Econ 201 selu exam 2 peng

a shortage of

A binding and effective interest rate ceiling creates ______loanable funds .

Human capital

A business that pays for its workers to attend a technical college is increasing its :

Technological knowledge

A rural village in a developing country has an economy based on agriculture . Then the government of the country provides the village with newly developed hybrid seeds that more than double the agricultural yield per acre . This story illustrates the growth of per capita GDP in the village through which factor ( s ) of production ?

an intermediate good and its market price is not part of GDP .

A set of tires installed on a vehicle produced by an automobile factory is counted as :

structurally unemployed

A worker repairing VHS cassette - tape players was laid off because most of his customers have started using DVD players and streaming services This worker is now :

increasing their government ownership of agricultural land

According to the Solow growth model , which of these would not increase economic output in a developing nation ?

U.S. GDP and Japan's GNP

Akemi , who is a Japanese citizen , works in the United States as a computer programmer . The value of her output is included in :

Froland , a country that resolves most trials and legal issues within a year

All else equal , which hypothetical scenario exhibits a country with the most economic growth ?

Reduces investment because lowering the GST reduces savings

Consider a hypothetical model for the loanable funds, funds market, suppose that the government decides to reduce the federal goods and services tax (gst). How does this tax reduction impact investment and why? The tax reduction

an increase in the growth rate of output in the short run but zero growth in output in the long run .

Consider an economy that is operating at its steady state . An increase in the investment rate in this economy will lead to :

Nominal GDP

Economics is characterized by many statistics and measurements . Suppose that an analyst is interested in comparing the economy of today with the economy ten years ago . Which term is least likely to be useful for this purpose ?

Virtually nonexistant

For most of recorded history , economic growth has been :

supply of ; a decrease

If the recent financial crisis raises awareness about the dangers of not saving , leading to an increase in overall savings rates across the country , the loanable funds market will experience an increase in the ____, loanable funds and ____ in the equilibrium interest rates

increase , decrease , or remain the same .

If the supply of loanable funds increases and the demand for loanable funds increases at the same time interest rates will :

Poorer; catch up

If two countries have the same steady - state levels of output , the country that is ____today . will _____in per capita output .

Lead to higher rates of long-term unemployment

Laws that make it more difficult ( and more expensive ) to fire workers :

No, a higher savings rate is good for the economy.

Many people say that if people save more , that is bad for the economy . They say that spending money on consumer goods keeps the money moving through the economy . Does the Solow model say that ?

Raise wages, and raise unemployment

Minimum wage laws and unions tend to :

Frictional unemployment

Someone who recently moved to Florida because of its warmer climate will need to spend some time looking for a new job . This is an example of :

The value of the services produced in the United States gets counted in U.S. GDP and the value of the services produced in Canada gets counted in Canadian GDP .

Suppose a doctor spends half of the year in the United States and the other half in Canada and works in both places . How does his production get allocated between U.S. and Canadian GDP ?

It would increase

Suppose that Congress decided to exempt seniors from paying income tax on labor income . What would happen to the labor force participation rate for seniors ?

None of the statements are necessarily true .

Suppose the country of Altaria only produces one style of good , pink tutu . Last year , nominal GDP was $ 50,000 and this year it is $ 200,000 . What can be definitively concluded ?

Employed workers and adults, who do not have jobs, but are looking for work

The labor force consists of :

Demand

The source of the ______for loanable funds is investment .

remains constant

When workers lose their jobs and become officially unemployed , the number of people in the labor force :

the acquisition of gold

Which of the following do economists consider an investment ?

Jamie pays for college by working two jobs on the weekends

Which of the following is NOT an example of the need to borrow to finance large investment ?

John , on temporary layoff from his work , awaits recall .

Which of the following is considered unemployed ?

Janice , who graduated from the university in May , is waiting for her new job to start in July .

Which of the following would be considered unemployed ?

Jack wants to borrow money to create a cowboy - themed inflatable bounce house for kids called " Wild Wild West . " However , the government is running a deficit which has increased interest rates so much that Jack can no longer afford to borrow the money .

Which of the situations is an example of the crowding - out effect on investment as it pertains to macroeconomics ?

Andy Friese was formerly employed at Mama's Used Cars . He has not worked there for six months and has given up looking for work

Which person can be categorized as a discouraged worker ?

Francis receives her social security check .

Which transaction is not included in gross domestic product ?