2023 Question 1 3 points For the next 6 questions use the following information Revenues | Assignments Online

 

Question 1 (3 points)

 

 

 

 

 

For the next 6 questions use the following information:

 

                       Revenues                     Expenditures

 

Year 1             $100 billion                 $100 billion

 

Year 2             $100 billion                 $250 billion

 

Year 3             $100 billion                 $150 billion

 

Year 4             $100 billion                 $150 billion

 

Year 5             $200 billion                 $150 billion

 

At the completion of year 1, which is true?

 

 

 

Question 1 options:

 

	The budget has a surplus of $100 billion
	The national debt is $100 billion
	The budget has a deficit of $100 billion
	There is a balanced budget

 

Save

 

 

 

Question 2 (3 points)

 

 

 

 

 

Using the following budget

 

                       Revenues                     Expenditures

 

Year 1             $100 billion                 $100 billion

 

Year 2             $100 billion                 $250 billion

 

Year 3             $100 billion                 $150 billion

 

Year 4             $100 billion                 $150 billion

 

Year 5             $200 billion                 $150 billion

 

At the completion of year 2, which is true?

 

 

 

Question 2 options:

 

	The budget has a surplus of $350 billion
	The national debt is $250 billion
	The budget has a deficit of $150 billion
	There is a balanced budget

 

Save

 

 

 

Question 3 (3 points)

 

 

 

 

 

Using the following budget

 

                       Revenues                     Expenditures

 

Year 1             $100 billion                 $100 billion

 

Year 2             $100 billion                 $250 billion

 

Year 3             $100 billion                 $150 billion

 

Year 4             $100 billion                 $150 billion

 

Year 5             $200 billion                 $150 billion

 

At the completion of year 3, which is true?

 

 

 

Question 3 options:

 

	the government has experienced deficit growth
	the government experienced zero deficit growth
	the government has experienced deficit reduction
	the national debt did not grow

 

Save

 

 

 

Question 4 (3 points)

 

 

 

 

 

Using the following budget

 

                       Revenues                     Expenditures

 

Year 1             $100 billion                 $100 billion

 

Year 2             $100 billion                 $250 billion

 

Year 3             $100 billion                 $150 billion

 

Year 4             $100 billion                 $150 billion

 

Year 5             $200 billion                 $150 billion

 

At the completion of year 4, which is true?

 

 

 

Question 4 options:

 

	the government’s deficit increased by $50 billion
	the government experienced zero deficit growth
	the government’s deficit increased has by $150 billion
	the government’s debt increased by $50 billion
	two of the above are correct

 

Save

 

 

 

Question 5 (3 points)

 

 

 

 

 

Using the following budget

 

                       Revenues                     Expenditures

 

Year 1             $100 billion                 $100 billion

 

Year 2             $100 billion                 $250 billion

 

Year 3             $100 billion                 $150 billion

 

Year 4             $100 billion                 $150 billion

 

Year 5             $200 billion                 $150 billion

 

At the completion of year 5, which is true?

 

 

 

Question 5 options:

 

	the deficit increased by $150 billion
	the government has a $50 billion budget surplus
	the deficit decreased by $150 billion
	the government’s debt increased by $450 billion

 

Save

 

 

 

Question 6 (3 points)

 

 

 

 

 

Using the following budget

 

                       Revenues                     Expenditures

 

Year 1             $100 billion                 $100 billion

 

Year 2             $100 billion                 $250 billion

 

Year 3             $100 billion                 $150 billion

 

Year 4             $100 billion                 $150 billion

 

Year 5             $200 billion                 $150 billion

 

At the completion of year 5, which is true?

