经济学原理 曼昆第五版英文答案Chapter26
c. By the late 1990s, the debt-to-GDP ratio began declining due to budget surpluses.d. The debt-to-GDP ratio began rising again during the first few years of the George W.Bush presidency. The causes have been threefold: tax cuts, a recession, and an increasein government spending for the war on terrorism.SOLUTIONS TO TEXT PROBLEMS:Quick Quizzes1. A stock is a claim to partial ownership in a firm. A bond is a certificate of indebtedness.They are different in numerous ways: (1) a bond pays interest (a fixed payment determinedwhen the bond is issued), while a stock pays dividends (a share of the firm’s profits that canincrease if the firm is more profitable); (2) a bond has a fixed time to maturity, while a stocknever matures; and (3) if a company that has issued both stock and bonds goes bankrupt,the bondholders get paid off before the stockholders, so stocks have greater risk andpotentially greater return than bonds. Stocks and bonds are similar in that both are financialinstruments that are used by companies to raise money for investment, both are traded onexchanges, both entail a degree of risk, and the returns to both are taxed (usually).2. Private saving is the amount of income that households have left after paying their taxes andpaying for their consumption. Public saving is the amount of tax revenue that thegovernment has left after paying for its spending. National saving is equal to the totalincome in the economy that remains after paying for consumption and governmentpurchases. Investment is the purchase of new capital, such as equipment or buildings.These terms are related in two ways: (1) National saving is the sum of public saving andprivate saving.. (2) In a closed economy, national saving equals investment.3. If more Americans adopted a “live for today” approach to life, they would spend more andsave less. This would shift the supply curve to the left in the market for loanable funds. Atthe new equilibrium, there would be less saving and investment and a higher interest rate. Questions for Review1. The financial system's role is to help match one person's saving with another person'sinvestment. Two markets that are part of the financial system are the bond market, throughwhich large corporations, the federal government, or state and local governments borrow,and the stock market, through which corporations sell ownership shares. Two financialintermediaries are banks, which take in deposits and use the deposits to make loans, andmutual funds, which sell shares to the public and use the proceeds to buy a portfolio offinancial assets.2. It is important for people who own stocks and bonds to diversify their holdings because thenthey will have only a small stake in each asset, which reduces risk. Mutual funds make suchdiversification easy by allowing a small investor to purchase parts of hundreds of differentstocks and bonds.3. National saving is the amount of a nation's income that is not spent on consumption orgovernment purchases. Private saving is the amount of income that households have leftafter paying their taxes and paying for their consumption. Public saving is the amount of taxrevenue that the government has left after paying for its spending. The three variables arerelated because national saving equals private saving plus public saving.4. Investment refers to the purchase of new capital, such as equipment or buildings. It is equalto national saving.5. A change in the tax code that might increase private saving is the expansion of eligibility forspecial accounts that allow people to shelter some of their saving from taxation. This wouldincrease the supply of loanable funds, lower interest rates, and increase investment.6. A government budget deficit arises when the government spends more than it receives in taxrevenue. Because a government budget deficit reduces national saving, it raises interestrates, reduces private investment, and thus reduces economic growth.Problems and Applications1. The stock market does have a social purpose. Firms obtain funds for investment by issuingnew stock. People are more likely to buy that stock because there are organized stockmarkets, so people know that they can sell their stock if they want to.2. When the Russian government defaulted on its debt, investors perceived a higher chance ofdefault (than they had before) on similar bonds sold by other developing countries. Thus, thesupply of loanable funds shifted to the left, as shown in Figure 1. The result was an increasein the interest rate.Figure 13. a. The bond of an eastern European government would pay a higher interest rate than the bond of the U.S. government because there would be a greater risk of default.b. A bond that repays the principal in 2025 would pay a higher interest rate than a bond that repays the principal in 2005 because it has a longer term to maturity, so there is more risk to the principal.c. A bond from a software company you run in your garage would pay a higher interest rate than a bond from Coca-Cola because your software company has more credit risk.d. A bond issued by the federal government would pay a higher interest rate than a bond issued by New York State because an investor does not have to pay federal income tax on the bond from New York State.4. Companies encourage their employees to hold stock in the company because it gives theemployees the incentive to care about the firm’s profits, not just their own salary. Then, if employees see waste or see areas in which the firm can improve, they will take actions that benefit the company because they know the value of their stock will rise as a result. It also gives employees an additional incentive to work hard, knowing that if the firm does well, they will profit.But from an employee’s point of view, owning stock in the company for which she or he works can be risky. The employee’s wages or salary is already tied to how well the firm performs. If the firm has trouble, the employee could be laid off or have her or his salaryreduced. If the employee owns stock in the firm, then there is a double whammy ⎯theemployee is unemployed or gets a lower salary and the value of the stock falls as well. So owning stock in your own company is a very risky proposition. Most employees would bebetter off diversifying ⎯owning stock or bonds in other companies ⎯so their fortunes wouldnot depend so much on the firm for which they work. 5. To a macroeconomist, saving occurs when a person’s income exceeds his consumption, while investment occurs when a person or firm purchases new capital, such as a house or business equipment.a. When your family takes out a mortgage and buys a new house, that is investment because it is a purchase of new capital.b. When you use your $200 paycheck to buy stock in AT&T, that is saving because yourincome of $200 is not being spent on consumption goods.c. When your roommate earns $100 and deposits it in her account at a bank, that is saving because the money is not spent on consumption goods.d. When you borrow $1,000 from a bank to buy a car to use in your pizza-delivery business,that is investment because the car is a capital good.6. Given that Y = 8, T = 1.5, S private = 0.5 = Y −T − C , S public = 0.2 = T − G . Because S private = Y − T − C , then rearranging gives C = Y − T − S private = 8 − 1.5 − 0.5 = 6. Because S public = T − G , then rearranging gives G = T − S public = 1.5 − 0.2 = 1.3. Because S = national saving = S private + S public = 0.5 + 0.2 = 0.7. Finally, becauseI = investment = S , I = 0.7.7. Private saving is equal to (Y – C – T) = 10,000 – 6,000 – 1,500 = 2,500.Public saving is equal to (T – G) = 1,500 – 1,700 = -200.National saving is equal to (Y – C – G) = 10,000 – 6,000 – 1,700 = 2,300.Investment is equal to saving = 2,300.The equilibrium interest rate is found by setting investment equal to 2,300 and solving for r: 100r = 2,300.–3,300100r = 1,000.r = 10 percent.8. a. If interest rates increase, the costs of borrowing money to build the factory becomehigher, so the returns from building the new plant may not be sufficient to cover thecosts. Thus, higher interest rates make it less likely that Intel will build the new factory.b. Even if Intel uses its own funds to finance the factory, the rise in interest rates stillmatters. There is an opportunity cost on the use of the funds. Instead of investing in thefactory, Intel could invest the money in the bond market to earn the higher interest rateavailable there. Intel will compare its potential returns from building the factory to thepotential returns from the bond market. If interest rates rise, so that bond marketreturns rise, Intel is again less likely to invest in the factory.Figure 29. a. Figure 2 illustrates the effect of the $20 billion increase in government borrowing.Initially, the supply of loanable funds is curve S1, the equilibrium real interest rate is i1,and the quantity of loanable funds is L1. The increase in government borrowing by $20billion reduces the supply of loanable funds at each interest rate by $20 billion, so thenew supply curve, S2, is shown by a shift to the left of S1 by exactly $20 billion. As aresult of the shift, the new equilibrium real interest rate is i2. The interest rate hasincreased as a result of the increase in government borrowing.b. Because the interest rate has increased, investment and national saving decline andprivate saving increases. The increase in government borrowing reduces public saving.From the figure you can see that total loanable funds (and thus both investment and national saving) decline by less than $20 billion, while public saving declines by $20billion and private saving rises by less than $20 billion.c. The more elastic is the supply of loanable funds, the flatter the supply curve would be, sothe interest rate would rise by less and thus national saving would fall by less, as Figure3 shows.Figure 3Figure 4d. The more elastic the demand for loanable funds, the flatter the demand curve would be,so the interest rate would rise by less and thus national saving would fall by more, as Figure 4 shows.e. If households believe that greater government borrowing today implies higher taxes topay off the government debt in the future, then people will save more so they can pay the higher future taxes. Thus, private saving will increase, as will the supply of loanablethe equilibrium quantity of investment and national saving decline, and reducing theamount that the interest rate rises.If the rise in private saving was exactly equal to the increase in government borrowing,there would be no shift in the national saving curve, so investment, national saving, and the interest rate would all be unchanged. This is the case of Ricardian equivalence.10. If world savings declines at the same time world investment rises, the supply curve ofloanable funds shifts to the left and the demand curve shifts to the right. Figure 6 illustrates the result. The world interest rate will rise, while the overall effect on the equilibrium quantity of loanable funds is ambiguous⎯it depends on the relative sizes of the shifts of the twocurves and on their elasticities.Figure 511. a. Investment can be increased by reducing taxes on private saving or by reducing thegovernment budget deficit. But reducing taxes on private saving has the effect ofincreasing the government budget deficit, unless some other taxes are increased orgovernment spending is reduced. So it is difficult to engage in both policies at the sametime.b. To know which of these policies would be a more effective way to raise investment, youwould need to know: (1) what the elasticity of private saving is with respect to the after-tax real interest rate, because that would determine how much private saving wouldincrease if you reduced taxes on saving; (2) how private saving responds to changes inthe government budget deficit, because, for example, if Ricardian equivalence holds, the decline in the government budget deficit would be matched by an equal decline inprivate saving, so national saving would not increase at all; and (3) how elasticinvestment is with respect to the interest rate, because if investment is quite inelastic,neither policy will have much of an impact on investment.。
曼昆 微观经济学 原理 第五版 课后习题答案
曼昆微观经济学原理第五版课后习题答案曼昆-微观经济学-原理-第五版-课后习题答案问题与应用1．描绘以下每种情况所遭遇的权衡权衡：a．一个家庭同意与否卖一辆新车。
答：如果买新车就要减少家庭其他方面的开支，如：外出旅行，购置新家具；如果不买新车就享受不到驾驶新车外出的方便和舒适。
b．国会议员决定对国家公园支出多少。
请问：对国家公园的开支数额小，国家公园的条件可以获得提升，环境可以获得更好的维护。
