10. Which of the following is typically NOT listed as a reason why some economies tend to grow faster than others over long time periods? (a) high growth economies tend to have relatively accommodative monetary, fiscal and regulatory policies; (b) high growth economies tend to have outstanding fundamentals for sustained growth, including high quality and quantity of capital and labor; (c) high growth economies tend to have somewhat higher relative inflation rates that encourage labor force participation and promote profitability of firms; (d) high growth economies tend to have an entrepreneurial culture supported by government and lending institutions.

11. In which market would a bank with excess reserves attempt to sell reserves to a bank with insufficient reserves? (a) Treasury bill market? (b) federal funds market; (c) bond market; (d) NASDAQ

12. G.L.S. Shackle argues that "the future waits, not for its contents to be discovered, but for that content to be originated." If Shackle is correct, then: (a) the effectiveness of econometric modelling in forecasting future outcomes is questionable, at best; (b) use of more and more backward data from past experiences will make forecasting more exact: (c) modelling can reveal what lies ahead, especially during crises; (d) never trust heteroskedastic error terms.

13. Households typically prefer to keep their wages constant despite inflation as opposed to reducing their wages and experiencing no inflation even though both choices can lead to the same outcome. John Maynard Keynes referred to this preference as: (a) halitosis; (b) fool's gold; (c) consumer psychosis; (d) money illusion.