 

 

 

Question 6 options:

 

	the national debt is at $50 billion
	the national debt is at $100 billion
	the national debt is at $150 billion
	the national debt is at $200 billion

 

Save

 

 

 

Question 7 (3 points)

 

 

 

 

 

If banks do not make all of their XSR available:

 

 

 

Question 7 options:

 

	then, the money multiplier gets larger
	then, the growth of MS slows down
	then, the growth of MS speeds up
	there is no effect on the growth of MS
	both a & c are correct

 

Save

 

 

 

Question 8 (3 points)

 

 

 

 

 

If the FED sets a Z of 10% and TR = $200,000 what would XSR equal:

 

 

 

Question 8 options:

 

	$20,000
	$180,000
	$800,000
	$1,800,000

 

Save

 

 

 

Question 9 (3 points)

 

 

 

 

 

If the FED sets a Z of 10% and TR = $200,000 what are the required reserves:

 

 

 

Question 9 options:

 

	$20,000
	$180,000
	$800,000
	$1,800,000

 

Save

 

 

 

Question 10 (3 points)

 

 

 

 

 

If the FED sets a Z of 10% and TR = $200,000 what is the total growth of MS:

 

 

 

Question 10 options:

 

	$20,000
	$180,000
	$800,000
	$1,800,000

 

Save

 

 

 

Question 11 (3 points)

 

 

 

 

 

If the FED sets a Z of 10% and a bank’s TR = $200,000 what are the required reserves if a bank uses a 20% capital account?

 

 

 

Question 11 options:

 

	$20,000
	$40,000
	$36,000
	$144,000

 

Save

 

 

 

Question 12 (3 points)

 

 

 

 

 

If the FED sets a Z of 10% and a bank’s TR = $200,000 what are excess reserves if a bank uses a 20% capital account?

 

 

 

Question 12 options:

 

	$20,000
	$40,000
	$180,000
	$1,400,000

 

Save

 

 

 

Question 13 (3 points)

 

 

 

 

 

If the FED sets a Z of 10% and a bank’s TR = $200,000 what is the total growth of MS if a bank uses a 50% capital account?

 

 

 

Question 13 options:

 

	$20,000
	$90,000
	$900,000
	$9,000,000

 

Save

 

 

 

Question 14 (3 points)

 

 

 

 

 

Which occurred during Clinton’s presidency?

 

 

 

Question 14 options:

 

	the government ran a trillion dollar deficit
	the government ran a balance budget
	the government ran a surplus budget
	universal public health care was enacted

 

Save

 

 

 

Question 15 (3 points)

 

 

 

 

 

Pollution has a _____ externality associated with it, so the government should ______ the industry

 

 

 

Question 15 options:

 

	positive; tax
	negative; tax
	positive; subsidize
	negative; subsidize

 

Save

 

 

 

Question 16 (3 points)

 

 

 

 

 

An example of fiat money is:

 

 

 

Question 16 options:

 

	The United States Dollar
	Italian Goldsmith certificates
	gold coins
	silver coins

 

Save

 

 

 

Question 17 (3 points)

 

 

 

 

 

Use the following to answer questions 17 – 20:

 

Governmental Spending = $7,000,000

 

Consumption = $15,000,000

 

Imports = $5,000,000

 

Investments = $5,000,000     

 

Taxes = $6,000,000

 

Exports = $8,000,000

 

Savings = $9,000, 000

 

What is the situation in the area of trade?

 

 

 

Question 17 options:

 

	A trade-surplus of $11,000,000
	A trade-deficit of $11,000,000
	A trade-surplus of $3,000,000
	A trade-deficit of $3,000,000
	A trade-balance exists

 

Save

 

 

 

Question 18 (3 points)

 

 

 

 

 

Use the following to answer questions 17 – 20:

 

Governmental Spending = $7,000,000

 

Consumption = $15,000,000

 

Imports = $5,000,000

 

Investments = $5,000,000     

 

Taxes = $6,000,000

 

Exports = $8,000,000

 

Savings = $9,000, 000

 

If Fila, an Italian shoe manufacturer, opens a plant in Statesboro, GA generating  $9,000,000 in new investment, what is the USA “GNP”?

 

 

 

Question 18 options:

 

	$30,000,000
	$31,000,000
	$39,000,000
	$40,000,000

 

Save

 

 

 

Question 19 (3 points)

 

 

 

 

 

Use the following to answer questions 17 – 20:

 

Governmental Spending = $7,000,000

 

Consumption = $15,000,000

 

Imports = $5,000,000

 

Investments = $5,000,000     

 

Taxes = $6,000,000

 

Exports = $8,000,000

 

Savings = $9,000, 000

 

If Fila, opens a plant in Statesboro, GA generating $9,000,000 in new investment, what is the USA “GDP”?

