ECO 302 Week 6 Quiz

7/25/2019 ECO 302 Week 6 Quiz

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ECO 302 Week 6 Quiz - Strayer

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Cha%ter & an# '

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1. ntertemp!ra" $ub$tituti!n e%%e&t$ are $ub$tituti!n e%%e&t$ !'er time.

2. When the mar(ina" pr!du&t !% "ab!r in&rea$e$ due t! a p!$iti'e

te&hn!"!(y &han(e) the rea" *a(e %a""$.

3. +he m!de" predi&t$ that in re$p!n$e t! a permanent p!$iti'e &han(e in

te&hn!"!(y rea" &!n$umpti!n *i"" be pr!&y&"i&a".

,. n in&rea$e in the intere$t rate make$ %uture &!n$umpti!n &heaper and

%uture "ei$ure m!re epen$i'e.

5. +he in&!me e%%e&t !n "ab!r $upp"y i$ p!$iti'e.

6. trend "ine %!r .S. $in&e W!r"d War i$ m!$t"y %"at.

. n the e4ui"ibrium bu$ine$$ &y&"e m!de") an impr!'ement in the "e'e"!% te&hn!"!(y *i"" in&rea$e the rea" *a(e rate.

. n the e4ui"ibrium bu$ine$$ &y&"e m!de") an impr!'ement in the "e'e"

!% te&hn!"!(y *i"" de&rea$e the intere$t rate.

. n the e4ui"ibrium bu$ine$$ &y&"e m!de") an impr!'ement in the "e'e"

!% te&hn!"!(y *i"" de&rea$e the intere$t rate.



7/25/2019 ECO 302 Week 6 Quiz


10. +he e4ui"ibrium bu$ine$$ &y&"e m!de" predi&t$ that the rea" *a(e *i""

be pr!&y&"i&a".

11. +he e4ui"ibrium bu$ine$$ &y&"e m!de" predi&t$ that the rea" renta" pri&e

!% &apita" *i"" be pr!&y&"i&a".

12. +he e4ui"ibrium bu$ine$$ &y&"e m!de" predi&t$ that rea" in'e$tment *i""

be &!unter&y&"i&a".

$*L(PLE C.OCE

1. +he &y&"i&a" part !% rea" i$

a. trend rea" "e$$ rea" .&. rea" /trend rea" .

b. rea" "e$$ trend rea" . d. trend rea" /rea" .

2. 7ea" e4ua"$:

a. trend rea" p"u$ the &y&"i&a" part !% &. trend rea" "e$$ the

&y&"i&a" part !% .

b. trend rea" time$ the &y&"i&a" part !% . d. trend rea"

di'ided by the &y&"i&a" part !% .

3. n e4ui"ibrium bu$ine$$-&y&"e m!de":

a. u$e$ $h!&k$ t! t! %ind e4ui"ibrium &!nditi!n$. &. u$e$ e4ui"ibrium

&!nditi!n$ t! determine h!* $h!&k$ a%%e&t rea" and !ther ma&r!e&!n!mi&'ariab"e$. .

b. u$e$ t! %ind e4ui"ibrium $h!&k$ t! the e&!n!my. d. u$e$

t! %ind e4ui"ibrium &!nditi!n$.

,. n in&rea$e in the "e'e" !% te&hn!"!(y) ) &au$e$:

a. an in&rea$e in the 89 &. a m!'ement a"!n( the 89 hirin( m!re

"ab!r.

b. a de&rea$e in the 89d. a m!'ement a"!n( the 89 hirin( "e$$ "ab!r.

7/25/2019 ECO 302 Week 6 Quiz


5. +he m!de" predi&t$ that an e&!n!mi& epan$i!n &au$ed by an in&rea$e

in te&hn!"!(y) ) *i"":

a. dri'e d!*n the rea" *a(e. &. dri'e up the rea" *a(e. b. &au$e "ab!r $upp"y t! be (reater than "ab!r demand. d. "ead t! a re"ati'e"y

"!* rea" *a(e.

6. +he m!de" predi&t$ that in a re&e$$i!n &au$ed by an de&rea$e in

te&hn!"!(y) ) *e *!u"d !b$er'e:

a. a re"ati'e"y "!* rea" *a(e. &. a re"ati'e"y hi(h rea" *a(e.

b. an e&e$$ demand %!r "ab!r. d. an in&rea$e in the 89

. % te&hn!"!(y) ) in&rea$e$) then:

a. the 8 and the demand %!r &apita" $er'i&e$ in&rea$e. &. the 8

in&rea$e$ and the demand %!r &apita" $er'i&e$ de&rea$e$.

b. the 8 and the demand %!r &apita" $er'i&e$ de&rea$e. d. the 8

de&rea$e$ and the demand %!r &apita" $er'i&e$ in&rea$e$.

. +he m!de" predi&t$ that i% there i$ a te&hn!"!(y) ) $h!&k) the rea"

renta" pri&e !% &apita" *i"":

a. be re"ati'e"y hi(h durin( an e&!n!mi& epan$i!n !r a re&e$$i!n. &. be

re"ati'e"y hi(h durin( an e&!n!mi& epan$i!n and re"ati'e"y "!* durin( a re&e$$i!n.

b. be re"ati'e"y "!* durin( an e&!n!mi& epan$i!n !r a re&e$$i!n. d. be

re"ati'e"y "!* durin( an e&!n!mi& epan$i!n and re"ati'e"y hi(h durin( a re&e$$i!n.

. +he m!de" predi&t$ that i% there i$ a te&hn!"!(y) ) $h!&k) the intere$t

rate) i) *i"" be:

a. re"ati'e"y hi(h durin( an e&!n!mi& epan$i!n !r a re&e$$i!n. &.

re"ati'e"y hi(h durin( an e&!n!mi& epan$i!n and re"ati'e"y "!* durin( a

re&e$$i!n.

b. re"ati'e"y "!* durin( an e&!n!mi& epan$i!n !r a re&e$$i!n. d.

re"ati'e"y "!* durin( an e&!n!mi& epan$i!n and re"ati'e"y hi(h durin( a

re&e$$i!n.

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10. urin( an e&!n!mi& epan$i!n due t! an in&rea$e in te&hn!"!(y) )

&!n$umpti!n *i"":

a. tend t! ri$e due t! the in&!me e%%e&t. &. tend t! %a"" due t! the

intertemp!ra" $ub$tituti!n e%%e&t !% the intere$t rate ri$in(.

b. may ri$e !r %a"" dependin( !n *hether the in&!me e%%e&t i$ (reater than the$ub$tituti!n e%%e&t !r n!t. d. a"" !% the ab!'e.


