ECO 7

QN=151 (17867) Figure 26-3. The figure shows two demand-for-loanable-funds curves and two supply-of-loanable-funds curves.Refer to Figure 26-3. A shift of the demand curve from D1 to D2 is called

• a. an increase in the demand for loanable funds, and that increase would originate from people who had some extra income they wanted to lend.

• b. an increase in the demand for loanable funds, and that increase would originate from households and firms who wish to borrow to make investments

• c. a decrease in the demand for loanable funds, and that decrease would originate from people who had some extra income they wanted to lend

• d. a decrease in the demand for loanable funds, and that decrease would originate from households and firms who wish to borrow to make investments.

QN=152 (17851) For a closed economy, GDP is $11 trillion, consumption is $7 trillion, taxes are $2 trillion and the government runs a deficit of $1 trillion. What are private saving and national saving?

• a. $4 trillion and $1 trillion, respectively

• b. $4 trillion and $-1 trillion, respectively

• c. $2 trillion and $1 trillion, respectively

• d. $2 trillion and $-1 trillion, respectively

QN=153 (17857) Refer to Table 26-1. What was Hershey's earnings per share?

• a. $38

• b. $1.64

• c. $1.31

• d. $0.61

QN=154 (17872) A change in the tax laws that increases the supply of loanable funds will have a bigger effect on investment when

• a. the demand for loanable funds is more elastic and the supply of loanable funds is more inelastic.

• b. the demand for loanable funds is more inelastic and the supply of loanable funds is more elastic.

• c. both the demand for and supply of loanable funds are more elastic.

• d. both the demand for and supply of loanable funds are more inelastic.

QN=155 (17869) If national saving in a closed economy is greater than zero, which of the following must be true?

• a. (i) Either public saving or private saving must be greater than zero.

• b. (ii) Investment is positive

• c. (iii) Y - C - G > 0

• d. All of (i), (ii), and (iii) are correct.

QN=156 (17880) The labor-force participation rate measures the percentage of the

• a. total adult population that is in the labor force

• b. total adult population that is employed

• c. labor force that is employed

• d. labor force that is either employed or unemployed.

QN=157 (17885) Suppose some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were unemployed?

• a. 1.425 million

• b. 1.5 million

• c. 2.5 million

• d. 5 million

QN=158 (17883) Unemployment that exists because it takes time for workers to search for the jobs that suit them best is

• a. frictional unemployment, which contributes to the natural rate of unemployment.

• b. frictional unemployment, which does not contribute to the natural rate of unemployment.

• c. structural unemployment, which contributes to the natural rate of unemployment.

• d. structural unemployment, which does not contribute to the natural rate of unemployment.

QN=159 (17874) Collective bargaining refers to

• a. the process by which the government sets exemptions from the minimum wage law

• b. setting the same wage for all employees to prevent conflict among workers

• c. firms colluding to set the wages of employees in order to keep them below equilibrium

• d. the process by which unions and firms agree on the terms of employment.

QN=160 (17892) A person who is counted as unemployed by the Bureau of Labor Statistics

• a. (i) is also in the labor force

• b. (ii) must have recently looked for work or be on temporary layoff.

• c. (iii) be at least 16 years old.

• d. All of (i), (ii), and (iii) are correct.