Practice Final Answers Essays

Practice Final Answers Essays Practice Final Answers Essay Practice Final Answers Essay When the interest rate falls in the money market, the quantity of money demanded and the quantity of money supplied A) decreases; increases B) increases; decreases C) increases; stays the same D) stays the same; decreases 2) In short-run macroeconomic equilibrium, A) real GAP and the price level are determined by short-run aggregate supply and aggregate demand. B) real GAP equals potential GAP and aggregate demand determines the price level. C) the price level is fixed and short-run aggregate supply determines real GAP. D) real GAP is less than potential GAP. 3) The idea that a government budget deficit decreases investment is called B) the crowding-out effect. A) the capital investment effect. C) the Richard-Barron effect. D) government diseasing. 4) As labor increases, there is a A) shift of the aggregate production function, but no movement along it. 8) movement along the aggregate production function and real GAP will increase less with each additional increase in labor. C) movement along the aggregate production function, but no shift in it. D) decrease less with each additional increase in labor. ) Net investment equals A) the total quantity of plant, equipment and buildings. B) gross investment/depreciation. C) gross investment minus depreciation. D) capital stock minus depreciation. 6) If real GAP decreases, the demand for money curve will shift A) rightward and the interest rate will fall. B) leftward and the interest rate will rise. C) leftward and the interest rate will fall. D) rightward and the interest rate will rise. 7) Factors that influence labor productivity include . A) the labor demand curve B) the inflation rate, the real wage rate, and the exchange rate C) physical UAPITA, the real wage rate, and technology D) physical capital, human capital, and technology 8) The quantity theory of money is the idea that in the long run A) the quantity of money is determined by banks. B) the quantity of money serves as a good indicator of how well money functions as a store of value. C) the quantity of money determines real GAP. D) an increase in the growth rate of the quantity of money leads to an equal increase in the inflation rate. 9) Prime Pharmaceuticals has developed a new asthma medicine, for it has a patent An inhaler can be produced at a constant marginal cost of $2/inhaler. The demand curve, marginal revenue curve, and marginal cost curve for this new asthma inhaler are in the figure above. With its patent giving it a monopoly for its new inhaler, if it is a single-price monopoly, Prime Pharmaceuticals will produce each inhaler. C) 8 million; $6 A) 8 million; $2 B) 16 million; $2 D) 10 million; $5 inhalers and set a price of for 10) A small country is a net foreign borrower if its real interest rate without foreign borrowing is A) lower than B) not comparable to C) higher than D) equal to the world real interest rate. 1 1) Which of the following is the most liquid asset? A) a share of stock C) money B) land D) a government bond 12) Starting at full employment, a business cycle can be described by the following sequence: equilibrium, equilibrium. A) below full-employment; full-employment; below full- employment B) above full-employment; below full-employment; full- employment C) full-employment; below full-employment; above full- employment D) below full-employment; full-employment; above full- employment 2 1 3) Suppose that the money multiplier is 4. If the monetary base decreases by $2 million, the quantity of money will A) decrease by $8 million. B) decrease by $500,000. C) increase by $8 million. D) increase by $500,000. 14) A bank creates money by A) buying bonds from the Reserve Bank. B) lending its excess reserves. C) purchasing currency from the Reserve Bank. D) printing more cheeses. 1 5) A decrease in the money wage rate increases the full employment quantity of labor increases B) only the Ass; the ASS and the LASS A) the ASS and the LASS; only the ASS C) only the LASS; the ASS and the LASS D) the ASS and the LASS; only the LASS and an increase in 16) Suppose the current account of a country is in balance and the official settlements account equals O. A new transaction occurs so that the current account is now in surplus, but the official settlements account does not change. From this we know that A) the balance of trade is now in surplus. B) the government is running a budget deficit. C) the government must make official reserve transactions. D) the capital and financial account is now in deficit. 