&!n$umpti!n *i"":

a. tend t! %a"" due t! the in&!me e%%e&t. &. tend t! ri$e due t! the


b. may ri$e !r %a"" dependin( !n *hether the in&!me e%%e&t i$ (reater than the

$ub$tituti!n e%%e&t !r n!t. d. a"" !% the ab!'e.


&!n$umpti!n *i"":

a. tend t! ri$e due t! the in&!me e%%e&t. &. tend t! ri$e due t! the


b. be un&han(ed. d. tend t! %"u&tuate.


&!n$umpti!n *i"":

a. tend t! %a"" due t! the in&!me e%%e&t. &. tend t! %a"" due t! the


b. be un&han(ed. d. tend t! %"u&tuate.

1,. % te&hn!"!(y) ) in&rea$e$ permanent"y then *e *!u"d epe&t:

a. &!n$umpti!n t! de&rea$e a$ the $ub$tituti!n e%%e&t *!u"d be (reater than the

in&!me e%%e&t !% the &han(e. &. &!n$umpti!n t! in&rea$e a$ the $ub$tituti!n

e%%e&t *!u"d be (reater than the in&!me e%%e&t !% the &han(e.

b. &!n$umpti!n t! in&rea$e a$ the in&!me e%%e&t *!u"d be (reater than the

$ub$tituti!n e%%e&t !% the &han(e. d. &!n$umpti!n t! de&rea$e a$ the in&!me

e%%e&t *!u"d be (reater than the $ub$tituti!n e%%e&t !% the &han(e.

7/25/2019 ECO 302 Week 6 Quiz


15. % there i$ a permanent in&rea$e in te&hn!"!(y) ) then *e epe&t

&!n$umpti!n t!:

a. in&rea$e by m!re than rea" . &. in&rea$e but by "e$$ than rea"

.

b. in&rea$e by the $ame am!unt a$ rea" . d. be un&han(ed.

16. % there *ere a permanent in&rea$e in te&hn!"!(y) ) *e *!u"d epe&t

rea" $a'in( t!:

a. in&rea$e a$ the in&rea$e in rea" &!n$umpti!n i$ "e$$ than rea" . &.

de&rea$e a$ the in&rea$e in rea" &!n$umpti!n i$ m!re than rea" .

b. in&rea$e a$ the in&rea$e in rea" &!n$umpti!n i$ m!re than rea" .d.

de&rea$e a$ the in&rea$e in rea" &!n$umpti!n i$ "e$$ than rea" .

1. 'ariab"e that m!'e$ in the $ame dire&ti!n a$ rea" i$ kn!*n a$:

a. a&y&"i&a". &. &!unter&y&"i&a".

b. pr!&y&"i&a". d. e!(en!u$.

1. 'ariab"e that ha$ "itt"e tenden&y t! m!'e durin( a bu$ine$$ &y&"e i$

kn!*n a$:

a. a&y&"i&a". &. &!unter&y&"i&a".

b. pr!&y&"i&a". d. e!(en!u$.

1. 'ariab"e that m!'e$ in the !pp!$ite dire&ti!n a$ rea" i$ kn!*n

a$:

a. a&y&"i&a". &. &!unter&y&"i&a".

b. pr!&y&"i&a". d. e!(en!u$.

20. n a&y&"i&a" 'ariab"e i$ !ne that:

a. m!'e$ the $ame dire&ti!n a$ rea" . &. m!'e$ the !pp!$ite

dire&ti!n a$ rea" .

b. ha$ "itt"e tenden&y t! m!'e durin( a bu$ine$$ &y&"e. d. determined

!ut$ide the m!de".

7/25/2019 ECO 302 Week 6 Quiz


21. n pr!&y&"i&a" 'ariab"e i$ !ne that:


dire&ti!n a$ rea" .


!ut$ide the m!de".

22. n &!unter&y&"i&a" 'ariab"e i$ !ne that:


dire&ti!n a$ rea" .


!ut$ide the m!de".

23. S rea" &!n$umer ependiture $in&e 15, ha$ been:

a. pr!&y&"i&a". &. a &y&"i&a".

b. &!unter&y&"i&a". d. e!(en!u$.

2,. S rea" (r!$$ d!me$ti& pri'ate in'e$tment $in&e 15, ha$ been:

a. pr!&y&"i&a". &. a &y&"i&a".


25. Sin&e 15,) in the S:

a. rea" (r!$$ pri'ate in'e$tment ha$ 'aried m!re than rea" ) *hi"e rea"

&!n$umer ependiture ha$ 'aried "e$$ than rea" . &. rea" (r!$$ pri'ate

in'e$tment ha$ 'aried "e$$ than rea" ) *hi"e rea" &!n$umer ependiture ha$ 'aried

m!re than rea" . b. rea" (r!$$ pri'ate in'e$tment and rea" &!n$umer ependiture ha'e 'aried m!re

than rea" .d. rea" (r!$$ pri'ate in'e$tment and rea" &!n$umer ependiture

ha'e 'aried "e$$ than rea" .

26. S rea" a'era(e earnin($ !% pr!du&ti!n *!rker$ $in&e 15, ha$ been:

a. pr!&y&"i&a". &. a &y&"i&a".


7/25/2019 ECO 302 Week 6 Quiz


2. S rea" renta" pri&e !% &apita" $in&e 15, ha$ been:

a. pr!&y&"i&a" a$ the m!de" predi&t$. &. pr!&y&"i&a" rather &!unter&y&"i&a"

a$ the m!de" predi&t$.

b. &!unter&y&"i&a" a$ the m!de" predi&t$. d. &!unter&y&"i&a" rather pr!&y&"i&a" a$ the m!de" predi&t$.

2. n eamp"e !% a temp!rary &han(e in te&hn!"!(y *!u"d be:

a. a ne* di$&!'ery. &. a har'e$t %ai"ure.

b. a ne* in'enti!n. d. a"" !% the ab!'e.

2. n eamp"e !% a temp!rary &han(e in te&hn!"!(y *!u"d be:

a. a ne* di$&!'ery. &. a ne* in'enti!n.

b. a (enera" $trike. d. a"" !% the ab!'e.

