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- 1. ECON125-HK2. ECONOMICS FOR MANAGERS (ECON125- HK2) > TAKE ASSESSMENT: EXAM 1 Question 1 2 points Save Which of the following economic systems abolishes all private property? communism socialism fascism all of the above Question 2 2 points Save
- 2. The profit motive is one characteristic of a command economy. True False Question 3 2 points Save In a market system, the government enforces laws ensuring that private enterprises and conditions of competition will prevail. True False
- 3. Question 4 2 points Save The most common type of business in the United States is the corporation. True False Question 5 2 points Save Laissez-faire is a policy of no government intervention in the economic activities of individuals and businesses.
- 4. True False Question 6 2 points Save In a partnership, each partner’s liability is limited to his or her contribution to the partnership. True False
- 5. Question 7 2 points Save There are no government-regulated markets in the U.S. economy. True False Question 8 2 points Save Which of the following is not among the United States’ economic goals?
- 6. full employment stable prices healthy economic growth equal distribution of income Question 9 2 points Save Under the U.S. market system, land and capital goods are owned mainly by the federal government individuals and firms
- 7. local governments state governments Question 10 2 points Save The biggest disadvantage of a sole proprietorship is the lack of distinction between the business and the owner. True False Question 11
- 8. 2 points Save In the United States, marketing cooperatives are most commonly found in the agriculture industry. True False Question 12 2 points Save Self-interest is a major tenet of economic liberalism. True
- 9. False Question 13 2 points Save Which of the following is considered a command economy? communism socialism fascism all of the above
- 10. Question 14 2 points Save Economics is considered a physical science. True False Question 15 2 points Save The difference between a capital good and a consumer good depends on the purpose for which it is used
- 11. how it was produced what it is how quickly it is used up Question 16 2 points Save Positive economics deals with “what is” as opposed to “what ought to be.” True False
- 12. Question 17 2 points Save Production is the creation or addition of utility. True False Question 18 2 points Save Consumption is the ultimate end of economic activity.
- 13. True False Question 19 2 points Save The relationship between the price of a book and the number of volumes purchased would be an example of microeconomics. True False Question 20 2 points Save
- 14. An example of a macroeconomic model is the price of chicken influences the quantity of chicken bought the size of the total national output depends on the size of total spending the output of a product is influenced by the cost of production for the product all of the above Question 21 2 points Save The largest share of the total income of the United States is currently being distributed in the form of
- 15. interest rent wages profits Question 22 2 points Save Which of the following areas of study is included in the field of macroeconomics? electricians’ wage rates
- 16. monopolistic pricing price of automobiles general price level Question 23 2 points Save The total value of the goods and services produced over a period of time represents an economy’s planned savings total income total wealth capital
- 17. Question 24 2 points Save Stocks and bonds are counted as part of total wealth. True False Question 25 2 points Save The stock of labor talents and skills is known as
- 18. a public good the functional distribution human capital enterprise Question 26 2 points Save One cause for the uneven standard of living throughout the world is the uneven distribution of resources. True
- 19. False Question 27 2 points Save In exercising the principle of comparative advantage, a nation with no absolute advantage should produce a commodity in which it faces a lower opportunity cost than its trading partners face. True False Question 28 2 points Save
- 20. Government regulations which affect entrepreneurial activities within a nation also affect total output and the standard of living. True False Question 29 2 points Save A need to make choices exists because of scarcity of resources the abundance of goods
- 21. unlimited human needs and wants both (a) and (c) Question 30 2 points Save The principle of comparative advantage applies to individuals only business firms only nations only individuals, businesses, and nations
- 22. Question 31 2 points Save Economics can be defined as the study of choices. True False Question 32 2 points Save Suppose that Country A has an absolute advantage over country B in the production of both wheat and cloth. The opportunity cost of 1 unit of wheat is 2 units of cloth in Country A and 3 units of cloth in Country B. If each country specializes in producing the good in which it is relatively more efficient and then trades for the other good, it follows that
- 23. all the resulting gains in consumption will go to Country A all the resulting gains in consumption will go to Country B each country will experience half the resulting gains in consumption the allocation of the resulting consumption gains will be determined by bargaining between the two countries. Question 33 2 points Save Exercising the principle of comparative advantage between nations primarily involves
- 24. specialization transportation costs currency exchange rates domestic income tax rates Question 34 2 points Save An example of technological development is to increase output through raising pay working longer hours
- 25. hiring more workers using better machines Question 35 2 points Save An economy’s production possibilities curve could shift outward as a result of a(n) increased level of technology reduction in the quantity of capital goods decrease in the production of goods decrease in the amount of available resources
- 26. Question 36 2 points Save A nation needs an abundance of all productive resources in order to attain a high standard of living. True False Question 37 2 points Save To solve their basic long-term economic problems, developing countries primarily need
- 27. food clothing technical assistance shelter Question 38 2 points Save A surplus quantity will occur when quantity demanded is greater than quantity supplied price is above equilibrium
- 28. demand is elastic price is below equilibrium Question 39 2 points Save A change in demand would be illustrated by a drop in price, which causes people to buy more an increase in price, which causes people to buy less a change in people’s preferences that causes them to buy either more or less than before all of the above