 

 

 

Question 19 options:

 

	$30,000,000
	$31,000,000
	$39,000,000
	$40,000,000

 

Save

 

 

 

Question 20 (3 points)

 

 

 

 

 

Use the following to answer questions 17 – 20:

 

Governmental Spending = $7,000,000

 

Consumption = $15,000,000

 

Imports = $5,000,000

 

Investments = $5,000,000     

 

Taxes = $6,000,000

 

Exports = $8,000,000

 

Savings = $9,000, 000

 

Which of the following are true statements?

 

 

 

Question 20 options:

 

	Leakages = 20 million & Injections = 12 million
	Leakages = 12 million & Injections = 20 million
	Leakages = 12 million & Injections = 35 million
	Leakages = 20 million & Injections = 20 million

 

Save

 

 

 

Question 21 (3 points)

 

 

 

 

 

The inflationary expectation of the 1960’s was initially caused by:

 

 

 

Question 21 options:

 

	OPEC oil prices
	the Kennedy tax cut
	Nixon taking the USA off the gold standard
	the Nixon tax increase
	Eisenhower’s crowding out effect

 

Save

 

 

 

Question 22 (3 points)

 

 

 

 

 

To measure true economic growth one should:

 

 

 

Question 22 options:

 

	focus on nominal GDP
	focus on real GDP
	focus on real wages
	focus on nominal wages

 

Save

 

 

 

Question 23 (3 points)

 

 

 

 

 

1,000,000        seasonally displaced workers             

 

2,000,000        technology-displaced workers                       

 

5,000,000        stay at home parents

 

5,000,000        new college graduates seeking a taxable income

 

12,000,000      people earning a taxable income

 

Based on the above information how many people are frictionally unemployed?

 

 

 

Question 23 options:

 

	1,000,000
	2,000,000
	5,000,000
	12,000,000

 

Save

 

 

 

Question 24 (3 points)

 

 

 

 

 

1,000,000        seasonally displaced workers             

 

2,000,000        technology-displaced workers                       

 

5,000,000        stay at home parents

 

5,000,000        new college graduates seeking a taxable income

 

12,000,000      people earning a taxable income

 

Based on the above information how many people are structurally unemployed?

 

 

 

Question 24 options:

 

	1,000,000
	2,000,000
	5,000,000
	12,000,000

 

Save

 

 

 

Question 25 (3 points)

 

 

 

 

 

1,000,000        seasonally displaced workers             

 

2,000,000        technology-displaced workers                       

 

5,000,000        stay at home parents

 

5,000,000        new college graduates seeking a taxable income

 

12,000,000      people earning a taxable income

 

Based on the above information how many people are cyclically unemployed?

 

 

 

Question 25 options:

 

	1,000,000
	2,000,000
	5,000,000
	12,000,000

 

Save

 

 

 

Question 26 (3 points)

 

 

 

 

 

1,000,000        seasonally displaced workers             

 

2,000,000        technology-displaced workers                       

 

5,000,000        stay at home parents

 

5,000,000        new college graduates seeking a taxable income

 

12,000,000      people earning a taxable income

 

Based on the above information how many people are not in the labor force?

 

 

 

Question 26 options:

 

	1,000,000
	2,000,000
	5,000,000
	12,000,000

 

Save

 

 

 

Question 27 (3 points)

 

 

 

 

 

1,000,000        seasonally displaced workers             

 

2,000,000        technology-displaced workers                       

 

5,000,000        stay at home parents

 

5,000,000        new college graduates seeking a taxable income

 

12,000,000      people earning a taxable income

 

Based on the above information what is the unemployment rate?

 

 

 

Question 27 options:

 

	35%
	40%
	65%
	67%
	80%

 

Save

 

 

 

Question 28 (3 points)

 

 

 

 

 

1,000,000        seasonally displaced workers             

 

2,000,000        technology-displaced workers                       

 

5,000,000        stay at home parents

 

5,000,000        new college graduates seeking a taxable income

 

12,000,000      people earning a taxable income

 

Based on the above information what is the natural rate of unemployment?

