Lackawanna ECO105 2022 February Complete Course Latest (Full)
ECO105 Macroeconomics
Module 1 Discussion
DQ1 How do you make decisions?
An economy results from the choices that millions of individuals make in attempting to satisfy their unlimited wants. A key economic assumption is that individuals, in making choices, rationally select alternatives they perceive to be in their best interests. Economic choice is based on a comparison of the expected marginal benefit and the expected marginal cost of the action under consideration.
McEachern, W. A. (2019). Macro econ: principles of macroeconomics. Boston, MA: Cengage Learning, Inc.
To-Do:
Discuss your impact of rational self-interest on each of the following decisions.
What helped you make your decisions?
a. What research did you do?
b. Who did you talk to about your decision?
c. What information was critical to your decision?
What influenced your decisions?
a. Whether to attend college full time or enter the workforce full time
b. Whether to buy a new textbook or a used one
c. Whether to attend a local college or an out-of-town college
DQ2 Current Event Article Discussion
Each week, we will discuss different topics relating to Macroeconomics and show examples of real world application through this current event discussion forum.
Each classmate will be responsible for providing an article for discussion. Please read all directions before posting. You only have to post one article throughout the course, so find your name on the list to learn when it is your turn, and what topic to cover! Everyone will "reply" to the articles posted.
Schedule of current event topics and posts dates (Modules):
Module 1 - Chapter 1 - I will provide the article and topic of discussion.
Module 2 - Chapter 2 - Hailey A., Jessica G., Jeel R.
Module 3 - Chapter 3 - Nicholas, B., William G., Sarah S.
Chapter 4 - Ronald C., Megan H., Eli S.
Module 4 - Chapter 5 - Madeline C., Megan K., Matthew S.
Chapter 7 - Kennith C., David K.
Module 5 - Chapter 11 - Katherine C., Amber M., Rolanda V.
Chapter 13 - Ashlee D., Christian O.
Module 6 - Chapter 14 - Deanna S., Cassandra O., Elizabeth W.
Chapter 15- Brian G., Amisha R.
Your task is two-fold:
1) When it is your turn to post an article - Find a current article (6 months old or sooner), provide the link and a short (1 paragraph summary), and the class will discuss thoughts. Your article should reflect the chapter/topic we are discussing. You must post the link to the discussion forum on Monday by 11:55 pm. This will count as a separate assignment, so do not count it as one of your replies toward discussion. This is only when it is your week for the initial reply.
2) When it is not your week to post an article - Reply to other student article posts/summaries. Think about how the topic relates to what we are covering in the chapters. Does this concept affect you directly/indirectly? What are the impacts on economics?
(You are also required to write up a summary of the article, how it relates to the topics we covered in class and your personal thoughts, via a word document. There is a rubric provided under Assignments for the individual assignments. This part will not be due until Module 7, but I want you to be prepared.)
You will receive a separate grade for your post with the article and summary, so it does not count as a discussion reply. If you need more explanation, please send me an email.
ECO105 Macroeconomics
Module 2 Discussion
DQ1 Business Types
In an economic system, there are different types of businesses.
Sole Proprietorships: Single-owner firms facing unlimited liability; most common form of U.S. business organization in terms of total numbers: 72% of businesses, but only 4% of U.S. sales.
Partnerships: Multiple-owner firms with each owner bearing unlimited liability; continuity problems exist with death or departure of one partner.
Corporations:
· Legal entities established through articles of incorporation.
· Liability limited to the value of stock holdings.
· Life apart from those of the owners.
· Most important form of U.S. business organization in terms of total sales: 84%.
(McEachern, W. A. (2019). Macro econ: principles of macroeconomics. Boston, MA: Cengage Learning, Inc.)
To-Do:
Search the Internet for a business. Explain what type of business you found and list at least 2 advantages and 2 disadvantages of that business type in today's economy.
As you reply, think about each company. Do you use this company? Why or why not? Were you aware of the business type? How did you know? Add anything else you would like pertaining to the business.
Make sure if you are utilizing outside sources to document where the information was retrieved. Document those sources in your post/reply.
DQ2 Current Event Article Discussion
Each week, we will discuss different topics relating to Macroeconomics and show examples of real world application through this current event discussion forum.
Each classmate will be responsible for providing an article for discussion. Please read all directions before posting. You only have to post one article throughout the course, so find your name on the list to learn when it is your turn, and what topic to cover! Everyone will "reply" to the articles posted.
