9. Ceteris paribus, goods with "positive externalities" tend to be_______ by the free-
market private sector; thus, in modern developed economies these goods are
often_______ by the government.
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under-supplied; supplied or otherwise subsidized
23. Suppose you find yourself laid off from your current job, and the best advice your
economist gives you is that you should "retrain" and obtain new skills because your
current skills are technologically obsolete. Ceteris paribus, it follows that you are
most likely a victim of ____________ unemployment.
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, structural
19. Use the following info to answer #19 and #20. Suppose country ABC has a total
population of 50 and a working-age population of 40 citizens. Of the working age
population, there are 5 people who are not employed and not actively seeking work.
There are 30 people who are employed. There are also 5 people who are not
employed but who are actively seeking work.
What is the (U-3) official unemployment rate in ABC?
Give this one a try later!
(5/(5+30)) x 100% = 14.3%
9. Currently, in the U.S. economy, the largest component on the expenditures side of
the GDP equation is typically________; whereas on the income side of the equation the
largest component is typically _____.
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consumption; wages and salaries
12. Which of the following is the best example of a good or service that would be
considered rival and excludable?
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, the clothes on your back
21. Ceteris paribus, the primary advantage of investing in mutual funds over individual
stocks or bonds is that mutual funds:
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allow investors with relatively small amounts of money to diversify their
investment portfolios
18. In 2010, bond yields on Greek government debt increased dramatically. This was
most likely caused by the bond market expecting _________ of Greek government debt.
Give this one a try later!
an increase in the default risk
13. If the Fed is increasing the required reserve ratio, then one would expect, ceteris
paribus, that this activity would: (1) put ________ pressure on the money supply; and (2) in
the short run put ________ pressure on nominal interest rates.
Give this one a try later!
downward; upward
market private sector; thus, in modern developed economies these goods are
often_______ by the government.
Give this one a try later!
under-supplied; supplied or otherwise subsidized
23. Suppose you find yourself laid off from your current job, and the best advice your
economist gives you is that you should "retrain" and obtain new skills because your
current skills are technologically obsolete. Ceteris paribus, it follows that you are
most likely a victim of ____________ unemployment.
Give this one a try later!
, structural
19. Use the following info to answer #19 and #20. Suppose country ABC has a total
population of 50 and a working-age population of 40 citizens. Of the working age
population, there are 5 people who are not employed and not actively seeking work.
There are 30 people who are employed. There are also 5 people who are not
employed but who are actively seeking work.
What is the (U-3) official unemployment rate in ABC?
Give this one a try later!
(5/(5+30)) x 100% = 14.3%
9. Currently, in the U.S. economy, the largest component on the expenditures side of
the GDP equation is typically________; whereas on the income side of the equation the
largest component is typically _____.
Give this one a try later!
consumption; wages and salaries
12. Which of the following is the best example of a good or service that would be
considered rival and excludable?
Give this one a try later!
, the clothes on your back
21. Ceteris paribus, the primary advantage of investing in mutual funds over individual
stocks or bonds is that mutual funds:
Give this one a try later!
allow investors with relatively small amounts of money to diversify their
investment portfolios
18. In 2010, bond yields on Greek government debt increased dramatically. This was
most likely caused by the bond market expecting _________ of Greek government debt.
Give this one a try later!
an increase in the default risk
13. If the Fed is increasing the required reserve ratio, then one would expect, ceteris
paribus, that this activity would: (1) put ________ pressure on the money supply; and (2) in
the short run put ________ pressure on nominal interest rates.
Give this one a try later!
downward; upward
