ECO 203 Week 5 Quiz | Assignment Help | Ashford University
- ashford university / ECO 203
- 04 Nov 2020
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ECO 203 Week 5 Quiz | Assignment Help | Ashford University
Week 5 - Quiz
Question 1
Jacob is deciding how
much of his paycheck to save. On what does his incentive to save depend?
o
the marginal tax rate only
o
the federal tax rate only
o
both the interest rate and the marginal
tax rate on the next dollar of income
o
both the interest rate and the federal
tax rate on the next dollar of income
Question 2
The federal government
encourages research and development (R&D)—which leads to real output
growth—with all of the following practices EXCEPT __________.
o
protecting patent rights
o
providing direct funding
o
appointing college professors
o
offering special R&D tax breaks
Question 3
Concerning a stable
equilibrium, on what issue is there an emerging consensus among economists?
o
the proximity to equilibrium that can be
attained
o
how long the process toward a stable
equilibrium takes
o
that markets do move toward a stable
equilibrium
o
the government mechanisms that can aid
the process to equilibrium
Question 4
If the Fed creates
excess bank reserves, what are banks likely to do?
o
call in loans to cover reserves
o
raise service charges
o
raise interest rates
o
lower interest rates
Question 5
To what are changes in
employment and unemployment MOST closely linked?
o
changes in real output
o
rising bond prices
o
high rates of inflation
o
government taxes
Question 6
Regarding monetary
policy, what is the Keynesian argument against the monetarists?
o
Money supply cannot be controlled.
o
Money supply is unaffected by the price
level.
o
Velocity of money is not connected to
monetary policy.
o
Velocity of money is neither very stable
nor predictable.
Question 7
Suppose Alan does not
have full information, processes information slowly, and relies heavily on past
experience to predict the future. Accordingly, Alan has __________
expectations.
o
rational
o
extrapolative
o
adaptive
o
unrealistic
.
Question 8
All but which one of
the following will shift the long-run aggregate supply curve?
o
an increase in the money supply
o
an increase in capital
o
more and improved labor
o
more and better technological advances
Question 9
If AD is very steep and
AS shifts to the left, then __________.
o
prices rise a lot, and output falls a
little
o
prices rise a little, and output falls a
lot
o
prices and output both rise a lot
o
prices and output both fall a little
Question 10
In the mid-1970s, when
inflation rates rose rather quickly and surprisingly, what occurred?
o
Nominal wages and unemployment fell.
o
Real wages and employment rose.
o
Nominal wages and the value of personal
assets rose.
o
Real wages and the value of personal
assets fell.
USA 
India