- Description
Exam 2 – PERFECT SCORE (100%)
- Points 40
- Questions 40
- Time Limit 75 Minutes
Instructions
Rules for online exam (Using canvas)
- Students are expected to complete the exam in one session.
- Only one attempt is allowed.
- Format: 40 multiple choice questions.
- MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
- Allocated time is 75 minutes. Plan your time accordingly.
- For any exams administered online, it is expected that such exams be the student’s independent, individual work without assistance. Assistance from any persons, notes, books, consultations, groups, electronic devices, previous course exams, or any other sources is strictly prohibited and considered to be a breach of academic integrity.
- Once you start the exam, you cannot stop and restart again at a later time. You will be shown one question at a time.
- Students are responsible for a reliable internet connection when taking online, exams, and homework.
- Technical difficulties will NOT be considered as legitimate excuse for missing any exams administered online.
- At the end of the 75-minutes period, the exam will automatically log-off.
Attempt History
Attempt | Time | Score | |
LATEST | Attempt 1 | 62 minutes | 39 out of 40 |
Correct answers are hidden.
Score for this quiz: 40 out of 40
Question 1
1 / 1 pts
Macroeconomists study
the decisions of individual households and firms.
the interaction between households and firms.
economy-wide phenomena.
regulations imposed on firms and unions.
Question 2
1 / 1 pts
Gross domestic product measures
income and expenditures.
income but not expenditures.
expenditures but not income.
neither income nor expenditures.
Question 3
1 / 1 pts
GDP is defined as the
value of all goods and services produced within a country in a given period of time.
value of all goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time.
value of all final goods and services produced within a country in a given period of time.
value of all final goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time.
Question 4
1 / 1 pts
The inflation rate you are likely to hear on the nightly news is calculated from
the GDP deflator.
the CPI.
the Dow Jones Industrial Average.
the unemployment rate.
Question 5
1 / 1 pts
Which of the following agencies calculates the CPI?
the National Price Board
the Department Of Weight and Measurements
the Bureau of Labor Statistics
the Congressional Budget Office
Question 6
1 / 1 pts
From 2013 to 2014, the CPI for medical care increased from 150 to 159. What was the inflation rate for medical care?
5.7 percent
6.0 percent
9.0 percent
59.0 percent
Question 7
1 / 1 pts
Table 24-2
The table below pertains to Pieway, an economy in which the typical consumer’s basket consists of 15 bushels of peaches and 10 bushels of pecans.
Year | Price of Peaches | Price of Pecans |
2012 | $11 per bushel | $6 per bushel |
2013 | $9 per bushel | $10 per bushel |
Refer to Table 24-2. The cost of the basket in 2012 was
$200.
$225.
$235.
$212.50.
Question 8
1 / 1 pts
An important difference between the GDP deflator and the consumer price index is that
the GDP deflator reflects the prices of goods and services bought by producers, whereas the consumer price index reflects the prices of goods and services bought by consumers.
the GDP deflator reflects the prices of all final goods and services produced domestically, whereas the consumer price index reflects the prices of goods and services bought by consumers.
the GDP deflator reflects the prices of all final goods and services produced by a nation’s citizens, whereas the consumer price index reflects the prices of all final goods and services bought by consumers.
the GDP deflator reflects the prices of all final goods and services bought by producers and consumers, whereas the consumer price index reflects the prices of all final goods and services bought by consumers.
Question 9
1 / 1 pts
The introduction of the video cassette recorder in the 1970s exemplified a problem in measuring the cost of living; that problem is the problem of
substitution bias.
product-improvement bias.
introduction of new goods.
unmeasured quality change.
Question 10
1 / 1 pts
If the nominal interest rate is 8 percent and the rate of inflation is 3 percent, then the real interest rate is
-5 percent.
1.67 percent.
5 percent.
11 percent.
Question 11
1 / 1 pts
If the CPI was 127 in 1972 and is 324 today, then $10 in 1972 purchased the same amount of goods and services as
$3.92 purchases today.
$25.51 purchases today.
$207.00 purchases today.
$324.00 purchases today.
