Economics

When someone owns an asset (such as a stock) that rises in value, he has an \"ac

When someone owns an asset (such as a stock) that rises in value, he has an "accrued" capital gain. If he sells the asset, he "realizes" the gains that have previously accrued. Un…

When students graduate from college, they leave the classroom and begin looking

When students graduate from college, they leave the classroom and begin looking for a job. For each of the labor market statistics, determine if the unemployment rate and the empl…

When studying demand and supply, you learn that a price change is considered the

When studying demand and supply, you learn that a price change is considered the most important determinant of the quantity demanded for a good or service. It may seem odd that in…

When supply and demand for a product decreases simultaneously, we can cannot pre

When supply and demand for a product decreases simultaneously, we can cannot predict the change in either the equilibrium quantity or equilibrium price. cannot predict equilibrium…

When talking about economic inequality, what are the criteria for inequality mea

When talking about economic inequality, what are the criteria for inequality measurment? 2. Please briefly analyze the effect of inequality on savings and growth for an extremely …

When taxes are increased, disposable income _____ leading to a(n) _______ and a

When taxes are increased, disposable income _____ leading to a(n) _______ and a ______ shift in aggregate demand. Question 11 options: 1) 2) 3) 4) rises; increase in I; right All …

When the American Telephone and Telegraph Company (AT&T) was recently building a

When the American Telephone and Telegraph Company (AT&T) was recently building a new, multistory complex in downtown Kansas City, the work site was probably inspected for haza…

When the Bell System was broken up, the old AT&T was split into a new AT&T in ad

When the Bell System was broken up, the old AT&T was split into a new AT&T in addition to seven regional telephone companies. The specific reason for forcing the breakup w…

When the Canadian dollar depreciates in foreign exchange markets, many people vi

When the Canadian dollar depreciates in foreign exchange markets, many people view this as “good” for the Canadian economy. When the Canadian dollar appreciates against the US dol…

When the Courts must apply the \"Strict Scrutiny\" test against a law that restr

When the Courts must apply the "Strict Scrutiny" test against a law that restricts content-based speech, which of the following elements is NOT considered? If the National Cooking…

When the Fed adds new reserves to the system, some of these new reserves find th

When the Fed adds new reserves to the system, some of these new reserves find their way out of the country into foreign banks or foreign investment funds. In addition, some portio…

When the Fed announced it did not except to raise its benchmark interest rate un

When the Fed announced it did not except to raise its benchmark interest rate until 2015 it was referring to the A. Prime rate B. Federal funds rate C. Required reserve rate D. Lo…

When the Fed buys U.S. government securities, the money supply a. decreases beca

When the Fed buys U.S. government securities, the money supply a. decreases because there is an increase in the required reserves of the bond dealer's bank. b. remains unchanged b…

When the Fed buys a U.S. bond in the open market Question 11 options: it has no

When the Fed buys a U.S. bond in the open market Question 11 options: it has no effect on total reserves or the money supply since the check it receives increases reserves at one …

When the Fed buys government securities (US Treasury IOUs), it: Select one: a. i

When the Fed buys government securities (US Treasury IOUs), it: Select one: a. increases the amount of excess reserves that banks hold, discouraging them from making loans to the …

When the Fed raises the discount rate, it a. lowers the cost of borrowing from t

When the Fed raises the discount rate, it                 a.             lowers the cost of borrowing from the Fed, encouraging banks to make loans to the general public b.       …

When the Fed raises the federal funds rate, the long-term real interest rate ___

When the Fed raises the federal funds rate, the long-term real interest rate ______. A. rises the same day or the next day B. falls about one year later C. rises within a few mont…

When the Fed sells T-bills, A:the federal funds rate decreases and the yield on

When the Fed sells T-bills, A:the federal funds rate decreases and the yield on T-bills increases. B:the federal funds rate and the yield on T-bills both decrease. C:the federal f…

When the Fed sells government securities, it: a-decreases the amount of excess r

When the Fed sells government securities, it:    a-decreases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.    b-increas…

When the Fed successfully decreases the money supply, GDP Question 10 options: i

When the Fed successfully decreases the money supply, GDP Question 10 options: increases because the resulting increase in the interest rate leads to a decrease in investment incr…

When the Fed uses expansionary monetary policy, which of the following is true?

When the Fed uses expansionary monetary policy, which of the following is true? a.Consumer spending and autonomous government spending increase while investment spending decreases…

When the Fed wants to lower the Federal funds rate, it: Increases the discount r

When the Fed wants to lower the Federal funds rate, it: Increases the discount rate Increases the reserve ratio Buys bonds from banks and the public Sells bonds to banks and the p…

When the Federal government spends more than it takes in, deficit is the result.

When the Federal government spends more than it takes in, deficit is the result. If deficits continue to occur year after year the government goes into debt. This is called Nation…

When the Federal government spends more than it takes in, deficit is the result.

