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Test sobre Intermediate Macro Economics Exam 1 Study Guide, creado por mehmehmehdino el 27/09/2014.

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Intermediate Macro Economics Exam 1 Study Guide

Pregunta 1 de 32

1

What is the business cycle?

Selecciona una de las siguientes respuestas posibles:

  • The short-run movements (inflations and deflations) of prices

  • The relationship between political activity and economic activity

  • The short-run movements (expansions and recessions) of economic activity

  • The long-run growth trend of the economy

Explicación

Pregunta 2 de 32

1

The definition of inflation is:

Selecciona una de las siguientes respuestas posibles:

  • a one-time increase in the price level

  • a period in which average prices are rising over time

  • a period in which average prices are falling over time

  • a one-time decrease in the price level

Explicación

Pregunta 3 de 32

1

From 1900 to 1970, the United States had a trade deficit.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 4 de 32

1

Economist could agree about the effects of a particular economic policy but disagree about the desirability of implementing the policy. This would occur if they ____ about the positive analysis and _____ about the normative analysis of the policy

Selecciona una de las siguientes respuestas posibles:

  • Agree;Disagree

  • Disagree;Disagree

  • Agree;Agree

  • Disagree;Agree

Explicación

Pregunta 5 de 32

1

Which of the following questions are positive in nature? (as opposed to normative in anaylsis)

Selecciona una o más de las siguientes respuestas posibles:

  • A tax cut will raise interest rates.

  • A reduction in the payroll tax would primarily benefit poor and middle-class workers.

  • Payroll taxes are too high.

  • A cut in the payroll tax would improve the President's popularity ratings.

  • Payroll taxes should not be cut unless capital gains taxes are cut also.

Explicación

Pregunta 6 de 32

1

The components of total spending are

Selecciona una de las siguientes respuestas posibles:

  • investment, intermediate Goods, and Factors of Production

  • Consumption, Imports, Investment, and Money Supply

  • Consumption, Investment, Government Spending, and Net Exports

  • Consumption, Investment, Government Spending, Exports, and Imports

Explicación

Pregunta 7 de 32

1

Why are imports subtracted when GDP is calculated in the expenditure approach?

Selecciona una de las siguientes respuestas posibles:

  • They do not do so in formal markets and thus cannot be calculated through GDP.

  • They are valued in currencies other than domestic currency.

  • They are produced abroad and GDP only counts domestic production.

  • They are not a part of consumption in the domestic economy.

Explicación

Pregunta 8 de 32

1

It is discovered that consumers bought $6 Billion more furniture than previously thought. This furniture was manufactured in North Carolina during the current year. What effects would this have on the United States national income and product accounts?

Selecciona una de las siguientes respuestas posibles:

  • Consumption increases by $ 6 Billion, Imports increase by $6 Billion, and GDP does not change.

  • Investment increases by $6 Billion, and GDP increases by $6 Billion.

  • Consumption increases by $6 Billion, and GDP increases by $6 Billion.

  • Investment Increases by $ 6 Billion, imports increase by $ 6 Billion, GDP does not change.

  • None of the above is correct.

Explicación

Pregunta 9 de 32

1

It is discovered that consumers bought $ 6 Billion more furniture than previously thought. This furniture was manufactured in Sweden during the current year.

Selecciona una de las siguientes respuestas posibles:

  • Consumption increases by $ 6 Billion, imports increase by $ 6 Billion, and GDP does not change.

  • Consumption increases by $6 Billion, and GDP increases by $ 6 Billion.

  • Investment increases by $ 6 Billion, and GDP increases by $6 Billion.

  • Investment increases by $ 6 Billion, imports increase by $6 Billion, and GDP does not change.

  • None of the above answers is correct.

Explicación

Pregunta 10 de 32

1

How does GDP differ from GNP?

Selecciona una de las siguientes respuestas posibles:

  • GDP and GNP both measure production, there is no difference between them.