Question 12
1 / 1 pts
A COLA automatically raises the wage when
GDP increases.
taxes increase.
the consumer price index increases.
the producer price index increases.
Question 13
1 / 1 pts
A closed economy
does not trade with other economies.
is centrally-planned.
does not allow financial intermediation.
All of the above are correct.
Question 14
1 / 1 pts
Consider the expressions T – G and Y – T – C. Which of the following statements is correct?
Each one of these is equal to national saving.
Each one of these is equal to public saving.
The first of these is private saving; the second one is public saving.
The first of these is public saving; the second one is private saving.
Question 15
1 / 1 pts
Suppose that in a closed economy GDP is equal to 15,000, government purchases are equal to 3,000, consumption equals 10,500, and taxes equal 3,500. What are private saving and public saving?
1,500 and -500, respectively
1,500 and 500, respectively
1,000 and -500, respectively
1,000 and 500, respectively
Question 16
1 / 1 pts
When the government has a budget surplus
it buys more of its bonds from the public than it sells to the public.
it spends more than it receives in tax revenue.
private saving is greater than zero.
exports are greater than imports.
Question 17
1 / 1 pts
An increase in the government’s budget deficit means
public saving is greater than $0 and increasing.
public saving is greater than $0 and decreasing.
public saving is less than $0 and increasing.
public saving is less than $0 and decreasing.
Question 18
1 / 1 pts
In the language of macroeconomics, investment refers to
saving.
the purchase of new capital.
the purchase of stocks, bonds, or mutual funds.
All of the above are correct.
Question 19
1 / 1 pts
Cyclical unemployment refers to
the portion of unemployment created by job search.
short-run fluctuations around the natural rate of unemployment.
changes in unemployment due to changes in the natural rate of unemployment.
the portion of unemployment created by wages set above the equilibrium level.
Question 20
1 / 1 pts
Unemployment data are collected
from unemployment insurance claims.
through a regular survey of about 60,000 households.
through a regular survey of about 200,000 firms.
All of the above are correct.
Question 21
1 / 1 pts
Who of the following is not included in the Bureau of Labor Statistics’ “employed” category?
those who worked in their own business
those who worked as unpaid workers in a family member’s business
those waiting to be recalled to a job from which they had been laid off
those who were temporarily absent from work because of vacation.
Question 22
1 / 1 pts
Jai Li just lost her job, and she has not yet started looking for a new one. The Bureau of Labor Statistics counts Jai Li as
unemployed and in the labor force.
unemployed but not in the labor force.
in the labor force but not unemployed.
neither in the labor force nor unemployed.
Question 23
1 / 1 pts
Table 28-2
Labor Data for Aridia
Year | 2010 | 2011 | 2012 |
Adult population | 2,000 | 3,000 | 3,200 |
Number of employed | 1,400 | 1,300 | 1,600 |
Number of unemployed | 200 | 600 | 200 |
Refer to Table 28-2. The labor force of Aridia in 2010 was
1,400.
1,600.
1,800.
2,000.
Question 24
1 / 1 pts
Table 28-2
Labor Data for Aridia
Year | 2010 | 2011 | 2012 |
Adult population | 2,000 | 3,000 | 3,200 |
Number of employed | 1,400 | 1,300 | 1,600 |
Number of unemployed | 200 | 600 | 200 |
Refer to Table 28-2. The unemployment rate of Aridia in 2010 was
10%.
12.5%.
14.3%.
80%.
Question 25
1 / 1 pts
The Bureau of Labor Statistics counts discouraged workers as
employed. Including them as employed makes the unemployment rate lower than otherwise.
unemployed. Including them as unemployed makes the unemployment rate higher than otherwise.
out of the labor force. If the were counted as unemployed the unemployment rate would be higher.
None of the above is correct.
Question 26
1 / 1 pts
Ariana is the CEO of a corporation that hires nonunion labor. According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, then
the profits of her firm might increase.
she will face a shortage of labor.
the turnover of her workers may increase.
None of the above is correct.