When the Federal government spends more than it takes in, deficit is the result. If deficits continue to occur year after year the government goes into debt. This is called Nation…

When the Framers were designing the federal government, they believed that the H

When the Framers were designing the federal government, they believed that the House of Representatives would be “the people’s” branch of government. Nowadays, however, many criti…

When the Soviet Union, which had been a command economy, broke apart, an officia

When the Soviet Union, which had been a command economy, broke apart, an official of the new Russian government called an official of the American government and asked” “Who is in…

When the U.S. economy is temporarily producing above (past) its potential income

When the U.S. economy is temporarily producing above (past) its potential income/output level, which of the following is least likely to happen? There will be a shortage of labor …

When the U.S. is described as having a dual system of health care, this means th

When the U.S. is described as having a dual system of health care, this means that: a)government provides basic health insurance for all Americans and private insurance covers ser…

When the U.S. is described as having a dual system of health care, this means th

When the U.S. is described as having a dual system of health care, this means that: a)government provides basic health insurance for all Americans and private insurance covers ser…

When the US economy is in recession, which of the fiscal policies would be gover

When the US economy is in recession, which of the fiscal policies would be government adopt? Select one: a. reduction in food subsidies and veterans' benefits b. a balanced budget…

When the actual and expected (or anticipated) inflation is zero, the nominal int

When the actual and expected (or anticipated) inflation is zero, the nominal interest rate must equai the real interest rate. So how can inflation affect the nominal interest rate…

When the actual unemployment rate is unusually high, Answer the natural rate of

When the actual unemployment rate is unusually high, Answer the natural rate of unemployment must be rising as well. the economy can not be in equilibrium. the level of inflation …

When the aggregate demand is increased with monetary and/or fiscal policy: (A) T

When the aggregate demand is increased with monetary and/or fiscal policy: (A) The new equilibrium GDP is higher in magnitude, at a higher price level (B) The new equilibrium GDP …

When the amount of business spending does not change even though the economy (GD

When the amount of business spending does not change even though the economy (GDP) is changing, then this business spending is called investment. 39. If inflation exists, Classica…

When the average product is at its maximum, the marginal product is increasing a

When the average product is at its maximum, the marginal product is increasing as output increases. it is equal to the marginal product. total product is also at its maximum. the …

When the cash flows start negative and change sign more than once, multiple valu

When the cash flows start negative and change sign more than once, multiple values of IRR will certainly be obtained. Answer True (T) or False (F) under T/F 1 A combined Real Opti…

When the central bank announces the desired inflation rate and sets policy to re

When the central bank announces the desired inflation rate and sets policy to reach that rate, it is using: monetary neutrality policy, the Taylor rule, inflation targeting, fisca…

When the central bank announces the desired inflation rate and sets policy to re

When the central bank announces the desired inflation rate and sets policy to reach that rate, it is using: monetary neutrality policy. the Taylor rule. inflation targeting. fisca…

When the competitive firm\'s value of the marginal product of labor intersects t

When the competitive firm's value of the marginal product of labor intersects the market-wage level, the firm: has found the profit-maximizing quantity of labor to hire. can incre…

When the consumption of a good or sender imposes costs to society that are not r

When the consumption of a good or sender imposes costs to society that are not reflected in the market price of the good. A. a positive externality arises B. it implies that a ren…

When the consumption of a good or service imposes costs to society that are not

When the consumption of a good or service imposes costs to society that are not reflected in the market price of the good, A. a positive externality arises B. it implies that a re…

When the demand for automobiles is high, the demand for workers who build automo

When the demand for automobiles is high, the demand for workers who build automobiles is high. This relation between the market for automobiles and the market for the labor that b…

When the demand for money depends only on real income, the resulting ________ LM

When the demand for money depends only on real income, the resulting ________ LM curve causes fiscal policy to have a ________ effect on income. horizontal, very strong vertical, …

When the economy is at full employment, what types of unemployment may exist? a.

When the economy is at full employment, what types of unemployment may exist? a. none b. frictional, cyclical, and structural c. cyclical d. structural and frictional e. seasonal …

When the economy is at full employment, whit types of unemployment may exist? no

When the economy is at full employment, whit types of unemployment may exist? none frictional, cyclical, and structural cyclical structural and frictional seasonal and cyclical Pe…

When the economy is at full employment: one cannot generalize in comparing the a

When the economy is at full employment: one cannot generalize in comparing the actual and the cyclically-adjusted budgets. the cyclically-adjusted budget will show a surplus and t…

When the economy of a country enters into a depression, existing automatic stabi

When the economy of a country enters into a depression, existing automatic stabilizers will cause: Question 25 options: tax receipts to fall and government spending to rise. tax r…

When the fed sells government securities in the open market, it: A) decreases th

When the fed sells government securities in the open market, it: A) decreases the excess reserves of the baking system, reducing excess reserves for overnight loan in the Federal …

When the federal budget is used as a tool for economic stabilization, the ideal

When the federal budget is used as a tool for economic stabilization, the ideal goal is to a. balance the budget over the entire business cycle b. balance the budget each year c. …

When the first Pizza Hut opened its doors back in 1958, it offered consumers one

When the first Pizza Hut opened its doors back in 1958, it offered consumers one style of pizza: its Original Thin Crust Pizza. Since its modest beginnings, Pizza Hut has establis…