Economics Exam 3

The decree to which people have access to goals and services

standard of living

If country a and country b have the same population size, standard of living depends...

the relative sizes of total output

Intermediate goods and services are ________ in production and are ________ counted in GDP

used up, not

A firm's revenue from selling its product minus the cost of inputs purchased from other firms is called

value added

If CPI in 1970 was 1.50 and CPI in 2000 was 1.75, what is the inflation rate?

16.67%

Macroland there is $1 mil in currency, reserve is $500k. Reserve/deposit ratio is 50% money supply?

2,000,000

Discouraged worker?

Frank would like to work....

If average labor productivity decreases while population and the number of employed workers remain constant, then output per person

decreases

Price of most goods and services falling over time is called

deflation

People who enjoy high standards of living usually have all except...

freedom from scarcity

The four categories of final users of GDP are

households, firms, governments, and the foreign sector

Equal $40 billion at the beginning......55 billion at the end of the year....GDP

increased by 15 billion

$10 an hour in 1980. 1980-1999? CPI was 1.45 more than in 1980

increased from 10 to 14.50

Average labor productivity equals

output per employed worker

Real GDP in 2006?

$12,000

Suppose a jar of orange marmalade that is ultimately sold to a customer....sum of the value?

$2.50

If an automobile manufacturer pays $200 for a car windshield, $400 for four car tires, $100 for a car CD player, and sells cars made with these parts for $20,000, then each car the automobile manufacturer sells contributes how much to GDP?

$20,000

Suppose that the total production of an economy consists of 4 oranges and 10 candy bars, each orange sells for $0.25, and each candy bar sells for $0.50. What is the market value of production in this economy?

$6.00

200 million people aged 16 years and older, 120 million are in the labor force, and 114 million are employed...

60 percent

The following table provides data for an economy....compute investment component of GDP...

70

Major macroeconomic questions include all of the following except...

What causes differences in wages b/t men and women

Bond

legal promise to repay debt

The real wage is the wage:

measured in terms of purchasing power

Federal Reserve makes decisions regarding _______ policy while Congress makes decisions regarding ________ policy.

monetary, fiscal

The labor force divided by the working age population equals the:

participation rate

Real GDP measures the _______ ________ of production; nominal GDP measures the ______ _____ ______ of production

physical volume, current dollar value