 

 

 

Question 28 options:

 

	35%
	40%
	65%
	67%
	80%

 

Save

 

 

 

Question 29 (3 points)

 

 

 

 

 

JFK’s solution to lower unemployment included

 

 

 

Question 29 options:

 

	Increasing the MS
	Decreasing taxes
	Decreasing interest rates
	Increasing taxes

 

Save

 

 

 

Question 30 (3 points)

 

 

 

 

 

Based on the information

 

                        Iberia               Sri Lanka

 

Shoes              100                              150

 

Socks              50                                300 

 

Sri Lanka has an absolute advantage in:

 

 

 

Question 30 options:

 

	Socks.
	Shoes.
	both Socks and Shoes.
	neither Socks nor Shoes
	None of the above

 

Save

 

 

 

Question 31 (3 points)

 

 

 

 

 

                        Iberia               Sri Lanka

 

Shoes              100                              150

 

Socks              50                                300 

 

The opportunity cost of Iberian shoes is:

 

 

 

Question 31 options:

 

	2 Socks.
	3 Socks
	6 Socks.
	1/2 Sock
	1/3 Sock

 

Save

 

 

 

Question 32 (3 points)

 

 

 

 

 

                        Iberia               Sri Lanka

 

Shoes              100                              150

 

Socks              50                                300 

 

Iberia has a comparative advantage in:

 

 

 

Question 32 options:

 

	Socks.
	Shoes.
	both Socks and Shoes.
	neither Socks nor Shoes
	None of the above

 

Save

 

 

 

Question 33 (3 points)

 

 

 

 

 

What do you call a loan a bank makes to another commercial bank?

 

 

 

Question 33 options:

 

	a discount
	a loan
	a FED-fund
	an interest

 

Save

 

 

 

Question 34 (3 points)

 

 

 

 

 

What do you call a loan the FED makes to a commercial bank?

 

 

 

Question 34 options:

 

	a discount
	a loan
	a FED-fund
	an interest

 

Save

 

 

 

Question 35 (3 points)

 

 

 

 

 

Use the following Market Research for questions 35 – 38

 

Q_D = 3000 – 500P and Q_S = 400 + 800P

 

What is the market equilibrium price?

 

 

 

Question 35 options:

 

	$2.00
	$1.00
	50 cents
	20 cents

 

Save

 

 

 

Question 36 (3 points)

 

 

 

 

 

Use the following Market Research for questions 35 – 38

 

Q_D = 3000 – 500P and Q_S = 400 + 800P

 

What is the equilibrium quantity?

 

 

 

Question 36 options:

 

	1540 units
	2000 units
	2200 units
	2300 units

 

Save

 

 

 

Question 37 (3 points)

 

 

 

 

 

Use the following Market Research for questions 35 – 38

 

Q_D = 3000 – 500P and Q_S = 400 + 800P

 

What is correct at a price of $0.50 (50 cents):

 

 

 

Question 37 options:

 

	Qs = 2750 units
	Qd is 1950 units less than Qs
	Qs is 1950 units greater than Qd
	a shortage of 1950 units exists
	two of the above are correct

 

Save

 

 

 

Question 38 (3 points)

 

 

 

 

 

Use the following Market Research for questions 35 – 38

 

Q_D = 3000 – 500P and Q_S = 400 + 800P

 

What is correct at a price of $3.50:

 

 

 

Question 38 options:

 

	Qs = 1250 units
	Qd is 1950 units greater than Qs
	Qs is 1950 units less than Qd
	a surplus of 1950 units exists
	two of the above are correct

 

Save

 

 

 

Question 39 (3 points)

 

 

 

 

 

If an inflationary period started, what should the FED do?

 

 

 

Question 39 options:

 

	increase the discount rate
	decrease the “Z”
	buy governmental securities
	increase governmental spending

 

Save

 

 

 

Question 40 (3 points)

 

 

 

 

 

If a recession started, what should the FED do?

