ECON 1500 Exam 3 Study Guide (Tyler
Bowles) Questions With Correct Answers
Classical growth model - CORRECT ANSWER✔✔-economic growth because of
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savings, investments, and capitol accumulation (output=income;
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saving=investment)
New growth model - CORRECT ANSWER✔✔-focuses on technology and learning
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by doing (patents must protect ideas and intellectual property)
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2 ways that describe long run economic growth - CORRECT ANSWER✔✔-classical
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growth model and new growth model
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what shifts LAS curve and PPC? - CORRECT ANSWER✔✔-resources, institutions,
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and technology
|
Markets help promote growth by - CORRECT ANSWER✔✔-Allowing for
| | | | | | | | |
specialization.
Encouraging work. |
Encouraging innovation. |
Robert Lucas said - CORRECT ANSWER✔✔-the most effective way to reduce
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poverty is to increase long run economic growth
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, Low Federal Reserve Rate - CORRECT ANSWER✔✔-greater amount of money in
| | | | | | | | | | |
bank
High federal reserve rate - CORRECT ANSWER✔✔-less amount of money in bank
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Money - CORRECT ANSWER✔✔-Highly liquid, facilitates trade and specialization
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Fiat Money - CORRECT ANSWER✔✔-No inherent value, accepted for exchange
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(poker chips) |
Per capita growth - CORRECT ANSWER✔✔-occurs when output increases faster
| | | | | | | | | |
than the population
| |
Financial markets - CORRECT ANSWER✔✔-promote saving and investment
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growth compatible institutions - CORRECT ANSWER✔✔-have incentives built in
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that lead people to work hard and invest.
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Helga issuing animal skins for money is... - CORRECT ANSWER✔✔-fiat money
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Fractional Reserve Banking - CORRECT ANSWER✔✔-Having less in reserves than
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is believed to be out in the real world, having more poker chips on the gambling
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floor than cash you have in the back
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Deposits Calculation - CORRECT ANSWER✔✔-1/RR x the reserves
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Bowles) Questions With Correct Answers
Classical growth model - CORRECT ANSWER✔✔-economic growth because of
| | | | | | | | |
savings, investments, and capitol accumulation (output=income;
| | | | | |
saving=investment)
New growth model - CORRECT ANSWER✔✔-focuses on technology and learning
| | | | | | | | | |
by doing (patents must protect ideas and intellectual property)
| | | | | | | |
2 ways that describe long run economic growth - CORRECT ANSWER✔✔-classical
| | | | | | | | | | |
growth model and new growth model
| | | | |
what shifts LAS curve and PPC? - CORRECT ANSWER✔✔-resources, institutions,
| | | | | | | | | |
and technology
|
Markets help promote growth by - CORRECT ANSWER✔✔-Allowing for
| | | | | | | | |
specialization.
Encouraging work. |
Encouraging innovation. |
Robert Lucas said - CORRECT ANSWER✔✔-the most effective way to reduce
| | | | | | | | | | |
poverty is to increase long run economic growth
| | | | | | |
, Low Federal Reserve Rate - CORRECT ANSWER✔✔-greater amount of money in
| | | | | | | | | | |
bank
High federal reserve rate - CORRECT ANSWER✔✔-less amount of money in bank
| | | | | | | | | | |
Money - CORRECT ANSWER✔✔-Highly liquid, facilitates trade and specialization
| | | | | | | |
Fiat Money - CORRECT ANSWER✔✔-No inherent value, accepted for exchange
| | | | | | | | | |
(poker chips) |
Per capita growth - CORRECT ANSWER✔✔-occurs when output increases faster
| | | | | | | | | |
than the population
| |
Financial markets - CORRECT ANSWER✔✔-promote saving and investment
| | | | | | |
growth compatible institutions - CORRECT ANSWER✔✔-have incentives built in
| | | | | | | | |
that lead people to work hard and invest.
| | | | | | |
Helga issuing animal skins for money is... - CORRECT ANSWER✔✔-fiat money
| | | | | | | | | |
Fractional Reserve Banking - CORRECT ANSWER✔✔-Having less in reserves than
| | | | | | | | | |
is believed to be out in the real world, having more poker chips on the gambling
| | | | | | | | | | | | | | | |
floor than cash you have in the back
| | | | | | |
Deposits Calculation - CORRECT ANSWER✔✔-1/RR x the reserves
| | | | | | |
