Question: A household deposits $5,000 into a commercial bank. If the required reserve ratio is 0.10, what is the potential increase in the money supply from this deposit?
Answer Options: $50,000 $5,000 $500 $50 $5 None of the above are correct. Correct Answer: $50,000
Question: Which of the following actions by the Federal Reserve will decrease the money supply? (choose all that are correct)
Answer Options: The Fed purchases government bonds on the open market. The Fed sells government bonds on the open market. The Fed decreases the required reserve ratio. Correct Answer: The Fed sells government bonds on the open market.
Question: An increase in the money supply will put downward pressure on interest rates, resulting in more borrowing by households and businesses and higher spending in the economy.
Answer Options: True False Correct Answer: True
Question: Which of the following best describes the shape of the short-run aggregate supply curve (SRAS)? (choose all that are correct)
Answer Options: The SRAS is relatively flat at levels of output below the natural level of output. The SRAS curve is relatively steep at levels of output below the natural level of output. As output approaches the natural level, the SRAS curve becomes flatter. As output approaches the natural level, the SRAS curve becomes steeper. Correct Answer: The SRAS is relatively flat at levels of output below the natural level of output. As output approaches the natural level, the SRAS curve becomes steeper.
Question: When an economy is characterized by macroeconomic equilibrium at full employment, there are no shortages or surpluses in markets for goods and services.
Answer Options: True False Correct Answer: False
Question: Suppose there is a decrease in aggregate demand caused by a decrease in government spending (G). Which of the following will eventually occur?
Answer Options: Lower prices will be incorporated into the price of inputs causing the short-run aggregate supply curve to shift to the left. Lower prices will be incorporated into the price of inputs causing the short-run aggregate supply curve to shift to the right. Higher prices will be incorporated into the price of inputs causing the short-run aggregate supply curve to shift to the left. Higher prices will be incorporated into the price of inputs causing the short-run aggregate supply curve to shift to the right. Correct Answer: Lower prices will be incorporated into the price of inputs causing the short-run aggregate supply curve to shift to the right.
Question: An increase in aggregate demand will only increase real GDP temporarily, because higher prices will eventually increase the price of inputs causing the short-run aggregate supply curve to shift to the left.
Answer Options: True False Correct Answer: True
Question: Which of the following are the fundamental causes of inflation? (choose all that are correct)
Answer Options: The aggregate demand curve shifting to the right. The aggregate demand curve shifting to the left. The aggregate supply curve shifting to the right. The aggregate supply curve shifting to the left. Correct Answer: The aggregate demand curve shifting to the right. The aggregate supply curve shifting to the left.
Question: Which of the following are considered expansionary policies that government can use to boost the economy during periods of economic contraction? (choose all that are correct)
Answer Options: Lower sales and income tax rates. Higher sales and income tax rates. Increasing the money supply through open-market operations. Decreasing the money supply through open-market operations. Increasing government spending. Decreasing government spending. Correct Answer: Lower sales and income tax rates. Increasing the money supply through open-market operations. Increasing government spending.
Question: The only way for an economy to recover from a period of economic contraction is for government to intervene with expansionary monetary or fiscal policy or an increase in government spending.
Answer Options: True False Correct Answer: False
Question: Which of the following are true regarding the effect of changes in the overall price level in the US and international trade? (choose all that are correct)
Answer Options: All else equal, a higher price level in the US will result in more US exports and less imports from other nations. All else equal, a lower price level in the US will result in more US exports and less imports from other nations. All else equal, a higher price level in the US will result in less US exports and more imports from other nations. All else equal, a higher price level in the US will result in less US exports and more imports from other nations. Correct Answer: All else equal, a lower price level in the US will result in more US exports and less imports from other nations. All else equal, a higher price level in the US will result in less US exports and more imports from other nations.
Question: What can an employee assistance program (EAP) be utilized to do?
Answer Options: Allow an employee to seek assistance as a benefit from continued employment Require an employee to reveal pertinent personal information to management Only help employees address problems of productivity and quality of work Increase retirement compensation by using matching funds Correct Answer: Allow an employee to seek assistance as a benefit from continued employment
Question: Maintaining a genuine open-door policy is easier for a first-line manager than for a higher-level manager because:
Answer Options: The higher-level manager must remain aware of the risk of undermining managers who are lower in the chain of command. There will be situations where a higher-level manager needs to have background information, before they can meet with an employee. The first-line manager always has more time available than a higher-level manager. Only first-line managers have human resources to call upon for difficult questions. The first-line manager can control the issue of who does or does not access the “open door.” Correct Answer: The higher-level manager must remain aware of the risk of undermining managers who are lower in the chain of command. There will be situations where a higher-level manager needs to have background information, before they can meet with an employee.
Question: What does the phrase “heterogeneous work group” refer to?
Answer Options: A departmental team or other group of workers who are all in the same skill category or pay grade. A group composed of a number of differing backgrounds and different levels of education and skill. A group composed largely of technical or professional employees. A group of workers all of whom require constant supervision. Correct Answer: A group composed of a number of differing backgrounds and different levels of education and skill.
Question: When is people-centered management appropriate, or even essential, for efficient operation?
Answer Options: Tasks are irregular, varied, and output scheduling is difficult. All of the group’s workers are assigned to specific fixed work stations. The primary concern of the manager is to turn out a predetermined number of product units each day. Most jobs are repetitive and routine, requiring the workers to follow the same few specific steps. Correct Answer: Tasks are irregular, varied, and output scheduling is difficult.
Question: Why is a department manager’s visibility and availability to employees important?
Answer Options: The manager must be on hand should an emergency arise. This demonstrates that the manager wishes to ensure that employees do not make any choices on their own. This allows employees to feel that answers or assistance are readily available when needed. It is necessary for the manager to be able to watch over the employees all of the time. Correct Answer: This allows employees to feel that answers or assistance are readily available when needed.
Question: Why is every manager a manager of human resources, even if that is not in the primary job description of a particular manager?
Answer Options: Every department manager must be experts in all HR activities. Each manager should be able to address any HR issue with all employees. Each must be manager deeply involved in hiring, directing, and disciplining. The manager’s principal task is getting things done through employees, so the employees are the primary resources that are managed. Correct Answer: The manager’s principal task is getting things done through employees, so the employees are the primary resources that are managed.
Question: A participative management style that involves soliciting employee input is applicable only to a department’s more educated and sophisticated staff.
Answer Options: True False Correct Answer: False