $4 million worth of aluminum foil to households. The transactions just described contribute how much to GDP?

Correct!

$4 million Correct

1 / 1 pts

Question 26

Table 23-3 The table below contains data for the country of Crete for the year 2010.

Total income

$5731

Household purchases of durable goods

$1108

Household purchases of nondurable goods

$702

Household purchases of non-education services

$203

Household purchases of education services

$302

Household purchases of new housing

$816

Purchases of capital equipment

$333

Inventory changes

$75

Purchases of new structures

$267

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Depreciation

$401

Local government spending on goods and services

$236

State government spending on goods and services

$419

Federal government spending on goods and services

$1182

Transfer payments

$707

Foreign purchases of domestically produced goods

$217

Domestic purchases of foreign goods

$129

Refer to Table 23-3. What was Crete's investment in 2010?

Correct!

$1491 Correct

0 / 1 pts

Question 27

Table 23-6 The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013 . Prices and Quantities

Year

Price of Waffles

Quantity of Waffles

Price of Pancakes

Quantity of Pancakes

2010

$2.00

80

$1.00

100

2011

$2.00

100

$2.00

120

2012

$2.00

120

$3.00

150

2013

$4.00

150

$3.00

200

Refer to Table 23-6. In 2010, this country's nominal GDP was

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orrect Answer

You Answered

Final Practice Quiz - Macro: Principles of Economics-T321WSB-6

$260.

$620. Incorrect

Question 28

1 / 1 pts

Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 2012, the basket's cost was $77; in 2013, the basket's cost was $82; and in 2014, the basket's cost was $90. The value of the CPI in 2014 was

Correct!

116.9 and the inflation rate was 9.8%. Correct

Question 29

1 / 1 pts

In 1986, Ken bought a Ford Mustang for $8,000. If the price index was 122 in 1986 and the price index was 280 in 2011, then what is the price of the Mustang in 2011 dollars?

Correct!

$18,360.66

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Correct

Question 30

0 / 1 pts

Amy discovers a way to produce water heaters so they are less expensive and use less natural gas. Amy's discovery is

You Answered

physical capital. If Amy's discovery leads to lower natural gas prices, it has made natural gas less scarce. Incorrect

orrect Answer

technological knowledge. If Amy's discovery leads to lower natural gas prices, it has made natural gas less scarce.

Unanswered

Question 31

0 / 1 pts

If a Japanese company opens a new factory in South Korea, it makes

orrect Answer

foreign direct investment. The factory will make a bigger impact on South Korea's GDP than on its GNP.

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Final Practice Quiz - Macro: Principles of Economics-T321WSB-6

Question 32

0 / 1 pts

Which of the following statements about the term of a bond is correct?

orrect Answer

Interest rates on long-term bonds are usually higher than interest rates on shortterm bonds.

Unanswered

Question 33

0 / 1 pts

The fictional country of Alpetra increases the income tax rate so that tax revenues increase by $30 million. In response, consumption falls by $8 million. If GDP and government spending remains the same and Alpetra is a closed economy, what is the change in investment?

orrect Answer

Investment increases by $8 million.

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Final Practice Quiz - Macro: Principles of Economics-T321WSB-6

Question 34

0 / 1 pts

Which of the following could explain an increase in the interest rate and the equilibrium quantity of loanable funds?

orrect Answer

Unanswered

The demand for loanable funds shifted rightward.

Question 35

0 / 1 pts

Josh is a full-time college student who is not working or looking for a job. The Bureau of Labor Statistics counts Josh as

orrect Answer

Unanswered

neither in the labor force nor unemployed.

Question 36

0 / 1 pts

Sectoral shifts in demand for output

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orrect Answer

Unanswered

Final Practice Quiz - Macro: Principles of Economics-T321WSB-6

increase unemployment due to job search.

Question 37

0 / 1 pts

Figure 28-4

Refer to Figure 28-4. If the government imposes a minimum wage of $10, how many workers will be unemployed?

orrect Answer

Unanswered

0

Question 38

0 / 1 pts

Minimum-wage laws, unions, and efficiency wages contribute to https://lms.westernsydney.edu.vn/courses/206/quizzes/2243?module_item_id=7869

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orrect Answer

Unanswered

Final Practice Quiz - Macro: Principles of Economics-T321WSB-6

both structural unemployment and the natural rate of unemployment.

Question 39

0 / 1 pts

You saved $500 in currency in your piggy bank to purchase a new laptop. The $500 you kept in your piggy bank illustrates money's function as a _______. The laptop's price is posted as $500. The $500 price illustrates money's function as a _____. You use the $500 to purchase the laptop. This transaction illustrates money's function as a ______.

orrect Answer

Unanswered

store of value, unit of account, medium of exchange

Question 40

0 / 1 pts

The reserve requirement is 12 percent. Lucy deposits $600 into a bank. By how much do excess reserves change?

orrect Answer

$528

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Final Practice Quiz - Macro: Principles of Economics-T321WSB-6

Question 41

0 / 1 pts

To increase the money supply, the Fed could

orrect Answer

Unanswered

decrease the reserve requirement.

Question 42

0 / 1 pts

Suppose that monetary neutrality and the Fisher effect both hold. An increase in the money supply growth rate increases

orrect Answer

Unanswered

the inflation rate but not the growth rate of real GDP.

Question 43

0 / 1 pts

The nominal interest rate is 4%, the inflation rate is 1% and the tax rate is 20%. Given U.S. tax laws, how is after-tax real return computed?

orrect Answer

.04(1 - .20) - .01

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Final Practice Quiz - Macro: Principles of Economics-T321WSB-6

Question 44

0 / 1 pts

The purchase of U.S. government bonds by Egyptians is an example of

orrect Answer

Unanswered

foreign portfolio investment by Egyptians.

Question 45

0 / 1 pts

In the U.S. a candy bar costs $1. If the nominal exchange rate were 6 Chinese yuan per dollar and the real exchange rate were 1.2, then, what would be the price of a candy bar in China?

orrect Answer

Unanswered

5 yuan

Question 46

0 / 1 pts

Which of the following does purchasing-power parity imply?

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orrect Answer

Unanswered

Final Practice Quiz - Macro: Principles of Economics-T321WSB-6

The nominal exchange rate is the ratio of foreign prices to U.S. prices.

Question 47

0 / 1 pts

In the open-economy macroeconomic model, the supply of dollars in the market for foreigncurrency exchange comes from

orrect Answer

Unanswered

net capital outflow

Question 48

0 / 1 pts

In the open-economy macroeconomic model, which of the following increases net capital outflow?

orrect Answer

a fall in the real interest rate, but not a fall in the real exchange rate

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Final Practice Quiz - Macro: Principles of Economics-T321WSB-6

Question 49

0 / 1 pts

Which of the following can explain a decrease in the U.S. real exchange rate?

orrect Answer

Unanswered

the U.S. government budget deficit falls

Question 50

0 / 1 pts

Other things the same, as the price level rises, exchange rates

orrect Answer

Unanswered

and interest rates rise.

Question 51

0 / 1 pts

Which of the following shifts short-run, but not long-run aggregate supply right?

orrect Answer

a decrease in the expected price level

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Final Practice Quiz - Macro: Principles of Economics-T321WSB-6

Question 52

0 / 1 pts

During the 2008-2009 recession re...