Assignment:
True or False
1.) ______________ To change nominal values to real values we must Divide nominal values by 10.
2.) ______________ double counting in regards to GDP values is not important.
3.) _______________ Producer surplus is the difference between willingness to sell and the price that the seller receives.
4.) _______________ An excise tax is a tax on a particular item.
5.) _______________ Deadweight loss increases demand.
6.) ______________ Inflation is the general price rise in the economy.
7.) ______________ If a person is out of work because his skills are not needed in the present economy, we say he is frictionally unemployed.
8.) ______________ The loanable funds market connects savers with borrowers.
9. Consumer surplus is defined as the
a.) the difference between the willingness to pay for goods and the supply of the good
b.) total revenue earned
c.) difference between willingness to pay for a good and the price paid
d.) the marginal revenue the producer receives
10.) A discouraged worker is one who is
a.) actively look for work
b.) has given up looking for work
c.) working seasonally
d.) none of the above
11.) The economy can be in an
a.) inflationary period
b.) deflationary period
c.) stagflationary period
d.) all of the above
12.) When the consumers creates inflation we call it
a.) demand pull inflation
b.) demand push inflation
c.) demand pull deflation
d.) demand push deflation
13.) When the producerscreates inflation we call it
a.) demand pull inflation
b.) demand push inflation
c.) demand pull deflation
d.) demand push deflation
14.) When the producerscreatesdeflation we call it
a.)demand pull inflation
b.) demand push inflation
c.) demand pull deflation
d.) demand push deflation
15.) When you buy stock
a.) you are buying part of the company
b.) you are loaning the company money
c.) you are buying the company's bonds
d.) none of the above
16.) Demanders in the loanable funds market consists of
a.) foreign governments
b.) domestic governments
c.) households
d.) All of the above
17.) Factor or factors which shift demand for loanable is or are
a.) Productivity of Capital
b.) Investor confidence
c.) Change in Income
d.) a and b only
18.) Lenders in the loanable funds market consists of
a.) foreign parties
b.) domestic governments
c.) firms
d.)both foreign parties and households
19.) Lenders of loanable funds are most interested in
a.) the price of labor
b.) the price of land
c.) The marginal rate of investment
d.) The ROI (the return on investment)
20.) A bond is an instrument that allows the bearer to earn interest. The owner would be
a.) a demander of loanable funds
b.) a supplier of loanable funds
c.) a financial intermediary
d.) one who borrows money
21.) Factor or factors that shift the supply of loanable funds
a.) Income and wealth
b.) Time preference
c.) Different levels of consumption for the an individual
d.) All of the above
22.) The interest rate is
a.) only a cost to the borrowers
b.) only the return to the savers
c.) a return to borrowers
d.) is a return to the savers and cost to the borrowers
23.) When scarce resourcescannot change, we say that
a.) we are in the short run
b.) we are in the long run
c.) it is a period of time less than one year
d.) it is a period of time greater than one year
24.) When scarce resources can change we say that
a.) we are in the short run
b.) we are in the long run
c.) it is a period of time less than one year
d.) it is a period of time greater than one year
25.) If interest rates rise because of inflation
a.) firms are willing to borrow more money
b.) households are willing to borrow more money
c.) firms are willing to borrow less money
d.) foreign entities are willing to borrow more money
26.) Which country is the higher credit to the United States
a.) France
b.) Germany
c.) Canada
d.) China
27) Property Rights
a.) Is an important fact for economic growth
b.) Is not an important for economic growth
c.) Is very important in China
d.) None of the above