【正文】 1.Short AnswerCPOINTS:Which of the following is correct?a.Bondholders bear higher risk than stockholders.b.Bondholders are issued owner shares of a corporation when they buy its bonds.c.Stockholders enjoy the benefits of a pany39。DPOINTS:14.0 / 1s deposits to make loansb.do not issue mortgage loansc.print and circulate money.d.have no positive impact on the economic systemANSWER:13.0 / 1In the market for loanable fundsa.higher interest rates discourage savingsb.lower interest rates encourage investmentc.lower interest rates make borrowers worse offd.higher interest rates increase the demand for loanable fundsANSWER:DPOINTS:11.0 / 1Loanable funds area.the money in banks and other financial institutionsb.the amount of credit availablec.equal to the total value of capital in the economyd.available only to businessesANSWER:APOINTS:9.0 / 1s trade balanceANSWER:s pool of savingc.have no impact on the nation39。Large budget deficits will likelya.increase the nation39。CPOINTS: total cost ofd.be less profitable。 price ofb.pay less interest。7.0 / 1Crowding out refers toa.the increase in national saving that occurs when government runs a deficitb.the decrease in the real interest rates due to government borrowingc.a reduction in investment spending resulting from government borrowingd.a decrease in consumption spending resulting from government borrowingANSWER:CPOINTS:5.0 / 1Suppose that Parliament were to introduce a new investment tax credit. What would happen in the market for loanable funds?a.The demand for loanable funds would shift left and interest rates fall.b.The demand for loanable funds would shift right and interest rates rise.c.The supply of loanable funds would shift left and interest rates rise.d.The supply of loanable funds would shift right and interest rates fall.ANSWER:APOINTS:3.0 / 1economy, national saving equalsa.investment.b.ine minus the sum of consumption and government expenditures.c.private saving plus public saving.d.All of the above are correct.ANSWER:In aAPOINTS:1.Multiple ChoiceIdentify the choice that best pletes the statement or answers the question.TPOINTS:5.0 / 1The financial system is the group of institutions in the economy that help to match one person’s savings with another person’s investment.ANSWER:FPOINTS:A budget surplus decreases the supply of loanable funds, increases the interestFPOINTS:A budget deficit is an excess of tax revenue over government spending。FPOINTS:Private savings are the tax revenue that the government has left after paying for its spending。Inwardoriented policies are aimed at raising productivity and living standards within a county by avoiding interaction with the rest of the world. This approach involves the protection of domestic industries to allow them to develop and grow without petition from foreign firms. Outwardoriented policies are designed to integrate countries into the world economy as international trade is considered to be a factor in generating economic growth.POINTS:Differentiate between inwardoriented policies and outwardoriented policies.RESPONSE:Property rights refer to the ability of people to exercise authority over the resources they own. There must be an economywide respect for property rights for the price system or the free market to work. Lack of respect for property rights or the enforcement of property rights would not only cause political instability but would also discourage savings and investment. These are necessary for economic growth.POINTS:What are property rights? What role does property rights play in economic growth?RESPONSE: The World Bank offers advice to developing countries on how the funds might best be used.POINTS:ANSWER:3. / 1ANSWER:2. / 1ANSWER:1.Short AnswerCPOINTS:14.0 / 1If a production function has constant returns to scale, then:a.doubling inputs will double output.b.doubling inputs will triple output.c.doubling inputs will cause output to increase, but the increase in output will be less than the increase in inputs.d.doubling inputs will decrease output.ANSWER:DPOINTS:12.0 / 1Suppose that factory output rose from 50,000 units to 55,000 units while labour hours rose from 1100 to 1200. Which of the following is true?a.Labour productivity remained unchanged.b.Labour productivity increased slightly.c.Labour productivity decreased slightly.d.Labour productivity increased sharply.ANSWER:BPOINTS:10.BPOINTS:9.0 / 1Which one of the following countries would most likely be considered a poorer nation, using real GDP/person?a.Canadab.Germanyc.Japand.IndiaANSWER:CPOINTS:7.0 / 1Diminishing returns is the notion thata.as the stock of capital ages, the extra output produced decreasesb.as the stock of capital is increased, the extra output produced from an additional unit of capital fallsc.as resources are used to produce capital goods, fewer additional capital goods can be producedd.you always get what you pay forANSWER:CPOINTS:5.0 / 1Many countries in Africa have low growth rates. This is partly due toa.few natural resourcesb.high trade barriers.c.low ines, making it very difficult for them to grow.d.All of the above are correct.ANSWER:CPOINTS:3.0 / 1s wage in Canada by abouta.3 percent.b.10 percent.c.15 percent.d.25 percent.ANSWER:2.0 / 1Of the following countries, which grew the slowest over the last 100 years?a.Brazil.b