Final

Question 1

The federal reserve has the power to issue money, but does not influence interest rates true false

Answer 1

False

Question 2

The federal reserve is under the ultimate direction Congress of the United States because Congress can cut the budget of federal reserve if the federal reserve board of governors does not follow the instructions of Congress true false

Answer 2

False

Question 3

When the federal reserve asks as a lender of last resort, it is making sure that banks have the money they need to continue to operate true false

Answer 3

True

Question 4

The federal reserves most use policy tool is open market operations with which it can control, short-term interest rates true false

Answer 4

True

Question 5

Generally, if the inflation rate is too high, the federal reserve will want to raise the federal funds rate true false

Answer 5

True

Question 6

The feds control over interest rates, quantitative, easing, and direct lending to financial institutions are some of the tools of
Margin control
Physical Policy
Monetary policy
Discount policy

Answer 6

Monetary policy

Question 7

The feds march requirements control
How much money people can borrow when they buy stock
The interest rates banks are allowed to pay on demand deposit accounts
The amount of reserve banks must keep in cash or in their accounts with the federal reserve
The federal funds rate

Answer 7

How much money people can borrow when they buy stock

Question 8

When financial institutions borrowed from the federal reserve, this is called

Answer 8

Using the discount window

Question 9

Which of the following would increase the money available for bank to lend

Answer 9

A decrease in the federal funds rate

Question 10

Which one of the following is among the federal reserves tools to control short-term interest rates?

Answer 10

Open market operations

Question 11

Which of the following is not one of three purposes served by money

Answer 11

Providing remains for regulators to track economic activity

Question 12

Which of the following is not one of the main goals of monetary policy?

Answer 12

Balancing the federal budget

Question 13

The target federal funds rate is set by the

Answer 13

Federal open market committee

Question 14

If the federal reserve raises the federal funds rate which of the following will not seem to happen as a result

Answer 14

Businesses will find it easier to obtain funds to expand

Question 15

If the federal reserve raises the federal funds rate which of the following will tend to happen as a result

Answer 15

Did the man curve for products bought with a credit card will shift to the left

Question 16

To produce financial stability the federal reserve would want to

Answer 16

Raise the money supply and cut interest rate during recession to stimulate spending

Question 17

Money can be used by goods and services and is accepted internist payment. This is the blank use of money.

Answer 17

Medium of exchange

Question 18

Money enables us to make comparisons of value among goods and services. This is the blank use of money.

Answer 18

Standard value

Question 19

An element of trust is built the money because

Answer 19

People must trust that it will still have value when they want to spend it in the future

Question 20

In the United States and a virtually every other country, the printing of money is

Answer 20

Strictly a government monopoly

Question 21

If a major crash of the financial system began, the federal reserve would

Answer 21

Provide money to banks in order to reassure investors and prevent banks from going bankrupt

Question 22

Having government issued money, makes it easier for policy makers to

Answer 22

Guide and control control the economy

Question 23

Monetary stimulus requires about blank for its full effect to be felt

Answer 23

12 to 18 months

Question 24

The federal reserve is

Answer 24

A system of 12 regional banks located all around the country

Question 25

A tariff is a tax levy on imports by country true false

Answer 25

True

Question 26

If imports are greater than exports, we say that the country is running a trade deficit true false

Answer 26

True

Question 27

The expansion of global traders, especially benefited in individuals who skills are relatively common in the worldwide economy true false

Answer 27

False

Question 28

Which of the following is not among the natural barriers to trade?

Answer 28

Tariffs and quotas

Question 29

Contributors to an expanded global trade in recent years of included all of the following except

Answer 29

A client in the differences in comparative advantages across nations

Question 30

Which of the following will not occur when a tariff is imposed on an imported product

Answer 30

The demand for import will shift to the left

Question 31

When a tariff is removed from an imported product, which of the following will occur

Answer 31

The price paid by consumers will fall

Question 32

Which of the following statements about quotes is true

Answer 32

Quotes increase the price above market equilibrium

Question 33

If the United States were to stop importing flowers from other nations, and instead insisted that it grow all of its own flowers, the effect of this would be

Answer 33

Draw resources necessary to grow flowers away from the rest of the economy

Question 34

A nation has a comparative advantage in producing a good if

Answer 34

It is either a greater productivity advantage or a smaller productivity disadvantage

Question 35

The theory of comparative advantage implies, which of the following

Answer 35

Workers in an industry in which the United States does not have a comparative advantage will be heard of the United States reduces barriers to trade

Question 36

All other things being equal globalization

Answer 36

Benefits people who skills are relatively scare some world, markets, and hurt those who skills are relatively common

Question 37

Using tariffs quotes or other barriers to trade to protect domestic jobs is called