  • GDP measures production, but GNP measures income.

  • GDP measures national productivity, while GDP measures both national and international productivity.

  • GDP measures the output of factors of production in a nation, while GNP measures both national and international productivity.

Explicación

Pregunta 11 de 32

1

If a country employs many foreign workers, GDP is likely to be ________GNP

Selecciona una de las siguientes respuestas posibles:

  • Higher than

  • Lower than

  • Equal to

  • Not Enough Information

Explicación

Pregunta 12 de 32

1

Colonel Hogwash purchases a Civil War-era mansion for $1,000,000. The broker's fee is 6%, which the colonel also pays, for a total expenditure of $1,060,000. Using the expenditure approach, this transaction would be recorded as:

Selecciona una de las siguientes respuestas posibles:

  • $60,000 increase in residential investment.

  • $1,060,000 increase in domestic value added, for the value of the house.

  • $60,000 increase in domestic value added by the brokerage sector.

  • $1,060,000 increase in consumption.

  • $60,000 increase in income received by the real estate broker.

Explicación

Pregunta 13 de 32

1

Colonel Hogwash purchases a Civil War-era mansion for $1,000,000. The broker's fee is 6% , which the colony also pays, for a total expenditure of $1,060,000.

Selecciona una de las siguientes respuestas posibles:

  • $1,060,000 increase in residential investment.

  • $60,000 increase in residential investment.

  • $1,060,000 increase in domestic value added, for the value of the house.

  • $60,000 increase in domestic value added by the brokerage sector.

  • $60,000 increase in income received by the real estate broker.

Explicación

Pregunta 14 de 32

1

What is a flow variable?

Selecciona una de las siguientes respuestas posibles:

  • Variable that are measured per unit of time.

  • Variable that are defined at a point of time.

Explicación

Pregunta 15 de 32

1

What is a stock variable?

Selecciona una de las siguientes respuestas posibles:

  • Variable that are measured per unit of time.

  • Variables that are defined at a point of time.

Explicación

Pregunta 16 de 32

1

Which of the following best describes the relationship between savings and wealth?

Selecciona una de las siguientes respuestas posibles:

  • Saving is a flow into the stock of wealth.

  • Saving is a flow out of current income, but wealth is a flow into current into current income.

  • Wealth is a flow into the stock of saving.

  • Saving and wealth are unrelated variables.

Explicación

Pregunta 17 de 32

1

Since United States investment is generally higher than United States national saving:

Selecciona una de las siguientes respuestas posibles:

  • the US current account balance is generally postive

  • US national saving will rise in the future

  • US investment will fall in the future.

  • the US current account balance is generally negative.

Explicación

Pregunta 18 de 32

1

Private savings is equal to:

Selecciona una de las siguientes respuestas posibles:

  • Government spending minus taxes.

  • Disposable income minus consumption.

  • Income minus consumption.

  • Income minus consumption minus taxes

Explicación

Pregunta 19 de 32

1

National saving is equal to:

Selecciona una de las siguientes respuestas posibles:

  • The same as government saving

  • Government saving plus private saving plus capital

  • The same as private saving.

  • Government saving plus private saving.

Explicación

Pregunta 20 de 32

1

Real GDP

Selecciona una de las siguientes respuestas posibles:

  • Under chain weighting equals real consumption + real investment + real government purchases + real net exports.

  • Growth rates under chain weighting change when the base year changes.

  • Equals nominal GDP divided by CPI

  • and nominal GDP are equal in the base year because current prices and base-year prices are the same in the base year.

Explicación

Pregunta 21 de 32

1

Real GDP is a better measure of economic growth than nominal GDP because

Selecciona una de las siguientes respuestas posibles:

  • an increase in nominal GDP does not correctly measure market values of production in the economy.

  • an increase in nominal GDP may show an increase in prices rather than an increase in output.

  • an increase in nominal GDP only shows increases in prices.

  • an increase in nominal GDP only shows output.

