金融英语中级经济学-3及答案解析.doc

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1、金融英语中级经济学-3 及答案解析(总分：140.00，做题时间：90 分钟)一、BSECTION ONE/B(总题数：10，分数：20.00)1.The possible reason for commercial banks to hold excess reserves is _. (a)they have attracted too many deposits. (b)they could not find enough suitable borrowers. (c)they have borrowed too much from the central bank. (d)All of

2、 the above.（分数：2.00）A.B.C.D.2.If the price of a good changes, both the substitution effect and the income effect reinforce each other, then the good is a(n) _. (a)normal good. (b)inferior good. (c)Giffen good. (d)None of the above.（分数：2.00）A.B.C.D.3.If the demand for CDs is more elastic than the sup

3、ply, a 3-tax per CD will increase the consumer price by _. (a)3. (b)more than 1.50, but less than 3. (c)1.50. (d)less than 1.50.（分数：2.00）A.B.C.D.4.The expansionary fiscal policy has _ (a)lessened the economic recession but increased the government debt. (b)lessened the economic recession and decreas

4、ed the government debt. (c)worsened inflation but decreased the government debt. (d)lessened inflation but increased the government debt.（分数：2.00）A.B.C.D.5.Suppose the economy is running at the level of potential GDP, an increase in government spending in the long run will _ the price level and _ th

5、e output level. (a)increase, not change (b)increase, increase (c)increase, decrease (d)decrease, increase（分数：2.00）A.B.C.D.6.If a market is in equilibrium _. (a)buyers and sellers can buy and sell all they wish at the current price. (b)there is no tendency for the price to rise or fall. (c)the quanti

6、ty supplied equals the quantity demanded. (d)All of the above are correct.（分数：2.00）A.B.C.D.7.If the marginal rate of technological substitution (MRTS) is more than the price ratio of labor over capital (w/r), then to minimize cost the firm should _ the input of capital and _ the input of labor. (a)i

7、ncrease, decrease (b)decrease, increase (c)decrease, decrease (d)increase, increase（分数：2.00）A.B.C.D.8.Tom cannot tell the difference between Coke and Pepsi. For Tom, these goods are _. (a) perfect substitutes. (b) perfect complements. (c) necessities. (d) None of the above.（分数：2.00）A.B.C.D.9.Open-ma

8、rket operations refer to _. (a)loans from commercial banks to corporations and consumers. (b)inter-bank loans. (c)changes in interest rates caused by the changes in commercial bank loans. (d)buying and selling governmental securities by the central bank.（分数：2.00）A.B.C.D.10.A person who is waiting fo

9、r the return to work belongs to _ (a)the employed. (b)the unemployed. (c)non-labor force. (d)those who have lost confidence.（分数：2.00）A.B.C.D.二、BSECTION TWO/B(总题数：6，分数：120.00)11.The world producer price for baseballs is 24 per dozen, and almost all of them are produced outside the U.S. Suppose the U.

10、S demand curve is QD=100,000-2,000P, where P is price per dozen, and Q is measured in dozens. The U. S domestic supply curve is QS=-10,000 + 1,000P.(a) Before a tariff is imposed, what is the U. S equilibrium price? Domestic consumption? Domestic production? Imports?(b)Congress has decided to help t

11、he baseball manufacturing industry for national security reasons, and it imposes a tariff of 6 per dozen. What are the new equilibrium price, domestic consumption, domestic production, and imports?（分数：20.00）_12.A medium-sized city has two major industries: financial services and manufacturing of ele

12、ctronic equipment. Suppose that restrictions on interstate competition in the market for financial services lead to a large expansion of the financial services sector in the city. (a)What effect do you predict that this increase in jobs would have oil wages and housing prices in the city? (b)What ef

13、fect do you think there would be on the manufacturing sector in the city? Would you expect that manufacturing employment would rise or fall?（分数：20.00）_13.You are deciding whether to purchase a used car. The price of the car is 1,400 and you expect the car to last for four years. You have determined

14、that the value of the flow of services you will receive from the car in each of the four years is 500. The interest rate is 20 percent. (Assuming that all figures are real terms.) (a)Without discounting future cash flows and benefit streams, is the benefit of buying this car greater than the cost? (

15、b)When costs and benefits are appropriately valued, what is the net present value of this investment? Should you buy the car?（分数：20.00）_14.Explain: “Ms Smith diminishes the national income by marrying her cook“, hi what way is this true by definition of GDP? Is this one of the problems with the use

16、of GDP as a measure of social welfare?（分数：20.00）_15.Assume that GDP grew from 120 billion in 1994 to 160 billion in 1995 and the GDP deflator from 100 in 1994 to 130 in 1995. (a)Calculate the rate of growth of nominal GDP for 1995. (b)Calculate the rate of growth of real CDP for 1995. (c)What is the

17、 inflation rate for 1995?（分数：20.00）_16.Explain: “Equal increases in government spending and tax revenues of n dollars will increase the equilibrium GDP by n dollars“. Does this hold true regardless of the size of the MPS?（分数：20.00）_金融英语中级经济学-3 答案解析(总分：140.00，做题时间：90 分钟)一、BSECTION ONE/B(总题数：10，分数：20.