- 29. Question 40 2 points Save If 12 units of a good are sold when the price is $1 per unit, and 8 units are sold at a price of $1.50 per unit, then demand is elastic inelastic of indeterminate elasticity unit elastic Question 41 2 points
- 30. Save The more substitutes for a good, the more elastic its demand tends to be. True False Question 42 2 points Save A demand curve generally is a straight horizontal line
- 31. is a straight vertical line slopes downward to the right slopes downward to the left Question 43 2 points Save The quantity supplied and price tend to vary inversely independently in an unrelated fashion directly
- 32. Question 44 2 points Save Price elasticity of demand tends to be greater for substitute items than for complementary goods. True False Question 45 2 points Save To maintain a price below the equilibrium price,
- 33. demand must increase supply must increase the government must set a ceiling price supply must decrease Question 46 2 points Save An increase in demand will cause the demand curve to move to the right move to the left
- 34. become more vertical become more horizontal Question 47 2 points Save Price ceilings usually create surpluses since supply is increased. True False Question 48 2 points
- 35. Save Price floors can create shortages if price floors are above market prices. True False Question 49 2 points Save When the supply of a product increases but the demand for the product remains unchanged, the equilibrium price of the product will fall, and equilibrium quantity will decrease
- 36. be unaffected first rise and then return to the original price level fall, and equilibrium quantity will increase Question 50 2 points Save On a price/quantity graph, a straight horizontal demand curve has zero price elasticity is perfectly elastic is perfectly inelastic
- 37. is perfectly unit elastic ECON125-HK2. ECONOMICS FOR MANAGERS (ECON125- HK2) > TAKE ASSESSMENT: EXAM 2 Question 1 2 points Save A firm is making a profit under conditions of monopolistic competition if, at the equilibrium output, AR is above MR MR is above AR AR is above AVC AR is above ATC
- 38. Question 2 2 points Save Firms in monopolistic competition sell a similar but differentiated product. True False Question 3 2 points Save A major characteristic of a monopoly is the ability of the monopolist to influence price.
- 39. True False Question 4 2 points Save The Federal Trade Commission prevents mergers that substantially lessen competition rules on the antitrust activities of labor unions issues patents polices deceptive advertising
- 40. Question 5 2 points Save If a monopolist lowers its price from $45 to $42 in order to increase its sales volume, marginal revenue equals $45 equals $42 is less than $42 is between $45 and $42 Question 6 2 points
- 41. Save The first act to declare monopolies illegal in the United States was the Sherman Antitrust Act Clayton Act Federal Trade Commission Act Robinson-Patman Act Question 7 2 points Save One company that retained its monopoly position for years through control of raw materials was
- 42. Aluminum Company of America (ALCOA) Proctor & Gamble Ford Motor Company U.S. Steel Question 8 2 points Save Monopsony is a market condition in which there is only one seller. True
- 43. False Question 9 2 points Save If firms in monopolistic competition are earning short-run profits, barriers to entry will allow the profits to continue in the long run total supply in the market will decrease in the long run as firms reduce output to keep prices high the entry of new firms will eliminate the profits in the long run each existing firm will experience an increase in its average revenues in the long run
- 44. Question 10 2 points Save Oligopoly is a market structure in which there are only two sellers there are relatively few producers no firm can influence price there are many producers Question 11 2 points Save All firms in monopolistic competition must sell at the same
- 45. price. True False Question 12 2 points Save The major characteristic of a monopoly is the degree of control over price it can exercise its ability to produce numerous products
- 46. its price elasticity of demand its source of revenue Question 13 2 points Save Under which type of market structure is the firm’s pricing decision the most difficult? perfect competition monopoly monopolistic competition oligopoly
- 47. Question 14 2 points Save Under perfect competition, if a firm is suffering a loss, MR exceeds ATC AR equals AVC AR equals ATC AR is less than ATC Question 15 2 points Save The difference between the price firms would be willing to
- 48. accept for their goods and the price they actually receive is called consumer surplus consumer efficiency allocative efficiency producer surplus Question 16 2 points Save In the long run, under conditions of perfect competition, market forces come into play to
- 49. enhance profits increase demand eliminate profits separate MR and AR Question 17 2 points Save Under conditions of perfect competition, an individual producer always maximizes output operates where MR equals MC
- 50. never suffers a loss operates where MR is greater than MC Question 18 2 points Save If all firms adhere to the conditions of perfect competition, short-run losses are avoided. True False Question 19 2 points Save
- 51. If a firm in a perfectly competitive industry is producing at a point where TR equals TC and the market demand increases, then the firm will be making economic profits; it will expand output economic profits; output will not change normal profits; output will expand normal profits; output will not change Question 20 2 points Save In perfect competition, if the market price is at the same level as the minimum point of the firm’s average total cost curve, the best the firm can hope for is to break even.
- 52. True False Question 21 2 points Save In a perfectly competitive industry, if TR exceeds TC, then in the long run firms will exit the industry new firms will enter the industry there will be no change in the number of firms
- 53. the market supply will shift to the left Question 22 2 points Save A prime example of perfect competition is the U.S. auto industry. True False Question 23 2 points Save Elaine’s firm is in a perfectly competitive industry. Why
- 54. doesn’t Elaine try to sell more of her product by lowering its price below the market price? her demand curve is not elastic doing so would be considered unethical price chiseling her competitors would not allow it she can sell all she wants at the market price Question 24 2 points Save Which of the following is correct when the perfectly competitive firm is producing its long-run equilibrium output level?