Answer 37

Protectionism

Question 38

Protectionism is best to find as

Answer 38

Using tariffs quotes or other barriers to trade to protect domestic jobs

Question 39

Which of the following best defines the exchange rate

Answer 39

Read it which one currency can be exchanged for another

Question 40

Protecting a countries infant industries

Answer 40

Seems to hurt the economy and practice because consumers of that industry products were denied access to low-cost or higher quality imports

Question 41

If a countries currency is pegged to another currency, this means

Answer 41

The government of that country is managing the exchange rate so that it stays the same

Question 42

Which of the following statements about comparative advantage is false

Answer 42

Expanding international trade, Herz nations economy causes the nations currency to depreciate

Question 43

Which of the following statements about trade deficits as false?

Answer 43

A trade deficit makes it less likely that foreigners will make investments in a country

Question 44

Sewing exports to foreign purchases, borrowing money from foreign investors selling assets to foreign investors and allowing foreign companies to build factories in the United States are allways to

Answer 44

Pay for Imports

Question 45

The labor force is the part of the adult population that is either working or actively looking for a job true false

Answer 45

True

Question 46

For full-time workers with a bachelors advanced degree average pay peaks when workers are 55 to 64 years old true false

Answer 46

True

Question 47

Reducing the minimum wage will make it more difficult for low skilled workers to find jobs true false

Answer 47

False

Question 48

Globalization has had a positive effect on private sector, labor union membership rates true false

Answer 48

False

Question 49

If the labor force increases in size, which of the following would occur all else equal

Answer 49

The equilibrium wage would fall

Question 50

If a labor force increases in size all else equal, which of the following would not occur

Answer 50

The labor demand curve would shift to the right

Question 51

As the wage rate rises, firms will respond by

Answer 51

Hiring fewer workers because thr labor demands curve slopes downward

Question 52

Affirm will hire workers until the

Answer 52

Marginal revenue from hiring an additional worker falls below the marginal cost

Question 53

The labor pool effect of globalization, as which of the following effects

Answer 53

The supply of labor for many kinds of work in increases, pushing the equilibrium wage down

Question 54

Which of the following statements about education and wage rates is true

Answer 54

Well, people with high school degrees have had almost no increase in real wages in 30 years. Those with advance degrees have had significant increases and pay.

Question 55

Which of the following statements about education and the unemployment rate is true?

Answer 55

The unemployment rate tends to be higher for people less education

Question 56

Which of the following is not among the economic costs of a college education?

Answer 56

Cost of room and board

Question 57

Which of the following is true about states that have passed right to work laws

Answer 57

Employees in those states cannot become compelled to join a union

Question 58

An additional worker will add to the profit of a business, and therefore be more likely to be hired if the

Answer 58

Wage is less than the marginal revenue

Question 59

Which of the following statements about the long-term labor supplies false

Answer 59

Immigration provides an insignificant proportion of the overall growth of the workforce

Question 60

Which of the following statements about unionization is true

Answer 60

Work stoppage is due to strikes if become less common and shorter in the last 50 years

Question 61

Which of the following is typically result of government licensing requirements?

Answer 61

Competition in the licensed occupation is reduced

Question 62

If the labor pool effect of globalization is equal in strength of the market expansion effect, then globalization will lead to blank in wages and blank, and the number of workers hired

Answer 62

No change; An increase

Question 63

Which of the following does not help explain why patient should rise with age

Answer 63

Reasoning, abilities, mental speed, and memory improve as people age

Question 64

The long-term supply of labor

Answer 64

Depends on location as some regions are more attractive to workers

Question 65

The percentage of US citizens living below the poverty line is higher today than it was for most of the 1970s true false

Answer 65

True

Question 66

A quintile sometimes used to measure wealth inequality represents 1/4 of households true false

Answer 66

False

Question 67

An increase in the returns to a college education is increased inequality of income true false

Answer 67

True

Question 68

Increasing foreign rate is reduced income and equality because the market expansion effect increases the work opportunities and wages of low skilled workers true false

Answer 68

False

Question 69

Adjusting for inflation, the real minimum wage is fallen over the last 40 years true false

Answer 69

True

Question 70

Progressive income tax structures tend to make after tax incomes less equal true false

Answer 70

False

Question 71

Which of the following is not a reason for increasing income inequality

Answer 71

I declined the nominal dollar value of the minimum wage over several decades

Question 72

And a superstore economy companies try to find only the very best talent. What effect is this had on labor markets

Answer 72

There is a widening gap income between people who are competent, and people who are the very best

Question 73

Which of the following statements about the minimum wage is true?