30. With a temp!rary &han(e in te&hn!"!(y the m!de" predi&t$:

a. the intere$t rate *i"" be pr!&y&"i&a". &. a hi(her intere$t rate *i""

m!ti'ate h!u$eh!"d$ t! in&rea$e &urrent rea" $a'in(.

b. a "!*er intere$t rate *i"" m!ti'ate h!u$eh!"d$ t! in&rea$e &urrent rea"

&!n$umpti!n. d. a"" !% the ab!'e.

31. With a temp!rary &han(e in te&hn!"!(y the m!de" predi&t$:

a. the intere$t rate *i"" be pr!&y&"i&a". &. a hi(her intere$t rate *i""

m!ti'ate h!u$eh!"d$ t! de&rea$e &urrent rea" $a'in(.

b. a "!*er intere$t rate *i"" m!ti'ate h!u$eh!"d$ t! de&rea$e &urrent rea"&!n$umpti!n. d. a"" !% the ab!'e.

32. With a temp!rary &han(e in te&hn!"!(y) *e *!u"d epe&t:

a. the in&!me e%%e&t !% &!n$umpti!n t! be "ar(er. &. the intertemp!ra"

$ub$tituti!n e%%e&t !n &!n$umpti!n t! be "ar(er.

b. the in&!me e%%e&t !% &!n$umpti!n t! be $ma""er. d. the intertemp!ra"

$ub$tituti!n e%%e&t !n &!n$umpti!n t! be "ar(er.

7/25/2019 ECO 302 Week 6 Quiz


33. With a temp!rary p!$iti'e &han(e in te&hn!"!(y *e *!u"d epe&t rea"

&urrent &!n$umpti!n:

a. t! in&rea$e a "!t. &. t! remain un&han(ed.

b. t! de&rea$e a "!t. d. t! either in&rea$e !r de&rea$e a "itt"e.

3,. With a temp!rary &han(e in te&hn!"!(y) ) *e epe&t "itt"e &han(e in

&!n$umpti!n be&au$e:

a. the in&!me e%%e&t !n &!n$umpti!n i$ "ar(er. &. the intertemp!ra"-

$ub$tituti!n e%%e&t i$ "ar(er.

b. the in&!me e%%e&t !n &!n$umpti!n i$ $ma""er. d. the intertemp!ra"-

$ub$tituti!n e%%e&t i$ $ma""er.

35. +he m!de" predi&t$ that an e&!n!mi& epan$i!n &au$ed by a

temp!rary in&rea$e in te&hn!"!(y) ) *!u"d "ead t!:

a. hi(h rea" and in'e$tment. &. "!* rea" and in'e$tment.

b. "!* rea" and hi(h rea" in'e$tment. d. hi(h rea" and "!*

rea" in'e$tment.

36. +emp!rary &han(e$ in te&hn!"!(y) ) &!n%"i&t *ith the data in that:

a. in'e$tment i$ &"ear"y a&y&"i&a". &. the *a(e rate i$ &"ear"y

&!unter&y&"i&a".

b. &!n$umpti!n i$ &"ear"y pr!&y&"i&a". d. a"" !% the ab!'e.

3. hi(her rea" *a(e:a. make$ &!n$umpti!n m!re epen$i'e. &. make$ "ei$ure "e$$

epen$i'e.

b. make$ it a *!r$e dea" %!r h!u$eh!"d$ t! *!rk an etra h!ur. d. make$

"ei$ure m!re epen$i'e.

3. hi(her rea" *a(e:

a. in&rea$e$ the in&!me !% h!u$eh!"d$ indu&in( them t! *!rk m!re. &.

in&rea$e$ the in&!me !% h!u$eh!"d$ indu&in( them t! *!rk "e$$.

7/25/2019 ECO 302 Week 6 Quiz


b. de&rea$e$ the in&!me !% h!u$eh!"d$ indu&in( them t! *!rk m!re. d.

de&rea$e$ the in&!me !% h!u$eh!"d$ indu&in( them t! *!rk "e$$.

3. +he !'era"" e%%e&t !% a hi(her rea" *a(e i$:

a. t! in&rea$e "ab!r a$ the in&!me and $ub$tituti!n e%%e&t rein%!r&e ea&h !ther.

&. t! de&rea$e "ab!r a$ the in&!me and $ub$tituti!n e%%e&t rein%!r&e ea&h

!ther.

b. ambi(u!u$ !n "ab!r a$ the in&!me and $ub$tituti!n e%%e&t *!rk a(ain$t ea&h

!ther. d. ambi(u!u$ be&au$e the in&!me and $ub$tituti!n e%%e&t rein%!r&e ea&h

!ther.

,0. We epe&t that an in&rea$e in rea" *a(e$ *i"":

a. in&rea$e "ab!r $upp"y) i% temp!rary. &. in&rea$e "ab!r $upp"y) *hether

permanent !r temp!rary.

b. in&rea$e "ab!r $upp"y) i% permanent. d. redu&e "ab!r $upp"y) *hether

permanent !r temp!rary.

,1. n in&rea$e in the intere$t rate indu&e$ *!rker t!:

a. *!rk m!re in the &urrent peri!d and "e$$ in the %uture. &. *!rk "e$$

in the &urrent peri!d and m!re in the %uture.

b. *!rk m!re in the &urrent peri!d and in the %uture. d. *!rk "e$$ in the

&urrent peri!d and in the %uture.

,2. hi(her intere$t rate make$:

a. %uture &!n$umpti!n &heaper. &. &urrent &!n$umpti!n m!re epen$i'e.

b. %uture "ei$ure &heaper.d. a"" !% the ab!'e.


a. %uture &!n$umpti!n and "ei$ure m!re epen$i'e. &. %uture

&!n$umpti!n and "ei$ure &heaper.

b. %uture &!n$umpti!n &heaper and %uture "ei$ure m!re epen$i'e. d.

%uture &!n$umpti!n m!re epen$i'e and %uture "ei$ure &heaper.

7/25/2019 ECO 302 Week 6 Quiz


,,. hi(her intere$t rate make$:

a. &urrent &!n$umpti!n and "ei$ure m!re epen$i'e. &. &urrent

&!n$umpti!n and "ei$ure &heaper.

b. &urrent &!n$umpti!n &heaper and &urrent. "ei$ure m!re epen$i'e. d.

&urrent &!n$umpti!n m!re epen$i'e and &urrent "ei$ure &heaper.


a. &urrent &!n$umpti!n and %uture "ei$ure m!re epen$i'e. &. &urrent

&!n$umpti!n and %uture "ei$ure &heaper.

b. &urrent &!n$umpti!n &heaper and %uture. "ei$ure m!re epen$i'e. d.