- 55. MR equals MC AR equals ATC P equals MC all of the above Question 25 2 points Save Under conditions of perfect competition, short-run equilibrium does not necessarily exist where profit is maximized or loss minimized MR = AR
- 56. MR = MC MR = ATC Question 26 2 points Save According to the simple circular flow concept, whenever planned investment is less than planned saving inventories accumulate output increases prices rise employment increases
- 57. Question 27 2 points Save In the circular flow, investment refers to spending on government bonds certificates of deposit capital goods consumer goods Question 28 2 points Save
- 58. Inventory accumulation occurs whenever output is less than spending output exceeds spending investment exceeds saving a deficit budget occurs Question 29 2 points Save A decrease in investment can cause a decrease in the price level without affecting total output.
- 59. True False Question 30 2 points Save In the circular flow, nonprofit institutions are counted as businesses excluded treated separately counted as households
- 60. Question 31 2 points Save During a period of unemployment, a deficit budget will most likely have which of the following effects on business activity? increase total output cause prices to rise have a neutral effect cause prices and total output to fall Question 32 2 points Save
- 61. An increase in planned savings always results in an increase in planned investment. True False Question 33 2 points Save If the federal government spends less than it receives from taxes, it has a surplus budget with injections exceeding leakages
- 62. it has a deficit budget with injections exceeding leakages it has a deficit budget with leakages exceeding injections it has a surplus budget with leakages exceeding injections Question 34 2 points Save In the simple circular flow model, if planned I exceeds planned S, then the economy is not at equilibrium the size of the circular flow is increasing if the economy is at full employment, then prices will rise all of the above
- 63. Question 35 2 points Save If inventories are accumulating, income must be greater than spending. True False Question 36 2 points Save Whenever exports exceed imports (and other planned injections equal other planned leakages), the economy
- 64. remains stable expands contracts deflates Question 37 2 points Save Which of the following statements concerning the circular flow model is (are) correct? an increase in planned savings always generates an increase in
- 65. planned investment spending planned investment spending is an injection into the circular flow increased investment always results in decreased savings all of the above Question 38 2 points Save It is true that a stable economy occurs when total injections into the circular flow are large enough to make up for government tax leakages total leakages from the circular flow are great enough to offset the effects of government spending
- 66. total planned leakages from the circular flow are exactly equal to total planned injections into the circular flow actual saving is equal to planned investment Question 39 2 points Save In a mature industry, all firms operate with constant returns to scale. True False Question 40
- 67. 2 points Save If the accounting profit equals $200,000 and implicit costs equal $40,000, the economic profit equals $240,000 $200,000 $160,000 $40,000 Question 41 2 points Save If the firm produces one more unit of output and total cost rises from $1,000 to $1,050, marginal cost is
- 68. $1,050 $1,000 $2,050 $50 Question 42 2 points Save The major factor accounting for diseconomies of scale is management inefficiency. True
- 69. False Question 43 2 points Save Average revenue (AR) is equal to total revenue/output total revenue minus total cost price per unit both (a) and (c)
- 70. Question 44 2 points Save The average fixed cost remains constant even in the long run. True False Question 45 2 points Save A production function is a technique for determining the most profitable rate of output
- 71. the relationship between a combination of inputs and a quantity of output an important factor in determining the shape of the long-run supply curve all of the above Question 46 2 points Save If the selling price of a product is $10, the average total cost is $8, and total sales are 5,000 units, the total profit will be $5,000 $8,000 $10,000
- 72. $20,000 Question 47 2 points Save The production function relates outputs to inputs. True False Question 48 2 points Save As units of input are added to the productive process, the
- 73. marginal product increases decreases remains the same declines then rises Question 49 2 points Save The average product decreases any time the marginal product is decreased.
- 74. True False Question 50 2 points Save If output changes in fixed proportion to a change in all of a firm’s productive resources, the firm has constant marginal returns constant returns to scale decreasing marginal returns decreasing returns to scale
- 75. ECON125-HK2. ECONOMICS FOR MANAGERS (ECON125- HK2) > TAKE ASSESSMENT: EXAM 3 Question 1 2 points Save If planned investment decreases, the multiplier will decrease the equilibrium income. True False Question 2 2 points Save The change in the level of planned spending that results from a change in the price level is indicated by the movement of the economy along a given
- 76. aggregate expenditure curve aggregate demand curve aggregate supply curve both (a) and (b) Question 3 2 points Save In the Keynesian model, whenever unplanned inventory increases occur in the economy, production is likely to
- 77. speed up slowly slow down remain unchanged speed up immediately Question 4 2 points Save If planned construction investment increases by $30 billion and the MPC is two-thirds, total output will increase by $30 billion $20 billion $45 billion
- 78. $90 billion Question 5 2 points Save Keynes recommended the use of government deficit spending to overcome widespread unemployment. True False Question 6 2 points Save
- 79. According to the Keynesian analysis, as income increases, the marginal propensity to consume will rise. True False Question 7 2 points Save Say’s Law states that supply is greater than demand supply is less than demand
- 80. demand generates supply supply generates demand Question 8 2 points Save The time lags lead monetarists to contend that monetary policy is counterproductive. True False Question 9 2 points
- 81. Save The classical doctrine assumed that the normal equilibrium position for the economy was at full employment. True False Question 10 2 points Save According to the Keynesian analysis, equilibrium occurs at the point where total aggregate expenditure equals total output. True
- 82. False Question 11 2 points Save In the Keynesian model, the most important influence on planned consumption is the interest rate expectations disposable income the price level
- 83. Question 12 2 points Save The multiplier is the reciprocal of the marginal propensity to consume. True False Question 13 2 points Save Aggregate expenditure in the U.S. economy includes spending for U.S. output by
- 84. households and businesses, but not governments households, businesses, and the federal government, but not state and local governments households, businesses, and all governments except foreign ones households, businesses, and governments, both domestic and foreign Question 14 2 points Save The bulk of the M1 money supply is made up of silver dollars and gold bars checkable deposits
- 85. travelers checks money market funds Question 15 2 points Save If a new cash deposit creates excess reserves of $5,000 and the required reserve ratio is 10 percent, the banking system can increase the money supply by a maximum of $50,000 $500 $5,000 $4,500
- 86. Question 16 2 points Save An increase in the velocity of money can have an effect similar to that of an increase in the money supply. True False Question 17 2 points Save If a bank has $60,000 in legal reserves and is subject to a 10 percent reserve requirement, it could have outstanding checkable deposits to the extent of
- 87. $60 million $600,000 $6 million $60,000 Question 18 2 points Save If a worker’s money wage increases at a faster pace than the CPI, his or her real wage will rise.
