Navigation » List of Schools » California State University, Long Beach » Economics » Econ 101 – Principles of Macroeconomics » Fall 2021 » Chapter Quiz Chapter 11
Below are the questions for the exam with the choices of answers:
Question #1
A firms will gain at the expense of workers.
B workers will gain at the expense of firms.
C neither workers nor firms will gain because the increase in wages is fixed in the labor agreement.
D none of the above is true.
Question #2
A lenders will gain at the expense of borrowers.
B borrowers will gain at the expense of lenders.
C neither borrowers nor lenders will gain because the nominal interest rate has been fixed by contract.
D none of the above is true.
Question #3
A The nominal rate of interest is 12 percent and the inflation rate is 9 percent.
B The nominal rate of interest is 20 percent and the inflation rate is 25 percent.
C The nominal rate of interest is 5 percent and the inflation rate is 1 percent.
D The nominal rate of interest is 15 percent and the inflation rate is 14 percent.
Question #4
A The nominal rate of interest is 15 percent and the inflation rate is 14 percent.
B The nominal rate of interest is 12 percent and the inflation rate is 9 percent.
C The nominal rate of interest is 20 percent and the inflation rate is 25 percent.
D The nominal rate of interest is 5 percent and the inflation rate is 1 percent.
Question #5
A −5 percent.
B 5 percent.
C 24 percent.
D 11 percent.
E 3/8 percent.
Question #6
A The nominal interest rate is the inflation rate minus the real interest rate.
B The real interest rate is the sum of the nominal interest rate and the inflation rate.
C The real interest rate is the nominal interest rate minus the inflation rate.
D The nominal interest rate is the real interest rate minus the inflation rate.
E none of the above
Question #7
A 3 percent.
B 21 percent.
C −4 percent.
D 4 percent.
E 10 percent.
Question #8
A stayed the same.
B You can’t tell without knowing the base year.
C risen.
D fallen.
Question #9
A bias due to the introduction of new goods.
B base-year bias.
C bias due to unmeasured quality change.
D substitution bias.
E none of the above
Question #10
A raw materials purchased by firms.
B consumer production.
C total current production.
D products purchased by the typical consumer.
E none of the above
Question #11
A an increase in the price of John Deere tractors
B an increase in the price of Hondas produced in Japan and sold in the United States
C an increase in the price of tanks purchased by the military
D an increase in the price of domestically produced fighter planes sold exclusively to Israel
E an increase in the price of Fords
Question #12
A 5.4 percent
B 6.7 percent
C 0.7 percent
D 5.1 percent
E You can’t tell without knowing the base year.
Question #13
A medical care
B transportation and medical care
C transportation
D housing
E food and beverages
Question #14
A consumer price index and GDP deflator.
B producer price index.
C consumer price index.
D GDP deflator.
E finished goods price index.