17) People know that the inflation rate will increase from 3 percent to 5 percent. As a result A) the nominal interest rate rises by 2 percentage points. B) the real interest rate rises by 2 percentage points. C) the nominal interest rate is constant. D) the nominal interest rate falls by 2 percentage points. 8) A firm in will engage in to try to earn an economic profit. A) perfect competition; price wars B) perfect competition; advertising C) monopolistic competition; product differentiation D) monopolistic competition; price wars 19) Over time in a growing economy, the long-run aggregate supply curve will A) shift leftward. B) become horizontal at the long-run potential price level. C) become increasingly steep. D) shift rightward. 20) In 2011, Armenia had a real GAP of approximately 54. 21 billion and a population of 2. 98 million. In 201 2, real GAP was $4. 9 billion and population was 2. 7 million. Armenian real GAP per person in 201 2 was A) $1 ,545 B) $380 C) $1 32 D) $1,413 3 21) The key aim of monetary policy is to A) maintain price stability. B) change tax rates to boost investment. C) change government spending to spur in innovation. D) change tax rates to boost saving. 22) According to social interest theory, A) regulation helps markets achieve efficiency B) price regulations are unconstitutional C) unregulated firms try to avoid creating deadweight loss D) monopoly practices last forever 23) The velocity of circulation is A) constant. B) the changes in the purchasing power of money over a given time period. C) the rate of change of the GAP deflator. D) the average number oftentimes a dollar of money is used in a year to buy goods and services that make up GAP. 24) The quantity theory of money predicts that in the a 10 per cent increase in the quantity Of money leads to a 10 per cent increase in A) long run; velocity B) long run; real GAP C) long run; the price level D) short run; velocity 25) If the ARAB sells Australian government securities, A) the Australian Treasury gains some revenue. B) the cash rate rises. C) bank reserves increase. D) None of the above answers is correct. 26) Handy is a large South Korean company that produces finished steel products. Handy plans to buy raw steel from Australia. As a result, the A) demand Cleave for Australian dollars shifts leftward. B) demand curve for South Korean won shifts rightward. C) demand curve for Australian dollars shifts rightward. D) demand curve for South Korean won shifts leftward. 27) The market for maple syrup is perfectly competitive. Suppose that the market is in long-run equilibrium when the market demand for maple syrup increases. What happens in the short run? A) The firms decrease production. B) Some of the existing firms shut down. C) The firms increase production. D) Firms will enter the market. 4 28) If the exchange rate between the Australian dollar and Japanese yen is below the equilibrium exchange rate, there will be a dollars, and the exchange rate will A) shortage; rise to the equilibrium level B) surplus; rise to the equilibrium level C) surplus; fall to the equilibrium level of Australian D) shortage; change only when the supply curve shifts leftward 29) Workers who pursue an education directly increase their A) financial capital. B) saving. D) human capital. C) physical capital. 0) Diminishing marginal returns occurs when A) a variable unit is increased and its marginal product falls. B) all inputs are increased and output increases by a smaller proportion. C) all inputs are increased and output decreases. D) a variable input is increased and output decreases. 31 ) If a countrys central bank does not intervene in the foreign exchange market, the country has A) a crawling peg exchange rate policy. B) a fixed exchange rate policy. C) a flexible exchange rate policy. D) no exchange rate policy. 32) The Reserve Bank of Australia A) sells Australian dollars to China in an attempt to depreciate the Australian alular. B) has no influence on the exchange rate. C) allows a flexible exchange rate, though their actions can impact on the exchange rate. D) alternates between a flexible, fixed and crawling peg exchange rate policy depending on economic conditions. 