但同时，政府可以用作交通、邮电等其他公共事业的开支就可以增加。
c．一个公司总裁同意与否崭新上开一家工厂。
答：开一家新厂可以扩大企业规模，生产更多的产品。
但可能用于企业研发的资金就少了。
这样，企业开发新产品、利用新技术的进度可能会减慢。
d．一个教授决定用多少时间备课。
请问：教授若将大部分时间用作自己研究，可能会出来更多成果，但复习时间增加影响学生讲课质量。
e．一个刚大学毕业的学生决定是否去读研究生。
请问：毕业后出席工作，可以即刻以获取工资收入；但稳步念研究生，能够拒绝接受更多科学知识和未来更高收益。
2．你正想决定是否去度假。
度假的大部分成本((机票、旅馆、放弃的工资))都用美元来衡量，但度假的收益是心理的。
你将如何比较收益与成本呢??请问：这种心理上的收益可以用与否达至既定目标去来衡量。
对于这个行动前就可以做出的既定目标，我们一定存有一个为实现目标而愿分担的成本范围。
在这个可以忍受的成本范围内，渡假如果满足用户了既定目标，例如：收紧身心、恢复正常体力等等，那么，就可以说道这次渡假的收益至少不大于它的成本。
3．你正计划用星期六回去专门从事业余工作，但一个朋友恳请你回去滑雪。
回去滑雪的真实成本就是什么？现在假设你已计划这天在图书馆自学，这种情况下去滑雪的成本就是什么？恳请表述之。
请问：回去滑雪的真实成本就是周六打零工所要赚的工资，我本可以利用这段时间回去工作。
如果我本计划这天在图书馆自学，那么回去滑雪的成本就是在这段时间里我可以赢得的科学知识。
曼昆《经济学原理》（宏观）第五版测试题库（23）
曼昆《经济学原理》（宏观）第五版测试题库（23）Chapter 23Measuring a Nation's IncomeTRUE/FALSE1. In years of economic contraction, firms throughout the economy increase their production of goods and services, employment rises, and jobs are easy to find.ANS: F DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Economic expansion MSC: Definitional2. Macroeconomic statistics include GDP, the inflation rate, the unemployment rate, retail sales, and the trade deficit.ANS: T DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Macroeconomics MSC: Definitional3. Macroeconomic statistics tell us about a particular household, firm, or market.ANS: F DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Macroeconomics MSC: Definitional4. Macroeconomics is the study of the economy as a whole.ANS: T DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Macroeconomics MSC: Definitional5. The goal of macroeconomics is to explain the economic changes that affect many households, firms, and markets simultaneously.ANS: T DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Macroeconomics MSC: Definitional6. Microeconomics and macroeconomics are closely linked.ANS: T DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Microeconomics | Macroeconomics MSC: Definitional7. The basic tools of supply and demand are as central to macroeconomic analysis as they are to microeconomic analysis.TOP: Demand | Supply MSC: Definitional8. GDP is the most closely watched economic statistic because it is thought to be the best single measure of asociety’s economic well-being.ANS: T DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Definitional9. GDP can measure either the total income of everyone in the economy or the total expenditure on theeconomy’s output of goods and services, but GDP cannot measure both at the same time.ANS: F DIF: 2 REF: 23-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Interpretive10. For an economy as a whole, income must exceed expenditure.ANS: F DIF: 1 REF: 23-1NAT: Analytic LOC: The study of economics and definitions of economics11. An economy’s income is the same as its expenditure because every transaction has a buyer and a seller. ANS: T DIF: 1 REF: 23-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Income | Expenditure MSC: Definitional12. GDP is the market value of all final goods and services produced by a country’s citizens in a given period oftime.ANS: F DIF: 1 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Definitional13. GDP adds together many different kinds of products into a single measure of the value of economic activity byusing market prices.ANS: T DIF: 1 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Definitional14. U.S. GDP includes the market value of rental housing, but not the market value of owner-occupied housing. ANS: F DIF: 2 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Interpretive15. U.S. GDP excludes the production of most illegal goods.ANS: T DIF: 2 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economics16. U.S. GDP includes estimates of the value of items that are produced and consumed at home, such as housework and car maintenance.ANS: F DIF: 2 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Applicative17. GDP includes only the value of final goods because the value of intermediate goods is already included in the prices of the final goods.ANS: T DIF: 1 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP | Intermediate goods MSC: Definitional18. Additions to inventory subtract from GDP, and when the goods in inventory are later used or sold, the reductions in inventory add to GDP.ANS: F DIF: 1 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP | Inventory MSC: Definitional19. While GDP includes tangible goods such as books and bug spray, it excludes intangible services such as the services provided by teachers and exterminators.ANS: F DIF: 2 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Applicative20. At a rummage sale, you buy two old books and an old rocking chair; your spending on these items is not included in current GDP.ANS: T DIF: 2 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Applicative21. When an American doctor opens a practice in Bermuda, his production there is part of U.S. GDP.ANS: F DIF: 2 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economics1560 Chapter 23 /Measuring a Nation's Income22. If the U.S. government reports that GDP in the third quarter was $12 trillion at an annual rate, then the amount of income and expenditure during quarter three was $3 trillion.ANS: T DIF: 2 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Applicativedifferent stories about overall economic conditions.ANS: F DIF: 2 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP | Income MSC: Interpretive24. Expenditures by households on education are included in the consumption component of GDP.ANS: T DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Consumption MSC: Interpretive25. Most goods whose purchases are included in the investment component of GDP are used to produce other goods.ANS: T DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Investment MSC: Interpretive26. New home construction is included in the consumption component of GDP.ANS: F DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Investment MSC: Interpretive27. Changes in inventory are included in the investment component of GDP.ANS: T DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Investment MSC: Interpretive28. The investment component of GDP refers to financial investment in stocks and bonds.ANS: F DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Investment MSC: Interpretive29. The government purchases component of GDP includes salaries paid to soldiers but not Social Security benefits paid to the elderly.ANS: T DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Government purchases MSC: Interpretive30. If the value of an economy’s imports exceeds the value of that economy’s exports, then net exports is a negative number.ANS: T DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economics31. If someone in the United States buys a surfboard produced in Australia, then that purchase is included in both the consumption component of U.S. GDP and the net exports component of U.S. GDP.ANS: T DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Consumption | Net exports MSC: Applicative32. If consumption is $4000, exports are $300, government purchases are $1000, imports are $400, and investment is $800, then GDP is $5700.ANS: T DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economics33. If exports are $500, GDP is $8000, government purchases are $1200, imports are $700, and investment is $800, then consumption is $6200.ANS: T DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Consumption MSC: Applicative34. If consumption is $1800, GDP is $4300, government purchases are $1000, imports are $700, and investment i s $1200, then exports are $300.ANS: F DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Exports MSC: Applicative35. U.S. GDP was almost $14 billion in 2007.ANS: F DIF: 1 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Definitional36. In 2007, government purchases was the largest component of U.S. GDP.ANS: F DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Interpretive37. If total spending rises from one year to the next, then the economy must be producing a larger output of goods and services.ANS: F DIF: 2 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Interpretive38. An increase in nominal U.S. GDP necessarily implies that the United States is producing a larger output of goods and services.TOP: Nominal GDP MSC: Interpretive39. Nominal GDP uses constant base-year prices to place a value on the economy’s production of goods a nd services, while real GDP uses current prices to place a value on the economy’s production of goods and services.ANS: F DIF: 1 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Nominal GDP | Real GDP MSC: Definitional40. Real GDP evaluates current production using prices that are fixed at past levels and therefore shows how the economy’s overall production of goods and services changes over time.ANS: T DIF: 1 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real GDP MSC: Definitional41. The term real GDP refers to a country’s actual GDP as opposed to its estimated GDP.ANS: F DIF: 2 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real GDP MSC: Interpretive42. Changes in real GDP reflect only changes in the amounts being produced.ANS: T DIF: 1 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real GDP MSC: Definitional43. Real GDP is a better gauge of economic well-being than is nominal GDP.ANS: T DIF: 1 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economics1562 Chapter 23 /Measuring a Nation's Income44. Changes in the GDP deflator reflect only changes in the prices of goods and services.ANS: T DIF: 2 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP deflator MSC: Interpretive45. If nominal GDP is $10,000 and real GDP is $8,000, then the GDP deflator is 125.ANS: T DIF: 2 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP deflator MSC: Applicative46. If nominal GDP is $12,000 and the GDP deflator is 80, then real GDP is $15,000.TOP: Real GDP MSC: Applicative47. Economists use the term inflation to describe a situation in whic h the economy’s overall production level isrising.ANS: F DIF: 1 REF: 23-4NAT: Analytic LOC: Unemployment and inflation TOP: InflationMSC: Definitional48. If the GDP deflator in 2006 was 160 and the GDP deflator in 2007 was 180, then the inflation rate in 2007 was12.5%.ANS: T DIF: 2 REF: 23-4NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Applicative49. If the GDP deflator in 2004 was 150 and the GDP deflator in 2005 was 120, then the inflation rate in 2005 was25%.ANS: F DIF: 2 REF: 23-4NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Applicative50. The GDP deflator can be used to take inflation out of nominal GDP.ANS: T DIF: 1 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP deflator MSC: Definitional51. In 2004, the level of U.S. real GDP was close to four times its 1965 l evel.ANS: T DIF: 1 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real GDP MSC: Definitional52. The output of goods and services produced in the United States has grown on average 3.2 percent per year. ANS: T DIF: 1 REF: 23-4NAT: Analytic LOC: Productivity and growthTOP: GrowthMSC: Definitional53. Periods during which real GDP rises are called recessions.ANS: F DIF: 1 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Recessions MSC: Definitional54. Recessions are associated with lower incomes, rising unemployment, and falling profits.TOP: Recessions MSC: Definitional55. If real GDP is higher in one country than in another, then we can be sure that the standard of living is higher inthe country with the higher real GDP.ANS: F DIF: 2 REF: 23-5NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real GDP | Standard of living MSC: Interpretive56. Real GDP per person tells us the income and expenditure of the average person in the economy.ANS: T DIF: 1 REF: 23-5NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real GDP per person MSC: Definitional57. GDP does not directly measure those things that make life worthwhile, but it does measure our ability toobtain many of the inputs into a worthwhile life.ANS: T DIF: 1 REF: 23-5NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Definitional58. GDP does not make adjustments for leisure time, environmental quality, or volunteer work.ANS: T DIF: 2 REF: 23-5NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Interpretive59. Other things equal, in countries with higher levels of real GDP per person, life expectancy and literacy ratesare higher than in countries with lower levels of real GDP per person.ANS: T DIF: 2 REF: 