1 2 3 4 5 6 The national accounts keep track of everything except the spending of consumers and the government Incorrect the sales of producers Incorrect business investment Incorrect exchange rates True Answer Correct According to the circular flow diagram which of the following economic agents engages in consumer spending firms Incorrect households True Answer Correct factor markets Incorrect financial markets Incorrect A share in the ownership of a company held by a shareholder is considered a n bond Incorrect stock True Answer Correct dividend Incorrect IOU Incorrect Which of the following would accurately characterize the portion of a firm s profit paid to the owner of one share of its stock interest Incorrect dividend True Answer Correct stock Incorrect bond Incorrect Which of the following is considered to be an IOU stocks Incorrect bonds True Answer Correct interest Incorrect dividends Incorrect Households derive income from all of the following except wages or labor income Incorrect interest from lending Incorrect 7 8 rent from allowing firms to use their land Incorrect imports True Answer Correct The total income households have after paying taxes and receiving government transfers is called disposable income True Answer Correct private savings Incorrect aggregate spending Incorrect investment Incorrect Private savings is equal to disposable income less taxes Incorrect disposable income less consumption True Answer Correct wealth Incorrect wealth plus government transfer payments Incorrect 9 A stock in a company is a share of ownership of a company held by a shareholder True Answer Correct an IOU that pays interest Incorrect a portion of a firm s profits paid to stock owners Incorrect part of private savings Incorrect 10 A bond is a share of ownership of a company held by a shareholder Incorrect an IOU that pays interest True Answer Correct a portion of a firm s profits paid to stock owners Incorrect part of private savings Incorrect Figure Circular Flow Model 11 Reference Ref 22 1 Figure Circular Flow Model What is GDP in this economy 100 Incorrect 400 Incorrect 500 True Answer Correct 600 Incorrect 12 Figure Circular Flow Model Reference Ref 22 1 Figure Circular Flow Model If the circular flow model is in equilibrium the sum of money flowing into each box is equal to the sum of the money flowing out of that box which of the following is likely to happen if there is an increase in consumer spending an increase in the nominal GDP True Answer Correct a decrease in the nominal GDP Incorrect an increase in the unemployment rate Incorrect a decrease in the inflation rate Incorrect 13 Figure Circular Flow Model Reference Ref 22 1 Figure Circular Flow Model If the circular flow model is in equilibrium the sum of money flowing into each box is equal to the sum of the money flowing out of that box which of the following is likely to happen if there is a decrease in consumer spending an increase in the nominal GDP Incorrect an increase in the real GDP Incorrect an increase in the unemployment rate True Answer Correct an increase in the inflation rate Incorrect Figure Circular Flow Model 14 Reference Ref 22 1 Figure Circular Flow Model If the circular flow model is in equilibrium the sum of money flowing into each box is equal to the sum of the money flowing out of that box which of the following is likely to happen if there is an increase in investment spending a decrease in the nominal GDP Incorrect an increase in the nominal GDP True Answer Correct an increase in the unemployment rate Incorrect a decrease in the inflation rate Incorrect 15 Figure Circular Flow Model Reference Ref 22 1 Figure Circular Flow Model If the circular flow model is in equilibrium the sum of money flowing into each box is equal to the sum of the money flowing out of that box which of the following is likely to happen if there is a decrease in investment spending an increase in the nominal GDP Incorrect an increase in the real GDP Incorrect an increase in the unemployment rate True Answer Correct an increase in the inflation rate Incorrect 16 Figure Circular Flow Model Reference Ref 22 1 Figure Circular Flow Model If the circular flow model is in equilibrium the sum of money flowing into each box is equal to the sum of the money flowing out of that box which of the following is likely to happen if there is an increase in government spending an increase in the nominal GDP True Answer Correct a decrease in the real GDP Incorrect an increase in the unemployment rate Incorrect a decrease in the inflation rate Incorrect Figure Circular Flow Model 17 Reference Ref 22 1 Figure Circular Flow Model If the circular flow model is in equilibrium the sum of money flowing into each box is equal to the sum of the money flowing out of that box which of the following is likely to happen if there is a decrease in government spending an increase in the nominal GDP Incorrect an increase in the real GDP Incorrect an increase in the unemployment rate True Answer Correct an increase in the inflation rate Incorrect 18 Figure Circular Flow Model Reference Ref 22 1 Figure Circular Flow Model If the circular flow model is in equilibrium the sum of money flowing into each box is equal to the sum of the money flowing out of that box which of the following is likely to happen if there is an increase in exports a decrease in the nominal GDP Incorrect a decrease in the real GDP Incorrect a decrease in the unemployment rate True Answer Correct a decrease in the inflation rate Incorrect 19 Figure Circular Flow Model Reference Ref 22 1 Figure Circular Flow Model If the circular flow model is in equilibrium the sum of money flowing into each box is equal to the sum of the money flowing out of that box which of the following is likely to happen if there is a decrease in exports a decrease in the nominal GDP True Answer Correct an increase in the real GDP Incorrect a decrease in the unemployment rate Incorrect an increase in the inflation rate Incorrect Figure Circular Flow Model 20 Reference Ref 22 1 Figure Circular Flow Model If the circular flow model is in equilibrium the sum of money flowing into each box is equal to the sum of the money flowing out of that box which of the following is likely to happen if there is an increase in imports an increase in the nominal GDP Incorrect a decrease in the nominal GDP True Answer Correct a decrease in the unemployment rate Incorrect an increase in the nominal GDP and in the unemployment rate
View Full Document
Unlocking...