Explicación

Pregunta 22 de 32

1

The correct interest rate for studying most economic decision is

Selecciona una de las siguientes respuestas posibles:

  • the expected interest rate

  • the nominal interest rate

  • the real interest rate

Explicación

Pregunta 23 de 32

1

A problem with using the expected real interest rate is that:

Selecciona una de las siguientes respuestas posibles:

  • Interest rates are important to banks and businesses but not to be consumers

  • People do not generally make informed economic decision.

  • It is difficult to determine what the public's expected rate of inflation is.

  • Interest rates change frequently, so the public cannot form stable expectations.

Explicación

Pregunta 24 de 32

1

The base year is a point where

Selecciona una de las siguientes respuestas posibles:

  • nominal and real GDP collide

  • point were the GDP deflator= 100

  • all of the above

  • none of the above

Explicación

Pregunta 25 de 32

1

A technological breakthrough raises a country's total factor productivity, A, by 10%.

How does this change affect the production function relating output to capital and the production function relating output to labor?

Selecciona una de las siguientes respuestas posibles:

  • The production function relating to capital to output will shift upward, the production function relating labor to output will shift downwards.

  • Both production functions will shift upwards.

  • The production function relating capital to output will shift downward, the production function relating labor to output will shift upward.

  • Both production functions will shift downward.

Explicación

Pregunta 26 de 32

1

What is the marginal product of labor?

Selecciona una de las siguientes respuestas posibles:

  • the additional amount of output produced when one unit of labor is added.

  • the additional amount of output produced when one unit of capital and one unit of labor is added

  • the total amount of output produced when an additional unit of labor is added

  • the additional amount of output produced when one unit of capital is added.

Explicación

Pregunta 27 de 32

1

How is the MPN curve related to the labor demand curve?

Selecciona una de las siguientes respuestas posibles:

  • The MPN curve divided by the price level is the labor demand curve.

  • The MPN curve is not related to the labor demand curve.

  • The MPN curve is identical to the labor demand curve.

  • The MPN curve multiplied by price level is the labor demand curve.

Explicación

Pregunta 28 de 32

1

A large number of immigrants entering the country would have which of the following impacts on the economy

Selecciona una o más de las siguientes respuestas posibles:

  • Increase the Labor Force

  • Decrease the Labor Force

  • Not Impact the Labor Force

  • Increase Full Employment Output

  • Decrease Full Employment Output

  • Not Impact Full Employment Output

Explicación

Pregunta 29 de 32

1

Energy Supplies become depleted. Which of the following answers would describe the impact on the economy? (mark more than one response if more than one response is true)

Selecciona una o más de las siguientes respuestas posibles:

  • Increases Factors of production

  • Decreases Factors of Production

  • Increases the capital stock

  • Decreases the Capital Stock

  • Increases Full Employment Output

  • Decreases Full Employment output

  • Does not impact full employment output

Explicación

Pregunta 30 de 32

1

Shutting down unsafe forms of capital would have which of the following effects on the economy. Mark all that apply

Selecciona una o más de las siguientes respuestas posibles:

  • Increase Capital Stock

  • Decrease Capital Stock

  • Increase Other Factors of production

  • Decrease other factors of production

  • Decrease Full Employment Output

  • Increase Full Employment Output

  • Does not impact full employment output

Explicación

Pregunta 31 de 32

1

How does full-employment output affected by a decrease in the labor supply?

Selecciona una o más de las siguientes respuestas posibles:

  • Full-employment output will decrease.

  • Full-employment output will not change

  • Full -employment output will increase.

  • The effect on full-employment output cannot be determined.

Explicación

Pregunta 32 de 32

1

How is full-employment output affected by a beneficial supply shock ?

Selecciona una o más de las siguientes respuestas posibles:

  • Full-employment will increase

  • Full-employment will not change

  • Full-employment output will decrease

  • The effect on full-employment output cannot be determined

Explicación

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