18、00)1.The possible reason for commercial banks to hold excess reserves is _. (a)they have attracted too many deposits. (b)they could not find enough suitable borrowers. (c)they have borrowed too much from the central bank. (d)All of the above.（分数：2.00）A.B.C.D. 解析：2.If the price of a good changes, bot

19、h the substitution effect and the income effect reinforce each other, then the good is a(n) _. (a)normal good. (b)inferior good. (c)Giffen good. (d)None of the above.（分数：2.00）A. B.C.D.解析：3.If the demand for CDs is more elastic than the supply, a 3-tax per CD will increase the consumer price by _. (a

20、)3. (b)more than 1.50, but less than 3. (c)1.50. (d)less than 1.50.（分数：2.00）A.B.C.D. 解析：4.The expansionary fiscal policy has _ (a)lessened the economic recession but increased the government debt. (b)lessened the economic recession and decreased the government debt. (c)worsened inflation but decreas

21、ed the government debt. (d)lessened inflation but increased the government debt.（分数：2.00）A. B.C.D.解析：5.Suppose the economy is running at the level of potential GDP, an increase in government spending in the long run will _ the price level and _ the output level. (a)increase, not change (b)increase,

22、increase (c)increase, decrease (d)decrease, increase（分数：2.00）A. B.C.D.解析：6.If a market is in equilibrium _. (a)buyers and sellers can buy and sell all they wish at the current price. (b)there is no tendency for the price to rise or fall. (c)the quantity supplied equals the quantity demanded. (d)All

23、of the above are correct.（分数：2.00）A.B.C.D. 解析：7.If the marginal rate of technological substitution (MRTS) is more than the price ratio of labor over capital (w/r), then to minimize cost the firm should _ the input of capital and _ the input of labor. (a)increase, decrease (b)decrease, increase (c)de

24、crease, decrease (d)increase, increase（分数：2.00）A.B. C.D.解析：8.Tom cannot tell the difference between Coke and Pepsi. For Tom, these goods are _. (a) perfect substitutes. (b) perfect complements. (c) necessities. (d) None of the above.（分数：2.00）A. B.C.D.解析：9.Open-market operations refer to _. (a)loans

25、from commercial banks to corporations and consumers. (b)inter-bank loans. (c)changes in interest rates caused by the changes in commercial bank loans. (d)buying and selling governmental securities by the central bank.（分数：2.00）A.B.C.D. 解析：10.A person who is waiting for the return to work belongs to _

26、 (a)the employed. (b)the unemployed. (c)non-labor force. (d)those who have lost confidence.（分数：2.00）A.B. C.D.解析：二、BSECTION TWO/B(总题数：6，分数：120.00)11.The world producer price for baseballs is 24 per dozen, and almost all of them are produced outside the U.S. Suppose the U.S demand curve is QD=100,000-

27、2,000P, where P is price per dozen, and Q is measured in dozens. The U. S domestic supply curve is QS=-10,000 + 1,000P.(a) Before a tariff is imposed, what is the U. S equilibrium price? Domestic consumption? Domestic production? Imports?(b)Congress has decided to help the baseball manufacturing ind

28、ustry for national security reasons, and it imposes a tariff of 6 per dozen. What are the new equilibrium price, domestic consumption, domestic production, and imports?（分数：20.00）_正确答案：()解析：(a)Without a tariff, the domestic equilibrium price is the world price of 24. The domestic consumption equilibr

29、ium is QD(24)=100,000-2,000(24)=52,000. Domestic supply is QS(24)=-10,000+1,000(24)=14,000, so imports equal 38,000.(b)The new equilibrium price is 24+6=30. After the tariff, domestic demand is Q D(30)= 100,000-2,000(30)=40,000, and domestic supply is QS(30)=-10,000+1,000(30) = 20,000; imports there

