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Flash Quiz
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1
Which of the following is a stock?
A)saving
B)income
C)consumption
D)wealth
E)investment
2
Saving is a(n) _____ and wealth is a(n) ______.
A)flow; flow
B)flow; stock
C)asset; liability
D)liability; asset
E)stock; flow
3
Life-cycle saving is saving:
A)to meet long-term objectives, such as retirement, college attendance, or the purchase of a home.
B)for protection against unexpected setbacks, such as the loss of a job or a medical emergency.
C)for the purpose of leaving an inheritance.
D)to pay life-insurance premiums.
E)by older people to induce younger people to care for them.
4
Saving by households and businesses is called ______ saving.
A)private
B)public
C)national
D)aggregate
E)bequest
5
______ saving equals _____ saving plus _____ saving.
A)national; private; public
B)public; national; private
C)private; national; public
D)life-cycle; bequest; precautionary
E)precautionary; bequest; life-cycle
6
Public saving is negative when:
A)there is a government budget surplus.
B)there is a government budget deficit.
C)the government's budget is balanced.
D)after-tax income of households and businesses is greater than consumption expenditures.
E)after-tax income of households and businesses is less than consumption expenditure.
7
Holding other factors constant, an increase in the tax rate on revenue generated by capital will:
A)increase national saving.
B)decrease national saving.
C)increase investment.
D)decrease investment.
E)increase private saving.
8
In the market for saving, the price is the:
A)relative price.
B)real interest rate.
C)nominal interest rate.
D)inflation rate.
E)real wage.
9
The value of assets minus liabilities equals:
A)income.
B)wealth.
C)profits.
D)consumption.
E)investment.
10
The increase in the value of an existing asset is called:
A)inflation.
B)hyperinflation.
C)a capital gain.
D)a dividend.
E)wealth.





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