Which of the following items are NOT counted in U.S. GDP? A) your purchase of a new Ford Mustang B) your purchase of new tires for your old car C) GM’s purchase of tires for new cars D) a foreign consumer’s purchase of a new Ford Mustang ANSWER C
Date: September 10th, 2020
Municipal bonds have default risk, yet their interest rates are lower than the rates on default-free Treasury bonds. This suggests that A) the benefit from the tax-exempt status of municipal bonds is less than their default risk. B) the benefit from the tax-exempt status of municipal bonds equals their default risk. C) the benefit from […]
Date: September 10th, 2020
Refer to Scenario 2. Based on the 95 percent confidence intervals for each of the partial regression coefficients, which independent variable is statistically different from zero and why? What will be an ideal response? ANSWER The 95 percent confidence interval for the coefficient on House Age is -2053.5662 to 403.243744 and the 95 percent […]
Date: September 10th, 2020
Using a unified analytic framework to present the information in the text keeps the knowledge A) focused on theories that have little to do with actual behavior. B) theoretical and uninteresting. C) abstract and not applicable to real life. D) from becoming obsolete. ANSWER D
Date: September 10th, 2020
Excess supply of dollars in the foreign exchange market represents a balance of payments deficit in the U.S. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
What is the “most efficient capacity” for the perfectly competitive firm? A) The plant size at which LRAC is at its minimum. B) The plant size at which any of the SRATC curves are tangent to the LRAC curve. C) The plant size at which MR = MC. D) The plant size for which Price […]
Date: September 10th, 2020
As “haircuts” increased during 2007-2009, financial institutions found that to borrow the same loan amount now required ________ collateral. A) less B) no C) more D) default-free ANSWER C
Date: September 10th, 2020
Paper currency that has been declared legal tender but is not convertible into coins or precious metals is called ________ money. A) commodity B) fiat C) electronic D) funny ANSWER B
Date: September 10th, 2020
Which of the following statistics is the best single measure of overall economic activity? A) The labor force participation rate. B) The inflation rate. C) GDP. D) The trade surplus. ANSWER C
Date: September 10th, 2020
Macroeconomics studies the following topics: A) national output, the inflation rate, and the trade deficit. B) the price of Cisco stock and wage differences. C) differences in market structure. D) all of the above. ANSWER A
Date: September 10th, 2020
