Econ test 2

Which of the following would lead to a slowdown in economic growth?

a reduction in the birth rate coupled with an increase in the retirement rate of a population

The world supply curve slopes upward because, as the world price of a product falls:

producers want to sell a smaller quantity.

Which of the following is NOT a trade cost?

the cost of producing a good

A constant returns to scale production function is one where increasing all inputs by a certain proportion leads to output rising by:

the same proportion.

You just bought two used textbooks for $25 each. How much does GDP change because of your purchase?

GDP does not change.

You own a factory that makes wasabi peas. Last month, you purchased $560,000 worth of wasabi paste, peas, cane sugar, palm oil and sea salt. Using these inputs, you made and sold 1 million snack bags of wasabi peas at $3.49 each. How much did GDP change?

GDP rises by $3,490,000.

When the U.S. government buys goods and services, this is called:

government purchases.

You make some new friends at a party. Which of your new friends described here is unemployed?

Melinda, who was recently laid off

Which of the following is a reason that male labor force participation has declined over the last several decades in the United States?

fewer men with families

(Figure: Average Tariff Rate by the United States) According to the figure, prior to 2018, the average tariff rate imposed by the United States has generally _____. This is associated with _____ in international trade.

decreased; an increase