Macroeconomics 4th Edition Krugman 1464110379 9781464110375 Test Bank
Macroeconomics 4th Edition Krugman 1464110379 9781464110375 Test Bank
Macroeconomics 4th Edition Krugman 1464110379 9781464110375 Test Bank
Page 1
Full all chapters instant download please go to Solutions Manual, Test Bank site: downloadlink.org
7. In constructing a model, economists:
A) might use a computer simulation.
B) avoid making any assumptions.
C) assume that all relevant factors are constantly changing. D) are prohibited from
using mathematics.
8. A simplified version of reality that is used to clarify economic situations is called a(n): A)
economic fact.
B) current event.
C) model.
D) scarce resource.
9. An economic model:
A) is useful for explaining past economic conditions but not for predicting.
B) often leads to faulty conclusions because of the ceteris paribus assumption.
C) allows nothing to change in the economic situation that is being described.
D) is a simplified version of reality used to understand real-world economic
conditions.
Page 3
B) provides earnings to its owner based on payments made by people on their home
loans.
C) the Federal Reserve uses to implement monetary policy.
D) is an important part of the circular-flow diagram.
13. Before 2000, investors were reluctant to buy mortgage-backed securities because: A)
economic models predicted that they were bad investments.
B) they were illegal in many states.
C) they could not calculate the risk of losing money on mortgage-backed securities.
D) it was difficult to obtain the foreign currencies that were required for purchasing
them.
14. Investors will lose money on mortgage-backed securities if: A) interest rates are too low.
B) homeowners don't pay their mortgages.
C) homeowners pay off their mortgages early.
D) the average price of a house increases too rapidly.
Page 4
Use the following to answer questions 18 -20:
18. (Table: Production Possibilities Schedule I) Look at the table Production Possibilities
Schedule I. If the economy produces two units of consumer goods per period, it also
can produce at most units of capital goods per period.
A) 30
B) 28
C) 24
D) 18
19. (Table: Production Possibilities Schedule I) Look at the table Production Possibilities
Schedule I. If the economy produces 10 units of capital goods per period, it also can
produce at most units of consumer goods per period.
A) 5
B) 4
C) 3
D) 2
20. (Table: Production Possibilities Schedule I) Look at the table Production Possibilities
Schedule I. The opportunity cost of producing the fourth unit of consumer goods is
units of capital goods.
A) 2
B) 4
C) 6
D) 8
Page 5
Another document from Scribd.com that is
random and unrelated content:
“I will wait for the dawn and read thee thy fortune,” I said, “and
charge thee nothing for it but a kick to help thee on thy way.”
He laughed again at that.
“Thou provest thyself an ass,” said he, and refilled and lit his pipe and
smoked on silently.
I lay awake near him, because, churl as he appeared, I felt the
advantage of any human companionship in these beast-haunted thickets.
At last the light of dawn penetrated a little to where we rested, and
when it was broad enough to distinguish objects by, I rolled upon my
elbow and scrutinised my companion closely.
“Good morrow, then, burner of charcoal.”
He turned to me, a leering smile suspended on his lips.
“Comment?” said he.
“But I am a palmist, my friend, as you observe.”
He looked at his stunted and blackened fists.
“Ah! si fait vraiment. That is to tell my past condition of poverty, not
my fortune.”
“The rest shall come. Observe my fitness for my post. You are from
the forests of Nontron.”
He started and stared.
“Truly I have no love for spies,” he muttered, dismayed.
It was my turn to laugh. I had hazarded a bold guess. That he was
from the woods rather than from the Landes his gift of seeing through
the darkness convinced me. Then, if from the woods, why not from that
part of the province where they stretched thickest and most meet for his
trade?
“Now,” said I, “for what follows. It comes to your ears that Guienne is
hatching a fine breed of maggots from the carcasses of dead aristocrats;
that there is a feast of rich fragments toward. You will have your share;
you will eat of these aristocrats that have so long fed on you. That is a
very natural resolve. But in a Republic of maggots, as in all other
communities, there is always a proportion of the brood that will fatten
unduly at the expense of its fellows. These despots by constitution
appropriate the most succulent parts; they wax thick and strong, and,
finally, they alone of the swarm hatch out into flies, while the rest perish
undeveloped.”
“It is a cursed parable,” he said, sullenly. “I do not comprehend you.”
“I speak of the people, my friend—of whom you are not one that will
fatten.”
“And why, and why?”
“You have scruples. You decry at the outset the methods of this select
clique of the Republic that has the instinct to prosper. If I congratulate
you on the possession of a conscience, I must deplore in anticipation the
sacrifice of yet another martyr to that truism which history repeats as
often as men forget it.”