&urrent &!n$umpti!n m!re epen$i'e and %uture "ei$ure &heaper.

,6. ntertemp!ra" $ub$tituti!n e%%e&t$ m!ti'ate h!u$eh!"d$ t!:

a. $upp"y m!re "ab!r *hen the *a(e rate i$ temp!rari"y "!*. &. $upp"y "e$$

"ab!r *hen the *a(e rate i$ temp!rari"y "!*.

b. $upp"y m!re "ab!r *hen the *a(e rate i$ permanent"y "!*. d. $upp"y

m!re "ab!r *hen the *a(e rate i$ permanent"y "!*.

,. n the S $in&e 16, t!ta" h!ur$ *!rked and emp"!yment ha'e been:

a. a&y&"i&a". &. pr!&y&"i&a".


,. +he mea$ure !% "ab!r pr!du&ti'ity u$ed in the p!pu"ar media i$:

a. ;/9 &. pr!&y&"i&a".

b. a'era(e pr!du&t !% "ab!r. d. a"" !% the ab!'e.

,. n the m!de" *ith an up*ard $"!pin( $upp"y &ur'e !% "ab!r and

in&rea$e demand %!r "ab!r due t! a p!$iti'e te&hn!"!(i&a") ) &han(e:

a. in&rea$e$ emp"!yment and the rea" *a(e. &. de&rea$e$ emp"!yment

and the rea" *a(e.

b. de&rea$e$ emp"!yment and in&rea$e$ the rea" *a(e. d. de&rea$e$

emp"!yment and in&rea$e$ the rea" *a(e.

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50. When the "ab!r $upp"y !% h!u$eh!"d$ i$ a""!*ed t! $"!pe up*ard:

a. the m!de" predi&ti!n$ mat&h the !b$er'ed data that emp"!yment and rea"

*a(e$ are &!unter&y&"i&a". &. the m!de" predi&ti!n$ d! n!t mat&h the !b$er'ed

data that emp"!yment and rea" *a(e$ are pr!&y&"i&a". b. the m!de" predi&ti!n$ d! n!t mat&h the !b$er'ed data that emp"!yment and

rea" *a(e$ are &!unter&y&"i&a". d. the m!de" predi&ti!n$ mat&h the

!b$er'ed data that emp"!yment and rea" *a(e$ are pr!&y&"i&a".

51. +he m!$t imp!rtant %eature !% .S. rea" in the p!$t-W!r"d War

era m!$t "ike"y i$

a. the !'era"" up*ard trend. &. the "ar(e %"u&tuati!n$ re"ati'e t! trend.

b. the hi(h $tandard de'iati!n %r!m trend. d. the many re&e$$i!n$re"ated t! p!"iti&$.

52. +he e4ui"ibrium bu$ine$$ &y&"e m!de") un"ike the "!n(-run S!"!*

(r!*th m!de") a$$ume$ that

a. &han(e$ in &apita" are imp!rtant. &. the intere$t rate a"*ay$ ri$e$.

b. &han(e$ in &apita" are in$i(ni%i&ant. d. the &y&"i&a" (r!*th in i$

p!$iti'e.

53. Supp!$e that the e&!n!my $u%%er$ a ma<!r natura" di$a$ter. +he

e4ui"ibrium bu$ine$$-&y&"e m!de" predi&t$ that the intere$t rate *i"" be

a. un&han(ed. &. re"ati'e"y "!*.

b. re"ati'e"y hi(h. d. (reater than the return !n &apita".

5,. Supp!$e that the e&!n!my $u%%er$ a ma<!r natura" di$a$ter. +he

e4ui"ibrium bu$ine$$-&y&"e m!de" predi&t$ that the rea" renta" pri&e !% &apita" *i"" be

a. un&han(ed. &. re"ati'e"y "!*.

b. re"ati'e"y hi(h. d. (reater than the return !n &apita".

55. &&!rdin( t! the e4ui"ibrium bu$ine$$-&y&"e m!de") a ma<!r

impr!'ement in &!mpetiti'ene$$ in a nati!n=$ e&!n!my *i"" a%%e&t the rea" *a(e in*hi&h *ay>

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a. +he rea" *a(e *i"" be un&han(ed. &. +he rea" *a(e *i"" be re"ati'e"y

"!*.

b. +he rea" *a(e &ann!t be predi&ted. d. +he rea" *a(e *i"" be re"ati'e"y

hi(h..

56. n the e4ui"ibrium bu$ine$$-&y&"e m!de") an impr!'ement in the "e'e"

!% te&hn!"!(y &au$e$

a. an e&!n!mi& epan$i!n. &. a trend "e'e" !% .

b. a re&e$$i!n. d. an e&!n!mi& $h!&k.

5. n the e4ui"ibrium bu$ine$$-&y&"e m!de") an e&!n!mi& epan$i!ntypi&a""y $tart$ *ith

a. an impr!'ement in the "e'e" !% te&hn!"!(y. &. a de&"ine in the "e'e" !%

te&hn!"!(y

b. an in&rea$e in the $t!&k !% &apita". d. a de&rea$e in the $t!&k !% &apita".

5. n the e4ui"ibrium bu$ine$$-&y&"e m!de") a re&e$$i!n typi&a""y $tart$

*ith

a. an impr!'ement in the "e'e" !% te&hn!"!(y. &. a de&"ine in the "e'e" !%

te&hn!"!(y

b. an in&rea$e in the $t!&k !% &apita". d. a de&rea$e in the $t!&k !% &apita".

5. n the e4ui"ibrium bu$ine$$-&y&"e m!de") a re&e$$i!n *!u"d be

&hara&terized by

a. a re"ati'e"y "!* rea" *a(e and re"ati'e"y hi(h rea" renta" pri&e !% &apita". &.

a re"ati'e"y hi(h rea" *a(e and re"ati'e"y "!* rea" renta" pri&e !% &apita". b. a re"ati'e"y "!* rea" *a(e and rea" renta" pri&e !% &apita". d. a re"ati'e"y

hi(h rea" *a(e and rea" renta" pri&e !% &apita".

60. n the e4ui"ibrium bu$ine$$-&y&"e m!de") a re&e$$i!n *!u"d be

&hara&terized by

a. a re"ati'e"y "!* intere$t rate and re"ati'e"y hi(h rea" renta" pri&e !% &apita". &.

a re"ati'e"y hi(h intere$t rate and re"ati'e"y "!* rea" renta" pri&e !% &apita".

b. a re"ati'e"y hi(h rea" *a(e and rea" renta" pri&e !% &apita". d. a re"ati'e"y"!* intere$t rate and rea" renta" pri&e !% &apita".