Schedule of current event topics and posts dates (Modules):
Module 1 - Chapter 1 - I will provide the article and topic of discussion.
Module 2 - Chapter 2 - Hailey A., Jessica G., Jeel R.
Module 3 - Chapter 3 - Nicholas, B., William G., Sarah S.
Chapter 4 - Ronald C., Megan H., Eli S.
Module 4 - Chapter 5 - Madeline C., Megan K., Matthew S.
Chapter 7 - Kennith C., David K.
Module 5 - Chapter 11 - Katherine C., Amber M., Rolanda V.
Chapter 13 - Ashlee D., Christian O.
Module 6 - Chapter 14 - Deanna S., Cassandra O., Elizabeth W.
Chapter 15- Brian G., Amisha R.
Your task is two-fold:
1) When it is your turn to post an article - Find a current article (6 months old or sooner), provide the link and a short (1 paragraph summary), and the class will discuss thoughts. Your article should reflect the chapter/topic we are discussing. You must post the link to the discussion forum on Monday by 11:55 pm. This will count as a separate assignment, so do not count it as one of your replies toward discussion. This is only when it is your week for the initial reply.
2) When it is not your week to post an article - Reply to other student article posts/summaries. Think about how the topic relates to what we are covering in the chapters. Does this concept affect you directly/indirectly? What are the impacts on economics?
(You are also required to write up a summary of the article, how it relates to the topics we covered in class and your personal thoughts, via a word document. There is a rubric provided under Assignments for the individual assignments. This part will not be due until Module 7, but I want you to be prepared.)
You will receive a separate grade for your post with the article and summary, so it does not count as a discussion reply. If you need more explanation, please send me an email.
ECO105 Macroeconomics
Module 3 Discussion
DQ1 Economic Decision Making
BACKGROUND
In the early 1990s, crime emerged as perhaps the central issue in domestic American politics. The rate of violent and property crimes had risen steadily for decades, and the increase during the 1980s was pronounced -- in 1980, there were 597 violent crimes per 100,000 persons, while in 1991 there were 758 such crimes per 100,000 persons, according to the FBI's Uniform Crime Report.
The rise in crime rates led to efforts to extend prison sentences, often by mandating minimum sentences for particular crimes (e.g., "three strikes" laws) and by putting an end to the discretion that allowed judges to impose variable sentences. As prison sentences grew, so did the inmate population: In 1980, there were about 500,000 people in state and federal prisons and local jails. In 1995, that number was 1.6 million; in 2005 it reached 2.2 million.
The exploding inmate population necessitated a boom in federal and state prison construction. Much of the prison boom has been concentrated in small towns and rural areas that have seen their economic base erode as industry and factories close down or relocate. One study reported that 350 rural counties saw prisons open between 1980 and 2001. The possibilities of employment and a boost for local businesses are often part of the campaign to bring prisons to such localities, and have led some small towns to offer extraordinary concessions to attract them. Among the offerings are free land, road construction and infrastructure upgrades.
The promised benefits, however, are not always realized. The jobs that new prisons bring are often filled by outsiders. Local workers may not be qualified for some positions, such as corrections officer, and may find that the work for which they are qualified is being performed instead by prison labor. Secondary benefits, such as contracts with local businesses to provide goods or services to the prison, may not last, as prison management chooses to renegotiate contracts or outsource aspects of the work. A 2003 study of prisons (see the Resources section (Links to an external site.)) sited in rural communities found that there was no overall effect on local employment, per capita income or consumer spending, three leading indicators of economic vitality.
For discussion, consider the following:
Imagine that you are members of a planning commission for a small, rural community that is economically depressed. The state wants to build another prison and thinks some state-owned land in your area would be the ideal location. Either, you will favor the idea of hosting a prison in your community, or you are against it. Create a persuasive presentation that makes your case either for or against bringing a prison to town.
For replies, compare and contrast your answers with fellow classmates.
Make sure if you are utilizing outside sources to document where the information was retrieved. Document those sources in your post/reply.
DQ2 Current Event Article Discussion
Each week, we will discuss different topics relating to Macroeconomics and show examples of real world application through this current event discussion forum.
Each classmate will be responsible for providing an article for discussion. Please read all directions before posting. You only have to post one article throughout the course, so find your name on the list to learn when it is your turn, and what topic to cover! Everyone will "reply" to the articles posted.
Schedule of current event topics and posts dates (Modules):
Module 1 - Chapter 1 - I will provide the article and topic of discussion.
Module 2 - Chapter 2 - Hailey A., Jessica G., Jeel R.