“What truism, sayst thou?”
“That swinish Fortune will love the lusty bully that drains her, though
the bulk of the litter starve.”
He spat savagely on the ground.
“I do not comprehend,” he muttered again.
“Well,” I said, “at least let us hope there is an especial Paradise
reserved for the undeveloped maggots.”
He rose and stood brooding a moment; then looked away from me and
cried morosely, “Get up!”
To my astonishment, from a sort of cradle of roots to the farther side
of the tree a young girl scrambled to her feet at his call, and stood
yawning and eyeing me loweringly.
“Your daughter?” said I.
“Yes,” he answered, “she is my daughter. What then?”
I jumped up in some suppressed excitement.
“I recall my words,” I said. “You have a chance, after all, down there
in Bordeaux. And now I see that it is a thief that fears a spy.”
I pointed at the wench. She was dressed, ridiculously, inappropriately,
in a silk gown of a past fashion, but rich in quality, and decorated with a
collar of point-lace. Out of this her dirty countenance, thatched with a
villainous mop of hair, stuck grotesquely; and the skirt of the dress had
been roughly caught up to disencumber her bare feet.
The man stamped on the ground.
“I do not fear you!” he cried furiously, “and I am no thief!”
I laughed derisively.
“But it is true!” he shouted. “A young lady we met in the woods of
Coutras would exchange it for Nannette’s jupon; and why the devil
should we deny her?”
My heart gave a sudden swerve.
“What was she like, this lady?” I said.
The fellow glanced sulkily askance at me.
“Does not the spy know?” he said.
“Perhaps he does. Say this demoiselle was slender and of a reasonable
height; that she had brown hair, and grey eyes under dark brows; that her
face was of a cold, transparent whiteness; that she spoke with a certain
soft huskiness in her voice.”
He cried under his breath, with a note of fright, “The devil is in this
man!”
I laughed and took off my hat and made the two a bow.
“To your quick advancement in Bordeaux!” I said.
He stared a moment, seemed to hesitate; then, roughly summoning the
girl to follow him, strode off through the wood. The moment they were
out of sight I sat down again to ponder.
Was it true, then, that these peasants had met Carinne—that they had
helped her to a disguise—for what purpose? She must have been in the
woods whilst I was there—accursed destiny that kept us apart! At least I
must return to them at once and seek her.
I broke into a queer embarrassed fit of laughter.
What self-ordained mission was this? What was my interest in the girl,
or how would she not resent, perhaps, the insolence of my interference?
She had no claim upon my protection or I upon her favour.
Very well and very well—but I was going to seek her, nevertheless.
Such queer little threads of irresponsible adventure pulled me in these
days.
But, at first for my hunger. It was a great voice in an empty house. It
would not be refused or put off with a feast of sentiment. Eat I must, if it
was only of a hunk of sour pease-bread.
Suddenly I thought of that bestial apparition at the wood-skirt. There
had been a liquid “yong” in its snarl, as if it could not forbear the action
of gluttonous jaws even while they were setting at an intruder. Perhaps
the remains of a goat——!
I started running towards the point at which, I believed, I had entered
amongst the trees. Very shortly I emerged into the open, and saw the
cornfield shimmering violet before me in the dawn. I beat up and down
amongst the standing grain, and all in a moment came upon that I sought.
A goat it might have been (or a scapegoat bearing the sins of the people)
for anything human in its appearance. Yet it was the body of a man—of a
great man, too, in his day, I believe—that lay before me in the midst of a
trampled crib of stalks, but featureless, half-devoured—a seething
abomination.
Now, in the placid aftermath of my fortunes, I can very easily shudder
over that thought of the straits to which hunger will drive one. Then, I
only know that through all the abhorrence with which I regarded the
hideous remains, the sight of an untouched satchel flung upon the ground
beside them thrilled me with hope. I stooped, had it in my hands,
unbuckled it with shaking fingers. It was full to choking of bread and
raisins and a little flask of cognac. Probably the poor wretch had not
thought it worth his while to satisfy the needs of an existence he was
about to put an end to. For the horn handle of a knife, the blade of which
was hidden in the decaying heart of the creature, stood out slackly from a
hoop of ribs.
I withdrew into the wood, and without a scruple attacked the
provisions. It was a dry and withered feast; yet I had been fastidiously
critical of many a service aux repas at Versailles that gave me not a tithe
of the pleasure I now enjoyed. And at the last I drank to the white
Andromeda whose Perseus I then and there proclaimed myself to be.
CHAPTER VI.
THE HERD OF SWINE.