30、fore fall to 20,000.12.A medium-sized city has two major industries: financial services and manufacturing of electronic equipment. Suppose that restrictions on interstate competition in the market for financial services lead to a large expansion of the financial services sector in the city. (a)What

31、effect do you predict that this increase in jobs would have oil wages and housing prices in the city? (b)What effect do you think there would be on the manufacturing sector in the city? Would you expect that manufacturing employment would rise or fall?（分数：20.00）_正确答案：()解析：(a)An increase in the deman

32、d for labor should increase wages in equilibrium. Higher wages will attract new workers to the city, as well as raise the incomes of all workers in the city. This, in turn, should increase the demand for housing, and thus raise the price of housing. (b)Wages in the manufacturing sector would presuma

33、bly rise due to competition for workers from other sectors. Increased housing would also raise the wages needed to attract new workers from other cities. Thus, this citys manufacturing sector faces higher costs than manufacturing in the other cities. If file electronics industry is mobile, firms are

34、 likely to transfer production to other cities. Hence, manufacturing employment will likely fall when employment in the other sectors rises.13.You are deciding whether to purchase a used car. The price of the car is 1,400 and you expect the car to last for four years. You have determined that the va

35、lue of the flow of services you will receive from the car in each of the four years is 500. The interest rate is 20 percent. (Assuming that all figures are real terms.) (a)Without discounting future cash flows and benefit streams, is the benefit of buying this car greater than the cost? (b)When cost

36、s and benefits are appropriately valued, what is the net present value of this investment? Should you buy the car?（分数：20.00）_正确答案：()解析：(a)The stream of benefits for the four years is 500+500+500+500=2,000.The stream of costs over the four years is 1,400+100+100+100=1,700.Therefore, the benefits outw

37、eigh the costs.(b)The PV of the benefit stream is 500/(1+20%)+500/(1+20%)2+500/(1+20%) 3+500/(1+ 20%)4=416.67+347.22+289.35+241.13=1,294.37.The cost of the car is 1,400. The net present value is negative (1,294.37-1,400=-105.63), and therefore you should not buy the car.14.Explain: “Ms Smith diminis

38、hes the national income by marrying her cook“, hi what way is this true by definition of GDP? Is this one of the problems with the use of GDP as a measure of social welfare?（分数：20.00）_正确答案：()解析：When Ms Smith employed her cook, the meals he produced were part of his employment contract. The transacti

39、on between the two would be a market one. The value he added to the food he prepared would form part of GDP. Once Ms Smith realised that there was more to her cook than just his meals and she married him, presumably the employment contract would fall away. Although the cook would still add the same

40、value to the meals he prepared, he would not charge for the service nor would he render a tax return in respect of these cooking activities. The activity would now be classified as a non-market one. The activities are now “within the family“ and so are not included in the national income and to that

41、 extent the act of marriage has led to a fall in GDP. Some would equate the creation of GDP with the attainment of social welfare. However, although GDP does provide a relatively good measure of economic or material wellbeing, it is an imperfect indicator of social welfare. Neither Ms Smiths economi

42、c nor her social wellbeing has been altered by her marriage to her cook (at least not as regards the cookery services provided by her cook/husband).15.Assume that GDP grew from 120 billion in 1994 to 160 billion in 1995 and the GDP deflator from 100 in 1994 to 130 in 1995. (a)Calculate the rate of g

43、rowth of nominal GDP for 1995. (b)Calculate the rate of growth of real CDP for 1995. (c)What is the inflation rate for 1995?（分数：20.00）_正确答案：()解析：(a)The growth rate of nominal GDP 1995=(nominal GDP1995-nominal GDP1994)/nominal GDP1994100%=(160b-120b)/120b100%=33.3%(b)Real GDP1994=120 b/100100=120 bRe

44、al GDP1995=160b/130100=123.1 bThe growth rate of real GDP1995=(real GDP1995-real GDP1994)/real GDP1994100%=(123.1b-120b)/120b100%=19.3%(c)Inflation rate for 1995 = (P1995- P1994)/P1994100%=(130-100)/100100%=30%16.Explain: “Equal increases in government spending and tax revenues of n dollars will inc

45、rease the equilibrium GDP by n dollars“. Does this hold true regardless of the size of the MPS?（分数：20.00）_正确答案：()解析：Yes, this is true. When government spending changes, the additional income generated enters the income stream immediately from the first expenditure round. Tax changes of equal value do not have an equivalent impact on expenditure in the first round. This is because taxes impact on disposable income first and then upon expenditure. Suppose MPS is 0.1 and let n=100. The question suggests that gov