Module 3 - Chapter 3 - Nicholas, B., William G., Sarah S.
Chapter 4 - Ronald C., Megan H., Eli S.
Module 4 - Chapter 5 - Madeline C., Megan K., Matthew S.
Chapter 7 - Kennith C., David K.
Module 5 - Chapter 11 - Katherine C., Amber M., Rolanda V.
Chapter 13 - Ashlee D., Christian O.
Module 6 - Chapter 14 -Deanna S., Cassandra O., Elizabeth W.
Chapter 15- Brian G., Amisha R.
Your task is two-fold:
1) When it is your turn to post an article - Find a current article (6 months old or sooner), provide the link and a short (1 paragraph summary), and the class will discuss thoughts. Your article should reflect the chapter/topic we are discussing. You must post the link to the discussion forum on Monday by 11:55 pm. This will count as a separate assignment, so do not count it as one of your replies toward discussion. This is only when it is your week for the initial reply.
2) When it is not your week to post an article - Reply to other student article posts/summaries. Think about how the topic relates to what we are covering in the chapters. Does this concept affect you directly/indirectly? What are the impacts on economics?
(You are also required to write up a summary of the article, how it relates to the topics we covered in class and your personal thoughts, via a word document. There is a rubric provided under Assignments for the individual assignments. This part will not be due until Module 7, but I want you to be prepared.)
You will receive a separate grade for your post with the article and summary, so it does not count as a discussion reply. If you need more explanation, please send me an email.
ECO105 Macroeconomics
Module 4 Discussion
DQ1 Subprime Mortgages
Subprime mortgages are loans to home-buyers with not-so-good credit ratings. Prior to the financial crisis of 2008, hundreds of subprime mortgages would be bundled together and sold as a mortgage-backed security. The feeling at the time was that housing prices would continue to rise, so if any of these risky borrowers were to default on their mortgage, the house itself would become valuable collateral to pay off the loan. But when housing prices began to slide, holders of mortgage-backed securities lost a bundle, and the entire financial system became unglued. Credit dried up.
The government first tried to stabilize markets by investing in financial institutions. Later, the Dodd-Frank Act of 2010, the most sweeping reform of financial markets since the Great Depression, authorized regulators to write and interpret hundreds of new financial rules. Banks are back to being more tightly regulated about the kinds of assets they can own and trade.
For discussion, consider the following:
How is this still affecting the economy today?
Make sure if you are utilizing outside sources to document where the information was retrieved. Document those sources in your post/reply.
DQ2 Current Event Article Discussion
Each week, we will discuss different topics relating to Macroeconomics and show examples of real world application through this current event discussion forum.
Each classmate will be responsible for providing an article for discussion. Please read all directions before posting. You only have to post one article throughout the course, so find your name on the list to learn when it is your turn, and what topic to cover! Everyone will "reply" to the articles posted.
Schedule of current event topics and posts dates (Modules):
Module 1 - Chapter 1 - I will provide the article and topic of discussion.
Module 2 - Chapter 2 - Hailey A., Jessica G., Jeel R.
Module 3 - Chapter 3 - Nicholas, B., William G., Sarah S.
Chapter 4 - Ronald C., Megan H., Eli S.
Module 4 - Chapter 5 - Madeline C., Megan K., Matthew S.
Chapter 7 - Kennith C., David K.
Module 5 - Chapter 11 - Katherine C., Amber M., Rolanda V.
Chapter 13 - Ashlee D., Christian O.
Module 6 - Chapter 14 - Deanna S., Cassandra O., Elizabeth W.
Chapter 15- Brian G., Amisha R.
Your task is two-fold:
1) When it is your turn to post an article - Find a current article (6 months old or sooner), provide the link and a short (1 paragraph summary), and the class will discuss thoughts. Your article should reflect the chapter/topic we are discussing. You must post the link to the discussion forum on Monday by 11:55 pm. This will count as a separate assignment, so do not count it as one of your replies toward discussion. This is only when it is your week for the initial reply.
2) When it is not your week to post an article - Reply to other student article posts/summaries. Think about how the topic relates to what we are covering in the chapters. Does this concept affect you directly/indirectly? What are the impacts on economics?
(You are also required to write up a summary of the article, how it relates to the topics we covered in class and your personal thoughts, via a word document. There is a rubric provided under Assignments for the individual assignments. This part will not be due until Module 7, but I want you to be prepared.)
You will receive a separate grade for your post with the article and summary, so it does not count as a discussion reply. If you need more explanation, please send me an email.