- 88. True False Question 19 2 points Save The Treasury issues all paper currency today. True False Question 20 2 points Save
- 89. Funds that earn a fixed rate of interest and must be held for a stipulated period of time are known as checkable deposits time deposits savings deposits money market funds Question 21 2 points Save Included in the official U.S. money supply are
- 90. U.S. government bonds corporate stocks checkable deposits all of the above Question 22 2 points Save The U.S. money supply measure that consists of currency plus travelers checks and checkable deposits is referred to as M1 M2
- 91. M3 M1 + M2 Question 23 2 points Save The quantity theory of money assumes that the national economy tends to operate at less than full the velocity of money is unstable the national economy tends to operate at full employment the velocity of money varies with changes in interest rates
- 92. Question 24 2 points Save If the CPI in City A is 150 and the CPI in City B is 135, the dollar has greater purchasing power in City B prices are higher in City A than they are in City B City B must be using a different base year none of the above Question 25 2 points Save The value or purchasing power of the dollar can be obtained by dividing $1 by the CPI.
- 93. True False Question 26 2 points Save Stored value and smart cards are forms of electronic banking. True False
- 94. Question 27 2 points Save Each Federal Reserve Bank has its own board of directors. True False Question 28 2 points Save The First Bank of the United States was chartered by
- 95. the federal government the state of New York the city of New York Suffolk County Question 29 2 points Save All members of the Board of Governors are members of the Fed’s Open Market Committee. True False
- 96. Question 30 2 points Save The Federal Reserve System was established in 1980 1913 1864 1791 Question 31 2 points Save
- 97. Members of the Board of Governors are appointed by Congress selected by the U.S. President elected by member banks selected by the U.S. Treasury Department Question 32 2 points Save By buying government securities, the Federal Open Market Committee adds to member banks’ reserves.
- 98. True False Question 33 2 points Save The Board of Governors of the Federal Reserve System is under the jurisdiction of the U.S. President responsible to the Secretary of the U.S. Treasury independent within the U.S. government responsible to the Council of Economic Advisors
- 99. Question 34 2 points Save The members of the Board of Governors of the Federal Reserve System are appointed by the U. S. President. True False Question 35 2 points Save Various studies have recommended changes in the Federal Reserve structure and policy that include
- 100. having Congress set the discount rate placing monetary policy in the control of Congress dissolving the Board of Governors making each appointment to the Board of Governors a lifetime appointment Question 36 2 points Save If the Federal Open Market Committee desired to tighten credit, it would buy securities in the open market
- 101. sell securities in the open market lower the discount rate raise the discount rate Question 37 2 points Save Competition in U.S. banking has been increased by the expansion of interstate banking the expansion of foreign bank branches into the United States the movement of brokerage houses and large corporations into traditional banking activities all of the above
- 102. Question 38 2 points Save If a Federal Reserve Bank wanted to tighten the money supply, it would lower the reserve requirement buy securities in the open market raise the discount rate lower the discount rate Question 39
- 103. 2 points Save The existence of undistributed corporate profits tends to cause NNP to be smaller than GDP national income to be larger than personal income national income to be smaller than NNP personal income to be larger than disposable personal income Question 40 2 points Save National income is equivalent to total earnings in the form of wages, rent, interest, and profits.
- 104. True False Question 41 2 points Save The GDP counts durable goods only during their year of production. True False
- 105. Question 42 2 points Save Imports constitute a minus figure in national income accounting. True False Question 43 2 points Save GDP overstates national income because it does not make any adjustment for national debt.
- 106. True False Question 44 2 points Save The national income accounts for the United States are prepared by the Bureau of Labor Statistics U.S. Department of Commerce Federal Reserve Board President Council of Economic Advisors
- 107. Question 45 2 points Save Excluded from the GDP are military services postal services medical services nonmonetary transactions Question 46 2 points Save
- 108. The difference between GDP and final sales equals depreciation exports imports net inventory change Question 47 2 points Save In dollar value, the nominal GDP in the United States is in the vicinity of
- 109. between 3 and 4 billion between 4 and 5 billion between 4 and 5 trillion between 10 and 12 trillion Question 48 2 points Save The GDP and NI figures are not equal because business profits are included in GDP but not in NI depreciation and indirect taxes are included in GDP but not in NI
- 110. all taxes must be deducted from GDP to arrive at NI none of the above Question 49 2 points Save Current disposable income can be adjusted for price changes and population changes to yield real per capita disposable income. True False Question 50 2 points
- 111. Save Personal consumption expenditures account for approximately two-thirds of the GDP in the United States. True False ECON125-HK2. ECONOMICS FOR MANAGERS (ECON125- HK2) > TAKE ASSESSMENT: EXAM 4 Question 1 2 points Save U.S. workers have
- 112. neither substantial geographic nor occupational mobility both substantial geographic and occupational mobility substantial geographic mobility but not occupational mobility substantial occupational mobility but not geographic mobility Question 2 2 points Save Many economists believe that increases in the minimum wage tend to create a labor surplus. True False
- 113. Question 3 2 points Save The rate of unemployment that can be expected from normal frictional unemployment in an otherwise fully employed labor force is known as the natural rate of unemployment full-employment unemployment rate structural unemployment rate Humphrey-Hawkins unemployment rate Question 4 2 points Save
- 114. If workers are changing jobs voluntarily and it takes a while for them to find new jobs, they are an example of structural unemployment frictional unemployment technological unemployment none of the above Question 5 2 points Save Underemployment includes employed workers not performing at full capacity.
