Econ ch 13-16 | Business & Finance homework help

ECON CH 13-16

Question 1  2 points    Save   

  The Lorenz curve of perfect equality is a 

    vertical line 

   upward sloping line from the origin 

   U-shaped line 

   horizontal line 

 

 

 

   Question 2  2 points    Save   

  The federal government employs an absolute rather than a relative measure to determine poverty. 

   True

 

 

 

 

   Question 3  2 points    Save   

  The federal government began to measure poverty in the 

    1960s 

   1970s 

   1980s 

   1990s 

 

 

 

   Question 4  2 points    Save   

  Household wealth is defined as income minus liabilities. 

   True

  False

 

 

 

   Question 5  2 points    Save   

  Labor market discrimination on the basis of sex or race is usually person-specific rather than a general labor practice. 

  

  False

 

 

 

   Question 6  2 points    Save   

  In 2004, the top 5 percent of households earned approximately 

   50 percent of aggregate income 

 

 

 

   Question 7  2 points    Save   

  The curve that indicates how far actual income distribution differs from a perfectly equal income distribution is called the 

    Lorenz curve 

   Garibaldi curve 

   GDP 

   Herfindahl Index curve 

 

 

 

   Question 8  2 points    Save   

  Which of the following is a disincentive to leave welfare? 

    decrease in real income 

   lower taxes 

   higher incomes 

   all of the above 

 

 

 

   Question 9  2 points    Save   

  Unemployment insurance is a form of in-kind transfer payment to reduce poverty. 

   True

  

 

 

   Question 10  2 points    Save   

  A minimum wage rate job raises a family out of poverty. 

   True

  False

 

 

 

   Question 11  2 points    Save   

  If everyone had the same income, the Lorenz curve would become the line of income equality. 

   True

 

 

 

 

   Question 12  2 points    Save   

  The New Economy is one of 

    durable goods 

   services 

   information 

   manufacturing 

 

 

 

   Question 13  2 points    Save   

  The term “recession” refers to a 

    period of decline in real GDP over two consecutive quarters 

   fall in the general level of real wages over two consecutive quarters 

   fall in the CPI over two consecutive quarters 

   fall in the rate of increase of real per capita GDP 

 

 

 

   Question 14  2 points    Save   

  Interest rates usually rise during the contraction phase of the business cycle. 

   True

  False

 

 

 

   Question 15  2 points    Save   

  Through 2005, the most serious U.S. trough since the Great Depression was the one that occurred in 

   

   2001 

  

 

   Question 16  2 points    Save   

  The statistical indicators of business cycle changes contain 

   all of the above 

 

 

   Question 17  2 points    Save   

  During a trough in the business cycle, the economy eventually reaches the bottleneck stage. 

   False

 

 

 

 

   Question 18  2 points    Save   

  During the expansion phase of the business cycle, we would normally expect to see real income ________, price level ________, and unemployment rate_______. 

    increasing; increasing; increasing 

   increasing; decreasing; decreasing 

   increasing; increasing; decreasing 

   falling; increasing; increasing 

 

 

 

   Question 19  2 points    Save   

  Which of the following would not be considered an internal force that helps move the economy out of a trough? 

   costs falling lower than prices 

 

 

 

   Question 20  2 points    Save   

  The impact of hurricanes on the level of business activity in North Carolina is an example of 

   

   random fluctuation 

 

 

 

   Question 21  2 points    Save   

  During the expansion phase of the business cycle, profit margins increase due to a widening cost-price relationship. 

   True

 

 

 

 

   Question 22  2 points    Save   

  According to monetary theories of the business cycle, fluctuations are 

   

   

   less prevalent in those countries with modern banking systems

 

 

c 13) Monetary theorists maintain that to eliminate the business cycle, it is necessary to eliminate

 

*c. bank creation of checkable deposits

 

   Question 23  2 points    Save   

  In an expanding economy, 

   costs rise faster than prices 

 

 

 

   Question 24  2 points    Save   

  As the economy approaches the peak phase of the cycle, profits will tend to 

   

   increase because of higher sales and higher prices 

  

 

 

 

   Question 25  2 points    Save   

  Involuntary inventory accumulation may occur during the contracting phase of the business cycle. 