ECO105 Macroeconomics
Module 5 Discussion
DQ1 Fiscal Policy
According to the textbook, increased government purchases, with taxes held constant, can eliminate a recessionary gap.
How could a tax cut achieve the same result?
Would the tax cut have to be larger than the increase in government purchases? Why or why not?
I look forward to your thoughts.
DQ2 Current Event Article Discussion
Each week, we will discuss different topics relating to Macroeconomics and show examples of real world application through this current event discussion forum.
Each classmate will be responsible for providing an article for discussion. Please read all directions before posting. You only have to post one article throughout the course, so find your name on the list to learn when it is your turn, and what topic to cover! Everyone will "reply" to the articles posted.
Schedule of current event topics and posts dates (Modules):
Module 1 - Chapter 1 - I will provide the article and topic of discussion.
Module 2 - Chapter 2 - Hailey A., Jessica G., Jeel R.
Module 3 - Chapter 3 - Nicholas, B., William G., Sarah S.
Chapter 4 - Ronald C., Megan H., Eli S.
Module 4 - Chapter 5 - Madeline C., Megan K., Matthew S.
Chapter 7 - Kennith C., David K.
Module 5 - Chapter 11 - Katherine C., Amber M., Rolanda V.
Chapter 13 - Ashlee D., Christian O.
Module 6 - Chapter 14 -Deanna S., Cassandra O., Elizabeth W.
Chapter 15- Brian G., Amisha R.
Your task is two-fold:
1) When it is your turn to post an article - Find a current article (6 months old or sooner), provide the link and a short (1 paragraph summary), and the class will discuss thoughts. Your article should reflect the chapter/topic we are discussing. You must post the link to the discussion forum on Monday by 11:55 pm. This will count as a separate assignment, so do not count it as one of your replies toward discussion. This is only when it is your week for the initial reply.
2) When it is not your week to post an article - Reply to other student article posts/summaries. Think about how the topic relates to what we are covering in the chapters. Does this concept affect you directly/indirectly? What are the impacts on economics?
(You are also required to write up a summary of the article, how it relates to the topics we covered in class and your personal thoughts, via a word document. There is a rubric provided under Assignments for the individual assignments. This part will not be due until Module 7, but I want you to be prepared.)
You will receive a separate grade for your post with the article and summary, so it does not count as a discussion reply. If you need more explanation, please send me an email.
ECO105 Macroeconomics
Module 6 Discussion
DQ1 Banking
In chapters 14 and 15, we discuss banking and the banking system. Let's start this week's discussion with your own banking experiences.
Do you have a bank account? Checking/savings/etc.
https://youtu.be/zLUkEPO1D88
Do you write checks or use a debit card?
Check out this video. Do you take advantage of any of these concepts?
Make sure if you are utilizing outside sources to document where the information was retrieved. Document those sources in your post/reply.
DQ2 Current Event Article Discussion
Each week, we will discuss different topics relating to Macroeconomics and show examples of real world application through this current event discussion forum.
Each classmate will be responsible for providing an article for discussion. Please read all directions before posting. You only have to post one article throughout the course, so find your name on the list to learn when it is your turn, and what topic to cover! Everyone will "reply" to the articles posted.
Schedule of current event topics and posts dates (Modules):
Module 1 - Chapter 1 - I will provide the article and topic of discussion.
Module 2 - Chapter 2 - Hailey A., Jessica G., Jeel R.
Module 3 - Chapter 3 - Nicholas, B., William G., Sarah S.
Chapter 4 - Ronald C., Megan H., Eli S.
Module 4 - Chapter 5 - Madeline C., Megan K., Matthew S.
Chapter 7 - Kennith C., David K.
Module 5 - Chapter 11 - Katherine C., Amber M., Rolanda V.
Chapter 13 - Ashlee D., Christian O.
Module 6 - Chapter 14 - Deanna S., Cassandra O., Elizabeth W.
Chapter 15- Brian G., Amisha R.
Your task is two-fold:
1) When it is your turn to post an article - Find a current article (6 months old or sooner), provide the link and a short (1 paragraph summary), and the class will discuss thoughts. Your article should reflect the chapter/topic we are discussing. You must post the link to the discussion forum on Monday by 11:55 pm. This will count as a separate assignment, so do not count it as one of your replies toward discussion. This is only when it is your week for the initial reply.
2) When it is not your week to post an article - Reply to other student article posts/summaries. Think about how the topic relates to what we are covering in the chapters. Does this concept affect you directly/indirectly? What are the impacts on economics?