33) If the real interest rate is below the equilibrium real interest rate, A) a shortage Of Of alienable funds will cause the real interest rate to rise. B) lenders will be unable to find borrowers Willing to borrow all of the available funds and the supply of alienable funds curve will shift leftward. C) borrowers will be unable to borrow all of the funds they want to borrow ND the demand for alienable funds curve will shift leftward. D) borrowers will be unable to borrow all of the funds they want to borrow and the demand for alienable funds curve will shift rightward. 34) Suppose a country is producing $20 million of real GAP. If the economy grows at 10 percent per year, approximately how many years will to take for real GAP to grow to $80 million? B) 14 A) 30 35) If the Reserve Bank wants to depreciate the Australian dollar against the British pound, it will B) sell Australian dollars A) decrease the money supply C) sell foreign exchange D) sell British pounds 5 6) In the global alienable funds market, A) funds flow into countries with the highest risk-adjusted interest rates and out of countries with the lowest risk-adjusted interest rates. B) when funds leave a country, a shortage of funds lowers the real interest rate. C) when funds enter a country, a surplus of funds raises the real interest rate. D) funds flow into countries with the lowest risk-adjusted interest rates and out of countries with the highest risk-adjusted interest rates. 37) Ticket scalpers at the FALL grand final last year charged prices high above the printed ticket price. This observation is evidence Of A) a surplus at printed ticket prices. B) the grand final not being televised. C) the grand final getting too much television exposure. D) a shortage at printed ticket prices. 38) As the real wage rate increases, the A) supply of labor curve shifts leftward. B) quantity of labor supplied increases. C) supply of labor curve shifts rightward. D) quantity of labor supplied increases and the supply of labor shifts rightward. 39) When the ARAB increases the cash rate, the Australian interest rate differential B) rises; appreciates A) rises; depreciates C) falls; depreciates D) falls; appreciates ND the Australian exchange rate 40) To pay for a current account deficit, a country can A) borrow money from abroad. B) increase official reserves to cover the shortfall. C) lend money abroad. D) transfer money from the capital account to the reserve assets account. 41) Fifth price level in the U. S. Is 120, the price level in South Africa is 140, and the nominal exchange rate is 7 South African rand per dollar, then the real exchange rate is A) 1. 4 South African goods per U. S. Good. B) 8. 4 South African goods per U. S. Good. D) 6 South African goods per U. S. Good. C) 9. 8 South African goods per U. S. Good. 2) If Chinas government runs a budget surplus and there is no Richard- Barron effect, there will be in the supply of alienable funds, private . B) an increase; decreases; increases saving 6 and investment A) an increase; increases; increases C) a decrease; decrease; increases D) a decrease; Increases; Increases 43) For a commercial bank, the term reserves refers to A) the profit that the bank retains at the end of the year. B) a bankers concern (reservation) in making loans to an individual without a job. C) the cash in its vaults and its deposits at the central bank. D) the net interest that it earns on loans. 4) people expect their incomes will decrease next year. As a result, the will shift .

Raccoon Facts (Procyon lotor)

Raccoon Facts (Procyon lotor) The raccoon (Procyon lotor) is a medium-sized mammal native to North America. It is easily recognized by its pointed masked face and banded furry tail. The species name lotor is neo-Latin for washer, referring to the animals habit of foraging for underwater food and sometimes washing it before eating. Fast Facts: Raccoon Scientific Name: Procyon lotorCommon Names: Raccoon, coonBasic Animal Group: MammalSize: 23 to 37 inchesWeight: 4 to 23 poundsLifespan: 2 to 3 yearsDiet: OmnivoreHabitat: North AmericaPopulation: MillionsConservation Status: Least Concern Description A raccoon is characterized by the black mask of fur around its eyes, alternating light and dark rings on its bushy tail, and pointed face. Except for the mask and tail, its fur is grayish in color. Raccoons are able to stand on their hind legs and manipulate objects with their dexterous fore paws. Males tend to be 15 to 20% heavier than females, but size and weight varies dramatically depending on habitat and time of year. An average raccoon is between 23 to 37 inches in length and weighs between 4 and 23 