ECON 101 Lecture Notes - Lecture 20: Fractional-Reserve Banking, Barter, Federal Open Market Committee
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1. Which of the following both increase the money supply?
an increase in the discount rate and an increase in the interest rate on reserves
an increase in the discount rate and a decrease in the interest rate on reserves
a decrease in the discount rate and an increase in the interest rate on reserves
a decrease in the discount rate and a decrease in the interest rate on reserves
wealth. M1. M2. |
wealth held by people in their savings accounts. wealth held by people in money market mutual funds. everything that is included in M2 plus some additional items |
borrow more from the Fed and lend less to the public. The money supply decreases. borrow less from the Fed and lend more to the public. The money supply increases. borrow less from the Fed and lend less to the public. The money supply decreases. |
the amount of reserves banks must hold against deposits. reserves banks must hold based on the number and type of loans they make. the interest rate at which banks can borrow from the Fed. |
trades require a double coincidence of wants. currency is accepted primarily to make further trades. people must spend time searching for the products they wish to purchase. |
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decreased both the money multiplier and the money supply. increased the money multiplier and decreased the money supply. decreased the money multiplier and increased the money supply. |
Amber with Tom Rupert with Rob None of the above is correct. |
10. Economists use the term money to refer to |
all wealth.
all assets, including real assets and financial assets.
all financial assets, but not real assets.
those types of wealth that are regularly accepted by sellers in exchange for goods and services.
1. Which of the following groups of countries are all advanced economies?
Hong Kong, Japan, France, and the United Kingdom |
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Italy, the United States, China, and Russia |
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Singapore, Russia, France, and Chad |
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Australia, Brazil, and the United States |
QUESTION 2
1. The most people live in ________ economies and the fewest people live in ________ economies.
developing; emerging market |
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advanced; emerging market |
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emerging market; developing |
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advanced; developing |
QUESTION 3
1. Households and firms in the U.S. economy interact with those in the rest of the world in the ________ market and the ________ market.
goods; financial |
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government; goods |
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goods; factor |
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financial; factor |
QUESTION 4
1. As a factor of production, oil reserves are counted as
labor. |
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capital. |
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entrepreneurship. |
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land. |
QUESTION 5
1. ________ the owners of the factors of production, while ________ what amounts of those factors to hire.
Households are; the government determines |
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Firms are; households that determine |
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The government is; firms determine |
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Households are; firms that determine |
QUESTION 6
1. The emerging market economies are
the nations that are currently agricultural in nature. |
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most of the nations of Western Europe. |
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the largest grouping including the nations of China and India. |
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in the transition from state-owned production to free markets. |
QUESTION 7
1. In the United States, the productive factor that, as a group, receives the largest fraction of the nation's total income was
consumption of goods and services. |
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entrepreneurship. |
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capital. |
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labor. |
QUESTION 8
1. Items bought by individuals to provide personal enjoyment are termed
personal goods. |
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consumption of goods. |
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consumption or investment goods. |
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standard goods. |
QUESTION 9
1. In the advanced economies, ________ of the factories use advanced capital equipment and in the developing economies ________ of the factories use advanced capital equipment
virtually all; none |
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some; some |
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virtually all; virtually all |
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virtually all; some |
QUESTION 10
1. The productive resource that includes all the "gifts of nature" is called
land. |
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labor. |
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entrepreneurship. |
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capital. |
QUESTION 11
1. What would be an example of government good?
Donald Trump purchases furniture for his office. |
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Antonio, the manager of the local Taco Hut, purchases a new deep fryer. |
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The local driver's license office purchases a new digital camera and printer. |
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Jake buys an iPhone. |
QUESTION 12
1. The world population is approximately ________ people.
2 trillion |
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680 million |
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6.8 billion |
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6.8 million |
QUESTION 13
1. Computers and insurance coverage produced in the United States and sold to people in other nations are categorized as
U.S. exports of goods and services. |
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U.S. government goods and services. |
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foreign capital goods. |
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U.S. consumer goods and services. |
QUESTION 14
1. Of the following, the federal government obtains most revenue from
corporate income taxes. |
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excise taxes. |
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sales taxes. |
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social security taxes. |
QUESTION 15
1. Items bought by businesses to help produce other goods and services are called
capital goods. |
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government goods and services. |
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consumption of goods and services. |
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exports of goods and services. |
QUESTION 16
1. The majority of the income earned in the United States is paid in
profit. |
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interest. |
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rent. |
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wages. |
QUESTION 17
1. Dan missed class the day the professor covered the circular flow model. Dan asked his friend Joan to explain markets to him. Joan correctly stated that a market
must include a written contract between buyers and sellers. |
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requires a physical location for buyers and sellers to get together. |
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is only a place to purchase groceries. |
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is an arrangement that brings buyers and sellers together. |
QUESTION 18
1. The United States possesses a large amount of human capital. As a result of this fact, in the United States, there is a
highly skilled and educated labor force. |
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a large number of kind and generous humans. |
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a large number of people and a great deal of land. |
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a large amount of machinery and equipment. |
QUESTION 19
1. Which of the following correctly lists the categories of factors of production?
labor, machines, buildings, capital, and entrepreneurship |
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land, buildings, capital, and entrepreneurship |
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land, labor, capital, and entrepreneurship |
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forests, fish, buildings, capital, and entrepreneurship |
QUESTION 20
1. Which of the following correctly lists the categories of factors of production?
capital, money, and labor |
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hardware, software, land, and money |
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land, labor, capital, and entrepreneurship |
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machines, buildings, land, and money |
QUESTION 21
1. In the United States, the poorest 20 percent of households receive roughly ________ percent of total income.
10 |
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3 |
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15 |
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20 |
QUESTION 22
1. What would be an example of a consumption service?
Jake buys an iPhone. |
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The local driver's license office purchases a new digital camera and printer. |
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Antonio, the manager of the local Taco Hut, purchases a new deep fryer. |
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Rhianna gets a haircut. |
QUESTION 23
1. The total value of capital in the United States is around
$47 trillion. |
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$10 trillion. |
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$100 trillion. |
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$79 trillion. |
QUESTION 24
1. An export good is a good produced
by foreigners in the United States and purchased by U.S. households. |
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in another country and purchased by U.S. residents. |
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in the United States and sold to foreigners living in the United States. |
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in the United States and sold in other countries. |
QUESTION 25
1. ________ paid for the use of land; ________ paid for the services of labor; and ________ paid for the use of capital.
Interest is; wages are; profit is |
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Rent is; wages are; interest is |
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Rent is; interest is; wages are |
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Mortgages are; interest is; wages are |