(You are also required to write up a summary of the article, how it relates to the topics we covered in class and your personal thoughts, via a word document. There is a rubric provided under Assignments for the individual assignments. This part will not be due until Module 7, but I want you to be prepared.)
You will receive a separate grade for your post with the article and summary, so it does not count as a discussion reply. If you need more explanation, please send me an email.
ECO105 Macroeconomics
Module 1 Assignment
Monopoly and Life
Visit this site and read the brief description about Monopoly and Life.
https://www.moneyschool.org.au/teaching-kids-about-money/seven-ways-monopoly-is-like-real-life/ (Links to an external site.)
https://esimoney.com/how-the-game-of-life-teaches-personal-finance/ (Links to an external site.)
(Links to an external site.)Write 200 words explaining how the games Monopoly and Life teach economics. Please include any personal stories of your game playing. Remember to include any references you use.
ECO105 Macroeconomics
Module 7 Assignment
Final Project
You will create a PPT presentation or Prezi, discussing Globalization. Use the topics, concepts, and theories discussed throughout the course. Review the attached rubric for full details.
The presentation MUST include or answer all of the following items or questions in detail:
What is globalization?
What does globalization mean to the United States (Pro and Con)?
Identify the economic benefits of globalization.
What are the issues and concerns associated with globalization? Do some counties benefit more than others? Why? (provide examples).
What is the impact of globalization on human rights? (discuss poverty, sweatshops, child labor, etc.). Provide an example of a company that have violated human rights.
How does globalization impact the environment? (Environmental protection vs. economic growth).
How are cultures affected? Are cultures disappearing?
Is globalization redefining the United States and the world beneficially? Give examples and reasoning.
Sources cited! APA formatting. Voice over required!
ECO105 Macroeconomics
Module 2 Quiz
Question 1Because people's wants are unlimited but resources are scarce,
there will be more services produced than goods
choices must be made
poor people never get anything they want
only the rich get everything they want
Question 2The problem of scarce resources
is that there are not enough resources to satisfy people's unlimited wants
means that in some cities there are not enough jobs
is that resources are used inefficiently
could be solved if the unemployment rate fell
Question 3Economics is best defined as the study of how
individuals decide to use scarce resources in an attempt to satisfy their unlimited wants
to make money
to eliminate the problem of scarce resources
the government should deal with unemployment and inflation
Question 4In economics, capital is defined as
natural resources, such as water, oil, and iron ore
the natural, unskilled abilities of people
money and other financial assets
human creations used in the production process
Question 5Economists classify all of the following as capital, except one. Which one is not capital?
a plumber's wrench
a railroad car
a $20 bill in a firm's petty cash drawer
the building where our economics class meets
Question 6If a business produces and sells only one unit of a good, its profit would be the
price received for the good
wages paid for the labor used to produce the product minus the price
price of the product minus the cost of the resources used to produce the product
return paid to the firm's bank on its outstanding loans
Question 7The difference between a good and a service is that
a services is available in unlimited quantities; a good is not
a service helps satisfy unlimited wants; a good does not
a good is tangible; a service is not
a good helps satisfy unlimited wants; a service does not
Question 8Which of the four types of decision makers in the U.S. economyplays the largest role?
U.S. firms and government because they produce the products that households consume
U.S. households, as buyers in product markets and sellers in resource markets
U.S. firms and government because they create employment for domestic households and produce goods and services
U.S. households because they supply goods to the product markets and are demanders in resource markets
Question 9A market
facilitates exchanges between buyers and sellers
typically involves monetary transactions
is often a physical place
all of the above
Question 10In economics, the term "marginal" usually refers to
an all-or-nothing economic decision
a low-quality product or resource
a small change in an economic variable
an unimportant and irrelevant economic variable
Question 11Opportunity cost exists because
the law of comparative advantage is working
the value of lost opportunities varies from person to person
resources are scarce but wants are unlimited
technology is fixed at any point in time
Question 12The cost of attending college
is entirely monetary and consists of expenditures on tuition, books, transportation, and meals
is negligible for most people, because they really have no choice but to attend college
is the most valued alternative given up to attend college
is the same whether you attend a public or a private college
Question 13Expenses for room and board
are not usually part of the opportunity cost of attending college, because you would have to live somewhere and eat something even if you didn't attend college
are opportunity costs of attending college, because they are subsidized by the government or by the college
are opportunity costs of attending college if you are on scholarship, but not otherwise
are opportunity costs of attending college since they involve cash expenditures
Question 14Comparative advantage is
the ability of an individual to produce a good at a lower opportunity cost than some other individual can
the ability of an individual to specialize and produce a greater amount of some good than can another individual
an expression for the amount of labor a particular individual needs to produce a fixed amount of capital goods
the number of units of one good given up in order to acquire something
Question 15A country has an absolute advantage in the production of a good if that country
has the greatest opportunity cost of producing the good and produces it with the fewest resources
can produce the good using fewer resources than another country would require
has the greatest opportunity cost of producing the good regardless of whether it is produced with the fewest resources
has the lowest opportunity cost of producing the good and can produce it with the fewest resources
Question 16If I trade a ginger snap for a chocolate chip cookie, I am engaging in
comparative advantage
privatization
barter
absolute advantage
Question 17Money facilitates trade because
it eliminates the need for specialization
division of labor allows money to be produced at a lower cost
it prevents people from taking advantage of each other
it serves as a medium of exchange
Question 18Division of labor increases productivity because
tasks can be assigned according to individual tastes and abilities
workers who repeatedly perform the same tasks become bored
managers can force workers to produce goods that are valued more highly than the costs of producing them.
