Posted: January 2nd, 2017

In which of the following cases would it necessarily be true that national saving and private saving are equal for a closed economy?

10. The process by which unions and firms agree on the terms of employment is called collective bargaining. a. True b. False 11. You put $275 in the bank one year ago and forgot about it. The bank sends you a notice that you now have $291.50 in your account. What interest rate did you earn? a. 5 percent b. 6 percent c. 7 percent d. 8 percent 12. Sectoral shifts temporarily cause unemployment. a. True b. False 13. Someone who is without work but is not looking for work is included in the Bureau of Labor Statistics’ “unemployed” category. a. True b. False 14. Most economists agree that eliminating unemployment insurance would increase the nation’s overall level of well-being. a. True b. False 15. Some degree of unemployment is inevitable in a complex economy. a. True b. False 16. A worker searching for jobs that best suits him or her is most closely associated with: a. cyclical unemployment. b. frictional unemployment. c. seasonal unemployment. d. structural unemployment. 17. The possibility of speculative bubbles in the stock market arises in part because: a. stock prices may not depend at all on psychological factors. b. fundamental analysis may be the correct way to evaluate the value of stocks. c. future streams of dividend payments are very hard to estimate. d. the value of shares of stock depends not only on the future stream of dividend payments but also on the price at which the stock will be sold. 18. In which of the following cases would it necessarily be true that national saving and private saving are equal for a closed economy? a. Private saving is equal to government expenditures. b. Public saving is equal to investment. c. After paying their taxes and paying for their consumption, households have nothing left. d. The government’s tax revenue is equal to its expenditures. 19. Public saving is T – G, while private saving is Y – T – C. a. True b. False 20. Crowding out occurs when investment declines because: a. a budget deficit makes interest rates rise. b. a budget deficit makes interest rates fall. c. a budget surplus makes interest rates rise. d. a budget surplus makes interest rates fall.