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Econ quiz 4 1) Edgar is working part-time
Econ quiz 4
1) Edgar is working part-time. Diane is on temporary layoff. Who is included in the Bureau of Labor Statistics’ “employed” category?
|
a. |
only Edgar |
|
b. |
only Diane |
|
c. |
both Edgar and Diane |
|
d. |
neither Edgar nor Diane |
2. Who of the following would be included in the Bureau of Labor Statistics’ “unemployed” category?
|
a. |
Julie, who is on temporary layoff |
|
b. |
Andrew, who worked only 15 hours last week |
|
c. |
Ellen, who neither has a job nor is looking for one |
|
d. |
None of the above is correct. |
3. Who is included in the labor force by the Bureau of Labor Statistics?
|
a. |
Juan, who works most of the week in a steel factory |
|
b. |
Molly, who is on temporary layoff |
|
c. |
Charlie, who does not have a job, but is looking for work |
|
d. |
All of the above are included in the labor force. |
4. If an unemployed person quits looking for work, then, eventually the unemployment rate
|
a. |
decreases and the labor-force participation rate is unaffected. |
|
b. |
and the labor-force participation rate both decrease. |
|
c. |
is unaffected and the labor-force participation rate decreases. |
|
d. |
and the labor-force participation rate are both unaffected. |
5. The economy’s two most important financial markets are
|
a. |
the investment market and the saving market. |
|
b. |
the bond market and the stock market. |
|
c. |
banks and the stock market. |
|
d. |
financial markets and financial institutions. |
6. We would expect the interest rate on Bond A to be higher than the interest rate on Bond B if the two bonds have identical characteristics except that
|
a. |
Bond A was issued by a financially weak corporation and Bond B was issued by a financially strong corporation. |
|
b. |
Bond A was issued by the Exxon Mobil Corporation and Bond B was issued by the state of New York. |
|
c. |
Bond A has a term of 20 years and Bond B has a term of 1 year. |
|
d. |
All of the above are correct. |
7. .Suppose government expenditures on goods and services increase, transfers are unchanged, and taxes rise by less than the increase in expenditures. These changes in the government’s budget cause
|
a. |
both the equilibrium interest rate and the equilibrium quantity of loanable funds to fall. |
|
b. |
both the equilibrium interest rate and the equilibrium quantity of loanable funds to rise. |
|
c. |
the equilibrium interest rate to rise and the equilibrium quantity of loanable funds to fall. |
|
d. |
the equilibrium interest rate to fall and the equilibrium quantity of loanable funds to rise. |
8. Other things the same, when the interest rate rises,
|
a. |
people would want to lend more, making the supply of loanable funds increase. |
|
b. |
people would want to lend less, making the supply of loanable funds decrease. |
|
c. |
people would want to lend more, making the quantity of loanable funds supplied increase. |
|
d. |
people would want to lend less, making the quantity of loanable funds supplied decrease. |
9. What would happen in the market for loanable funds if the government were to decrease the tax rate on interest income?
|
a. |
There would be an increase in the amount of loanable funds borrowed. |
|
b. |
There would be a reduction in the amount of loanable funds borrowed. |
|
c. |
There would be no change in the amount of loanable funds borrowed. |
|
d. |
The change in loanable funds is uncertain. |
10. Suppose that Congress were to institute an investment tax credit. What would happen in the market for loanable funds?
|
a. |
The demand for loanable funds would shift left. |
|
b. |
The supply of loanable funds would shift left. |
|
c. |
The demand for loanable funds would shift right. |
|
d. |
The supply of loanable funds would shift right. |
11. If Japan goes from a small budget deficit to a large budget deficit, it will reduce
|
a. |
private saving and so shift the supply of loanable funds left. |
|
b. |
investment and so shift the demand for loanable funds left. |
|
c. |
public saving and so shift the supply of loanable funds left. |
|
d. |
None of the above is correct. |
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