ECO - Macroeconomics assignment

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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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Question 16 (3 points)

An example of fiat money is:

Question 16 options:
The United States Dollar
Italian Goldsmith certificates
gold coins
silver coins
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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%
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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%
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Question 29 (3 points)

JFK's solution to lower unemployment included

Question 29 options:
Increasing the MS
Decreasing taxes
Decreasing interest rates
Increasing taxes
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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
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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
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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
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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
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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
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Question 35 (3 points)

Use the following Market Research for questions 35 - 38
QD = 3000 - 500P and QS = 400 + 800P
What is the market equilibrium price?

Question 35 options:
$2.00
$1.00
50 cents
20 cents
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Question 36 (3 points)

Use the following Market Research for questions 35 - 38
QD = 3000 - 500P and QS = 400 + 800P
What is the equilibrium quantity?

Question 36 options:
1540 units
2000 units
2200 units
2300 units
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Question 37 (3 points)

Use the following Market Research for questions 35 - 38
QD = 3000 - 500P and QS = 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
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Question 38 (3 points)

Use the following Market Research for questions 35 - 38
QD = 3000 - 500P and QS = 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
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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