specialization of labor allows for the introduction of cheaper, less sophisticated production techniques
Question 19In economics, specialization means
producing something using only one type of labor
producing only one unit of output
producing something using only one unit of a variable resource
focusing efforts on a particular product or a single task
Question 20"Efficiency" refers to
producing as far inside the production possibilities frontier as possible
producing only one out of many possible commodities
getting the maximum possible output from available resources
producing output using the least amount of capital
ECO105 Macroeconomics
Module 3 Quiz
Question 1Which of the four types of economic decision makers is most important?
households, because they demand goods and services and supply resources
government, because it ultimately sets and enforces the "rules of the game"
firms, because they produce all goods and services in the economy
the rest of the world, because there are over 150 countries
Question 2Harold, a delivery man, washes and irons his own shirts. Sarah,his boss, sends her clothes to a laundry. Which is the most plausible economic explanation for this difference?
Harold must be better at ironing than Sarah is.
Sarah has a higher opportunity cost of laundering her clothes than Harold does.
The opportunity cost of ironing is greater for Harold.
Harold must enjoy ironing more than Sarah does.
Question 3The objective of the household is to
maximize household wealth
acquire as many goods as possible
own as much land as possible
maximize utility
Question 4Rationality in the household decision-making process means that
everyone in the household agrees on all decisions
households act in their own best interests
all households make the same decisions
households want to earn as much income as possible
Question 5Which resource generates the largest share of the income in the United States?
entrepreneurial ability
labor
capital
land
Question 6Which of the following is an example of an in-kind transfer?
food stamps
welfare payments
unemployment compensation payments
charitable contributions
Question 7Which of the following represents the largest source of income for U.S. households?
wages and salaries
transfer payments
personal interest
rental income
Question 8Households supply four basic types of resources. They include allof the following except
labor
final goods and services
capital
natural resources
Question 9Which of the following is an example of a durable good?
food prepared at home
binoculars
motor oil
high-fashion clothing
Question 10A cottage industry is one that
carries out production in workers' homes
uses highly specialized resources in a complex production process
produces rural housing
produces cottage cheese
Question 11The demand for a product is the amount that
buyers are willing and able to purchase at alternative prices
sellers are willing to sell at a particular price
buyers purchase in the market
buyers are willing to purchase at a given price
Question 12The law of demand says that the lower the price of a good, other things constant,
the larger the quantity demanded of that good
the larger the demand for that good
the smaller the demand for that good
the smaller the quantity demanded of that good
Question 13In what way is consumer demand different from consumer wants
Demand takes into account the ability to pay.
Demand is only for necessities.
Demand is only for luxuries.
Consumer wants are only for luxuries.
