Nov 16, 2016
Chapter 31 problems 2, 3, 4, 12, 16
2. If your budget is in deficit or surplus depends on whether you choose to include the 10,000 dollars
going towards tuition in your expenditures. If you do include the tuitio
Macroeconomics- Chapter 25 Questions
1. A flow concept is something that needs a period of time associated with it to have meaning. A
flow is measured per unit of time, for example a year. A stock concept, on the other hand, is an
1. The reserve requirement is the percentage the federal reserve bank sets as the maximum
amount of reserves a bank must have. T or F
a. False, it is the minimum amount of reserves
2. To expand the money supply, the Fed
2. A. macroeconomics
4. A. The opportunity cost of attending college would be the money that I could make if I went
into the wor
Macroeconomics ch. 28
2. The three functions of money are it serves as a medium of exchange, a unit of account, and it stores
5. Money being held in tangible form as a store of wealth is good because it is very liquid, but if money
Pg. 96, 1, 2, 5, 9
1. The Law of Demand states that quantity demanded rises as price falls, other things constant. Or
quantity demanded falls as prices rises, other things constant. Price is inversely related to
Macroeconomics- Chapters 33, 34, 35
1. Which of these is not a reason that the target rate of unemployment has changed in the United
c. Increased entrepreneurship
2. Asset Price Inflation occurs when
Employment Outlook Assignment
Principles of Macroeconomics
December 1, 2016
In the United States unemployment has always remained on the leading edge of
economic news. The unemployment rate is studied by the government and is used by many a
1. Self interest is:
A) one reason market economies don't work very well.
B) discouraged in market economies.
C) irrelevant in market economies.
D) an important and useful part of market economies.
Feedback: Response: A key strength of
1. Market economies require private property rights because without these rights:
A) government planning would be impossible.
B) equitable outcomes would be more difficult to achieve.
C) market incentives to produce would be inadequate.
1. U.S. exports:
A) involve a flow of payments into the U.S. which are recorded as a
positive value in the balance of payments account.
B) involve a flow of payments into the U.S. which are recorded as a
negative value in the balance o
1. The part of the balance of payments account that lists all short-term flows of
payments is called the:
A) current account.
B) financial and capital account.
C) official transactions account.
D) balance of trade.
Feedback: Response: S
1. Which of the following is not one of the three coordination problems facing an
A) What, and how much, to produce.
B) How to produce it.
C) When to produce it.
D) For whom to produce it.
Feedback: Response: In using their li
1. Economics is the study of:
A) how government policies solve the three coordination problems.
B) how human beings develop institutions to distribute limited
C) how human beings coordinate their wants and desires given a