Quiz 7 - Session 8
This quiz was locked 4 Nov at 8:20.
Attempt history
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LATEST Attempt 1 19 minutes 20 out of 20
Score for this quiz: 20 out of 20
Submitted 4 Nov at 8:20
This attempt took 19 minutes.
Question 1
1 / 1 pts
The slope of the demand for loanable funds curve represents the
positive relation between the real interest rate and saving.
positive relation between the real interest rate and investment.
negative relation between the real interest rate and saving.
Correct!
negative relation between the real interest rate and investment.
Question 2
1 / 1 pts
For a closed economy, GDP is $12 trillion, consumption is $6 trillion, taxes net of
transfers are $3 trillion and the government runs a deficit of $1 trillion. What are private
saving and national saving?
$6 trillion and $3 trillion, respectively
Correct!
$3 trillion and $2 trillion, respectively
$3 trillion and $3 trillion, respectively
$6 trillion and $2 trillion, respectively
Question 3
1 / 1 pts
Refer to Table 2. If the local government imposed a minimum wage of $4 in
Productionville, how many people would be unemployed?
Table 2
Below is data about the labor market in the city of Productionville.
Wage Quantity Demanded Quantity
Supplied
$8 6,000 16,000
$7 9,000 14,000
$6 12,000 12,000
$5 15,000 10,000
$4 18,000 8,000
10,000
2,000
Correct!
3,000
Question 4
1 / 1 pts
Refer to Table 2. If the local government imposed a minimum wage of $8 in
Productionville, how many people would be unemployed?
Table 2
Below is data about the labor market in the city of Productionville.
Wage Quantity Demanded Quantity
Supplied
$8 6,000 16,000
$7 9,000 14,000
$6 12,000 12,000
$5 15,000 10,000
$4 18,000 8,000
Correct!
10,000
2,000
5,000
Question 5
1 / 1 pts
Stock represents
a claim to a share of the profits of a firm.
ownership in a firm.
Correct!
All are correct
equity finance.
Question 6
1 / 1 pts
The natural rate of unemployment is the
difference between the long-run and short-run unemployment rates.
rate associated with the highest possible level of GDP.
unemployment rate that would prevail with zero inflation.
Correct!
amount of unemployment that the economy normally experiences.
Question 7
1 / 1 pts
If there is a shortage of loanable funds, then
the quantity supplied is greater than the quantity demanded and the interest rate will
fall.
the quantity supplied is greater than the quantity demanded and the interest rate will
rise.
Correct!
the quantity demanded is greater than the quantity supplied and the interest rate will
rise.
the quantity demanded is greater than the quantity supplied and the interest rate will
fall.
Question 8
1 / 1 pts
Refer to Scenario 1. For this economy, public saving is equal to
Scenario 1. Assume the following information for an imaginary, closed economy.
GDP = $5 trillion; consumption = $3.5 trillion;
government purchases = $0.5 trillion; and taxes = $0.6 trillion.
Correct!
$0.1 trillion and the government is running a budget surplus of $0.1 trillion.
-$0.1 trillion and the government is running a budget deficit of $0.1 trillion.
$0.1 trillion and the government is running a budget deficit of $0.1 trillion.
-$0.1 trillion and the government is running a budget surplus of $0.1 trillion.
Question 9
1 / 1 pts
Institutions that help to match one person's saving with another person's investment are
collectively called the
Correct!
financial system.
banking system.
monetary system.
Federal Reserve system.
Question 10
1 / 1 pts
Refer to Scenario 1. For this economy, investment amounts to
Scenario 1. Assume the following information for an imaginary, closed economy.
GDP = $5 trillion; consumption = $3.5 trillion;
government purchases = $0.5 trillion; and taxes = $0.6 trillion.
$0.4 trillion
Correct!
$1.0 trillion
$2 trillion
$1.6 trillion
Question 11
1 / 1 pts
In which case would people desire to borrow the most?
Correct!
the nominal interest rate is 9% and the inflation rate is 8%
the nominal interest rate is 8% and the inflation rate is 6%
the nominal interest rate is 7% and the inflation rate is 4%
the nominal interest rate is 6% and the inflation rate is 2%
Question 12
1 / 1 pts
In a closed economy, if Y is 10,000, T is 2,000, G is 3,000, and C is 6,000, then
the government has a budget surplus, and investment is 2,000
Correct!
the government has a budget deficit, and investment is 1,000
the government has a budget deficit, and investment is 2,000
the government has a budget surplus, and investment is 1,000
Question 13
1 / 1 pts
Frictional unemployment
can be created by changes in a country's comparative advantages, but not by workers
quitting to find new jobs.
can be created by workers quitting to find more suitable jobs but not by changes in a
country's comparative advantages.
is not created by workers quitting to find more suitable jobs nor by changes in a county's
comparative advantages.
Correct!
can be created both by workers quitting to find more suitable jobs and changes in a
country's comparative advantages.
Question 14
1 / 1 pts
If the quantity of loanable funds supplied exceeds the quantity of loanable funds
demanded,
Correct!
there is a surplus and the interest rate is above the equilibrium level.
there is a shortage and the interest rate is below the equilibrium level.
there is a shortage and the interest rate is above the equilibrium level.
there is a surplus and the interest rate is below the equilibrium level.
Question 15
1 / 1 pts
Other things the same, a higher interest rate induces people to
invest more, so the supply of loanable funds slopes upward.
Correct!
save more, so the supply of loanable funds slopes upward.
invest less, so the supply of loanable funds slopes downward.
save less, so the supply of loanable funds slopes downward.
Question 16
1 / 1 pts
The indirect provision of funds by savers to borrowers is accomplished by
All of the above are correct.
stock markets and other financial markets.
Correct!
banks and other financial intermediaries.
banks and other financial markets.
Question 17
1 / 1 pts
Sue is the CEO of a corporation that hires nonunion labor. According to the theory of
efficiency wages, if she decides to pay her workers more than the competitive
equilibrium wage, then
Correct!
the profits of her firm might increase.
the turnover of her workers may increase.
she will face a shortage of labor.
None of the above is correct.
Question 18
1 / 1 pts
Refer to Table 1. What is the adult labor force in Meditor?
Table 1
2010 Labor Data for Adults (ages 16 and older) in Meditor
Males not in labor force 45 million
Females not in labor force 25 million
Males unemployed 10 million
Females unemployed 5 million
Males employed 85 million
Females employed 65 million
150 million
Correct!
165 million
235 million
70 million
Question 19
1 / 1 pts
Refer to Figure 1. If the government imposes a minimum wage of $9, then how many
workers will be employed?
Figure 1
3,000
Correct!
2,000
5,000
4,000
Question 20
1 / 1 pts
Kathleen is considering expanding her dress shop. If interest rates rise she is
more likely to expand. This illustrates why the supply of loanable funds slopes upward.
more likely to expand. This illustrates why the demand for loanable funds slopes upward.
less likely to expand. This illustrates why the supply of loanable funds slopes downward
Correct!
less likely to expand. This illustrates why the demand for loanable funds slopes
downward.
Quiz score: 20 out of 20
