Final Exam Macro

What sector of the economy is the ultimate supplier of all economic resources and simultaneously the major spender?

2. Macroeconomics problems are usually examined from the _____ rather than the personal point of view.

Which of the following are economic goals?

Which form of business is immortal?

Which of the following is NOT a pitfall to objective thinking in economics?

Marginal Analysis deals with:

What are the two fundamental facts which constitute the economizing problem?

What is the greatest disadvantage of both partnership and proprietorship?

Which of the following is NOT one of the scarce resources studied?

Economics is the social science concerned with the problem of using or administering _______ resources to attain the greatest or maximum fulfillment of society’s unlimited ______ and ________.

Resources are being efficiently allocated to any product when output is such that:

Does growth automatically make the quality of living better?

What direction does the flow of goods and services move between Business and Households?

What is the direction of flow of Costs, Revenue, and Consumption?

An institution or mechanism which brings together buyers and sellers of a particular good or service is called?

A schedule which shows the various amounts of a product consumers are willing and able to purchase at each price in a series of possible prices during a specific period of time is called ?

A schedule which shows the various amounts of a product a producer is willing and able to produce and make available for sale at each price in a series of possible prices during a specific period of time is called ?

Which of the following would NOT be embraced in the framework of pure capitalism?

What law was passed in 1890 to maintain competition?

Government purchases use or absorb resources. Which of the following government activities does not use resources?

What was the first medium of exchange used?

How does an economy or individual obtain more goods and services than it has revenue to cover?

What drives the Circular Flow Model?

Consumer Demand is registered by which of the following?

What is the correct order of the phases of the economic or business cycle?

What allows us to keep tabs on the health of the economy and formulate policies which will maintain and improve that health?

The open-economy circular flow model connects the _______ economy to the rest of the ______.

Specialization according to comparative advantage improves global resource allocation which increases global _______?

When a nation can produce some product at a lower domestic opportunity cost than can a potential trading partner it is called?

What factor or factors helped to rapidly increase international trade since W.W.II?

What is the correct order of calculation of the following?

If the inflation rate is 4% and there is a nominal wage increase of 3% during the same period, then the real income will have:

The period before 1930 that economists believed that the market system would ensure full use of the economy’s resources is called:

Capitalism is not a self-regulating system capable of uninterrupted prosperity and cannot be counted on to run itself. This is the view of what type of economic theory?

The real interest rate is:

Bank reserves can be and are lost by _______ banks in the banking system, there can be no loss of reserves for the banking _________ as a whole.

What are banks creating when loans are made?

What are banks and other depository institutions, that allow checkable accounts, required to keep?

What is the circulating debt of the Federal Reserve Banks?

What makes money valuable?

What makes money valuable?

Which of the following is not a timing problem in Fiscal Policy?

The purposeful manipulation of government expenditures and tax collections by congress to promote full employment, price stability, and economic growth is called?

An increase in consumer spending will shift the aggregate demand curve?

A decline in tax revenues resulting from an increase in tax rates is represented by the ______ curve.

Which of the following Budget policies intensifies inflation.

Which of the following is Not a cause of Public Debt..?

The United States the leading debtor nation in the world?

Can the United States go bankrupt?

Bank reserves can be and are lost by _______ banks in the banking system, there can be no loss of reserves for the banking _________ as a whole.

The bulk of the money in our economy is created through the extension of credit by banks.

What will a bank that has a check drawn on it loose?

What was the first organization that used the fractional reserve system?

Banks balance profitability and prudence between _______ and _________.

Banks balance profitability and prudence between _______ and _________.

Reserves are lost for the banking system as a whole when loans are made for less than required reserves.

What are banks creating when loans are made?

Commercial banks keep required reserves as :

What are banks and other depository institutions that allow checkable accounts, required to keep?

The amount by which a bank’s actual reserves exceed required reserves is called?

When a bank accepts a checkable deposit it changes the _______ of the total money supply?

Banks create money by:

The total demand for money is the sum of transaction and ______ demands.

Which of the following is not near money?

What is the circulating debt of the Federal Reserve Banks?

According to your book, what percent of the money supply is in coins?

If the Federal Reserve is Buying Bonds, what is happening to the money supply?

Transactions made using checkable deposits account for the majority of all transactions?

Which of the following is not a function of money?

What makes money valuable?

What is the Federal Reserve Bank that services the North Mississippi area?

Which of the following is the most important function of the Federal Reserve?

The discount rate is ?

If the Federal Reserve Bank is selling bonds, increasing reserves, and increasing discount rates it would be engaged in what type of money policy?

If the money supply rises, excess reserves increase and interest rates are falling this would most closely be what type of monetary policy?

What monetary policy is best used to combat Inflation?

Which of the following is a strength of the monetary policy?

What is meant by the velocity of money?

Monetary policy is used primarily to impact what component of the Aggregate Expenditures Model?

The Phillips Curve stated that there was a stable tradeoff between inflation and unemployment.

What is an Aggregate Supply Shock?

The suggestion that higher tax rates may reduce total tax revenues is given by :

Our Economy has NEVER experienced high inflation and high unemployment at the same time

What would be the effect on Investment of a tight money policy?

Who is the current chairman of the Federal Reserve Board of Governors?

Which of the following has been termed “The Banker’s Bank”

The existence of a money multiplier is only fictional?

If personal taxes were decreased and input productivity increased simultaneously the equilibrium:

Other things equal, an increase in productivity will shift the aggregate supply curve leftward.

Rational expectations theory assumes that:

Fiscal policy is carried out primarily by:

Expansionary Fiscal Policy is so named because:

The major component of the money supply is:

Money market deposit accounts are included in:

Checkable deposits include:

The asset demand for money:

It is costly to hold money because:

Banks destroy money when they:

Commercial bank reserves are an asset to commercial banks but a liability to the Federal Reserve Bank holding them.