global eco

Topics: Monetary policy, Unemployment, Central bank Pages: 6 (1366 words) Published: June 17, 2014
GDP 2000
CONSUMPTION 1500
Government 300
Net taxes 400

Private saving equals ____ and national saving equals ____.

A) 100; 100 B) 100; 200 C) 200; 300 D) 500; 500 E) 500; 600
Answer: B
You are given the following information about the economy:

Household saving 300
Business saving 700
Government purchases 1,000
Government transfers and interest payments 500
Government tax collections 1,500
GDP 5,000

Public saving is _____ and national saving is ______.
A) 0; 0 B) 0; 300 C) 0; 1,000 D) 500; 800 E) 1,000; 2,000
Answer: C
These data are available for Macroland:

Business and household saving 67
Government transfers and interest payments 14
Government purchases of goods and services 45
Tax collections 50

Public saving in Macroland equals:
A) -9 B) -5 C) 5 D) 9 E) 17

Answer: A
Firms will invest in new equipment whenever:

A) the expected cost of the equipment exceeds the expected benefit.
B) the expected cost of the equipment is less than the expected benefit.
C) the expected cost of the equipment is greater than the value of the marginal product of the equipment.
D) public saving is greater than private saving.

E) public saving is less than private saving.
Answer: B
Holding other factors constant, a decrease in the tax rate on revenue generated by capital will:
A) increase national saving. B) decrease national saving. C) increase investment.

D) decrease investment. E) increase private saving.

Answer: C
Holding other factors constant, if Congress passes a 5% investment tax credit under which for every $100 a firm spends on new capital equipment it receives an extra $5 in tax refunds from the government, then the real interest will ____ and the equilibrium quantity of national saving and investment will _____.

A) increase; increase B) increase; decrease C)increase; not change

D) decrease; increase E) decrease; decrease

Answer: A
Holding other factors constant, if a tax cut moves the government budget from surplus to deficit, then the real interest rate will ___ and the equilibrium quantity of national saving and investment will ____.

B) increase; increase B) increase; decrease C)increase; not change

D) decrease; increase E) decrease; decrease

Answer: B
Frictional unemployment is:

A) the unemployment that results when people retire or leave the labor force.B) the additional unemployment not captured in official statistics resulting from discouraged workers and the involuntary part-time workers.
C) the extra unemployment that occurs during periods of recession.
D) short-term unemployment that is associated with the process of matching workers with jobs.
E) long-term and chronic unemployment that exists even when the economy is producing at a normal rate. Answer: D

Short-term unemployment that is associated with the process of matching workers with jobs is called ______ unemployment.

A) cyclical B) structural C) global D) technological E) frictional
Answer: E
The extra unemployment that occurs during periods of recessions is called _____ unemployment.

A) cyclical B) structural C) global D) seasonal E) frictionalAnswer: A
Structural unemployment occurs because:

A) new jobs are created, while old jobs cease to be viable.
B) workers differ in their skills and experience.

C) jobs differ in their location, skills required, and working conditions.
D) there are long-term mismatches between workers skills and jobs available. E) the economy is experiencing a period of unusually low production.
Answer: D
Which of the following is an example of cyclical unemployment?
A) Dora lost her job when the textile mill closed. She does not have skills to work in another industry and has been unemployed for over a year.
B) Marsha was laid...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • The Concept of Eco Terrorism Essay
  • Essay on Free Willy Effect: Eco-Terrorism in Western Media
  • Umberto Eco, Aristotle and Dexter: an in-Depth Narrative Analysis Essay
  • global consumer insights Essay
  • Essay about Factors to Consider When Going Global
  • Global Citizenship Essay
  • Essay about Global Crossing
  • Umberto Eco Essay

Become a StudyMode Member

Sign Up - It's Free