- 115. True False Question 6 2 points Save The Humphrey-Hawkins Act’s target rates for unemployment and inflation were reached by their target date of 1983. True False
- 116. Question 7 2 points Save Which type of unemployment is the most difficult to cure? functional seasonal cyclical structural Question 8 2 points Save The idea of the natural rate of unemployment is that
- 117. frictional and structural causes prevent employment in the economy from ever becoming 100 percent of the labor force each industry has its average turnover rate, and this rate determines its natural rate of unemployment the market system requires that a pool of unemployed people be available to limit the power of workers none of the above Question 9 2 points Save The total U.S. labor force excludes members of the armed services stationed outside the United States.
- 118. True False Question 10 2 points Save The Full Employment and Balanced Growth Act set a 1983 U.S. inflation rate target of 1 percent 2 percent 3 percent 4 percent
- 119. Question 11 2 points Save The total labor force includes all persons in the noninstitutional population who are either working or seeking work. True False Question 12 2 points Save The natural rate of unemployment is usually
- 120. equal to the full-employment rate of unemployment higher than the full-employment rate of unemployment lower than the full-employment rate of unemployment double the full-employment rate of unemployment Question 13 2 points Save If the percentage of the population that is below the poverty line has decreased, then the number of poor must have increased poor must have decreased
- 121. poor may have increased people above the poverty line must have increased Question 14 2 points Save If a Lorenz curve were constructed for the distribution of wealth, the curve would indicate greater inequality for wealth than income indicate less inequality for wealth than income be identical to the Lorenz curve for income be a straight line from the origin
- 122. Question 15 2 points Save The total number of people in poverty has changed little since the late 1960s. True False Question 16 2 points Save The poverty rate for blacks is almost three times that for whites.
- 123. True False Question 17 2 points Save If everyone had the same income, the Lorenz curve would become the line of income equality. True False
- 124. Question 18 2 points Save The official poverty threshold line is adjusted annually for income taxes inflation average household size average family size Question 19 2 points Save In 2004, households with incomes less than $22,629 received
- 125. 3.4 percent of aggregate income 5.7 percent of aggregate income 8.2 percent of aggregate income 10 percent of aggregate income Question 20 2 points Save Nonfamily households earn less than 50 percent of the income earned by family households. True
- 126. False Question 21 2 points Save The Lorenz curve shows the percent of families on the vertical axis and percent of income on the horizontal axis percent of families on the horizontal axis and the cumulative percent of income on the vertical axis cumulative percent of income on the vertical axis and the cumulative percent of families on the horizontal axis cumulative percent of families on the vertical axis and the cumulative percent of income on the horizontal axis
- 127. Question 22 2 points Save A minimum wage rate job raises a family out of poverty. True False Question 23 2 points Save In discussing the distribution of income among families, the term “lowest fifth” indicates
- 128. the poorest five percent of families the poorest twenty percent of families the smallest twenty percent of families the percentage of families receiving one-fifth of the income Question 24 2 points Save If income were distributed solely according to productivity, some individuals would not receive any income. True False
- 129. Question 25 2 points Save Cost-push inflation is characterized by the wage-price spiral administered pricing stagflation the multiplier Question 26 2 points Save
- 130. Inflation and unemployment can never exist at the same time. True False Question 27 2 points Save To most effectively combat inflation by raising taxes, the government should target funds that would otherwise be held idle also increase government spending
- 131. target households with low marginal propensities to consume target funds that would otherwise be spent on consumption or investment Question 28 2 points Save During an inflationary period, the Fed is inclined to purchase government securities to combat inflation. True False
- 132. Question 29 2 points Save In the 1970s, the war in Vietnam caused a fiscal drag on the economy. True False Question 30 2 points Save Government policies designed to lower aggregate demand in order to combat inflation are known as
- 133. expansionary policies contractionary policies anti-growth policies recession policies Question 31 2 points Save During the 1990–1991 recession, the U.S. government’s large budget deficits and budget reduction commitments limited its ability to use fiscal policy to stimulate the economy. True False
- 134. Question 32 2 points Save When the U.S. Treasury sells bonds to the public to finance government spending and then the Fed buys the bonds through open-market purchases, the Fed is monetizing the debt decreasing the money supply decreasing bank reserves increasing the difficulty of raising funds for government spending Question 33
- 135. 2 points Save Fiscal policy deals with interest rates the money supply the government budget bank credit Question 34 2 points Save In the late 1960s, a 10 percent surcharge on U.S. personal and corporate income taxes was imposed as an expansionary measure.