23-5NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: InterpretiveSHORT ANSWER1. GDP is defined as the market value of all final goods and services produced within a country in a given periodof time. In spite of this definition, some production is left out of GDP. Explain why some final goods and services are not included.ANS:GDP excludes some products because they are so difficult to measure. These products include services performed by individuals for themselves and their families, and most goods that are produced and consumed at home and, therefore, never enter the marketplace. In addition, illegal products are not included in GDP even if they can be measured because, by society's definition, they are bads, not goods.DIF: 2 REF: 23-2 NAT: AnalyticLOC: The study of economics and definitions of economics TOP: GDPMSC: Interpretiveincluded directly as part of GDP, but the value of intermediate goods produced and not sold is includeddirectly as part of GDP.ANS:Intermediate goods produced and sold during the year are not included separately as part of GDP because the value of those goods is included in the value of the final goods produced from them. If the intermediate good is produced but not sold during the year, its value is included as inventory investment for the year in which it was produced. If inventory investment was not included as part of GDP, true production would be underestimated for the year the intermediate good went into inventory, and overestimated for the year the intermediate good is used or sold.DIF: 2 REF: 23-2 NAT: AnalyticLOC: The study of economics and definitions of economics TOP: GDP | Intermediate goods MSC: Interpretive1564 Chapter 23 /Measuring a Nation's Income3. Since it is counted as investment, why doesn't the purchase of earthmoving equipment from China by a U.S.corporation increase U.S. GDP?ANS:The purchase of foreign equipment is counted as investment, but GDP measures only the value of production within the geographic borders of the United States. In order to avoid including the value of the imported equipment, imports are subtracted from GDP. Hence, the value of the equipment in investment is canceled by subtracting its value as an import.DIF: 2 REF: 23-3 NAT: AnalyticLOC: The study of economics and definitions of economics TOP: GDP | Investment | Imports MSC: Applicative4. Identify the immediate effect of each of the following events on U.S. GDP and its components.a. James receives a Social Security check.b. John buys an Italian sports car.c. Henry buys domestically produced tools for his construction company.ANS:a. Since this is a transfer payment, there is no change to GDP or to any of its components.b. Consumption and imports will rise and cancel each other out so that there is no change in U.S. G DP.c. This increases the investment component of GDP and so increases GDP.DIF: 2 REF: 23-3 NAT: AnalyticLOC: The study of economics and definitions of economicsTOP: GDP | Transfer payments | Net exports | Investment MSC: Applicative5. Between 1929 and 1933, NNP measured in current prices fell from $96 billion to $48 billion. Over the sameperiod, the relevant price index fell from 100 to 75.a. What was the percentage decline in nominal NNP from 1929 to1933?b. What was the percentage decline in real NNP from 1929 to 1933? Show your work.ANS:a. NNP measured in current prices is nominal NNP. Nominal NNP fell from $96 billion to $48 billion, adecline of 50 percent.($96 b/100) 100 = $96 b. Real NNP in 1933 was ($48 b/75) 100 = $64 b. Real NNP fell from$96 billion to $64 billion, a decline of 33 percent.DIF: 2 REF: 23-4 NAT: AnalyticLOC: The study of economics and definitions of economics TOP: Nominal NNP | Real NNP MSC: Applicative6. You find that your paycheck for the year is higher this year than last. Does that mean that your real incomehas increased? Explain carefully.ANS:Real income is nominal income adjusted for general increase in prices. I f my paycheck is higher this year than last, my nominal income has increased. Whether my real income has increased or not depends on what has happened since last year to the level of prices of things I buy with my income. If the percentage increase in prices is less than the percentage increase in my nominal income, then my real income h as increased. Otherwise, my real income has not increased.DIF: 2 REF: 23-4 NAT: AnalyticLOC: The study of economics and definitions of economicsTOP: Nominal income | Real income MSC: Interpretive7. U.S. real GDP is substantially higher today than it was 60 years ago. What does this tell us, and what does itnot tell us, about the well-being of U.S. residents?ANS:Since this is in real terms, it tells us that the U.S. is able to make a lot more stuff than in the past. Some of the increase in real GDP is probably due to an increase in population, so we could say more if we knew what had happened to real GDP per person. Supposing that there was also an increase in real GDP per person, we can say that the standard of living has risen. Material things are an important part of well-being. Having sufficient amounts of things such as food, shelter, and clothing are fundamental to well-being. Other things such as security, a safe environment, access to safe water, access to medical care, justice, and freedom also matter. However, many of these things are more easily obtained by being able to produce more using fewer resources. Countries with higher real GDP per person tend to have longer life spans, less discrimination towards women, less child labor, and a higher rate of literacy.DIF: 2 REF: 23-5 NAT: AnalyticLOC: The study of economics and definitions of economicsTOP: Real GDP | Economic welfare MSC: InterpretiveSec00 - Measuring a Nation's IncomeMULTIPLE CHOICE1. Statistics that are of particular interest to macroeconomistsa. are largely ignored by the media.b. are widely reported by the media.c. include the equilibrium prices of individual goods and services.d. tell us about a particular household, firm, or market.ANS: B DIF: 2 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Macroeconomics MSC: Interpretiveb. the interaction between households and firms.c. economy-wide phenomena.d. regulations on firms and unions.ANS: C DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Macroeconomics MSC: Definitional3. Which of the following newspaper headlines is more closely related to what microeconomists study than to what macroeconomists study?a. Unemployment rate rises from 5 percent to 5.5 percent.b. Real GDP grows by 3.1 percent in the third quarter.c. Retail sales at stores show large gains.d. The price of oranges rises after an early frost.ANS: D DIF: 2 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Microeconomics | Macroeconomics MSC: Interpretive4. Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist?a. Why do prices in general rise by more in some countries than in others?b. Why do wages differ across industries?c. Why do production and income increase in some periods and not in others?d. How rapidly is GDP currently increasing?ANS: B DIF: 2 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Microeconomics | Macroeconomics MSC: Interpretive1566 Chapter 23 /Measuring a Nation's Income5. Which of the following topics are more likely to be studied by a macroeconomist than by a microeconomist?a. the effect of taxes on the prices of airline tickets, the profitability of automobile-manufacturingfirms, and employment trends in the food-service industryb. the price of beef, wage differences between genders, and antitrust lawsc. how consumers maximize utility, and how prices are established in markets for agriculturalproductsd. the percentage of the labor force that is out of work, and differences in average income fromcountry to countryANS: D DIF: 2 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Microeconomics | Macroeconomics MSC: Interpretive6. We would expect a macroeconomist, as opposed to a microeconomist, to be particularly interested ina. explaining how economic changes affect prices of particular goods.b. devising policies to deal with market failures such as externalities and market power.c. devising policies to promote low inflation.d. identifying those markets that are competitive and those that are not competitive.ANS: C DIF: 2 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Microeconomics | Macroeconomics MSC: Interpretive7. Which of the following is not a question that macroeconomists address?a. Why is average income high in some countries while it is low in others?b. Why does the price of oil rise when war erupts in the Middle East?c. Why do production and employment expand in some years and contract in others?d. Why do prices rise rapidly in some periods of time while they are more stable in other periods? ANS: B DIF: 2 REF: 23-0 NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Macroeconomics MSC: Interpretive8. The basic tools of supply and demand area. useful only in the analysis of economic behavior in individual markets.b. useful in analyzing the overall economy, but not in analyzing individual markets.c. central to microeconomic analysis, but seldom used in macroeconomic analysis.d. central to macroeconomic analysis as well as to microeconomic analysis.ANS: D DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Demand | Supply MSC: Definitional9. Which of the following statistic is usually regarded as the best single measure of a society’s economic well-being?a. the unemployment rateb. the inflation ratec. gross domestic productd. the trade deficitANS: C DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: DefinitionalSec01 - Measuring a Nation's Income - The Economy's Income and Expenditure MULTIPLE CHOICE1. Which of the following statements about GDP is correct?a. GDP measures two things at once: the total income of everyone in the economy and the unemployment rate of the economy’s labor force.b. Money continuously flows from households to government and then back to households, and GDP measures this flow of money.c. GDP is to a nation’s economy as household income is to a household.d. All of the above are correct.ANS: C DIF: 2 REF: 23-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Interpretive2. Gross domestic product measures two things at once:a. the total spending of everyone in the economy and the total saving of everyone in the economy.b. the total income of everyone in the economy and the total expenditure on the economy's output of goods and services.c. the value of the economy's output of goods and services for domestic citizens and the value of the economy's output of goods and services for the rest of the world.d. the total income of households in the economy and the total profit of firms in the economy. ANS: B DIF: 1 REF: 23-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Definitional3. For an economy as a whole,a. wages must equal profit.b. consumption must equal saving.c. income must equal expenditure.d. the number of buyers must equal the number of sellers.ANS: C DIF: 2 REF: 23-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Income | Expenditure MSC: Interpretive4. For an economy as a whole, income must equal expenditure becausea. the number of firms is equal to the number of households in an economy.b. international law requires that income equal expenditure.c. every dollar of spending by some buyer is a dollar of income for some seller.d. every dollar of saving by some consumer is a dollar of spending by some other consumer. ANS: C DIF: 2 REF: 23-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Income | Expenditure MSC: Interpretive5. If an economy’s GDP rises, then it must be the case that the economy’sa. income rises and saving falls.b. income and saving both rise.c. income rises and expenditure falls.d. income and expenditure both rise.ANS: D DIF: 2 REF: 23-1NAT: Analytic LOC: The study of economics and definitions of economics TOP: Income | Expenditure MSC: Interpretive。
曼昆经济学原理26
它们能够使钱并不多旳人进行多元化投资。
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Financial Intermediaries 金融中介机构
Financial intermediaries are financial institutions through which savers can indirectly provide funds to borrowers. 金融中介机构——储蓄者能够经过它间 接地向借款者提供资金旳金融机构。
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
FBanks
take deposits from people who want to save and use the deposits to make loans to people who want to borrow. pay depositors interest on their deposits and charge borrowers slightly higher interest on their loans.
