問題一覧
1
Which of the following statements are correct?
Net income is the maximum amount that you can consume and leave your wealth unchanged.
2
Mr Bond is worth £500,000. He has a market income of £40,000 per year on which he is taxed at 30%. Mr Bond's assets include some items which depreciate by £5,000 each year. Which of the following statements is correct?
If Mr Bond decides to spend 60% of his net income on consumption and the rest on investment, then his investment is £9,200.
3
Figure 10.3ashows Julia's indifference curves for consumption in periods 1 (now) and 2 (later). Which of the following statements is correct?
The slope of the indifference curve is the marginal rate of substitution between the consumption in the two periods.
4
Figure 10.4 depicts Julia’s choice of consumptions in periods 1 and 2. She has no income in period 1 (now) and an income of $100 in period 2 (later). The current interest rate is 10%. Based on this information, which of the following statements is correct?
At E, Julia is on the highest possible indifference curve given her feasible set.
5
Figure 10.6 depicts Marco’s choice of consumption in periods 1 (now) and 2 (later). He has $100 worth of grain in period 1 and no income in period 2. Marco has two choices. In scheme 1, he can store the grain that he does not consume in period 1. This results in a loss of 20% of the grain due to pests and rotting. In scheme 2, he can sell the grain that he does not consume and lend the money at 10%. Based on this information, which of the following statements is correct?
With scheme 2, if Marco consumes $68 worth of grain in period 1, he can consume $35 worth of grain in period 2.
6
Figure 10.6 depicts Marco’s choice of consumption in periods 1 (now) and 2 (later). He has $100 worth of grain in period 1 and no income in period 2. Marco has two choices. In scheme 1, he can store the grain that he does not consume in period 1. This results in a loss of 20% of the grain due to pests and rotting. In scheme 2, he can sell the grain that he does not consume and lend the money at 10%. Based on this information, which of the following statements is correct?
Marco will always be on a higher indifference curve under scheme 2 than under scheme 1.
7
Figure 10.10 depicts four possible feasible frontiers for Marco, who has $100 worth of grain in period 1 (now) and no income in period 2 (later). In scheme 1, he can store the grain that he does not consume in period 1. This results in 20% loss of the grain due to pests and rotting. In scheme 2, he can sell the grain that he does not consume and lend the money at 10%. In scheme 3, he can invest the remaining grain (for example by planting it as seed) for a return of 50%. Finally in scheme 4, he can invest the entire amount of grain and borrow against his future income at 10%. Based on this information, which of the following statements is correct?
If the rate of borrowing increases, the feasible frontier for scheme 4 tilts inwards from the point 150 on the vertical axis (becomes steeper).
8
The following diagram depicts Julia’s choice of consumption in periods 1 (now) and 2 (later) when the interest rate is 78%. She has no income in period 1 and an income of $100 in period 2. She chooses the consumption choice G. Based on this information, which of the following statements regarding Julia’s balance sheet is correct?Assets after borrowing but before consumption in period 1 is 56.
The asset after consumption but before repaying the loan in period 2 is 62.
9
Which of the following statements is correct?
Base money is broad money plus legal tender held by banks minus bank money.
10
The following diagram depicts Julia’s choice of consumptions in periods 1 (now) and 2 (later) under different interest rates. She has no income in period 1 but an income in period 2 against which she can borrow. Based on this information, which of the following statements are correct?
Julia will unambiguously increase her consumption in period 1 after an interest rate cut.
11
The following diagram depicts Julia’s choice of consumptions in periods 1 (now) and 2 (later) under different interest rates. She has no income in period 1 but an income in period 2 against which she can borrow. Based on this information, which of the following statements are correct?
The graph of interest rate (vertical axis) versus period-1 consumption (horizontal axis) is downward sloping.
12
Which of the following statements are correct regarding the principal–agent problem?
One solution for the principal–agent problem in loans is for the borrower to provide equity.
13
Which of the following statements are correct regarding the principal–agent problem?
The principal–agent problem leads to credit rationing in the loans market.