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61. n the e4ui"ibrium bu$ine$$-&y&"e m!de") an e&!n!mi& epan$i!n

*!u"d be &hara&terized bya. a re"ati'e"y "!* rea" *a(e and re"ati'e"y hi(h rea" renta" pri&e !% &apita". &.

a re"ati'e"y hi(h rea" *a(e and rea" renta" pri&e !% &apita".

b. a re"ati'e"y "!* rea" *a(e and rea" renta" pri&e !% &apita". d. a re"ati'e"y

hi(h rea" *a(e and re"ati'e"y "!* rea" renta" pri&e !% &apita".

62. Whi&h !% the %!""!*in( 'ariab"e$ i$ pr!&y&"i&a") a&&!rdin( t! the

e4ui"ibrium bu$ine$$-&y&"e m!de">

a. the rea" *a(e rate &. the rea" renta" rate !n &apita" b. the rea" intere$t rate d. a"" !% the ab!'e

63. Whi&h !% the %!""!*in( 'ariab"e$ i$ &!unter&y&"i&a") a&&!rdin( t! the

e4ui"ibrium bu$ine$$-&y&"e m!de">

a. the rea" *a(e rate &. the rea" renta" rate !n &apita"

b. the rea" intere$t rate d. n!ne !% the ab!'e

6,. +he e4ui"ibrium rea"-bu$ine$$ &y&"e m!de" predi&t$ that "ab!r

pr!du&ti'ity *i"" be

a. pr!&y&"i&a". &. a&y&"i&a".

b. &!unter&y&"i&a". d. indeterminate.

65. +he mea$ure kn!*n a$ t!ta" h!ur$ *!rked

a. mu"tip"ie$ emp"!yment by ,0. &. di'ide$ emp"!yment by 2,.

b. di'ide$ emp"!yment by the a'era(e *a(e rate. d. mu"tip"ie$

emp"!yment by the a'era(e *eek"y h!ur$ *!rked per emp"!yee.

S.O)( /SWE)

1. % there i$ a p!$iti'e te&hn!"!(i&a" &han(e) *hat happen$ in the "ab!rmarket>

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2. What d!e$ the m!de" predi&t ab!ut in'e$tment *hen te&hn!"!(y

in&rea$e$ and *hy and *hat d! the data $h!* ab!ut in'e$tment in the S>

3. What happen$ t! &!n$umpti!n *hen there i$ a permanent and

temp!rary in&rea$e in te&hn!"!(y) ) and *hy>

,. What i$ the re"ati!n$hip bet*een rea" and the &y&"i&a" part !%

>

5. What happen$ in the m!de") i% a temp!rary te&hn!"!(y &han(e in&rea$e

rea" *a(e$ temp!rari"y>

6. What d!e$ the rea" bu$ine$$-&y&"e m!de" predi&t *i"" be the

re"ati!n$hip bet*een an e&!n!mi& epan$i!n and the rea" renta" pri&e !% &apita">

Cha%ter '

()*E+,LSE

1. When the &apita" uti"izati!n rate) ) i$ added t! the m!de" the intere$t

rate be&!me$ &!unter&y&"i&a".

2.+he hi(her the &apita" uti"izati!n rate) ) the (reater the depre&iati!n rate !% &apita") .

3. n in&rea$e in unemp"!yment in$uran&e payment$ de&rea$e$ e%%e&ti'e

rea" in&!me *hi"e unemp"!yed.

,. +he durati!n !% unemp"!yment i$ the number unemp"!yed di'ided by

the "ab!r %!r&e.

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5. nemp"!yment *i"" ei$t in an market &"earin( m!de") i% it take$ $!me

$ear&h time %!r *!rker$ t! %ind <!b$.

6. n in&rea$e in the te&hn!"!(y "e'e" "ead$ t! an !ut*ard $hi%t !% the

demand &ur'e %!r &apita" $er'i&e$.

. n in&rea$e in the te&hn!"!(y "e'e" "ead$ t! an in&rea$e in the market-

&"earin( rea" renta" pri&e !% &apita".

. When a 'ariab"e &apita" uti"izati!n rate i$ added t! the ?arr! m!de") the

m!de" predi&t$ that the &apita" uti"izati!n rate *i"" be &!unter&y&"i&a".

. &an ri$e *hen a de&rea$e in te&hn!"!(y "ead$ t! an in&rea$e in the

&apita" uti"izati!n rate.

10. +he natura" rate !% unemp"!yment in an e&!n!my !&&ur$ *hen the <!b

$eparati!n rate e4ua"$ zer!.

$*L(PLE C.OCE

1. +he &apita" uti"izati!n rate i$:

a. the rate &apita" *ear$ !ut in a parti&u"ar peri!d. &. the per&enta(e !%&apita" u$ed in pr!du&ti!n.

b. the depre&iati!n rate. d. a"" !% the ab!'e.

2. When the &apita" uti"izati!n rate) ) in&rea$e$ then:

a. in&rea$e$. &. @h!ur$ per peri!dAB@number !% ma&hine$A

in&rea$e$.

b. ma&hine$ are in u$e m!re h!ur$ per peri!d. d. a"" !% the ab!'e.

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a. de&rea$e$. &. @h!ur$ per peri!dAB@number !% ma&hine$A

in&rea$e$.

b. ma&hine$ are in u$e %e*er h!ur$ per peri!d. d. a"" !% the ab!'e.

,. When the &apita" uti"izati!n rate) ) in&rea$e$ then:

a. de&rea$e$. &. @h!ur$ per peri!dAB@number !% ma&hine$A

de&rea$e$.

b. ma&hine$ are in u$e m!re h!ur$ per peri!d. d. a"" !% the ab!'e.


a. in&rea$e$. &. @h!ur per peri!dAB@number !% ma&hine$A

de&rea$e$.

b. ma&hine$ are in u$e %e*er h!ur$ per peri!d. d. a"" !% the ab!'e.

6. When *e a""!* a &apita" uti"izati!n rate) ) "e$$ than 100) then the

rate !% return %!rm !*nin( &apita" be&!me$:

a. @7/A - . &. @7/AB - .

b. @7/AB - @ A. d. @7/A - @ A.