- 136. True False Question 35 2 points Save If the government finances increased spending strictly through higher taxes, this action increases the multiplier effect has no impact on the multiplier effect decreases the multiplier to a value greater than one
- 137. decreases the multiplier to one Question 36 2 points Save The Economic Recovery Tax Act of 1981 reduced personal income taxes by 25 percent over a three-year period. True False Question 37 2 points Save Jawboning by the Carter Administration proved to be an
- 138. unsuccessful contractionary policy. True False Question 38 2 points Save The U.S. economy has experienced no minor cycles since World War II. True False
- 139. Question 39 2 points Save Agricultural explanations of the business cycle are not as important today as they were 50 to 75 years ago, because today agricultural production is more mechanized agricultural production is a smaller portion of the total economy agricultural production is greater we eat less Question 40 2 points
- 140. Save The underconsumption theory is classified as a real or physical cause of the business cycle. True False Question 41 2 points Save During the expansion phase of the business cycle, profit margins increase due to a widening cost-price relationship. True
- 141. False Question 42 2 points Save Which of the following is the most valid expression of a theory of underconsumption as a cause of business cycles? capital goods production encroaches on consumer goods production income equals production, but not all income is used for current purchasing power people want more goods than the economy is capable of producing; therefore, they must cut their consumption expectations the economy provides insufficient purchasing power to buy back the goods it produces
- 142. Question 43 2 points Save A recession occurs whenever there’s a decline in real GDP for two or more successive quarters. True False Question 44 2 points Save Involuntary inventory accumulation may occur during the contracting phase of the business cycle.
- 143. True False Question 45 2 points Save A hurricane is considered an external force in business cycle analysis. True False
- 144. Question 46 2 points Save During the contraction phase of the business cycle, prices fall relative to costs, reducing profit margins costs fall relative to prices, reducing profit margins prices fall relative to costs, increasing profit margins costs fall relative to prices, increasing profit margins Question 47 2 points Save An example of an external force in business fluctuations is
- 145. falling interest rates due to lagging demand in a contraction a devaluation in the nation’s currency variations in inventories the lag between price changes and cost changes Question 48 2 points Save Economists use the phrase “business cycle” when discussing movements in interest rates
- 146. changes in economic productivity fluctuations in employment fluctuations in total output around the trend Question 49 2 points Save The underinvestment theory is classified as a monetary cause of the business cycle. True False
- 147. Question 50 2 points Save As the economy moves into the trough of the business cycle, there is a sizable reduction in the output of capital goods. True False ECON125-HK2. ECONOMICS FOR MANAGERS (ECON125- HK2)> TAKE ASSESSMENT: EXAM 5 Question 1 2 points Save Overseas investments by U.S. citizens are recorded as credit items in the capital account of the U.S. balance of payments.
- 148. True False Question 2 2 points Save Under a fixed or controlled exchange rate system, if the United States wanted to increase the value of the dollar, it could buy foreign currencies with dollars. True False
- 149. Question 3 2 points Save Since World War II, international exchange rates have been fixed all the time floating all the time fixed most of the time until the early 1970s, and floating most of the time since then determined by the use of exchange controls Question 4 2 points Save Under a system of fixed exchange rates, excess demand for
- 150. foreign currency at the official exchange rate would cause the exchange rate to rise the exchange rate to fall the government to buy foreign currency from the country’s importers the government to sell foreign currency to the country’s importers Question 5 2 points Save The course of international monetary policy is directed primarily by the
- 151. Federal Reserve World Bank International Monetary Fund leaders of the Group of Seven nations Question 6 2 points Save Overseas investments by U.S. citizens show up in the U.S. balance of payments as credit items debit items
- 152. current account items investment income Question 7 2 points Save A debit item on the U.S. balance of payments is any transaction that results in a loss by U.S. sellers results in a loss by U.S. buyers makes foreigners use up their holdings of U.S. dollars makes U.S. dollars available to foreigners
- 153. Question 8 2 points Save Under the gold standard, a country that is experiencing a gold outflow has a balance of payments deficit has a shrinking money supply is experiencing a fall in output all of the above Question 9 2 points
- 154. Save When a U.S. citizen invests in foreign assets, the transaction is recorded in the balance of payments as a credit in capital account debit in the capital account credit in the current account debit in the current account Question 10 2 points Save Since World War II, the importance of gold in international exchange has increased.
- 155. True False Question 11 2 points Save A freely floating exchange rate exists when governments set pegs for the exchange rate but occasionally adjust them offshore banks determine the exchange rate supply and demand forces are allowed to determine the rate at which currencies are exchanged for each other
- 156. governments use international reserves only to influence exchange rates Question 12 2 points Save An appreciation of the U.S. dollar would encourage foreigners to invest in the United States discourage foreigners from buying U.S. goods discourage the travel abroad of U. S. citizens encourage foreign travel in the United States
- 157. Question 13 2 points Save Under the gold standard, a country experiencing a gold outflow has a balance of payments surplus had an increasing money supply experienced a decline in output experienced an increase in output Question 14 2 points Save Under a system of floating exchange rates, increased demand of U.S. citizens for Japanese goods will cause
- 158. the Japanese yen to depreciate against the U.S. dollar the U.S. dollar to appreciate against the Japanese yen the Japanese yen to appreciate against the U.S. dollar the exchange rate between the Japanese yen and the U.S. dollar to remain unchanged Question 15 2 points Save Under the gold standard, a nation experiencing chronic trade deficits had to increase its money supply while reducing its holdings of gold.