Answer 73

Adjusting for inflation, the real minimum wage has fallen in the last 40 years

Question 74

The 8020 ratio is found by dividing the

Answer 74

Income at the 80th percentile by the income at the 20th percentile

Question 75

Which of the following statements about the poverty lines is true

Answer 75

The poverty line is adjusted upward for inflation every year

Question 76

Which of the following is among the arguments against using government intervention of reducing income inequality

Answer 76

Allowing big rewards to go to the most successful performers, helped motivate, creativity, innovation, and hard work

Question 77

Which of the following is among the arguments and favor of using government intervention to reduce income inequality

Answer 77

Large income differences eventually lead to political strife, and will undermine support for a market account

Question 78

Government intervention of reducing common quality might reduce growth rates because of rent seeking behavior. This means that.

Answer 78

Groups who are not among the neediest might put pressure on government officials to obtain transfers of wealth

Question 79

The effective tax rate is the

Answer 79

Share of income a household pays in taxes

Question 80

An income tax is progressive if

Answer 80

Higher income households pay a larger share of their income in taxes than lower income households

Question 81

An income tax is regressive if

Answer 81

Low income households pay a larger share their income in taxes, then higher income household

Question 82

A sales tax is usually considered to be a

Answer 82

Regressive tax

Question 83

The top Quint tile of income earners would be those whose income is

Answer 83

In the highest 20% of earners

Question 84

Arguments that income inequality, statistics are incomplete or misleading are made by

Answer 84

Both of those in favor of those against government intervention to reduce inequality

Question 85

The equal employment, opportunity, commission, EEOC, enforces laws, forbidden employment, discrimination, based on all of the following, except

Answer 85

Education level

Question 86

In addition to discrimination, there may be other reasons earnings may differ by gender or race. These other reasons include each of the following, except.

Answer 86

A differences in benefits in non-cash compensation

Question 87

According to the lifecycle model, people tend to borrow while young, pay off debt and build wealth and their middle age and live off savings during the retirement true false

Answer 87

True

Question 88

The amount of money paid to a retiree from a defined contribution. Plan depends on how well investments perform true false

Answer 88

True

Question 89

A 401(k) plan is a type of defined benefit plan true false

Answer 89

False

Question 90

Social Security requires workers to contribute to an account that is held by their name at the treasury and invest in government and highly rated private sector bonds true or false

Answer 90

False

Question 91

The lifecycle theory of retirement puts people in the position of projecting how many resources they will need to pay for all expenses when they are old, a problem called the retirement property problem true false

Answer 91

False

Question 92

How was the 401(k) plan taxed

Answer 92

A 401(k) plan is tax when workers withdraw money from the account to pay for retirement expenses

Question 93

Economist talk about a four-legged stool of retirement income, which includes all the following sources of income, except

Answer 93

Finding provided by charitable organizations

Question 94

Which of the following statements about Social Security is true

Answer 94

Social Security transfers income from current workers to current retirees

Question 95

Which of the following statements about Social Security is false

Answer 95

Employers do not make any contribution to Social Security for employees unless the employee is the government government agency or government contractor

Question 96

What is expected to happen to old age dependency ratios in the United States?

Answer 96

As the population of ages, the old age dependency ratio was expected to rise

Question 97

People who are the most at risk for health problems are the most likely to sign up for health insurance health insurance premiums rise to cover the increase cost of these people where upon those less at risk drop their health insurance coverage worsening the problem. This problem is called the

Answer 97

Adverse selection problem

Question 98

The retirement poverty problem is that

Answer 98

Many workers are too poor to save for retirement

Question 99

All of the following of contributed arising medical care costs except

Answer 99

Increasing occurrences of expensive communicable disease

Question 100

Social Security taxes are currently invested in

Answer 100

US treasury bonds

Question 101

The Social Security payroll tax is blank on the employee and blank on the employer levy on all earned income up to a cap, which is adjusted for inflation each year

Answer 101

6.2% 6.2%

Question 102

The old age dependency ratio was found by

Answer 102

Dividing the number of older people, by the number of people of working age

Question 103

Which of the following goes away in which the Social Security benefits could be cut?

Answer 103

A higher retirement age

Question 104

The healthcare of low income children, their parents and individuals with disabilities is covered through

Answer 104

Medicaid

Question 105

The primary and secondary sources of income on average for US adults age 65 and over are

Answer 105

Social Security and earnings from work, respectively

Question 106

In the absence of government or employer sponsored health insurance, which of the following would be true about health expenses for the elderly

Answer 106

It would not be financially worthwhile for the elderly to purchase insurance to cover medical expenses

Question 107

According to the lifecycle of retirement in the absence of the government or employer, sponsored health coverage, workers in the middle age would

Answer 107

Saving enormous amount of money to pay for healthcare expenses, in old age