   True

  

 

 

   Question 26  2 points    Save   

  Because of increases in the minimum wage, new entrants into the labor force find it easier to find employment. 

   True

  False

 

 

 

   Question 27  2 points    Save   

  The natural rate of unemployment never changes. 

   True

  False

 

 

 

   Question 28  2 points    Save   

  Which type of unemployment is most likely to fall as a result of government policies that stimulate aggregate demand? 

   

   cyclical unemployment 

 

 

 

   Question 29  2 points    Save   

  The Council of Economic Advisors is directly responsible to the 

    Congress 

   U.S. President 

   Secretary of the Treasury 

   Federal Reserve Board of Governors 

 

 

 

   Question 30  2 points    Save   

  Much of the unemployment associated with recessions is cyclical in nature. 

   True

  False

 

 

 

   Question 31  2 points    Save   

  The Employment Act of 1946 makes the government responsible for maintaining maximum employment, production, and purchasing power. 

  

  False

 

 

 

   Question 32  2 points    Save   

  The rate of unemployment that can be expected from normal frictional unemployment in an otherwise fully employed labor force is known as the 

   full-employment unemployment rate 

 

 

 

   Question 33  2 points    Save   

  The full-employment unemployment rate is identical to the inflation threshold rate of unemployment. 

   True

 

 

 

 

   Question 34  2 points    Save   

  Increases in the federal minimum wage directly affect only a small percentage of U.S. workers. 

   True

 

 

 

 

   Question 35  2 points    Save   

  The idea of the natural rate of unemployment is that 

    frictional and structural causes prevent employment in the economy from ever becoming 100 percent of the labor force 

 

 

 

   Question 36  2 points    Save   

  The official rate of unemployment is based on a(n) 

    door-to-door survey 

 

 

 

   Question 37  2 points    Save   

  The demand for unskilled workers has been growing as a percent of total U.S. labor force in recent years. 

   True

  False

 

 

 

 

   Question 38  2 points    Save   

  If the federal government is seeking to reduce large budget deficits, the flexibility of fiscal policy is 

   

   limited when trying to combat unemployment 

 

   Question 39  2 points    Save   

  Stagflation is a mixture of 

    low inflation and low unemployment 

   high inflation and low unemployment 

   low inflation and high unemployment 

   high inflation and high unemployment 

 

 

   Question 40  2 points    Save   

  Government demand-management policies that are used to try to increase the equilibrium level of output in the economy are known as 

    expansionary policies 

 

 

   Question 41  2 points    Save   

  A major force leading the U.S. economy to full employment after the Great Depression was 

    higher interest rates 

   higher reserve requirements 

   government spending for World War II 

   automobile production 

 

 

 

   Question 42  2 points    Save   

  Wage and price controls were imposed on the U.S. economy to suppress inflation in 1972. 

   True

 

 

 

 

   Question 43  2 points    Save   

  Changing the discount rate is a tool of fiscal policy. 

   True

  False

 

 

 

   Question 44  2 points    Save   

  Which of the following statements is correct? 

   

   demand-pull inflation generally occurs in an economy with less than full employment 

 

 

 

 

 

   Question 45  2 points    Save   

  The only way the government can engage in deficit spending is by increasing spending while holding or decreasing taxes. 

   True

 

 

 

 

   Question 46  2 points    Save   

  Unemployment compensation is an example of an automatic economy stabilizer. 

   True

 

 

   Question 47  2 points    Save   

  Investment tax credits are a monetary policy device. 

   True

  False

 

 

   Question 48  2 points    Save   

  Forces within the economy that naturally tend to counteract recessions and inflation are known as 

     

   automatic stabilizers 

 

 

 

   Question 49  2 points    Save   

  If government spending is used to bolster the level of economic activity, the type of financing available to the U.S. government that would increase aggregate spending the most is 

    taxation 

   borrowing from the public 

   borrowing from banks 

   printing money 

 

 

 

   Question 50  2 points    Save   

   . 

   True

  False