. n !*ner !% &apita" mi(ht $et their &apita" uti"izati!n rate be"!* 100

be&au$e:

a. the depre&iati!n rate (!e$ up *ith the &apita" uti"izati!n rate. &. t!

make time a'ai"ab"e %!r maintainin( their &apita". b. ma&hine$ *ear !ut %a$ter *hen u$ed m!re inten$i'e"y. d. a"" !% the

ab!'e.

. +he !ptima" &apita" uti"izati!n rate) ) i$ that *here:

a. @7/AB - @ A i$ maimized. &. @7/AB D @ A

b. @7/AB @ A d. @7/AB F @ A

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. the net rea" in&!me %r!m $upp"yin( &apita" $er'i&e$ i$:

a. @7/AB - @ A. &. @ A - @7/AB

b. @7/AB G @ A.d. @7/AB B @ A

10. Hi(her &apita" uti"izati!n rate$ may rai$e the u$er &!$t$ !% &apita"

be&au$e hi(her uti"izati!n rate$ may imp"y:

a. !peratin( at in&!n'enient time$. &. !peratin( *hen &!mp"ementary

$er'i&e$ "ike tran$p!rter$ are una'ai"ab"e !r m!re epen$i'e.

b. payin( !'ertime t! emp"!yee$ !peratin( the ma&hine$. d. a"" !% the

ab!'e.

11. Hi(her &apita" uti"izati!n rate$ may rai$e u$er &!$t$ !% &apita" be&au$e

hi(her uti"izati!n rate$ may imp"y:

a. !peratin( at in&!n'enient time$. &. "e$$ hi(h*ay &!n(e$ti!n.

b. !%%-peak uti"ity pri&e$.d. a"" !% the ab!'e.



a. "e$$ hi(h*ay &!n(e$ti!n. &. !peratin( *hen &!mp"ementary $er'i&e$

"ike tran$p!rtati!n are una'ai"ab"e !r m!re epen$i'e.

b. !%% peak uti"ity pri&e$. d. a"" !% the ab!'e.



a. "e$$ hi(h*ay &!n(e$ti!n. &. !%% peak uti"ity pri&e$. b. payin( !'ertime t! emp"!yee$ !peratin( the ma&hine$. d. a"" !% the

ab!'e.

1,. ri$e$ &an ri$e in an epan$i!n due t!:

a. an in&rea$e in te&hn!"!(y) ) dire&t"y in&rea$in( . &. an in&rea$e

in te&hn!"!(y) ) &au$in( an in&rea$e in the &apita" uti"izati!n rate) the 4uantity !%

&apita" $er'i&e$ and .

b. an in&rea$e in te&hn!"!(y) ) &au$in( an in&rea$e in "ab!r) 9 and . d.a"" !% the ab!'e.

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15. +he m!de" predi&t$ the &apita" uti"izati!n rate) ) i$:

a. a&y&"i&a". &. &!unter&y&"i&a". b. pr!&y&"i&a". d. e!(en!u$.

16. +he m!de" predi&t$ that *ith a ne(ati'e $h!&k t! te&hn!"!(y) the

&apita" uti"izati!n rate) ) *i"":

a. ri$e a$ ri$e$. &. ri$e a$ %a""$.

b. %a"" a$ %a""$. d. %a"" a$ ri$e$.

1. %ter the &apita" uti"izati!n rate) ) i$ in&"uded in the m!de") the intere$t

rate:

a. i$ $ti"" pr!&y&"i&a". &. be&!me$ pr!&y&"i&a".

b. i$ $ti"" &!unter&y&"i&a". d. be&!me$ &!unter&y&"i&a".

1. +he S data %r!m 1, t! 2006 $h!*$ the &apita" uti"izati!n rate) ) i$:

a. pr!&y&"i&a" a$ the m!de" predi&t$. &. pr!&y&"i&a" the !pp!$ite the

m!de" predi&t$.

b. &!unter&y&"i&a" a$ the m!de" predi&t$. d. &!unter&y&"i&a" the

!pp!$ite a$ the m!de" predi&t$.

1. +he m!de" predi&t$ that *ith a p!$iti'e $h!&k t! te&hn!"!(y the &apita"

uti"izati!n rate) ) *i""a. %a"" a$ %a""$. &. ri$e a$ ri$e$.

b. %a"" a$ ri$e$. d. ri$e a$ %a""$.

20. % the renta" pri&e !% &apita" in&rea$e$) then the &apita" uti"izati!n

rate) ):

a. a"$! in&rea$e$. &. remain$ the $ame.

b. de&rea$e$. d. depend$ !n *hether the $ub$tituti!n rate i$ (reater than

the in&!me e%%e&t.

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21. +he unemp"!yment rate i$:

a. the number !% *!rker$ in the "ab!r %!r&e unemp"!yed di'ided by the number

!% *!rker$ emp"!yed. &. the number !% *!rker$ in the "ab!r %!r&e unemp"!yeddi'ided by the "ab!r %!r&e.

b. the number !% *!rker$ emp"!yed di'ide by the number !% *!rker$ in the "ab!r

%!r&e unemp"!yed. d. the "ab!r %!r&e di'ided by the number !% *!rker$ in the

"ab!r %!r&e unemp"!yed.

22. +he 'a&an&y rate in the "ab!r market i$:

a. the number !% <!b !penin($ di'ided by the number !% unemp"!yed pe!p"e in

the "ab!r %!r&e. &. the rati! !% !pen <!b$ t! %i""ed <!b$. b. the number !% <!b !penin($ di'ided by the number !% *!rker$ in the "ab!r

%!r&e. d. the rati! !% !pen <!b$ t! the t!ta" number !% <!b$ that emp"!yer$ *ant

!&&upied.

23. % the "ab!r %!r&e i$ 100 mi""i!n) there are 5 mi""i!n pe!p"e emp"!yed)

there are mi""i!n <!b$ that emp"!yer$ *ant !&&upied) then the number !%

unemp"!yed *!rker$ in the "ab!r %!r&e i$:

a. 5 mi""i!n. &. 2 mi""i!n.

b. 3 mi""i!n. d. n!ne !% the ab!'e.

2,. % the "ab!r %!r&e i$ 100 mi""i!n) there are 5 mi""i!n pe!p"e emp"!yed)

there are mi""i!n <!b$ that emp"!yer$ *ant !&&upied) then the number !% 'a&an&ie$

i$:

a. 5 mi""i!n. &. 2 mi""i!n.

b. 3 mi""i!n. d. n!ne !% the ab!'e.


there are mi""i!n <!b$ that emp"!yer$ *ant !&&upied) then the unemp"!yment rate

i$:

a. 3. &. 5.3.

b. 5. d. n!ne !% the ab!'e.