Financial Markets
The Stock Market
Stock represents a claim to partial ownership in a firm and is therefore, a claim to the profits that the firm makes. The sale of stock to raise money is called equity financing.
曼昆《经济学原理(宏观经济学分册)》(第6版)笔记和课后习题详解(第26章--储蓄、投资和金融体系)
第26章储蓄、投资和金融体系26.1 复习笔记跨考网独家整理最全经济学考研真题，经济学考研课后习题解析资料库，您可以在这里查阅历年经济学考研真题，经济学考研课后习题，经济学考研参考书等内容，更有跨考考研历年辅导的经济学学哥学姐的经济学考研经验，从前辈中获得的经验对初学者来说是宝贵的财富，这或许能帮你少走弯路，躲开一些陷阱。
以下内容为跨考网独家整理，如您还需更多考研资料，可选择经济学一对一在线咨询进行咨询。
1．金融体系金融体系是由经济中使一个人的储蓄与另一个人的投资相匹配的机构组成。
金融体系使经济的稀缺资源从储蓄者（支出小于收入的人）流动到借款人（支出大于收入的人）手中。
金融体系由帮助协调储蓄者与借款人的各种金融机构组成。
金融机构可以分为两种类型——金融市场和金融中介机构。
2．金融市场金融市场是想储蓄的人直接向想借款的人提供资金的机构。
两种最重要的金融市场是债券市场和股票市场。
（1）债券市场债券是按照法定程序发行的，要求发行人（也称债务人或借款人）按照约定的时间和方式向债权人或投资者支付利息和偿还本金的一种债权债务凭证。
债券的基本要素有偿还期限、票面利率、票面价值和债券发行者。
债券的特点：期限性、收益性、风险性、流动性。
（2）股票市场股票指股份有限公司签发的用以证明股东按其所持股份享有权利和承担义务的凭证。
股票与债券的差别：股票的所有者是公司的部分所有者，债券的所有者是公司的债权人。
股票持有者享有该公司的利润分成，而债券持有者只得到其固定的债券利息。
公司破产时，债券持有者享有在股票持有者之前得到补偿的权利，即享有优先清偿权。
债券有固定的到期日，到期必须偿还，而股票则没有到期日，无须偿还。
3．金融中介机构金融中介机构指为资金融通提供媒介服务的专业性金融机构或取得专业资格的自然人，主要的中介机构有银行和共同基金。
（1）银行银行是以获取利润为经营目标，以吸收存款为主要资金来源，主要经营贷款的综合性、多功能的金融企业。
曼昆《经济学原理》（宏观）第五版测试题库（33）
曼昆《经济学原理》（宏观）第五版测试题库（33）Chapter 33Aggregate Demand and Aggregate SupplyTRUE/FALSE1. According to classical macroeconomic theory, changes in the money supply change nominal but not realvariables.ANS: T DIF: 1 REF: 33-2NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Classical economics MSC: Definitional2. Because economists understand what things change GDP, they can predict recessions with a fair amount ofaccuracy.ANS: F DIF: 1 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Economic fluctuations MSC: Analytical3. Most macroeconomic variables that measure some type of income, spending, or production fluctuate closelytogether.ANS: T DIF: 1 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Economic fluctuations MSC: Interpretive4. Like real GDP, investment fluctuates, but it fluctuates much less than real GDP..ANS: F DIF: 1 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Economic fluctuations | Investment MSC: Definitional5. When output rises, unemployment falls.ANS: T DIF: 1 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Economic fluctuations | Unemployment MSC: Definitional6. An increase in the money supply causes output to rise in the long run.ANS: F DIF: 1 REF: 33-2NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Monetary neutrality MSC: Definitional7. Most economists believe that classical theory describes the world in the short run but not in the long run. ANS: F DIF: 1 REF: 33-2NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Classical dichotomy MSC: Interpretive8. A change in the money supply changes only nominal variables in the long run.ANS: T DIF: 1 REF: 33-2NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Monetary neutrality MSC: Definitional9. The explanations for the slopes of the aggregate demand and short-run aggregate supply curves are the same as the explanations for the slopes of demand and supply curves for specific goods and services.ANS: F DIF: 1 REF: 33-2NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Aggregate demand slope | Short-run aggregate supply slopeMSC: Definitional10. The aggregate-demand curve shows the quantity of domestic goods and services that households, firms, the government, and customers abroad want to buy at eachprice level.ANS: T DIF: 2 REF: 33-2NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Aggregate-demand curve MSC: Definitional2184Chapter 33/Aggregate Demand and Aggregate Supply 2185 11. A decrease in the price level makes consumers feel wealthier, so they purchase more. This logic helps explainwhy the aggregate demand curve slopes downward.ANS: T DIF: 1 REF: 33-3NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Wealth effect MSC: Analytical12. Other things the same, a decrease in the price level makes the interest rate decrease, which leads to adepreciation of the dollar in the foreign-currency exchange.ANS: T DIF: 2 REF: 33-3NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Wealth effect | Exchange-rate effect MSC: Analytical13. The exchange-rate effect is the idea that a higher U.S. price level causes the value of the dollar to increase in foreign exchange markets, and this effect contributes to the downward slope of the aggregate-demand curve. ANS: T DIF: 2 REF: 33-3NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Aggregate demand slope MSC: Interpretive14. The downward slope of the aggregate demand curve is based on logic that as the price level rises, consumption, investment, and net exports all fall.ANS: T DIF: 2 REF: 33-3NAT: Analytic LOC: Aggregate demand and aggregate supplyTOP: Aggregate demand slope MSC: Interpretive15. Aggregate demand shifts to the left if the money supply increases.ANS: F DIF: 1 REF: 33-3NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Aggregate demand shifts | Monetary policy MSC: Applicative16. A decrease in the money supply causes the interest rate to rise so that investment falls.ANS: T DIF: 2 REF: 33-3NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Aggregate demand shifts | Money supply MSC: Analytical17. If speculators bid up the value of the dollar in the market for foreign-currency exchange, U.S. aggregatedemand would shift to the left.ANS: T DIF: 2 REF: 33-3NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Aggregate demand shifts | Net exports MSC: Analytical18. The effect of a change in the value of the dollar in the foreign exchange market due to a change in the price level helps explain the slope of aggregate demand, but does not shift it. The effects of a change in the value of the dollar in the foreign exchange market due to speculation is shown by shifting the aggregate demand curve.ANS: T DIF: 3 REF: 33-3NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Aggregate-demand curve MSC: Analytical19. An increase in the money supply shifts the long-run aggregate supply curve to the right.ANS: F DIF: 1 REF: 33-4NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Long-run aggregate supply | Monetary policy MSC: Applicative20. Technological progress shifts the long-run aggregate supply curve to the right.ANS: T DIF: 1 REF: 33-4NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Economic growth and inflation MSC: Applicative21. Other things the same, technological progress raises the price level..ANS: F DIF: 2 REF: 33-4NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Economic growth and inflation MSC: Applicative22. Because the price level does not affect the long-run determinants of real GDP, the long-run aggregate-supply is vertical.ANS: T DIF: 1 REF: 33-4NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Long-run aggregate supply MSC: Interpretive23. We could explain continued increases in both output and the price level by supposing that only aggregatedemand shifted right over time.ANS: F DIF: 2 REF: 33-4NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Economic growth and inflation MSC: Analytical24. If not all prices adjust instantly to changing economic circumstances, an unexpected fall in the price levelleaves some firms with higher-than-desired prices, and these higher-than-desired prices depress sales and induce firms toreduce the quantity of goods and services they produce.ANS: T DIF: 1 REF: 33-4NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Misperceptions theory MSC: Interpretive25. All explanations for the upward slope of the short-run aggregate supply curve suppose that the quantity of output supplied increases when the actual price level exceeds the expected price level.ANS: T DIF: 1 REF: 33-4NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Short-run aggregate supply slope MSC: Interpretive26. The only way to rationalize an upward slope for the short-run aggregate-supply curve is to argue that wagesare sticky in the short run.ANS: F DIF: 2 REF: 33-4NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Short-run aggregate-supply curve MSC: Interpretive27. An increase in the actual price level does not shift the short-run aggregate supply curve, but an expectedincrease in the price level shifts the short-run aggregate supply curve to the left.ANS: T DIF: 2 REF: 33-4NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Short-run aggregate supply MSC: Analytical28. Fluctuations in real GDP are caused only by changes in aggregate demand and not by changes in aggregate supply.ANS: F DIF: 1 REF: 33-5NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Short-run equilibrium | Economic fluctuations MSC:Definitional29. Increased uncertainty and pessimism about the future of the economy leads firms to desire less investmentspending which shifts the aggregate-demand curve to the left.ANS: T DIF: 1 REF: 33-5NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Aggregate demand shifts | Pessimism MSC: Applicative30. Increased optimism about the future leads to rising prices and falling unemployment in the short run. ANS: T DIF: 2 REF: 33-5NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Short-run equilibrium | Pessimism MSC: Analyticalword文档可自由复制编辑Chapter 33/Aggregate Demand and Aggregate Supply 2187 31. In response to a decrease in output, the economy would revert to its original level of prices and output whether the decrease in output was caused by a decrease in aggregate demand or a decrease in aggregate supply. ANS: F DIF: 2 REF: 33-5NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Long-run equilibrium MSC: Analytical32. If aggregate demand shifts right, then eventually price level expectations rise. The increase in price levelexpectations causes the short-run aggregate-supply curve to shift to the left.ANS: T DIF: 2 REF: 33-5NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Long-run equilibrium MSC: Analytical33. If aggregate demand and aggregate supply both shiftright, we can be sure that the price level is higher in the short run.ANS: F DIF: 2 REF: 33-5NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Short-run equilibrium MSC: Analytical34. Economists mostly agree that the Great Depression was principally caused by factors that shifted short-runaggregate supply left.ANS: F DIF: 1 REF: 33-5NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Great Depression MSC: Definitional35. The primary purpose of the aggregate demand and aggregate supply model is to demonstrate the classical dichotomy.ANS: F DIF: 1 REF: 33-4NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Aggregate demand and aggregate supply model MSC: Interpretive36. Increased output and prices in the United States in the early 1940s were mostly the result of increasedgovernment expenditures.ANS: T DIF: 1 REF: 