Posted: July 23rd, 2023

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. 






   Question 3  2 points    Save   

  The federal government began to measure poverty in the 








   Question 4  2 points    Save   

  Household wealth is defined as income minus liabilities. 






   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. 






   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 


   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. 





   Question 10  2 points    Save   

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






   Question 11  2 points    Save   

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






   Question 12  2 points    Save   

  The New Economy is one of 

    durable goods 







   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. 






   Question 15  2 points    Save   

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





   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. 






   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. 






   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. 





   Question 26  2 points    Save   

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






   Question 27  2 points    Save   

  The natural rate of unemployment never changes. 






   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 


   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. 






   Question 31  2 points    Save   

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






   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. 






   Question 34  2 points    Save   

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






   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. 







   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. 






   Question 43  2 points    Save   

  Changing the discount rate is a tool of fiscal policy. 






   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. 






   Question 46  2 points    Save   

  Unemployment compensation is an example of an automatic economy stabilizer. 




   Question 47  2 points    Save   

  Investment tax credits are a monetary policy device. 





   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 


   borrowing from the public 

   borrowing from banks 

   printing money 




   Question 50  2 points    Save   






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