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there are mi""i!n <!b$ that emp"!yer$ *ant !&&upied) 'a&an&y rate i$:

a. 5. &. 3.1.

b. 3.2. d. 3.

2. % the "ab!r %!r&e i$ 100 mi""i!n) there are , mi""i!n pe!p"e emp"!yed)

there are mi""i!n <!b$ that emp"!yer$ *ant !&&upied) then the 'a&an&y rate i$:

a. 5. &. 5.3

b. 5.1 d. 1

2. One minu$ the unemp"!yment rate) 1 - u) i$:

a. the 'a&an&y rate. &. the emp"!yment rate.

b. the "ab!r %!r&e. d. the "e'e" !% emp"!yment.

2. nemp"!yment &an ei$t in a market &"earin( m!de") i%:

a. there are %ri&ti!n$ in the "ab!r market. &. *e a""!* %!r di%%eren&e$

am!n( *!rker$ and <!b$.

b. it take$ $!me $ear&h time %!r *!rker$ t! %ind <!b$. d. a"" !% the ab!'e.


a. the "ab!r market i$ in di$e4ui"ibrium. &. *e a""!* %!r di%%eren&e$

am!n( *!rker$ and <!b$.

b. *e a""!* &apita" uti"izati!n !% "e$$ than 100. d. a"" !% the ab!'e.


a. there are %ri&ti!n$ in the "ab!r market. &. the "ab!r market i$ in

e4ui"ibrium.

b. the "ab!r $upp"y &ur'e i$ up*ard $"!pin(. d. a"" !% the ab!'e.

32. nemp"!yment &an ei$t in a market &"earin( m!de") i%:a. a"" *!rker$ are identi&a". &. the "ab!r $upp"y &ur'e i$ up*ard $"!pin(.

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b. it take$ $!me $ear&h time %!r *!rker$ t! %ind <!b$. d. a"" !% the ab!'e.

33. *!rker *i"" a&&ept a <!b !%%er) i% the rea" *a(e !%%er i$ ab!'e:a. the *!rker=$ e%%e&ti'e rea" in&!me *hen unemp"!yed) . &. the

*!rker=$ re$er'ati!n *a(e.

b. the *a(e the *!rker earned in their "a$t <!b. d. the a'era(e *a(e in the

e&!n!my.

3,. n in&rea$e in a *!rker=$ e%%e&ti'e rea" in&!me *hi"e unemp"!yed) )

*i"" &au$e the *!rker=$:

a. rea" *a(e !%%er$ t! in&rea$e. &. rea" re$er'ati!n *a(e t! in&rea$e. b. rea" *a(e !%%er$ t! de&rea$e. d. rea" re$er'ati!n *a(e t! de&rea$e.

35. We epe&t that an in&rea$e in the e%%e&ti'e rea" in&!me *hi"e

unemp"!yed )

a. *i"" redu&e the <!b-%indin( rate. &. in&rea$e rea" *a(e !%%er$.

b. *i"" in&rea$e the <!b-%indin( rate. d. de&rea$e rea" *a(e !%%er$.

36. de&rea$e in *!rker$= e%%e&ti'e rea" in&!me$ *hi"e unemp"!yed) )

*i"":

a. "!*er the <!b %indin( rate and rai$e the epe&ted durati!n !% unemp"!yment.

&. rai$e the <!b %indin( rate and "!*er the epe&ted durati!n !%

unemp"!yment.

b. "!*er the <!b %indin( rate and the epe&ted durati!n !% unemp"!yment. d.

rai$e the <!b %indin( rate and the epe&ted durati!n !% unemp"!yment.

3. ne(ati'e $h!&k t! pr!du&ti'ity) ) *i"":

a. "!*er the <!b %indin( rate and rai$e the epe&ted durati!n !% unemp"!yment.

&. rai$e the <!b %indin( rate and "!*er the epe&ted durati!n !%

unemp"!yment.

b. "!*er the <!b %indin( rate and the epe&ted durati!n !% unemp"!yment. d.

rai$e the <!b %indin( rate and the epe&ted durati!n !% unemp"!yment.

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3. I!b $eparati!n$ &an be due t!:

a. an ad'er$e $h!&k t! the %irm=$ pr!du&ti!n %un&ti!n. &. a &han(e in a

*!rker=$ &ir&um$tan&e$ $u&h a$ &han(in( "!&ati!n$.

b. the <!b bein( temp!rary %r!m the $tart "ike a $ea$!na" <!b. d. a"" !% the

ab!'e.

3. I!b $eparati!n$ &an be due t!:

a. a p!$iti'e $h!&k t! the %irm=$ pr!du&ti!n %un&ti!n. &. a &han(e in a

*!rker=$ &ir&um$tan&e$ $u&h a$ &han(in( "!&ati!n$.

b. an in&rea$e in te&hn!"!(y. d. a"" !% the ab!'e.

,0. I!b $eparati!n$ &an be &au$ed by:

a. an ad'er$e $h!&k t! the %irm=$ pr!du&ti!n %un&ti!n. &. in&rea$ed

te&hn!"!(y) .

b. %!rei(n &!mpetiti!n. d. a"" !% the ab!'e.

,1. n the ?arr! m!de") the natura" rate !% unemp"!yment i$ the

unemp"!yment rate:

a. *here <!b %indin($ e4ua" <!b $eparati!n$. &. the <!b $eparati!n rate

e4ua"$ the <!b %indin( rate.

b. <!b %indin($ are maimized. d. <!b $eparati!n$ are minimized.

,2. % the <!b $eparati!n rate i$ 0.02 and the <!b %indin( rate i$ 0.3) then the

natura" rate !% unemp"!yment i$:

a. 6.25 &. 6.6 b. 15 d. n!ne !% the ab!'e.

,3. % the <!b $eparati!n rate i$ 0.03 and the <!b %indin( rate i$ 0.) then the

natura" rate !% unemp"!yment i$:

a. ,.2 &. 23.3

b. ,.1 d. n!ne !% the ab!'e.

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,,. n the ?arr! m!de") the natura" rate !% unemp"!yment i$:

a. p!$iti'e"y re"ated t! that <!b $eparati!n$ rate. &. %ied.

b. zer!. d. p!$iti'e"y re"ated t! the <!b %indin( rate.