33-5NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: World War II MSC: Definitional37. During World War II government expenditures increased almost five-fold and output almost doubled.ANS: T DIF: 2 REF: 33-5NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: World War II MSC: Definitional38. Stagflation results from continued decreases inaggregate demand.ANS: F DIF: 2 REF: 33-5NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Stagflation MSC: Applicative39. If the central bank increased the money supply in response to a decrease in short-run aggregate supply, unemployment would return towards its natural rate, but prices would rise even more.ANS: T DIF: 2 REF: 33-5NAT: Analytic LOC: Fiscal and monetary policy TOP: Monetary policyMSC: Analytical40. John Maynard Keynes advocated policies that would increase aggregate demand as a way to decreaseunemployment caused by recessions.ANS: T DIF: 1 REF: 33-5NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Keynes MSC: DefinitionalSHORT ANSWER1. The long-run trend in real GDP is upward. How is this possible given business cycles? What explains theupward trend?ANS:There are occasional short-lived periods of negative real GDP growth. However, in most years real GDP increases. The years of increase are more frequent and the increases large enough that over long periods of time real GDP increases despite the occasional declines. The long-run upward trend in real GDP is due to increases in the labor force and capital stock and advances in technological knowledge.DIF: 2 REF: 33-1 NAT: AnalyticLOC: Aggregate demand and aggregate supplyTOP: Economic growth and inflation MSC: Interpretive2. What variables besides real GDP tend to decline during recessions? Given the definition of real GDP, arguethat declines in these variables are to be expected.ANS:Variables that fall along with real GDP include employment, incomes, investment, sales, and home purchases. GDP may be measured as either the production of, expenditures on, or income generated from final goods and services. It follows that any other variable that could be used to measure production, expenditures, or income will generally move in the same direction as GDP.DIF: 2 REF: 33-1 NAT: AnalyticLOC: Aggregate demand and aggregate supply TOP: Economic fluctuationsMSC: Interpretive3. What do most economists believe concerning the relation between the price level and real output?ANS:Most economists believe that in the long run, real variables are not affected by nominal variables. So, for example, changes in the money supply do not change real variables in the long run. However, most economists believe that nominal variables do change real variables in the short run. In the short-run prices and wages may be fixed based on the expected price level. If the actual price level differs from the expected price level, real variables are affected. DIF: 2 REF: 33-2 NAT: AnalyticLOC: Aggregate demand and aggregate supplyTOP: Long-run equilibrium | Short-run equilibrium MSC:Interpretive4. Make a list of expenditures whose sum equals GDP.ANS:consumption, investment, government expenditures, and net exports.DIF: 1 REF: 33-3 NAT: AnalyticLOC: Aggregate demand and aggregate supply TOP: Aggregate-demand curveMSC: Definitional5. Explain how an increase in the price level changes interest rates. How does this change in interest rates lead tochanges in investment and net exports?ANS:When the price level increases, the purchasing power of money held on hand and in bank accounts declines. This decline makes people feel less wealthy so that they lend less. The reduction in lending causes the interest rate to rise. The rise in interest rates discourages spending on investment goods so that the aggregate quantity of goods and services demanded decreases. As the interest rate increases, the supply of dollars in the market for foreign-currency exchange falls as people wish to purchase fewer foreign assets. This makes the dollar appreciate which decreases net exports.DIF: 3 REF: 33-3 NAT: AnalyticLOC: Aggregate demand and aggregate supply TOP: Aggregate-demand curveMSC: Analyticalword文档可自由复制编辑Chapter 33/Aggregate Demand and Aggregate Supply 2189 6. Make a list of things that would shift the aggregate demandcurve to the right.ANS:Examples (and variations on examples) in the text include a stock market boom that increases consumption spending, a tax cut that increases consumption, improvements in capital goods such as computers that increase investment, increased optimism about the future of the economy induces increased investment, an investment tax credit, an increase in the money supply, an increase in government defense expenditures, and economic expansions overseas that create increases in net exports.DIF: 2 REF: 33-3 NAT: AnalyticLOC: Aggregate demand and aggregate supply TOP: Aggregate demand shiftsMSC: Applicative7. Make a list of things that would shift the long-run aggregate supply curve to the right.ANS:Examples in the text (or variations) include increased immigration, a decrease in the minimum wage, less generous unemployment insurance, an increase in the capital stock, an increase in the average level of education, a discovery of new mineral deposits, advances in technology, and removal of barriers to international trade.DIF: 2 REF: 33-4 NAT: AnalyticLOC: Aggregate demand and aggregate supplyTOP: Short-run aggregate supply shifts MSC: Applicative8. Illustrate the classical analysis of growth and inflation with aggregate demand and long-run aggregate supplycurves.ANS:See graph.PLRAS1LRAS2AD2AD1OutputOver time, technological advances cause the long-run aggregate supply curve to shift right. Increases in the money supply cause the aggregate demand curve to shift right. Output growth puts downward pressure on the price level, but money supply growth contributes to rising prices.DIF: 2 REF: 33-4 NAT: AnalyticLOC: Aggregate demand and aggregate supplyTOP: Economic growth and inflation MSC: Analytical9. Use sticky-wage theory to explain why an increase in the expected price level shifts the aggregate supplycurve.ANS:When people expect the price level to increase, wage bargaining will lead to higher wages. The increase in wages raises the costs of production. So firms will supply less at any actual price level.DIF: 2 REF: 33-4 NAT: AnalyticLOC: Aggregate demand and aggregate supply TOP: Sticky-wage theoryMSC: Analytical10. Keynes thought that the behavior of the economy in the short run was influenced by what he called "animalspirits." By this he meant that business people sometimes felt good about the economy, and carried out lots of investment, andat other times felt bad about the economy, and so cut back on their investment spending.Explain how such fluctuations in investment would lead to fluctuations in real GDP and prices.ANS:Fluctuations in investment cause the aggregate demand curve to shift. If the aggregate demand curve shifts to the right, real GDP and the price level rise. If the aggregate demand curve shifts to the left, real GDP and the price level fall. So erratic movements in investment can cause fluctuations in output.DIF: 2 REF: 33-5 NAT: AnalyticLOC: Aggregate demand and aggregate supply TOP: Keynes MSC: Applicative11. Suppose that a decrease in the demand for goods and services pushes the economy into recession. Whathappens to the price level? If the government does nothing, what ensures that the economy still eventually gets back to the natural rate of output?ANS:A decrease in aggregate demand causes the price level to fall. If the government takes no action to counter this, then the actual price level will be below the price level that people expected. Individuals will eventually correct their expectations about the price level. As they do so, prices and wages will adjust accordingly, shifting the aggregate supply curve to the right. For example if wages are sticky, in light of the lower price level, firms and workers will eventually make bargains for lower nominal wages. The reduction in wages lowers costs of production, so firms are willing to produce more at any given price level. Consequently, the short-run aggregate supply curve shifts right. The rightwardshift in aggregate supply eventually causes output to rise back to the natural rate.DIF: 3 REF: 33-1 NAT: AnalyticLOC: Aggregate demand and aggregate supply TOP: Long-run equilibriumMSC: AnalyticalSec00-Aggregate Demand and Aggregate Supply-IntroductionMULTIPLE CHOICE1. Most economists use the aggregate demand and aggregate supply model primarily to analyzea.short-run fluctuations in the economy.b.the effects of macroeconomic policy on the prices of individual goods.c.the long-run effects of international trade policies.d.productivity and economic growth.ANS: A DIF: 1 REF: 33-0 NAT: AnalyticLOC: Aggregate demand and aggregate supplyTOP: Aggregate demand and supply model MSC: Interpretive2. Most economists use the aggregate demand and aggregate supply model primarily to analyzea.short-run fluctuations in the economy.b.the effects of macroeconomic policy on the prices of individual goods.c.the long-run effects of international trade policies.d.productivity and economic growth.ANS: A DIF: 1 REF: 33-0 NAT: AnalyticLOC: Aggregate demand and aggregate supplyTOP: Aggregate demand and supply model MSC: Interpretive word文档可自由复制编辑Chapter 33/Aggregate Demand and Aggregate Supply 2191 Sec01- Aggregate Demand and Aggregate Supply-Three Key Facts About Economic FluctuationsMULTIPLE CHOICE1. Historical evidence for the U.S. economy indicates thata.recessions have occurred roughly once every six years since the 1960s.b.the unemployment rate usually decreases during a recession and increases shortly after therecession ends.c.real GDP usually remains roughly constant during a recession and decreases shortly after therecession ends.d.changes in real GDP over the business cycle are largely attributable to changes in investment overthe business cycle.ANS: D DIF: 2 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Economic fluctuations, investment MSC: Interpretive2. Which of the following is correct?a.Short run fluctuations in economic activity happen only in developing countries.b.During economic contractions most firms experience rising sales.c.Recessions come at regular intervals and are easy to predict.d.When real GDP falls, the rate of unemployment rises.ANS: D DIF: 1 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Facts about economic fluctuations MSC: Definitional3. Which of the following explains why production rises inmost years?a.increases in the labor forceb.increases in the capital stockc.advances in technological knowledged.All of the above are correct.ANS: D DIF: 1 