14
In an economy with a population of 100, there are 80 farmers and 20 lenders. The farmers use the funds to finance the planting and tending of their crops. The rate of profit for the harvest is 12.5%, while the interest rate charged is 10%. Compare the following two cases: 1. Case A: All farmers are able to borrow. 2. Case B: Only 50 farmers are able to borrow.
There is a 16.7% increase in the Gini coefficient in Case B compared to Case A.
15
The following figure shows the unemployment rate (left axis) and productivity growth (right axis) in the United States between 1914 and 2015. Based on this information, which of the following statements is correct?
The US economy’s performance in 1979–2008 was less strong than during the other two boom periods, with a higher average unemployment rate and lower average productivity growth.
16
The following figure shows the income share of the top 1% richest households in the US between 1914 and 2015. Based on this information, which of the following statements are correct?
Inequality can either rise or fall during recessions.
17
The following figure shows the income share of the top 1% richest households in the US between 1914 and 2015. Based on this information, which of the following statements are correct?
The top 1% richest US households received nearly one-fifth of the total income in 2010.
18
Franklin Roosevelt became the US President in 1933. In the period after he became the president:
The New Deal was launched in 1933 and included proposals to increase federal government spending in a wide range of programs and reforms to the banking system.
19
Which of the following statements is correct regarding the years immediately after Roosevelt became the US president?
A change in the expectations of consumers of their future earnings, as a result of the New Deal, would have contributed to an expansion in the economy’s aggregate demand.
20
Figure 17.12 describes the movements in employment, profits and wages in the 1950s to 1960s using the labour market model. Which of the following statements is correct regarding this period?
Continuing technological progress owing to widespread expectations of sustained high profits, together with high wages resulting from the strong bargaining power of trade unions, created a virtuous circle of high investment, rapid productivity growth, rising wages, and low unemployment.
21
Figure 17.14 is a graph of days on strike per 1,000 industrial workers (left-hand axis) and the average wages relative to share prices (right-hand axis) in advanced economies between 1950 and 2002. Based on this information, which of the following statements is correct?
The postwar accord of cooperation between employers and employees broke down in the late 1960s.
22
Figure 17.15 describes the movements in employment, profits, and wages in the 1950s to 1970s using the labour market model. Which of the following statements is correct regarding this period?
The collapse of postwar accords in the late 1960s/early 70s led to workers demanding higher wages, leading to an upward shift in the wage-setting curve.
23
Figure 17.16 is a graph of the unemployment rate and consumer price inflation in advanced economies between 1960 and 2020. Based on this information, which of the following statements is correct?
Stagflation was caused by the shifting up of the Phillips curve, propelled by higher inflation expectations.
24
Figure 17.19 shows the household debt-to-income ratio and the house prices in the US between 1950 and 2020. Based on this information, which of the following statements is correct?
Subprime mortgages partly explain the rise in debt in the US prior to the financial crisis.
25
Figure 17.21is the graph of the leverage of banks in the UK and US between 1960 and 2014. The leverage ratio is defined as the ratio of banks' total assets to their equity capital. Which of the following statements are correct?
A leverage ratio of 40 means that only 2.5% of the asset is funded by equity.
26
Figure 17.21is the graph of the leverage of banks in the UK and US between 1960 and 2014. The leverage ratio is defined as the ratio of banks' total assets to their equity capital. Which of the following statements are correct?
A leverage ratio of 25 means that a 4% decline in asset value would make a bank insolvent.
27
Figure 17.24 shows some S-shaped price dynamics curves for the housing market. Based on the figure, which of the following statements is true?
The parts of the PDC where the slope is less than 45 degrees represent a negative feedback process.
28
Figure 17.24 shows some S-shaped price dynamics curves for the housing market. Based on the figure, which of the following statements is true?
Optimism about housing prices would shift the PDC upwards.
29
Figure 17.26 depicts the US aggregate demand between 2006 Q2 and 2010 Q4. Based on this information, which of the following statements is correct?
In the recession, not only did households stop purchasing new houses and other consumption goods, but also firms stopped investing.
30
Which of the following statements are correct regarding fire sales in the housing market?
A household is underwater when the value of the house it owns is less than the value of the mortgage on the house.
31
Which of the following statements are correct regarding fire sales in the housing market?
Fire sales have a negative externality on other owners of similar assets by lowering the value of their assets.