- 159. True False Question 16 2 points Save Appreciation of the U.S. dollar encourages travel abroad by U.S. citizens. True False Question 17 2 points
- 160. Save If trade between the United States and Canada were totally free of restrictions, the incomes of most Canadian workers would decrease. True False Question 18 2 points Save The revenue and protective purposes of a tariff are largely incompatible. True
- 161. False Question 19 2 points Save Using tariffs to support diversification of a nation’s industrial structure has little application to developing countries is based on the need to protect high domestic wages is based on the need to make the economy less vulnerable to demand fluctuations for its products is designed to encourage specialization by the nation’s producers in just one or a few goods
- 162. Question 20 2 points Save In comparing a revenue tariff versus a protective tariff on the same good, a revenue tariff would tend to be less than a protective tariff greater than a protective tariff equal to a protective tariff greater than or equal to a protective tariff Question 21 2 points Save
- 163. The General Agreement on Tariffs and Trade (GATT) was replaced by the World Trade Organization (WTO). True False Question 22 2 points Save The rule of origin defines the maximum percentage of a country’s exported product that can be sold in the United States. True
- 164. False Question 23 2 points Save Tariff protection encourages the optimum use of scarce resources has no impact on use of scarce resources prevents the optimum use of scarce resources eliminates the scarcity of resources Question 24
- 165. 2 points Save A provision that permits raising tariffs if domestic producers are suffering under an existing tariff is known as a trading bloc exchange control antidumping an escape clause Question 25 2 points Save Beginning in 2002, Economic Monetary Union members no longer print their own money.
- 166. True False Question 26 2 points Save Chile has been invited to join the European Union. True False
- 167. Question 27 2 points Save The principle of comparative advantage is associated with restricting consumer choices greater production at higher prices specialization and exchange comparing the efficiency of alternative tariffs Question 28 2 points Save The primary function of the Export-Import Bank is to assist in
- 168. guaranteeing markets for U.S. importers financing exports from the United States providing foreign currency to U.S. banking institutions reducing tariff rates between trading nations Question 29 2 points Save Exports from China into the U.S. have most seriously impacted the automobile industry
- 169. furniture industry travel industry cosmetics industry Question 30 2 points Save Although political arguments strongly favor free trade, most decisions affecting international trade are made in the economic arena. True False
- 170. Question 31 2 points Save Who does not gain when a tariff is imposed? domestic producers of the good domestic workers in the protected industry domestic consumers of the good domestic suppliers in the protected industry Question 32 2 points Save The Export-Import Bank is owned by 150 nations, including the United States.
- 171. True False Question 33 2 points Save Consider a tariff levied on the importer of a consumer good. The tariff is ultimately paid by the importer the consumer
- 172. competing foreign firms competing domestic firms Question 34 2 points Save The size of the national debt relative to GDP will not be reduced by paying off some of the debt lowering the federal deficit having the GDP grow faster than the debt having creditors forgive part of the debt
- 173. Question 35 2 points Save In the United States, income is taxed only by the federal government. True False Question 36 2 points Save Whether a tax is shifted forward or backward depends on the price elasticities of demand and supply.
- 174. True False Question 37 2 points Save Which of the following taxes is not collected from the consumer on the final sale of goods and services? consumption tax national sales tax value-added tax flat tax
- 175. Question 38 2 points Save The full-employment balanced budget always shows a surplus. True False Question 39 2 points Save The government’s ability to repay the national debt is governed only by the total assets of the economy.
- 176. True False Question 40 2 points Save When the federal budget is used as a tool for economic stabilization, the ideal goal is to balance the budget over the entire business cycle balance the budget each year balance the budget during expansions
- 177. run a surplus during contractions Question 41 2 points Save As a percentage of GDP, the U.S. national debt held by the public is larger than in any major European country. True False Question 42 2 points Save A consumption tax is usually collected on
- 178. wages and salaries interest income dividend income none of the above Question 43 2 points Save When the government uses tax revenue to pay off portions of the national debt, total purchasing power in the economy
- 179. increases decreases is not affected at any level remains the same but changes individually Question 44 2 points Save As interest rates rise, the temptation to borrow increases the cost of carrying the national debt rises the likelihood of a surplus budget increases
- 180. the need for deficit spending to reinvigorate the economy grows Question 45 2 points Save A balanced federal budget cannot have an expansionary effect on the economy can have an expansionary effect on the economy if the government finances spending with taxes on idle funds can have an expansionary effect on the economy if the government finances spending with taxes on funds that would have been used for private consumption can have an expansionary effect on the economy if the government finances spending with taxes on funds that would have been used for private investment
- 181. Question 46 2 points Save The U.S. income tax is based on the principle of cost of service benefit received ability to pay equality of sacrifice Question 47 2 points Save
- 182. The U.S. national debt has declined continuously as a percentage of GDP since World War II. True False Question 48 2 points Save Which of the following is not a necessary characteristic for a tax to qualify as a good tax? justifiability
- 183. convenience being economical equality Question 49 2 points Save The equality-of-sacrifice doctrine would require larger taxes from higher-income groups. True False
- 184. Question 50 2 points Save The sales tax is proportional with respect to the tax base of the amount of purchases. True False Running Head: REPORT FOR CCC PART 7 1 REPORT FOR CCC PART 7 7
