Question 1

Which of the following describes the percentage of the total labor force that has yet to find work?

Accepted Answer

A)   the capacity utilization rate
B)   the participation rate
C)   the unemployment rate
D)   the natural rateE) C) and D)
F) None of the above

Question 2

Stock prices are ________ measures of firm value.

Accepted Answer

A)   backward-looking
B)   forward-looking
C)   coincident
D)   laggingE) All of the above
F) B) and D)

Question 3

During 2004 China increased its use of global oil by 40%. This followed a 100% increase during the previous 5 years. How do economists refer to this kind of economic event?

Accepted Answer

A)   demand shock
B)   equilibrium event
C)   expanding commodity event
D)   supply shockE) B) and C)
F) All of the above

Question 4

Stock prices tend to ________ when corporate earnings ________.

Accepted Answer

A)   rise; rise
B)   rise; fall
C)   fall; rise
D)   none of the optionsE) All of the above
F) None of the above

Question 5

Which of the following is the rate at which the general level of prices for goods and services is rising?

Accepted Answer

A)   the exchange rate
B)   the gross domestic product growth rate
C)   the inflation rate
D)   the real interest rateE) B) and C)
F) C) and D)

Question 6

If interest rates increase, business investment expenditures are likely to ________ and consumer durable expenditures are likely to ________.

Accepted Answer

A)   increase; increase
B)   increase; decrease
C)   decrease; increase
D)   decrease; decreaseE) None of the above
F) A) and D)

Question 7

The federal government decides to pay for the transition to private social security accounts with a one-time $1 trillion bond issue. What will be the biggest concern to businesses relative to the "crowding out" effect?

Accepted Answer

A)   higher interest rates due to the new government borrowing
B)   inflation resulting from more government purchases
C)   a negative supply shock
D)   shortage of investment due to new accountsE) A) and B)
F) All of the above

Question 8

Firm A produces gadgets. The price of gadgets is $2 each. Firm A has total fixed costs of $1,000,000 and variable costs of $1 per gadget. The corporate tax rate is 40%. If the economy is strong, the firm will sell 2,000,000 gadgets. If the economy enters a recession, the firm will sell only half as many gadgets. If the economy enters a recession, the after-tax profit of firm A will be ________.

Accepted Answer

A)   $0
B)   $90,000
C)   $180,000
D)   $270,000E) None of the above
F) A) and C)

Question 9

The ratio of the purchasing power of two economies is termed the ________.

Accepted Answer

A)   balance of trade
B)   real exchange rate
C)   real interest rate
D)   nominal exchange rateE) All of the above
F) C) and D)

Question 10

Which of the following would not be considered a supply shock?

Accepted Answer

A)   a change in the price of imported oil
B)   frost damage to the orange crop
C)   a change in the level of education of the average worker
D)   an increase in the level of government spendingE) None of the above
F) C) and D)

Question 11

An example of a highly cyclical industry is the ________.

Accepted Answer

A)   automobile industry
B)   tobacco industry
C)   pharmaceutical industry
D)   utility industryE) C) and D)
F) B) and D)

Question 12

Items that are ________ and product purchases for which ________ is not important tend to be less cyclical in nature.

Accepted Answer

A)   necessities; income
B)   luxuries; leverage
C)   discretionary goods; time of purchase
D)   produced with high fixed costs; entertainmentE) A) and B)
F) None of the above

Question 13

In macroeconomic terms, an increase in the price of imported oil or a decrease in the availability of oil is an example of a ________.

Accepted Answer

A)   demand shock
B)   supply shock
C)   monetary shock
D)   refinery shockE) A) and D)
F) C) and D)

Exam 12: Macroeconomic and Industry Analysis

In macroeconomic terms, an increase in the price of imported oil or a decrease in the availability of oil is an example of a ________.

Correct Answer
verified

Items that are and product purchases for which is not important tend to be less cyclical in nature.

Correct Answer
verified

Which of the following is the rate at which the general level of prices for goods and services is rising?

Correct Answer
verified

Stock prices are ________ measures of firm value.

Correct Answer
verified

Correct Answer
verified

The ratio of the purchasing power of two economies is termed the ________.

Correct Answer
verified

Which of the following would not be considered a supply shock?

Correct Answer
verified

Stock prices tend to when corporate earnings .

Correct Answer
verified

During 2004 China increased its use of global oil by 40%. This followed a 100% increase during the previous 5 years. How do economists refer to this kind of economic event?

Correct Answer
verified

If interest rates increase, business investment expenditures are likely to and consumer durable expenditures are likely to .

Correct Answer
verified

An example of a highly cyclical industry is the ________.

Correct Answer
verified

Which of the following describes the percentage of the total labor force that has yet to find work?

Correct Answer
verified

The federal government decides to pay for the transition to private social security accounts with a one-time $1 trillion bond issue. What will be the biggest concern to businesses relative to the "crowding out" effect?

Correct Answer
verified

Exam 12: Macroeconomic and Industry Analysis

In macroeconomic terms, an increase in the price of imported oil or a decrease in the availability of oil is an example of a ________.

Correct AnswerverifiedShow Answer

Items that are ________ and product purchases for which ________ is not important tend to be less cyclical in nature.

Correct AnswerverifiedShow Answer

Which of the following is the rate at which the general level of prices for goods and services is rising?

Correct AnswerverifiedShow Answer

Stock prices are ________ measures of firm value.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The ratio of the purchasing power of two economies is termed the ________.

Correct AnswerverifiedShow Answer

Which of the following would not be considered a supply shock?

Correct AnswerverifiedShow Answer

Stock prices tend to ________ when corporate earnings ________.

Correct AnswerverifiedShow Answer

During 2004 China increased its use of global oil by 40%. This followed a 100% increase during the previous 5 years. How do economists refer to this kind of economic event?

Correct AnswerverifiedShow Answer

If interest rates increase, business investment expenditures are likely to ________ and consumer durable expenditures are likely to ________.

Correct AnswerverifiedShow Answer

An example of a highly cyclical industry is the ________.

Correct AnswerverifiedShow Answer

Which of the following describes the percentage of the total labor force that has yet to find work?

Correct AnswerverifiedShow Answer

The federal government decides to pay for the transition to private social security accounts with a one-time $1 trillion bond issue. What will be the biggest concern to businesses relative to the "crowding out" effect?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Items that are and product purchases for which is not important tend to be less cyclical in nature.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Stock prices tend to when corporate earnings .

Correct Answer
verified

Correct Answer
verified

If interest rates increase, business investment expenditures are likely to and consumer durable expenditures are likely to .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified