ENT213 Final
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
Help!
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| What is not true about barter? | show 🗑
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| show | Barter.
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| show | Buy lunch at a fast food restaurant for yourself and your friend.
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| show | Put it in a savings account so you can buy a new car next summer.
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| show | Compare the prices of running shoes online to those in a sporting goods store.
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| show | Currency, transactions accounts, and traveler's checks.
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| Savings accounts and certificates of deposit are called | show 🗑
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| show | Does not change in value.
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| If Edgar takes $100 out of his savings account and deposits it into his checking account, the immediate result of this transaction is that M1: | show 🗑
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| Money creation occurs when: | show 🗑
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| What does not occur when a bank makes a loan? | show 🗑
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| Suppose a bank has $50,000 in transactions accounts and a minimum reserve requirement of 10 percent. Then required reserves are: | show 🗑
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| A bank may lend an amount equal to its: | show 🗑
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| show | $100,000
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| Suppose a bank has $1,500,000 in deposits, a minimum reserve requirement of 20 percent, and total reserves of $350,000. Then the bank has excess reserves of: | show 🗑
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| show | $20,000
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| Initially a bank has a minimum reserve requirement of 15 percent and no excess reserves. If $200,000 is deposited in the bank, then ceteris paribus: | show 🗑
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| show | The number of deposit dollars the banking system can create from $1 of excess reserves.
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| If total reserves for a bank are $10,000, excess reserves are zero, and demand deposits are $100,000, then the money multiplier must be: | show 🗑
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| show | 6.67.
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| Suppose the entire banking system has $10 million in excess reserves and a required reserve ratio of 5 percent. The deposit-creation potential of the banking system is: | show 🗑
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| Suppose the entire banking system has $10,000 in excess reserves and a required reserve ratio of 20 percent. The deposit-creation potential of the banking system is: | show 🗑
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| show | Demand curve to the left.
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| show | Shift the aggregate demand curve.
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| What not a basic monetary policy tool used by the Fed? | show 🗑
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| A change in the reserve requirement affects: | show 🗑
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| Ceteris paribus, if the Fed raises the reserve requirement, then: | show 🗑
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| Suppose the banks in the Federal Reserve System have $400 million in transactions accounts and the reserve requirement is 0.10. Ceteris paribus, if the reserve requirement is decreased to 0.05, then excess reserves will increase by: | show 🗑
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| By raising or lowering the _______, the Fed changes the cost of money for banks, which impacts the incentive to borrow reserves. | show 🗑
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| If the Fed wishes to increase the money supply it can: | show 🗑
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| The purchase and sale of government bonds by the Fed for the purpose of altering bank reserves is referred to as: | show 🗑
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| show | Buy bonds.
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| show | Raise the discount rate or sell bonds on the open market.
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| What cannot be used to shift aggregate demand? | show 🗑
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| Ceteris paribus, what will occur if the Fed buys bonds through open-market operations? | show 🗑
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| show | Raise the reserve requirement, raise the discount rate, or sell bonds.
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| If the banking system has a required reserve ratio of 20 percent, then the money multiplier is: | show 🗑
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| What is true about barter? | show 🗑
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| What is true about barter? | show 🗑
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| What is true about barter? | show 🗑
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| show | It creates money, it creates a transactions-account balance for the borrower, and the money supply increases.
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| What are some basic monetary policy tools used by the Fed? | show 🗑
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A change in government spending, a change in taxes, and monetary policy.
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| show | The number and relative size of firms in an industry.
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| An industry in which many firms produce similar products but each firm has significant brand loyalty is known as: | show 🗑
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| Which of the following is characteristic of a perfectly competitive market? | show 🗑
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| A perfectly competitive firm is a price taker because: | show 🗑
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| A perfectly competitive firm currently sells 30,000 cartons of eggs at $1.25 each. If the firm wants to sell one more carton of eggs, the firm: | show 🗑
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| show | The firm has no market power.
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| If a perfectly competitive firm wanted to maximize its total revenues, it would produce: | show 🗑
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| show | increase profit but economic profits would still be negative.
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| show | Add to the firm's profits (or reduce losses).
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| Economic profits disappear when: | show 🗑
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| Assume that for an individual firm MC = AVC at $6 and MC = ATC at $10 and MC = price at $12 then the firm will be operating: | show 🗑
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| show | It is a price taker.