pounds. Raccoons weigh roughly twice as much in autumn compared to early spring because they store fat and conserve energy when temperatures are low and food is scarce. Habitat and Distribution Raccoons are native to North and Central America. They prefer wooded habitats near water, but have expanded to live in marshes, mountains, prairies, and urban areas. In the mid-20th century, raccoons were introduced into Germany, France, Italy, Spain, Japan, Belarus, and Azerbaijan. Raccoon natural range (red) and introduced range (blue). Roke, Creative Commons License Diet Raccoons are omnivores that feed on small invertebrates, nuts, fruit, fish, bird eggs, frogs, and snakes. They tend to avoid larger prey as long as their usual food source is available. Many raccoons are nocturnal, but it is not unusual for a healthy raccoon to seek food during the day, particularly near human habitation. Behavior While captive raccoons often douse their food in water before eating it, the behavior is less common in wild animals. Scientists hypothesize the dousing behavior stems from the species foraging pattern, which typically involves an aquatic habitat. Once thought to be solitary creatures, scientists now know raccoons engage in social behavior. While each raccoon lives within its home range, related females and unrelated males form social groups that often feed or rest together. Raccoons are highly intelligent. They can open complex locks, remember symbols and problem solutions for years, distinguish between different quantities, and understand abstract principles. Neuroscientists find neuron density in raccoon brains comparable to that in primate brains. Reproduction and Offspring Raccoon females are fertile for three or four days between late January and mid-March, depending on the duration of daylight and other factors. Females often mate with multiple males. If the female loses her kits, she may become fertile in another 80 to 140 days, but most females only have one litter each year. Females seek a protected area to serve as a den for raising young. Males separate from females after mating and are not involved in raising young. Gestation lasts from 54 to 70 days (usually 63 to 65 days), resulting in a litter of two to five kits or pups. Kits weigh between 2.1 and 2.6 ounces at birth. They have masked faces, but are born blind and deaf. Kits are weaned by 16 weeks of age and disperse to find new territories in autumn. Females are sexually mature in time for the next mating season, while males mature somewhat later and typically start breeding when they are two years old. In the wild, raccoons typically only live between 1.8 and 3.1 years. Only about half of a litter survive the first year. In captivity, raccoons may live 20 years. Baby raccoons resemble their parents. Janette Asche / Getty Images Conservation Status The International Union for Conservation of Nature (IUCN) Red List categorizes the raccoons conservation status as least concern. The population is stable and increasing in some areas. The raccoon occurs in some protected areas, plus it has adapted to live in close proximity to humans. While raccoons have natural predators, most deaths are from hunting and traffic accidents. Raccoons and Humans Raccoons have a long history of interaction with humans. They are hunted for their fur and killed as pests. Raccoons may be tamed and kept as pets, although keeping them is prohibited in some locations. Pet raccoons are best kept in pens to minimize property destruction and are usually neutered to reduce aggressive behavior. Orphaned unweaned kits may be fed cows milk. However, becoming accustomed to humans may make it difficult for them to adjust if the raccoons are later released into the wild. Sources Goldman, Edward A.; Jackson, Hartley H.T. Raccoons of North and Middle America. North American Fauna 60 Washington: U.S. Deptartment of the Interior, Fish and Wildlife Service, 1950.MacClintock, Dorcas. A Natural History of Raccoons. Caldwell, New Jersey: Blackburn Press, 1981. ISBN 978-1-930665-67-5.Reid, F. A. A Field Guide to the Mammals of Central America and Southeast Mexico. Oxford University Press. p. 263, 2009. ISBN 0-19-534322-0Timm, R.; Cuarà ³n, A.D.; Reid, F.; Helgen, K.; Gonzlez-Maya, J.F. Procyon lotor. IUCN Red List of Threatened Species. 2016: e.T41686A45216638. doi:10.2305/IUCN.UK.2016-1.RLTS.T41686A45216638.enZeveloff, Samuel I. Raccoons: A Natural History Washington, D.C.: Smithsonian Books, 2002. ISBN 978-1-58834-033-7