Question 14Suppose you drink more tea because the price of coffee has increased. Which of the following best explains your action?
the law of supply
the substitution effect
tea and coffee are complements
the income effect
Question 15The law of demand is illustrated by a demand curve that is
vertical
downward sloping
upward sloping
horizontal
Question 16For which of the following would the income effect of a price change be greatest?
ballpoint pens
air travel to Australia
college textbooks
haircuts
Question 17A demand curve usually has a
positive slope because price and quantity demanded are inversely related
negative slope because price and quantity demanded are inversely related
negative slope because as price rises, demand falls
positive slope because price and quantity demanded are positively related
Question 18Which of the following will not shift the demand curve for movie tickets?
a change in the cost of babysitting services
a change in the price of movie tickets
a change in the quality of television programs
a change in the income of movie-goers
Question 19Which of the following is most likely to be an inferior good?
restaurant meals
used clothing
soft drinks
airline travel
Question 20Which of the following is most likely to be a normal good?
trips to the laundromat
bus rides
macaroni-and-cheese dinners
tickets to major league baseball games
ECO105 Macroeconomics
Module 4 Quiz
Question 1The ultimate objective of macroeconomics is to
develop and test theories about how the overall economy works
improve the international competitiveness of the U.S. financial markets
stabilize the economy's growth rate
reduce the unemployment rate
Question 2Which of the following is a stock variable?
the federal government's budget deficit
the federal government's debt
consumer income
business spending on capital equipment
Question 3Which of the following is a flow variable?
the U.S. population
investment spending
money supply
U.S. plant and equipment
Question 4If business leaders become optimistic about future sales and profits, they will __________ spending on plant and equipment, which __________ employment and income and, therefore, their expectations are __________.
increase; decreases; fulfilled
increase; increases; fulfilled
decrease; decreases; fulfilled
increase; increases; not met
Question 5During the Great Depression, President Hoover
incorrectly called for a decrease in taxes
incorrectly called for an increase in taxes
correctly called for a decrease in government spending
correctly called for an increase in taxes
Question 6A recession is best defined as a period during which
the budget deficit and trade deficit are both growing
more resources are used
he percentage of the population employed is declining
employment, output, and income decline
Question 7A depression can be defined as
a mild reduction in total production coupled with a rising unemployment rate that lasts for several years
a severe reduction in total production coupled with high unemployment that lasts several years
a decline in government spending and taxes that lasts for several months
a decline in total production that lasts less than six months
Question 8When economists refer to the economy’s price level, they mean
the price of goods and services relative to consumers' incomes
the rate of inflation
a general measure of prices of all goods and services
a period of level, or steady, prices
Question 9If the wealth of consumers increases substantially, this would shift
the aggregate supply curve outward
the aggregate supply curve inward
the aggregate demand curve inward
the aggregate demand curve outward
Question 10Equilibrium of aggregate supply and aggregate demand is best described as a situation in which
the slope of aggregate demand equals the slope of aggregate supply
quantity supplied exceeds quantity demanded at a unique price level
quantity demanded equals quantity supplied at a unique price level
quantity demanded exceeds quantity supplied
Question 11The labor force consists of all
the noninstitutionalized population over 16 in the economy who hold jobs or are looking for them
people in the economy over 16 years of age
the people in the economy who are not retired
the adults in the economy between 18 and 65 years old who are able to work
Question 12The unemployment rate is the
percentage of the labor force that does not have a job
number of people in the labor force without jobs
number of people in the economy who have given up looking for employment
percentage of people in the economy who do not hold jobs
Question 13Consider an economy with an adult population of 100, 50 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The labor force participation rate is
60%
10%
100%
50%
Question 14A discouraged worker is one who
is underqualified for his current job
is overqualified for his current job
dislikes his current job but is afraid to quit
drops out of the labor force because he cannot find a job
Question 15When workers are over-qualified for their current jobs or can find only part-time work, we say they are
overemployed
discouraged workers
underemployed
unemployed
Question 16Sharon was being treated unfairly by her boss, so she stormed off the job and two weeks later found another position. For two weeks Sharon experienced
frictional unemployment
structural unemployment
seasonal unemployment
cyclical unemployment
Question 17Juanita earned a B.S. inengineering and went to work for a defense contractor. When the government cut spending, Juanita and 99 others were laid off. The only other business in the town is growing grapes, but the growers refuse to hire laid-off engineers, knowing they will leave at the first opportunity. The unemployment Juanita is experiencing is
seasonal
structural
cyclical
frictional
Question 18The type of unemployment most likely to be experienced by a touring professional golfe
cyclical unemployment
structural unemployment
frictional unemployment
seasonal unemployment
Question 19Because of the way discouraged workers and part-time employment are measured, the official unemployment rate
understates the unemployment problem
overstates the unemployment problem
overstates the size of the labor force
truly reflects the level of unemployment
Question 20Inflation is
a reduction in everyone's standard of living
a rise in the real prices of all goods and services
an increase in the value of money compared to the value of goods
a general and continuing rise in the money prices of goods and services
ECO105 Macroeconomics
Module 5 Quiz
Question 1A government program that invested in financial institutions and automakers to help stabilize markets during the great recession of 2008 was the _____
Social Security System.
