红河学院《宏观经济学》复习指南

a. term to maturity b. probability of default c. tax treatment d. price-earnings ratio

75．National saving (or just saving) is equal to

a. private saving + public saving

b. investment + consumption expenditures c. GDP ─ government purchases d. GDP ─ consumption expenditures e. None of the above

76．If government spending exceeds tax collections

a. there is a budget surplus b. there is a budget deficit c. private saving is positive d. public saving is positive e. none of the above

77．If GDP = $1000, consumption = $600, taxes = $100, and government purchases = $200, how

much is saving and investment? a. saving = $200, investment = $200 b. saving = $300, investment = $300 c. saving = $100, investment = $200 d. saving = $200, investment = $100 e. saving = $0, investment = $0

78． Which of the following sets of government policies is the most growth oriented?

a. lower taxes on the returns to saving, provide investment tax credits, and lower the deficit b. lower taxes on the returns to saving, provide investment tax credits, and increase the deficit c. increase taxes on the returns to saving, provide investment tax credits, and lower the deficit d. increase taxes on the returns to saving, provide investment tax credits, and increase the deficit

79． If the supply of loanable funds is very inelastic (steep), which policy would likely increase

saving and investment the most? a. an investment tax credit b. a reduction in a budget deficit c. an increase in a budget deficit d. none of the above

80． An increase in a budget surplus is

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红河学院《宏观经济学》复习指南

a. a decrease in public saving b. an increase in public saving c. a decrease in private saving d. an increase in private saving e. none of the above

81．The amount today that would be needed, at prevailing interest rates, to produce a particular sum

in the future is known as a. compound value b. future value c. present value d. fair value e. beginning value

82．Using the rule of 70, if your income grows at 10 percent per year, your income will double in

approximately a. 700 years b. 70 years c. 10 years d. 7 years

e. There is not enough information to answer this question.

83．Which of the following does not help reduce the risk that people face?

a. buying insurance

b. diversifying their portfolio

c. increasing the rate of return within their portfolio d. all of the above help reduce risk

84．Diversification of a portfolio can

a. reduce aggregate risk b. reduce idiosyncratic risk c. eliminate all risks

d. increase the standard deviation of the portfolio's return

85．The study of a company's accounting statements and future prospects to determine its value is

known as a. diversification b. risk management c. information analysis d. fundamental analysis

86．If the efficient markets hypothesis is true, then

a. stocks tend to be overvalued

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红河学院《宏观经济学》复习指南

b. the stock market is informationally efficient so stock prices should follow a random walk c. fundamental analysis is a valuable tool for increasing one's stock returns d. an index fund is a poor investment

87．Which of the following should cause the price of a share of stock to rise?

a. a reduction in aggregate risk b. an increase in expected dividends c. all of the above d. none of the above

88．Speculative bubbles may occur in the stock market

a. when stocks are fairly valued b. only when people are irrational

c. because rational people may buy an overvalued stock if they think they can sell it to someone for even more at a later date

d. during periods of extreme pessimism because so many stocks become undervalued

89．The amount of unemployment that the economy normally experiences is known as

a. efficiency wage unemployment b. union unemployment c. cyclical unemployment d. the natural rate of unemployment

90．The unemployment rate is

Total population29.7 Adult population Number of employed a. 5.7% b. 6.0% c. 9.0% d. 9.9%

21.2 12.1 Number of unemployed 1.2 e. Not enough information to answer

91．The labour-force participation rate is

Total population29.7 Adult population Number of employed a. 40.7% b. 44.8% c. 57.1%

21.2 12.1 Number of unemployed 1.2 15

红河学院《宏观经济学》复习指南

d. 62.7%

e. None of the above

92．An accountant with a CA designation that has been unable to find work for so long that she has

stopped looking for work is considered to be a. employed b. unemployed c. not in the labour force d. not in the adult population

93．Which of the following sources of unemployment is not based on the wage being held above the

competitive equilibrium wage? a. unemployment due to job search

b. unemployment due to minimum-wage laws c. unemployment due to unions

d. unemployment due to efficiency wages

94．If, for any reason, the wage is held above the competitive equilibrium wage

a. unions will likely strike and the wage will fall to equilibrium

b. the quality of workers will fall due to the change in the number of workers in the applicant pool

c. the quality of labour supplied will exceed the quantity of labour demanded and there will be structural unemployment

d. the quality of labour demanded will exceed the quantity of labour supplied and there will be a labour shortage

95．Sectoral shifts tend to raise which type of unemployment?

a. frictional unemployment b. structural unemployment c. cyclical unemployment

d. Sectoral shifts do not increase unemployment

96．Union membership rates are lowest in

a. Canada.

b. The United States. c. Sweden. d. Denmark.

97．Unions might increase efficiency in the case where they

a. raise the wage for insiders above the competitive equilibrium b. offset the market power of a large firm in a company town c. lower the wage of local outsiders

d. threaten a strike but don't actually follow through so there are no lost hours of work

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