,5. n the ?arr! m!de") the natura" rate !% unemp"!yment i$:

a. ne(ati'e"y re"ated t! that <!b $eparati!n$ rate. &. %ied.

b. zer!. d. ne(ati'e"y re"ated t! the <!b %indin( rate.

,6. n S data 'a&an&ie$ %r!m 15, t! 2006 a$ mea$ure by the he"p-

*anted inde are:a. pr!&y&"i&a" a$ the m!de" predi&t$. &. pr!&y&"i&a" the !pp!$ite the

m!de" predi&t$.

b. &!unter&y&"i&a" a$ the m!de" predi&t$. d. &!unter&y&"i&a" the

!pp!$ite the m!de" predi&t$.

,. i$&!ura(ed *!rker$ are:

a. th!$e that are unemp"!yed. &. th!$e *h! ha'e dr!pped !ut !% the "ab!r

%!r&e.

b. th!$e that are underemp"!yed. d. th!$e *h! are under paid.

,. +he <!b-%indin( rate i$:

a. the number !% hire$ per m!nth di'ided by the number unemp"!yed. &.

the number !% hire$ per m!nth di'ided by the unemp"!yment rate.

b. the number !% hire$ per m!nth di'ided by the number emp"!yed. d. the

number !% hire$ per m!nth di'ided by the emp"!yment rate.

,. +he S data %r!m e&ember 2000 t! Jebruary 2006 $h!*$ that the <!b

%indin( rate i$:

a. a&y&"i&a". &. pr!&y&"i&a".


7/25/2019 ECO 302 Week 6 Quiz


50. +he S data %r!m e&ember 2000 t! Jebruary 2006 $h!*$ that the <!b

$eparati!n rate i$:

a. a&y&"i&a". &. pr!&y&"i&a".


51. O*ner$ !% &apita" &h!!$e the uti"izati!n rate t!

a. maimize their net rea" in&!me %r!m $upp"yin( &apita" $er'i&e$. &.

minimize their net rea" in&!me %r!m $upp"yin( &apita" $er'i&e$.

b. maimize their net rea" &!$t$ %r!m $upp"yin( &apita" $er'i&e$. d.

minimize their net rea" renta" payment$ %r!m $upp"yin( &apita" $er'i&e$.

52. When the ?arr! m!de" a""!*$ %!r 'ariab"e &apita" uti"izati!n rate$) the

re$u"t i$ that an in&rea$e in the te&hn!"!(y "e'e" &au$e$

a. a de&rea$e in the &apita" uti"izati!n rate. &. a de&rea$e in the 4uantity

!% &apita" $er'i&e$.

b. an in&rea$e in the &apita" uti"izati!n rate. d. n! &han(e in the 4uantity

!% &apita" $er'i&e$.

53. When the te&hn!"!(y "e'e" in&rea$e$)

a. the demand %!r &apita" $er'i&e$ $hi%t$ t! the "e%t. &. the demand %!r

&apita" $er'i&e$ $hi%t$ t! the ri(ht.

b. the $upp"y !% &apita" $er'i&e$ $hi%t$ t! the ri(ht. d. b!th @bA and @&A.

5,. When the te&hn!"!(y "e'e" in&rea$e$) the market %!r &apita" $er'i&e$

a. %ai"$ t! &"ear. &. &"ear$ at the !ri(ina" rea" renta" pri&e.

b. &"ear$ at a "!*er rea" renta" pri&e. d. &"ear$ at a hi(her rea" renta" pri&e.

55. When the te&hn!"!(y "e'e" in&rea$e$) the market %!r &apita" $er'i&e$

a. &"ear$ at a hi(her 4uantity !% &apita" $er'i&e$. &. &"ear$ at the

!ri(ina" 4uantity !% &apita" $er'i&e$.

b. &"ear$ at a "!*er 4uantity !% &apita" $er'i&e$. d. %ai"$ t! &"ear.

7/25/2019 ECO 302 Week 6 Quiz


7/25/2019 ECO 302 Week 6 Quiz


a. de&rea$e a per$!n=$ durati!n !% unemp"!yment. &. ha'e n! e%%e&t !n a

per$!n=$ durati!n !% unemp"!yment.

b. in&rea$e a per$!n=$ durati!n !% unemp"!yment. d. either @aA !r @&A.

62. n in&rea$e in unemp"!yment in$uran&e payment$ %r!m the

(!'ernment *i""

a. in&rea$e the <!b %indin( rate. &. de&rea$e the <!b-%indin( rate.

b. ha'e n! e%%e&t !n the <!b-%indin( rate. d. either @aA !r @bA.

63. +he <!b-$eparati!n rate i$ "ike"y t! be hi(h am!n( *!rker$ *h! are

a. ineperien&ed and di%%i&u"t t! e'a"uate. &. in indu$trie$ *here thereare %re4uent $h!&k$ t! pr!du&t demand.

b. "ike"y t! eperien&e &han(e$ in <!b pre%eren&e$. d. a"" !% the ab!'e.

6,. t the natura" rate !% unemp"!yment)

a. the <!b-$eparati!n rate i$ p!$iti'e. &. the <!b-%indin( rate e4ua"$ zer!.

b. the <!b-$eparati!n rate e4ua"$ zer!. d. b!th @bA and @&A.

65. t the natura" rate !% unemp"!yment)

a. the <!b-$eparati!n and <!b-%indin( rate$ are ea&h zer!. &. tthe <!b-

$eparati!n and <!b-%indin( rate$ are b!th ne(ati'e.

b. the <!b-$eparati!n and <!b-%indin( rate$ are b!th p!$iti'e. d. the <!b-

$eparati!n rate i$ zer! and the <!b-%indin( rate i$ p!$iti'e.

S.O)( /SWE)

1. H!* d!e$ the &apita" uti"izati!n enter the pr!du&ti!n %un&ti!n>

2. H!* d!e$ the &apita" uti"izati!n rate a%%e&t the depre&iati!n rate and

*hy>

7/25/2019 ECO 302 Week 6 Quiz


3. H!* &an there be unemp"!yment in a market &"earin( m!de">

,. H!* d!e$ the ?arr! m!de" de%ine the natura" rate !% unemp"!yment

and *hat d!e$ the natura" rate !% unemp"!yment depend !n.

5. What i$ the re$er'ati!n *a(e>

6. H!* d!e$ an in&rea$e in te&hn!"!(y a%%e&t the market-&"earin( rea"

renta" pri&e !% &apita" $er'i&e$>

ECO 302 Week 6 Quiz

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