Question 27
1 / 1 pts
Suppose that roofers are not unionized. If roofers unionize, then the supply of labor in other sectors of the economy will
decrease, raising wages in industries that are not unionized.
decrease, reducing wages in industries that are not unionized.
increase, raising wages in industries that are not unionized.
increase, reducing wages in industries that are not unionized.
IncorrectQuestion 28
0 / 1 pts
If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied,
there is a surplus and the interest rate is above the equilibrium level.
there is a surplus and the interest rate is below the equilibrium level.
there is a shortage and the interest rate is above the equilibrium level.
there is a shortage and the interest rate is below the equilibrium level.
Question 29
1 / 1 pts
A larger budget surplus
raises the interest rate and investment.
reduces the interest rate and investment.
raises the interest rate and reduces investment.
reduces the interest rate and raises investment.
Question 30
1 / 1 pts
Suppose the U.S. offered a tax credit for firms that built new factories in the U.S. Then
the demand for loanable funds would shift rightward, initially creating a surplus of loanable funds at the original interest rate.
the demand for loanable funds would shift rightward, initially creating a shortage of loanable funds at the original interest rate.
the supply of loanable funds would shift rightward, initially creating a surplus of loanable funds at the original interest rate.
the supply of loanable funds would shift rightward, initially creating a shortage of loanable funds at the original interest rate.
Question 31
1 / 1 pts
If the demand for loanable funds shifts to the left, then the equilibrium interest rate
and quantity of loanable funds rises.
and quantity of loanable funds falls.
rises and the quantity of loanable funds falls.
falls and the quantity of loanable funds rises.
Question 32
1 / 1 pts
What would happen in the market for loanable funds if the government were to increase the tax on interest income?
Interest rates would rise.
Interest rates would be unaffected.
Interest rates would fall.
The effect on the interest rate is uncertain.
Question 33
1 / 1 pts
A decrease in the budget deficit
makes investment spending fall.
makes investment spending rise.
does not affect investment spending.
may increase, decrease, or not affect investment spending if private saving doesn’t change.
Question 34
1 / 1 pts
A bond is a
financial intermediary.
certificate of indebtedness.
certificate of partial ownership in an enterprise.
None of the above is correct.
Question 35
1 / 1 pts
In a small closed economy investment is $50 billion and private saving is $45 billion. What are public saving and national saving?
$5 billion and $45 billion
-$5 billion and $45 billion
$5 billion and $50 billion
-$5 billion and $50 billion
Question 36
1 / 1 pts
Scenario 26-1. Assume the following information for an imaginary, closed economy.
GDP = $100,000; taxes = $22,000; government purchases = $25,000; national | |
saving = $15,000. |
Refer to Scenario 26-1. This economy’s government is running a
budget surplus of $3,000.
budget surplus of $12,000.
budget deficit of $3,000.
budget deficit of $12,000.
Question 37
1 / 1 pts
The source of the supply of loanable funds
is saving and the source of demand for loanable funds is investment.
is investment and the source of demand for loanable funds is saving.
and the demand for loanable funds is saving.
and the demand for loanable funds is investment.
Question 38
1 / 1 pts
Table 23-5
A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown in the following table. The base year is 2017.
Year | Movies | Popcorn | ||
Price (Dollars per movie) | Quantity (Movies) | Price (Dollars per bag) | Quantity (Bags) | |
2016 | 10.00 | 500 | 5 | 1,000 |
2017 | 11.00 | 600 | 4 | 900 |
2018 | 12.00 | 650 | 5 | 950 |
2019 | 12.00 | 625 | 6 | 925 |
Refer to Table 23-5. What was this country’s nominal GDP in 2016?
$9,500
$10,000
$10,200
$10,500
Question 39
1 / 1 pts
A recession has traditionally been defined as a period during which
nominal GDP declines for two consecutive quarters.
nominal GDP declines for four consecutive quarters.
real GDP declines for two consecutive quarters.
real GDP declines for four consecutive quarters.
Question 40
1 / 1 pts
Real GDP is the yearly production of final goods and services valued at
current prices.
constant prices.
expected future prices.
the ratio of current prices to constant prices.