 

 

 

Question 40 options:

 

	sell governmental securities
	decrease the “Z”
	lower taxes
	increase governmental spending

 

Save

 

 

 

Question 41 (3 points)

 

 

 

 

 

                                              Shoes           Sandals

 

combination A.                       200                  0

 

combination B.                       170                 30

 

combination C.                       140                 50

 

combination D.                       110                 60

 

combination E.                         80                 65

 

If we were to graph the above production schedule, the PPC would be:

 

 

 

Question 41 options:

 

	linear
	non-linear
	representative of interchange resources
	Both a & c are correct

 

Save

 

 

 

Question 42 (3 points)

 

 

 

 

 

                                              Shoes           Sandals

 

combination A.                       200                  0

 

combination B.                       170                 30

 

combination C.                       140                 50

 

combination D.                       110                 60

 

combination E.                         80                 65

 

Using the above production schedule which movement depicts the greatest opportunity costs

 

 

 

Question 42 options:

 

	A to B
	B to C
	C to D
	D to E
	all opportunity costs are constant

 

Save

 

 

 

Question 43 (3 points)

 

 

 

 

 

                                              Shoes           Sandals

 

combination A.                       200                  0

 

combination B.                       170                 30

 

combination C.                       140                 50

 

combination D.                       110                 60

 

combination E.                         80                 65

 

The output combination 170 shoes and 30 sandals represents?

 

 

 

Question 43 options:

 

	unemployment
	efficient production
	unobtainable production
	inefficient production

 

Save

 

 

 

Question 44 (3 points)

 

 

 

 

 

                                              Shoes           Sandals

 

combination A.                       200                  0

 

combination B.                       170                 30

 

combination C.                       140                 50

 

combination D.                       110                 60

 

combination E.                         80                 65

 

The output combination 150 shoes and 50 sandals represents?

 

 

 

Question 44 options:

 

	non-differential production
	efficient production
	unobtainable production
	inefficient production

 

Save

 

 

 

Question 45 (3 points)

 

 

 

 

 

                                              Shoes           Sandals

 

combination A.                       200                  0

 

combination B.                       170                 30

 

combination C.                       140                 50

 

combination D.                       110                 60

 

combination E.                         80                 65

 

The output combination 150 shoes and 30 sandals represents?

 

 

 

Question 45 options:

 

	non-differential production
	efficient production
	unobtainable production
	inefficient production

 

Save

 

 

 

Question 46 (3 points)

 

 

 

 

 

Which negative externality is attached to Inflation:

 

 

 

Question 46 options:

 

	crime
	a reduction in economic growth potential
	overspending by the government
	the absence of government in the market

 

Save

 

 

 

Question 47 (3 points)

 

 

 

 

 

If inflation started, what should the FED do?

 

 

 

Question 47 options:

 

	sell governmental securities
	decrease the “Z”
	lower taxes
	increase governmental spending

 

Save

 

 

 

Question 48 (3 points)

 

 

 

 

 

 

If the cost of cheese (a key ingredient used to make pizza) increases, which of the following is the most likely equilibrium price and quantity combination?

 

 

 

Question 48 options:

 

	Pa, Qa
	Pb, Qb
	Pc, Qc
	Po, Qo
	Px, Qb

 

Save

 

 

 

Question 49 (3 points)

 

 

 

 

 

 

Ignore the cheese change from the previous question, i.e., “Do” and “So” currently determine the market. What would happen in this market if the price of Cokes, a compliment to pizza increased i.e. what is the most likely market equilibrium?

 

 

 

Question 49 options:

 

	Pa, Qa
	Pb, Qb
	Pc, Qc
	Po, Qo
	Px, Qb

 

Save

 

 

 

Question 50 (3 points)

 

 

 

 

 

 

Assume that the market is now in equilibrium at Pb and Qb. Which of the following could lead to a new equilibrium of Pc and Qc?  Sub sandwiches and pizza are considered substitute products.

 

 

 

Question 50 options:

 

	An improvement in production technology for pizza and an increase in the “Sub” price.
	An improvement in production technology for pizza and a decrease in “Sub” price.
	The closing of a pizza production plant and a decrease in the “Sub” price.
	The closing of a pizza production plant and an increase in the “Sub” price.