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Growth MSC: Definitional4. Which of the following is most commonly used to monitor short-run changes in economic activity?a.the inflation rateb.real GDPc.aggregate demandd.aggregate supplyANS: B DIF: 1 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Economic fluctuations, real GDP MSC: Interpretive5. A relaively mild period of falling incomes and rising unemployment is called aa.depression.b.recession.c.expansion.d.business cycle.ANS: B DIF: 1 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Business cycle MSC: Definitional6. During recessionsa.workers are laid off.b.factories are idle.c.firms may find they are unable to sell all they produce.d.All of the above are correct.ANS: D DIF: 1 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Business cycle MSC: Definitional7. During a recession the economy experiencesa.rising employment and income.b.rising employment and falling income.c.rising income and falling employment.d.falling employment and income.ANS: D DIF: 1 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Business cycle MSC: Definitional8. When we say that economic fluctuations are “irregular and unpredictable,” we mean thata.the relationship between output and unemployment is erratic and difficult to characterize.b.when one macroeconomic variable that measures income or spending is falling, othermacroeconomic variables that measure income or spending are likely to be rising.c.recessions do not occur at regular intervals.d.All of the above are correct.ANS: C DIF: 2 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Economic fluctuations MSC: Interpretive9. Which of the following is correct?a.Economic fluctuations are easily predicted by competent economists.b.Recessions have never occurred very close together.c.Other measures of spending, income, and production do not fluctuate closely with real GDP.d.None of the above is correct.ANS: D DIF: 1 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Business cycle MSC: Definitional10. Which of the following statements is correct?a.Most economists use the model of aggregate demand and aggregate supply to analyze short-runeconomic fluctuations.b.Economic fluctuations are essentially unrelated to changes in business conditions.c.Economic fluctuations follow a regular, predictable pattern.d.All of the above are correct.ANS: A DIF: 1 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Economic fluctuations MSC: Interpretive11. During recessions which type of spending falls?a.consumption and investmentb.investment but not consumptionc.consumption but not investmentd.neither consumption nor investmentANS: A DIF: 1 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Facts about economic fluctuations MSC: Definitionalword文档可自由复制编辑Chapter 33/Aggregate Demand and Aggregate Supply 219312. Which of the following is correct?a.Over the business cycle consumption fluctuates more thaninvestment.b.Economic fluctuations are easy to predict.c.During recessions sales and profits tend to fall.d.Because of government policy the U.S. has suffered no recessions in the last 25 years.ANS: C DIF: 1 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Business cycle MSC: Definitional13. Recession come ata.regular intervals. During recessions consumption spending falls relatively more than investmentspending.b.regular intervals. During recessions investment spending falls relatively more than consumptionspending.c.irregular intervals. During recessions consumption spending falls relatively more thaninvestment spending.d.irregular intervals. During recessions investment spending falls relatively more thanconsumption spending.ANS: D DIF: 1 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Business cycle MSC: Definitional14. During recessionsa.sales and profits fall.b.sales and profits rise.c.sales rise, profits fall.d.profits fall, sales rise.ANS: A DIF: 1 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Business cycle MSC: Definitional15. Which of the following typically rises during a recession?a.garbage collectionb.unemploymentc.corporate profitsd.automobile salesANS: B DIF: 1 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Business cycle MSC: Definitional16. Real GDPa.is the current dollar value of all goods produced by the citizens of an economy within a given time.b.measures economic activity and income.c.is used primarily to measure long-run changes rather than short-run fluctuations.d.All of the above are correct.ANS: B DIF: 1 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Real GDP MSC: Definitional17. Real GDPa.moves in the same direction as unemployment.b.is not adjusted for inflation.c.measures economic activity and real income.d.All of the above are correct.ANS: C DIF: 1 REF: 33-1NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Real GDP MSC: Definitional。
曼昆《经济学原理》第5版全
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家庭
图1 ：循环流量图
收益
物品与 劳务出 售
企业
物品与劳务 市场
支出 物品与 劳务购 买 家庭 劳动，土地 和资本
的是边际修理（变速器）的收益与成本
由A情形到B情形激励的改变导致你决策的改变
12
人们如何相互交 易
人们如何相互交易
原理 5 :贸易可以使每个人的状况都变得更好
人们可以专门生产一种物品或劳务并用来交换其他
物品或劳务，而不必自给自足
国家之间也能从贸易与专业化中受益 将他们生产的物品出口而得到一个更好的价格 从国外进口更便宜的物品而不用在国内自己生产
原理 9 :当政府发行了过多货币时，物价上升
通货膨胀：物价总水平的上升 长期而言，通货膨胀总是由于货币数量的过度增长
而导致货币价值的下降所引起
政府创造货币的速度越快，通胀率越高
经济学十大原理
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整体经济如何运行
原理 10 :社会面临通货膨胀与失业之间的短期权衡 取舍
短期内（1-2年），许多经济政策朝相反的方向推
动通货膨胀与失业
其它因素使这种权衡取舍不那么明显，但这种权衡
取舍一直都存在
经济学十大原理
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参考资料：如何阅读本书
1. 上课之前先读书
你将从课堂上领会更多东西 2. 要总结，而不是划重点线 划重点线是一种消极的做法，它不能帮助你理解或 记忆。相反，用你自己的话总结每一节的内容，然 后与该章结尾的内容提要相比较
经济学十大原理
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内容提要
关于个同目标之间的权衡取舍 任何一种行为的成本可以用其所放弃的机会来衡
量
理性人通过比较边际成本与边际利益做出决策 人们根据他们所面临的激励改变自己的行为
曼昆经济学原理英文书
曼昆经济学原理英文书The Economics Principles by MankiwChapter 1: Ten Principles of EconomicsChapter 2: Thinking Like an EconomistChapter 3: Interdependence and the Gains from Trade Chapter 4: The Market Forces of Supply and Demand Chapter 5: Elasticity and Its ApplicationChapter 6: Supply, Demand, and Government Policies Chapter 7: Consumers, Producers, and Efficiency of Markets Chapter 8: Application: The Costs of TaxationChapter 9: Application: International TradeChapter 10: ExternalitiesChapter 11: Public Goods and Common Resources Chapter 12: The Design of the Tax SystemChapter 13: The Costs of ProductionChapter 14: Firms in Competitive MarketsChapter 15: MonopolyChapter 16: Monopolistic CompetitionChapter 17: OligopolyChapter 18: The Markets for Factors of Production Chapter 19: Earnings and DiscriminationChapter 20: Income Inequality and PovertyChapter 21: Introduction to MacroeconomicsChapter 22: Measuring a Nation's IncomeChapter 23: Measuring the Cost of LivingChapter 24: Production and GrowthChapter 25: Saving, Investment, and the Financial System Chapter 26: The Basic Tools of FinanceChapter 27: UnemploymentChapter 28: The Monetary SystemChapter 29: Money Growth and InflationChapter 30: Open-Economy Macroeconomics: Basic Concepts Chapter 31: A Macroeconomic Theory of the Open Economy Chapter 32: Aggregate Demand and Aggregate SupplyChapter 33: The Influence of Monetary and Fiscal Policy on Aggregate DemandChapter 34: The Short-Run Trade-Off between Inflation and UnemploymentChapter 35: The Theory of Consumer ChoiceChapter 36: Frontiers of MicroeconomicsChapter 37: Monopoly and Antitrust PolicyChapter 38: Oligopoly and Game TheoryChapter 39: Externalities, Public Goods, and Environmental Policy Chapter 40: Uncertainty and InformationChapter 41: Aggregate Demand and Aggregate Supply Analysis Chapter 42: Understanding Business CyclesChapter 43: Fiscal PolicyChapter 44: Money, Banking, and Central BankingChapter 45: Monetary PolicyChapter 46: Inflation, Disinflation, and DeflationChapter 47: Exchange Rates and the International Financial SystemChapter 48: The Short - Run Trade - Off between Inflation and Unemployment RevisitedChapter 49: Macroeconomic Policy: Challenges in the Twenty - First CenturyEpilogue: 14 Big IdeasNote: The chapter titles have been abbreviated for simplicity and brevity purposes.。
曼昆微观经济学第五版答案
曼昆微观经济学第五版答案【篇一：曼昆_微观经济学_原理_第五版_课后习题答案(修改)】/p> 4．你在篮球比赛的赌注中赢了100美元。
你可以选择现在花掉它或在利率为55%的银行中存一年。
现在花掉100美元的机会成本是什么呢?答：现在花掉100 美元的机会成本是在一年后得到105 美元的银行支付(利息+本金)。
7．社会保障制度为65岁以上的人提供收入。
如果一个社会保障的领取者决定去工作并赚一些钱，他(或她)所领到的社会保障津贴通常会减少。
a．提供社会保障如何影响人们在工作时的储蓄激励?答：社会保障的提供使人们退休以后仍可以获得收入，以保证生活。
因此，人们不用为不能工作时的生活费而发愁，人们在工作时期的储蓄就会减少。
b．收入提高时津贴减少的政策如何影响65岁以上的人的工作激励??答：这会使65 岁以上的人在工作中不再积极进取。
因为努力工作获得高收入反而会使得到的津贴减少，所以对65 岁以上的人的努力工作的激励减少了。
11．解释下列每一项政府活动的动机是关注平等还是关注效率。
在关注效率的情况下，讨论所涉及的市场失灵的类型。
a．对有线电视频道的价格进行管制。
答：这是关注效率，市场失灵的原因是市场势力的存在。
可能某地只有一家有线电视台，由于没有竞争者，有线电视台会向有线频道的消费者收取高出市场均衡价格的价格，这是垄断。
垄断市场不能使稀缺资源得到最有效的配置。
在这种情况下，规定有线电视频道的价格会提高市场效率。
b．向一些穷人提供可用来购买食物的消费券。
答：这是出于关注平等的动机，政府这样做是想把经济蛋糕更公平地分给每一个人。
c．在公共场所禁止抽烟。
答：这是出于关注效率的动机。
因为公共场所中的吸烟行为会污染空气，影响周围不吸烟者的身体健康，对社会产生了有害的外部性，而外部性正是市场失灵的一种情况，而这也正是政府在公共场所禁止吸烟的原因。
d．把美孚石油公司(它曾拥90%的炼油厂)分拆为几个较小的公司。
答：出于关注效率的动机，市场失灵是由于市场势力。
经济学原理第五版习题答案
答：Quentin偏好的电影是4部；Spike是3部；Ridley是2部；Martin是1部；Steven不愿意租任何电影。
C．中值室友的偏好是什么？答：中值室友是Ridley，其偏好是2部电影。
D．如果室友在有效结果和中值投票人的偏好之间进行投票，每个人会如何投票？哪一个结果会得到大多数票？答：Quentin和Spike会选择3部电影，其他三个室友会选择2部电影。
2部电影会得到大多数票。
E．如果一个室友提出了一个不同数量的电影建议，他的建议能战胜D中投票的赢者吗？答：他的建议不能战胜D中投票的赢者。
除了两部电影之外的任何选择都只会得到少数票。
F．在提供公共物品中多数原则能达到有效的结果吗？答：不能。
在提供公共物品时，中间投票者的偏好决定了投票的结果，这可能达到也可能达不到有效的结果。
10．一组运动员正在进行多日三项全能的竞赛。
他们第一天比赛长跑，第二天比赛游泳，第三天比赛自行车。
你知道运动员要完成三个项目中每一项顺序。
根据这个信息，请你安排整个竞赛的顺序。
你要满足以下条件：·运动员的顺序应该是可传递的：如果运动员A排在B之前，运动员B排在C之前，那么运动员A就一定排在C之前。
·如果在三场比赛中A都击败了B，A就应该排在B之前。
·任何两个运动员的排列顺序不取决于第三个运动员在结束排序之前是否已被淘汰出竞赛。
根据阿罗定理，只有三种能满足这些特征的运动员排序。
这三种排序是什么？这三种排序是合意的吗？为什么？你认为较好的排序日程是哪一种？你的排序使以上哪一个特征得不到满足？答：你可以只考虑某一项比赛的结果。
问题是，阿罗不可能定理排除了这种情况的可能性。
另一种是使用博达计数。
但这会使第三个特征得不到满足，因为运动员中途如果被淘汰，排序结果就将改变。
11．为什么两个党制的一个政党会不选择接近于中值选民？（提示：考虑投票中的弃权和政治捐款）答：在一个两党制的民主社会中，少数选民愿意为和他们观点相似的候选人提供资金支持。
曼昆经济学原理英文版文案加习题答案章