Troubled Asset Relief Program.
Supplemental Security Income Program.
Public Housing Assistance Program.
Question 2The objective of a demand-management policy is to ___
decrease aggregate demand to smooth economic fluctuations.
increase or decrease aggregate demand to smooth economic fluctuations.
increase aggregate demand to smooth economic fluctuations.
increase or decrease aggregate supply to smooth economic fluctuations.
Question 3The chair of the Board of Governors of the Fed serves _____.
a fourteen-year term.
a seven-year term.
a four-year term.
a two-year term that coincides with that of members of Congress.
Question 4If the purchasing power of a dollar measured in terms of the base year was $1, what was the price index?
41
100
244
42
Question 5Which of the following is true of the unit of account function of money?
It makes money durable in nature.
It implies that money can be used to save up purchasing power.
It makes the values of goods and services known.
It implies that money should be made of something valuable.
Question 6A new tax introduced by the government will _____.
increase disposable income.
lead to a reduction in government spending.
lead to an increase in investment.
decrease disposable income.
Question 7A decrease in net taxes _____.
lowers aggregate expenditure by lowering disposable income, thereby decreasing consumption.
raises aggregate expenditure by raising disposable income, thereby increasing consumption.
raises aggregate expenditure by raising disposable income, thereby decreasing consumption.
lowers aggregate expenditure by lowering disposable income, consumption remaining constant.
Question 8Each member of the Board of Governors of the Fed serves _____.
until a new president is elected.
a four-year term that does not coincide with the term of the current president.
a four-year term that begins at the same time as that of the newly elected president.
a fourteen-year term.
Question 9As a result of the financial crises in 2008, which bank was seized by the FDIC after a 10-day bank run during which depositors withdrew $16 billion, or about 10 percent of all deposits?
JPMorgan Chase
Bank of America
Washington Mutual
Wells Fargo
Question 10In which of the following ways does government affect the consumption component of planned aggregate expenditures?
through net taxes, which change disposable income
by reducing the interest rate to encourage firms to invest
by purchasing goods and services, which increase consumption
by using subsidies to encourage firms to invest
Question 11Which of the following statements is true of open-market operations?
Open-market operations involve the Fed's purchase and sale of government securities.
Open-market operations involve lending money to member banks.
Open-market operations involve accepting deposits from member banks.
Open-market operations involve clearing checks.
Question 12What activity does the Fed undertake when it carries out open-market operations?
It provides funds so that healthy depository institutions can purchase weaker ones on the open market.
It changes the legal reserve requirements for member banks.
It deals in the purchase and sale of U.S. government securities.
It changes the discount rate, which generally increases the amount of available credit.
Question 13Fiscal policy is likely to fail to correct stagflation in an economy because _____.
it affects both the aggregate demand and supply, but only aggregate supply needs to be changed.
it affects aggregate supply only, but only aggregate demand needs to be changed.
it affects both the aggregate demand and supply, but only aggregate demand needs to be changed.
it affects aggregate demand only, but aggregate supply also needs to changed.
Question 14A money-market mutual fund account is a(n) _____.
savings account against which one can write checks.
checking account that earns interest.
group of stocks sold under one name.
claim on a collection of interest-earning assets that is not guaranteed by the FDIC.
Question 15Fiscal policy focuses on manipulating _____.
both aggregate supply and aggregate demand to smooth out business fluctuations.
aggregate supply to smooth out business fluctuations.
aggregate demand to smooth out business fluctuations.
aggregate demand to stimulate the economy and aggregate supply to contract it.
Question 16Given the desire of politicians to get reelected, they might try in the short run to use _____.
an expansionary monetary policy.
tax increases on high-income households.
a contractionary monetary policy.
an expansionary fiscal policy.
Question 17Which quality best defines money that easily divisible into smaller units?
divisible
portable
durable
uniform quality
Question 18_____ were among the first bankers.
Goldsmiths
Farmers
Savings-and-loan institutions
Governments
Question 19Which of the following is true about classical economists?
They believed the economy would naturally tend toward unemployment.
They advocated laissez-faire policies to promote economic growth.
They believed prices and wages were rigid.
They argued that the sources of depressions and high unemployment lay within the market system.
Question 20The primary purpose of the Federal Open Market Committee (FOMC) is to _____.
distribute Federal Reserve notes.
buy and sell government securities.
extend loans to member banks of the Fed.
set reserve requirements.
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