Essay ECO 200 : Economists Generally Argue that at the Governmental Level – Economics Assignment Help

Assignment Task:

Task:

Multiple Choice

Identify the choice that best completes the statement or answers the question.

1. If the federal government spends more in any year than it receives in revenues, the difference is called

a. the fiscal shortfall.

b. the fiscal deficit.

c. the fiscal debt.

d. the fiscal surplus.

e. the fiscal deficiency.

2. Economists generally argue that at the governmental level it makes sense to borrow for, and thus pay for over an

extended period of time, such things as all but which of the following?

a. roads

b. salaries

c. war efforts

d. schools

e. environmental cleanup

3. Between 1981 and 1992, the federal deficit

a. roughly tripled.

b. roughly doubled.

c. stayed roughly constant.

d. roughly halved.

e. roughly quadrupled.

4. In an open economy running a trade surplus, NCF stands for

a. net capital outflows.

b. net capital inflows.

c. net capital flows.

d. net capital finance.

e. net consumption flows.

5. In 1900, the agriculture sector of the U.S. economy employed _____ of the working population; today the figure is

_____ .

a. 2 percent; 39 percent

b. 10 percent; 23 percent

c. 17 percent; 17 percent

d. 23 percent; 10 percent

e. 39 percent; 2 percent

6. Each of the following presents a probable violation of property rights except

a. sneaking into the movie theater and watching a movie.

b. sharing a music file with a friend.

c. downloading an MP4 file from iTunes.

d. making your own copy of a DVD rental.

e. None of the above.

7. Each of the following is a critical function served by money except

a. medium of exchange.

b. medium for coincidental wants.

c. store of value.

d. unit of account.

e. None of the above; each is a function of money.

8. The term of a member of the Board of Governors is

a. four years.

b. six years.

c. seven years.

d. ten years.

e. fourteen years.

9. When a bank’s customers lose confidence in the bank and try to withdraw their deposits, this is termed a:

a. loan lacuna.

b. bank run.

c. deposit disaster.

d. gold rush.

e. reserve requirement.

10. In the basic competitive model of an economy, firms _____ in the product market, _____ in the labor market, and_____ in the capital market.

a. sell goods; sell labor; borrow money

b. buy goods; buy labor; lend money

c. buy goods; sell labor; lend money

d. buy goods; buy labor; borrow money

e. sell goods; buy labor; borrow money

11. Figure 6.4 shows an increase in demand for labor. Which of the following explanations for this shift is inaccurate?

a. an increase in the number of machines available for workers’ use

b. an increase in the marginal productivity of available workers

c. an increase in the demand for the products that workers produce

d. a decrease in the minimum wage that firms are required to pay workers

e. None of the above; they are all correct.

12. Which of the following definitions is correct

a. The nominal rate of interest equals the real rate of interest plus the rate of inflation.

b. The real rate of interest equals the nominal rate of interest plus the rate of inflation.

c. The nominal rate of interest equals the rate of inflation minus the real rate of interest.

d. The real rate of interest minus the nominal rate of interest equals the rate of inflation.

e. The nominal rate of interest equals the real rate of interest minus the rate of inflation.

14. When economists talk of government savings being negative, they mean

a. government revenue exceeds government expenditure, so there is a federal budget deficit.

b. government revenue exceeds government expenditure, so there is a federal budget

surplus.

c. the accumulated difference between government expenditure and government revenue,

that is, the federal debt.

d. government expenditure exceeds government revenue, so there is a federal budget deficit.

e. government expenditure exceeds government revenue, so there is a federal budget

surplus