✍ the factors that determine a country’s productivity.✍ how a country’s policies influence its productivity growth. CONTEXT AND PURPOSE:Chapter 12 is the first chapter in a four-chapter sequence on the production of output in the long run. Chapter 12 addresses the determinants of the level and growth rate of output. We find that capital and labor are among the primary determinants of output. In Chapter 13, we address how saving andinvestment in capital goods affect the production of output, and in Chapter 14, we learn about some of the tools people and firms use when choosing capital projects in which to invest. In Chapter 15, we address the market for labor.The purpose of Chapter 12 is to examine the long-run determinants of both the level and the growth rate of real GDP per person. Along the way, we will discover the factors that determine the productivity of workers and address what governments might do to improve the productivity of their citizens. KEY POINTS:?Economic prosperity, as measured by GDP per person, varies substantially around the world. The average income in the world’s richest countries is more than ten times that in the world’s poorest countries. Because growth rates of real GDP also vary substantially, the relative positions of countries can change dramatically over time. ?The standard of living in an economy depends on the economy’s ability to produce goods and services. Productivity, in turn, depends on the amounts of physical capital, human capital, natural resources, and technological knowledge available to workers. ?Government policies can try to influence the economy’s growth rate in many ways: by encouraging saving and investment, encouraging investment from abroad, fostering education, promoting good health, maintaining property rights and political stability, allowing free trade, and promoting the research and development of new technologies. ?The accumulation of capital is subject to diminishing returns: The more capital an economy has, the less additional output the economy gets from an extra unit of capital. As a result, while higher saving leads to higher growth for a period of time, growth eventually slows down as capital, productivity, and income rise. Also because of diminishing returns, the return to capital is especially high in poor countries. Other things equal, these countries can grow faster because of the catch-up effect. ?Population growth has a variety of effects on economic growth. On the one hand, more rapid population growth may lower productivity by stretching the supply of natural resources and by reducing the amount of capital available for each worker. On the other hand, a larger population may enhance the rate of technological progress because there are more scientists and engineers. CHAPTER OUTLINE: I. Economic Growth around the World 2. Growth rates are also reported in the table. Japan has had the largest growth rate over time,2.65% per year (on average).Use Table 1 to make the point that a one-percentage point change in a country’s growth rate can make a significant difference over several generations. The powerfuleffects of compounding should be used to underscore the process of economicgrowth.3. Because of different growth rates, the ranking of countries by income per person changesover time.a. In the late 19th century, the United Kingdom was the richest country in the world.b. Today, income per person is lower in the United Kingdom than in the United States (aformer colony of the United Kingdom).B. FYI: Are You Richer Than the Richest American1. According to the magazine American Heritage, the richest American of all time is John B.Rockefeller, whose wealth today would be the equivalent of approximately $200 billion.2. Yet, because Rockefeller lived from 1839 to 1937, he did not get the chance to enjoy manyof the conveniences we take for granted today such as television, air conditioning, andmodern medicine.3. Thus, because of technological advances, the average American today may enjoy a “richer”life than the richest American who lived a century ago.C. FYI: A Picture Is Worth a Thousand Statistics1. This box presents three photos showing a typical family in three countries – the UnitedKingdom, Mexico, and Mali. Each family was photographed outside their home, together withall of their material possessions.2. These photos demonstrate the vast difference in the standards of living in these countries. II. Productivity: Its Role and DeterminantsA. Why Productivity Is So Important1. Example: Robinson Crusoea. Because he is stranded alone, he must catch his own fish, grow his own vegetables, andmake his own clothes.b. His standard of living depends on his ability to produce goods and services.2. Definition of productivity: the quantity of goods and services produced from eachunit of labor input.3. Review of Principle #8: A Country’s Standard of Living Depends on Its Ability to ProduceGoods and Services.B. How Productivity Is Determined1. Physical Capital per Workera. Definition of physical capital: the stock of equipment and structures used toproduce goods and services.b. Example: Crusoe will catch more fish if he has more fishing poles.2. Human Capital per Workera. Definition of human capital: the knowledge and skills that workers acquirethrough education, training, and experience.b. Example: Crusoe will catch more fish if he has been trained in the best fishing techniquesor as he gains experience fishing.3. Natural Resources per Workera. Definition of natural resources: the inputs into production that are provided bynature, such as land, rivers, and mineral deposits.b. Example: Crusoe will have better luck catching fish if there is a plentiful supply aroundhis island.4. Technological Knowledgea. Definition of technological knowledge: society’s understanding of the best waysto produce goods and services.b. Example: Crusoe will catch more fish if he has invented a better fishing lure.C. FYI: The Production Function1. A production function describes the relationship between the quantity of inputs used inproduction and the quantity of output from production.2. The production function generally is written like this:where Y = output, L = quantity of labor, K = quantity of physical capital, H = quantity of human capital, N = quantity of natural resources, A reflects the available productiontechnology, and F () is a function that shows how inputs are combined to produce output. 3. Many production functions have a property called constant returns to scale.a. This property implies that as all inputs are doubled, output will exactly double.b. This implies that the following must be true: where x = 2 if inputs are doubled.c. This also means that if we want to examine output per worker we could set x = 1/L and we would get the following:This shows that output per worker depends on the amount of physical capital per worker (K /L ), the amount of human capital per worker (H /L ), and the amount of naturalresources per worker (N /L ).4. Case Study: Are Natural Resources a Limit to Growth a. This section points out that as the population has grown over time, we have discoveredways to lower our use of natural resources. Thus, most economists are not worried about shortages of natural resources.1. Because capital is a produced factor of production, a society can change the amount ofcapital that it has. 2. However, there is an opportunity cost of doing so; if resources are used to produce capital goods, fewer goods and services are produced for current consumption.B. Diminishing Returns and the Catch-Up Effect 1. Definition of diminishing returns: the property whereby the benefit from an extraunit of an input declines as the quantity of the input increases .b. This can be seen in Figure 1, which shows how the amount of capital per workerdetermines the amount of output per worker, holding constant all other determinants of output.c. Thus, if workers already have a large amount of capital to work with, giving them an additional unit of capital will not increase their productivity by much.d. In the long run, a higher saving rate leads to a higher level of productivity and income,but not to higher growth rates in these variables. 2. An important implication of diminishing returns is the catch-up effect.a. Definition of catch-up effect: the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich .b. When workers have very little capital to begin with, an additional unit of capital will increase their productivity by a great deal.C. Investment from Abroad1. Saving by domestic residents is not the only way for a country to invest in new capital.2. Investment in the country by foreigners can also occur.a. Foreign direct investment occurs when a capital investment is owned and operated by a foreign entity.b. Foreign portfolio investment occurs when a capital investment is financed with foreignmoney but operated by domestic residents.3. Some of the benefits of foreign investment flow back to foreign owners. But the economy stillexperiences an increase in the capital stock, which leads to higher productivity and higherwages.4. The World Bank is an organization that tries to encourage the flow of investment to poorcountries.a. The World Bank obtains funds from developed countries such as the United States andmakes loans to less-developed countries so that they can invest in roads, sewer systems,schools, and other types of capital.b. The World Bank also offers these countries advice on how best to use these funds.D. Education1. Investment in human capital also has an opportunity cost.a. When students are in class, they cannot be producing goods and services forconsumption.b. In less-developed countries, this opportunity cost is considered to be high; as a result,children often drop out of school at a young age.2. Because there are positive externalities in education, the effect of lower education on theeconomic growth rate of a country can be large.3. Many poor countries also face a “brain drain”—the best educated often leave to go to othercountries where they can enjoy a higher standard of living.E. Health and Nutrition1. Human capital can also be used to describe another type of investment in people:expenditures that lead to a healthier population.2. Other things being equal, healthier workers are more productive.3. Making the right investments in the health of the population is one way for a nation toincrease productivity.F. Property Rights and Political Stability1. Protection of property rights and promotion of political stability are two other important waysthat policymakers can improve economic growth.2. There is little incentive to produce products if there is no guarantee that they cannot betaken. Contracts must also be enforced.3. Countries with questionable enforcement of property rights or an unstable political climatewill also have difficulty in attracting foreign (or even domestic) investment.4. In the News: Does Food Aid Help or Hurta. Economic policies designed to improve productivity sometimes have adverse unintendedeffects.b. This article from The Wall Street Journal, Real Time Economics blog discusses economicresearch on the effects of food aid to poor countries on armed conflict in a recipientcountry.G. Free Trade1. Some countries have tried to achieve faster economic growth by avoiding transacting withthe rest of the world.2. However, trade allows a country to specialize in what it does best and thus consume beyondits production possibilities.3. When a country trades wheat for steel, it is as well off as it would be if