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| show | The demand curve for the monopoly and the market are the same, it has no direct competitors, and it can use its market power to charge higher prices than a competitive firm.
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| Monopolists are price: | show 🗑
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| show | Its marginal revenue curve is below its demand curve.
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| show | Marginal revenue.
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| For a monopolist, after the first unit of output, marginal revenue is always: | show 🗑
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| Suppose a monopoly firm produces software and can sell 10 items per month at a price of $50 each. In order to increase sales by one item per month, the monopolist must lower the price of its software by $1 to $49. The marginal revenue of the 11th item is: | show 🗑
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| A monopolist sets price at a point on the _______ curve, corresponding to the rate of output determined by the intersection of ______. | show 🗑
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| In terms of pricing, which of the following is not true for a monopolist? | show 🗑
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| show | The difference between price and average total cost multiplied by the quantity sold.
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| show | An oligopoly.
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| show | Cyclical unemployment should increase and real GDP should decline.
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| show | Output but not prices.
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| All persons over age 16 who are either working for pay or actively seeking paid employment refers to: | show 🗑
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| Who is an example of a part of the labor force? | show 🗑
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| Who would be counted as unemployed? | show 🗑
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| show | 10.0 percent.
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| If the population of a country is 220 million people, its labor force consists of 115 million, and 99 million people are employed, the unemployment rate is: | show 🗑
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| When construction workers seek work because the ground is covered in snow and ice, the unemployment rate goes up. This situation is an example of: | show 🗑
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| After quitting one job, some people with marketable skills find that it takes several months to find a new job. This is an example of which type of unemployment? | show 🗑
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| An office worker who loses her job because she does not have the necessary computer skills is, ceteris paribus: | show 🗑
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| Which of the following is likely to reduce the level of structural unemployment? | show 🗑
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| show | Cyclically
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| show | Low unemployment rate.
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| show | There is increased concern about inflation.
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| show | A change in relative prices
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| show | Stays the same but your real income falls.
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| show | $66,000.
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| The value of a painting, held as an asset, increased in value by 100 percent from 1970 -2010. Suppose during the same period average prices in the economy rose by 150 percent.The painting’s owner, relative to those who do not own paintings, experienced a: | show 🗑
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| show | 10 percent.
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| show | Government intervention should be used to correct business cycles.
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| The various quantities of output that all market participants are willing and able to buy at alternative price levels in a given time period is: | show 🗑
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| show | Decreases; demanded
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| The aggregate demand curve is downward sloping because, ceteris paribus: | show 🗑
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| Ceteris paribus, based on the real balances effect, if the price level falls: | show 🗑
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| According to the foreign trade effect, when the U.S. price level decreases, U.S. consumers are likely to buy: | show 🗑
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| Which of the following is an example of the foreign trade effect, assuming the U.S. price level decreases? | show 🗑
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| Ceteris paribus, based on the aggregate supply curve, if the price level _______ the quantity of real output _______ increases. | show 🗑
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| The aggregate supply curve is positively sloped because as the price level increases: | show 🗑
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| Macro equilibrium always occurs: | show 🗑
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| If the price level is: | show 🗑
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| Which of the following is likely to cause a leftward shift in the aggregate supply curve, ceteris paribus? | show 🗑
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| show | Aggregate supply will increase or shift to the right.
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| show | Aggregate demand will decrease or shift to the left
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| Keynes viewed the economy as inherently unstable and suggested that during a recession policy makers should: | show 🗑
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| What fiscal policy tools are used to shift the aggregate demand curve? | show 🗑
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| show | A decline in aggregate demand
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| show | Consumption, investment, government spending, and net exports.
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| show | Consumer confidence; aggregate demand
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| show | Rightward shift of the curve.
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| show | A leftward shift
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| Which of the following is consistent with what Keynes believed? | show 🗑
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| On October 24, 1929, the stock market crashed. By the end of the year, over $40 billion of wealth had vanished. Which of the following indicates the appropriate change in the U.S. economy? | show 🗑
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| When the economy overheats, the government sometimes cools it down with higher taxes, spending reductions, and less money. Which of the following indicates the appropriate change in the U.S. economy after government intervention? | show 🗑
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| The GDP gap is: | show 🗑
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| show | A higher average price level.
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Created by:
Kelsee