- 185. Report for CCC Part 7 7 Planning In this part I will plan conditions in which I will start my fresh original behavior in a period not less than two weeks. I will keep an updated journal description of the events that occurs in both the unplanned and planed situations comprising my opinions on how good the behavior was started as earlier narrated. 7A1 – initially arranged discussion: Use appropriate correspondence expertise and system by keeping up eye contact and adjusting to my gathering of people individuals. 7A2 – second arranged discussion: Reinforcing my relational abilities by effectively rehearsing and volunteering to talk all the more regularly. 7A3 – third arranged discussion: Communicating certainty by being readied and showing all that I bring to the table. 7B. Assessment of Planned Conversations I plan to use appropriate correspondence ability and strategy by keeping up eye contact and adjusting to my group of onlooker’s individuals and their needs. Appropriately perusing your gathering of people is imperative, since it permits you to associate with them on a level that they can identify with. I plan to fortify my relational abilities by effectively honing and volunteering to talk all the more frequently. Honing with a
- 186. relative, companion, or even before a reflection can help you to ace the craft of talking while assembling and expanding fearlessness in the meantime. I plan to express my certainty level by being readied and showing all that I bring to the table. Certainty is critical, it permits you to be set up to handle any assignment, at any given time. 7B1. Honing my discourses and effectively speaking with others truly urged me to be more self-assured and take control. I honed various talks before the reflection with the goal that I could take in and read my exclusive non-verbal communication and facial signals. This helped me to do my presentations precisely and appropriately. My answer would rehearse, before a reflection worked best. 7B2. Conversing with others and taking part in stubborn discussions attempted to a specific degree, however generally it appeared not to fill in and also I arranged. Ordinarily individuals draw from various foundations and suppositions, in this manner, they don't generally concur with what you need to state. Valuable feedback is sure and urges you to work harder, yet now and then, you simply keep running into a mean individual that totally bashes what you need to state, which can make you unreliable. My answer would hone, before other individuals. 7B3. I feel that I function admirably in gatherings, however better and more effective as a gathering pioneer. I get a kick out of the chance to take control and work at an unfaltering pace. My answer would work, together in a gathering and delivering quality items and presentations. I truly appreciate the air of collaboration and correspondence. 7B4. Open correspondence and association. Communicating my assessments, thoughts, and worries, keeping in mind the end goal to get exact criticism from others. Working on, rehearsing, and editing my work with the goal that I can deliver a quality
- 187. item. At long last, looking over the assessments of others in light of what I have said in my presentations. 7B5. I will figure out how to listen to others. Viable correspondence obliges you to be a certain speaker and additionally a committed audience. Correspondence and discussion can't be legitimately done if there is just a single individual talking and not different individuals chatting. I think it is critical to listen deferentially and hold the data that it being created to you with the goal that you can improve as a, more instructed, and skilled speaker. Talking more with others will give me the ability and strategy required so as to support self-assurance levels and venture up to the following assignment unhesitatingly and at last it will help me agree my dread of open talking. 7C. Assessment of Unplanned Conversations: I accomplished my objective of improving more and becoming clear to exact audience. While chatting with others, I permitted them to talk unreservedly, while keeping up eye contact and giving careful consideration to detail. This permitted me to appropriately comprehend their focuses and concerns. Thusly, it improved me a possibility for substantial and legitimate correspondence. My relational abilities have soar and my self- assurance levels have experienced the rooftop! Rehearsing my talks before others, and also alone before reflect, helped me with turning out to be more certain and active .Speaking with others and being a decent audience helped me with reinforcing my open relational abilities, which drove me in the correct heading of participating in extra taught discussions. 7C1 Turning into a successful audience is the thing that gave me the experience and helped me with turning out to be better at correspondence. I pictured myself, while listening to others with deference and approval. I understood that openness is absolutely vital, and that others are similarly as anxious as I am more often than not before a discourse. Cooperating with others helped me to agree my feelings of dread.
- 188. 7C2. Working alone constantly and not taking part in discussion with others. I understood that the sentiments of others assume a colossal part in my activities (great or awful) and by ignoring others, I tend to do not have the qualities expected to appropriately do a correspondence. Not listening and passing others over by supposing I knew I was correct and had every one of the answers conflicted with me. 7C3. Staying liberal, expressing my objective and finishing it. Effectively captivating in discussion with others. At long last, being a decent audience by showing legitimate regard and human respect for others while they were talking. 7C4. I might want to be a greater amount of a receptive audience. I might want to be more liberal to useful feedback. I might want to ace the specialty of correspondence, by chatting with others, at whatever point conceivable. 7C5. I might want to ace the specialty of listening to others intently and focusing on detail. I need to be more liberal and concentrated on what others need to state. So as to do as such, I should be a superior audience by regarding others and giving them a chance to talk their brains. I will show regard by keeping eye contact, focusing, and recognizing all that they bring to the table. I will calmly hold up until the ball is in my court and bob some of my thoughts off of them in would like to receive some helpful feedback consequently. References Hsu, H., Gueng, M. K., Tseng, Y. H., Wu, C. C., Liu, P. H., & Chen, C. C. C. (2011). Adenocarcinoma arising from colonic
- 189. duplication cyst with metastasis to omentum: A case report. Journal of Clinical Ultrasound, 39(1), 41-43. Kametani, T., Ihara, M., Fukumoto, K., & Yagi, H. (2010). Studies on the syntheses of heterocyclic compounds. Part CCC. Syntheses of salutaridine, sinoacutine, and thebaine. Formal total syntheses of morphine and sinomenine. Journal of the Chemical Society C: Organic, (15), 2030-2033.