it had developed anew technology for turning wheat into steel.4. The amount a nation trades is determined not only by government policy but also bygeography.a. Countries with good, natural seaports find trade easier than countries without thisresource.b. Countries with more than 80 percent of their population living within 100 kilometers of acoast have an average GDP per person that is four times as large as countries with lessthan 20 percent of their population living near a coast.H. Research and Development1. The primary reason why living standards have improved over time has been due to largeincreases in technological knowledge.2. Knowledge can be considered a public good.3. The U.S. government promotes the creation of new technological information by providingresearch grants and providing tax incentives for firms engaged in research.4. The patent system also encourages research by granting an inventor the exclusive right toproduce the product for a specified number of years.I. Population Growth1. Stretching Natural Resourcesa. Thomas Malthus (an English minister and early economic thinker) argued that an ever-increasing population meant that the world was doomed to live in poverty forever.b. However, he failed to understand that new ideas would be developed to increase theproduction of food and other goods, including pesticides, fertilizers, mechanizedequipment, and new crop varieties.2. Diluting the Capital Stocka. High population growth reduces GDP per worker because rapid growth in the number ofworkers forces the capital stock to be spread more thinly.b. Countries with a high population growth have large numbers of school-age children,placing a burden on the education system.3. Some countries have already instituted measures to reduce population growth rates.4. Policies that foster equal treatment for women should raise economic opportunities forwomen leading to lower rates of population.5. Promoting Technological Progressa. Some economists have suggested that population growth has driven technologicalprogress and economic prosperity.b. In a 1993 journal article, economist Michael Kremer provided evidence that increases inSOLUTIONS TO TEXT PROBLEMS:Quick Quizzes1. The approximate growth rate of real GDP per person in the United States is 1.77 percent(based on Table 1) from 1870 to 2010. Countries that have had faster growth include Japan,Brazil, Mexico, China, Germany, and Canada; countries that have had slower growth includeArgentina, India, United Kingdom, Indonesia, Pakistan, and Bangladesh.2. The four determinants of a country’s productivity are: (1) physical capital, which is the stockof equipment and structures that are used to produce goods and services; (2) human capital,which is the knowledge and skills that workers acquire through education, training, andexperience; (3) natural resources, which are inputs into production that are provided bynature, such as land, rivers, and mineral deposits; and (4) technological knowledge, which issociety’s understanding of the best ways to produce goods and services.3. Ways in which a government policymaker can try to raise the growth in living standards in asociety include: (1) investing more current resources in the production of capital, which hasthe drawback of reducing the resources used for producing current consumption; (2)encouraging investment from abroad, which has the drawback that some of the benefits ofinvestment flow to foreigners; (3) increasing education, which has an opportunity cost in thatstudents are not engaged in current production; (4) protecting property rights and promotingpolitical stability, which has the drawback of enforcement costs; (5) pursuing outward-oriented policies to encourage free trade, which may have the drawback of making a countrymore dependent on its trading partners; (6) reducing the rate of population growth, whichmay have the drawbacks of reducing individual freedom and lowering the rate oftechnological progress; and (7) encouraging research and development, which (likeinvestment) may have the drawback of reducing current consumption.Questions for Review1. The level of a nation’s GDP measures both the total income earned in the economy and thetotal expenditure on the economy’s output of goods and services. The level of real GDP is agood gauge of economic prosperity, and the growth rate of real GDP is a good gauge ofeconomic progress. You would rather live in a nation with a high level of GDP, even though ithad a low growth rate, than in a nation with a low level of GDP and a high growth rate,because the level of GDP is a measure of prosperity.2. The four determinants of productivity are: (1) physical capital, which is the stock ofequipment and structures that are used to produce goods and services; (2) human capital,which consists of the knowledge and skills that workers acquire through education, training,and experience; (3) natural resources, which are inputs into production that are provided bynature; and (4) technological knowledge, which is society’s understanding of the best waysto produce goods and services.3. A college degree is a form of human capital. The skills learned in earning a college degreeincrease a worker's productivity.4. Higher saving means fewer resources are devoted to consumption and more to producingcapital goods. The rise in the capital stock leads to rising productivity and more rapid growthin GDP for a while. In the long run, the higher saving rate leads to a higher standard of living.A policymaker might be deterred from trying to raise the rate of saving because doing sorequires that people reduce their consumption today and it can take a long time to get to ahigher standard of living.5. A higher rate of saving leads to a higher growth rate temporarily, not permanently. In theshort run, increased saving leads to a larger capital stock and faster growth. But as growthcontinues, diminishing returns to capital mean growth slows down and eventually settlesdown to its initial rate, though this may take several decades.6. Removing a trade restriction, such as a tariff, would lead to more rapid economic growthbecause the removal of the trade restriction acts like an improvement in technology. Freetrade allows all countries to consume more goods and services.7. The higher the rate of population growth, the lower is the level of GDP per person becausethere's less capital per person, hence lower productivity.8. The U.S. government tries to encourage advances in technological knowledge by providingresearch grants through the National Science Foundation and the National Institute of Health,with tax breaks for firms engaging in research and development, and through the patentsystem.Quick Check Multiple Choice1. b2. c3. d4. c5. c6. aProblems and Applications1. The facts that countries import many goods and services yet must produce a large quantityof goods and services themselves to enjoy a high standard of living are reconciled by notingthat there are substantial gains from trade. To be able to afford to purchase goods fromother countries, an economy must generate income. By producing many goods and services,then trading them for goods and services produced in other countries, a nation maximizes itsstandard of living.2. a. More investment would lead to faster economic growth in the short run.b. The change would benefit many people in society who would have higher incomes as theresult of faster economic growth. However, there might be a transition period in whichworkers and owners in consumption-good industries would get lower incomes, andworkers and owners in investment-good industries would get higher incomes. In addition, some group would have to reduce their spending for some time so that investment could rise.3. a. Private consumption spending includes buying food and buying clothes; privateinvestment spending includes people buying houses and firms buying computers. Manyother examples are possible. Education can be considered as both consumption andinvestment.b. Government consumption spending includes paying workers to administer governmentprograms; government investment spending includes buying military equipment andbuilding roads. Many other examples are possible.4. The opportunity cost of investing in capital is the loss of consumption that results fromredirecting resources toward investment. Over-investment in capital is possible because of diminishing marginal returns. A country can "over-invest" in capital if people would prefer to have higher consumption spending and less future growth. The opportunity cost of investing in human capital is also the loss of consumption that is needed to provide the resources for investment. A country could "over-invest" in human capital if people were too highlyeducated for the jobs they could get for example, if the best job a Ph.D. in philosophy could find is managing a restaurant.5. a. The United States benefited from the Chinese and Japanese investment because it madeour capital stock larger, increasing our economic growth.b. It would have been better for Americans to make the investments because then theywould have received all of the returns on the investments, instead of the returns going to China and Japan.6. Greater educational opportunities for women could lead to faster economic growth in thesedeveloping countries because increased human capital would increase productivity and there would be external effects from greater knowledge in the country. Second, increasededucational opportunities for young women may lower the population growth rate because such opportunities raise the opportunity cost of having a child.7. a. Individuals with higher incomes have better access to clean water, medical care, andgood nutrition.b. Healthier individuals are likely to be more productive.c. Understanding the direction of causation will help policymakers place proper emphasis onthe programs that will achieve both greater health and higher incomes.8. Peace would promote economic growth because it is an indication that property rights will berespected in the future. Armed conflict and the threat of a revolutionary government reduce domestic residents' incentive to save, invest, and start new businesses. Moreover, foreigners have less incentive to invest in the country.Easy taxes would promote economic growth because they result in citizens and businesses retaining a greater share of the income they earn and, thus, being able to save and invest a greater portion of that income.A tolerable administration of justice would promote economic growth because it wouldensure the maintenance of property rights, which encourages domestic saving andinvestment from abroad.。