Macro Exam 2

1 Individuals who want to work but have given up searching for a job because of limited prospects are known as 2This group, consisting of individuals who would like to work but have not looked for work during the past four weeks, is included among 3 Individuals who are involuntarily working part‑time are considered 4 By excluding the groups identified in the previous questions, the U.S. Bureau of Labor Statistics calculation methods

1 discouraged workers. 2 marginally attached workers. 3 underemployed. 4 understate the true level of unemployment.

After a financial crisis hits the country of Cinfuria, 22 million people become unemployed. If 7575 million individuals are lucky enough to keep their jobs, what is the unemployment rate? Please specify your answer to two decimal places.

2.5974

Classify each of the foods goods according to whether it is rivalrous, nonrivalrous, excludable, or nonexcludable. Rivalrous is also referred to as rival in consumption. a. A sports team t-shirt b. The air we breathe c. Atlantic bluefin tuna in the Mediterranean Sea d. A toll road in normal traffic

A. rivalrous and excludable B nonrivalroous and nonexcludable C Rivalrous and nonexcludable D nonrivialous and excludable

If her roommate hates loud music, and the smell of donuts makes her sick, she will reject both apartments due to what she sees as

An External Cost

Which of the statements is the best description of inflation?

An increase in the overall price level has occurred.

Brock Lee used to work at Munch n' Munchies Restaurant serving fun family fare. Business at Munch n' Munchies has been slow because the major employer in town has laid off a large number of people. There simply was not enough work to keep Brock Lee on the payroll at Munch n' Munchies. Which term describes Brock's type of unemployment?

Cyclical

If she is a morning person and loves the smell of donuts, she will view the donut shop as a(n)

External Benefit

Beau Tye decides to quit his job as a waiter in Pensacola, Florida, in order to pursue his dream of becoming an actor in Hollywood. Acting jobs exist, but he has not yet found one. Which term describes Beau's type of unemployment?

Frictional

In Vintland, incandescent lightbulbs are being replaced with fluorescent lightbulbs, which have fewer negative effects and many more significant benefits. However, the energy efficiency of fluorescent lightbulbs has driven down the price of lightbulbs so significantly that incandescent lightbulbs can no longer compete. After six months, everybody has switched to the cheaper and better fluorescent lightbulbs. Assume that Vintland consumes the same quantity of lightbulbs now as they did six months ago. Please select the choice that best describes the short‑run effects of this industrial change on Vintland's GDP and its standard of living.

GDP decreases and standard of living increases.

In what way(s) does GDP per capita not provide an accurate representation of living standards?

GDP per capita does not measure production that occurs outside of the market economy. GDP per capita does not account for how people distribute their time between work and leisure. GDP per capita does not account for changes in environmental quality.

Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $4.75$4.75. Michelle was willing to pay up to $6.75$6.75 for the cappuccino, and Paul's Cafe and Bakery was willing to accept $3.75$3.75 for the cappuccino. Based on this information, answer the following questions.

Michelle's consumer surplus: $2 Paul's Cafe and Bakery's producer surplus: $1

What is the difference between real and nominal gross domestic product (GDP)?

Nominal GDP for a given year is measured in dollars of that year, whereas real GDP is measured in dollars of some base year.

Anna Prentice has worked for years fixing broken typewriters. She is laid off from her job as fewer and fewer people use typewriters. She is looking for work but cannot find a job in her area of specialty. Which term describes Anna's type of unemployment?

Structural

Who reports the official U.S. unemployment rate?

U.S. Bureau of Labor Statistics

a. the market value of all final goods and services produced by resources owned by citizens of a particular country in a given year b. GDP adjusted to base year prices c. GDP divided by population d. GDP adjusted for differences in the cost of living in different countries e. the market value of all final goods and services produced by resources located in a particular country in a given year

a. GNP b. real GDP c GDP per capita d GDP PPP e Nominal GDP

a. Market failure can occur only in the presence of external costs. b. The government sometimes intervenes when market failure occurs. c. Market failure occurs when a free market provides a suboptimal quantity of goods and services. d. Market failure occurs when external costs or benefits are present e. Market failure occurs when external benefits but not when external costs are present. f. Market failure occurs when external costs but not when external benefits are present.

a.F b.T c.T d.T e.F f.F

Producer surplus is shown graphically as the area

above the supply curve and below the market price.

Which of the statements is the best description of a business cycle?

alternating periods of increasing and decreasing economic output

Teri takes her new puppy to the veterinarian. After he examines the puppy, the vet tells Teri that her puppy needs a series of shots. Teri agrees to the shots since the veterinarian knows way more about animal health than she does. This is an example of

asymmetric information

Jeff finds steak in the supermarket priced at$16$16 but that he would have been willing to pay $20$20 for. The butcher notices the meat is near the expiration date and gives him an extra 7575% off. Jeff receives a

consumer surplus $16

For each scenario, decide whether it results in a producer or consumer surplus. Then calculate the resulting surplus. Alice is willing to spend $30$30 on a pair of jeans and has a coupon for $10$10 off. She purchases a pair of jeans that costs $35$35 pre-discount. Alice receives a

consumer surplus $5

Anita Job is the new Treasury Secretary, and she is trying to interpret the inflation measures for two consecutive years. In year one, the aggregate price level increased by 11%11% and, in year two, the aggregate price level increased by 4%4% . Which term describes the change in the price level from year one to year two?

disinflation

The lease on Allison's apartment will expire next month, and she wants to move closer to campus. There are two apartments that she likes. Both are close to campus and in her price range. The first one is next door to a garage where local bands often practice late at night. The second one is next door to a donut shop that opens at 5 a.m. If she likes to stay up late and loves listening to all kinds of music, she will view the bands practicing as a(n)

external benefit

For a good or service to be counted in a given year's gross domestic product (GDP), what four criteria must be met?

have a market value, be a final good or service, be produced within a given country, and be produced within a certain time frame

How frequently is the survey that determines unemployment released?

monthly

Nicole has a hockey puck from the 2018 Winter Olympic Games and puts it up for sale on eBay. She will only sell the puck if the winning bid is greater than or equal to $500$500. After the bidding closes, the last bid stands at $501$501. Nicole receives a

producer surplus $1

Producer surplus is the difference between

the market price and the minimum price a seller is willing to accept.

Consumer surplus is equal to the difference between

the maximum price a buyer is willing to pay and the market price

Real GDP per capita is NOT an adequate measure of

the well-being of each person in an economy.

Consumer surplus is shown graphically as the area

under the demand curve and above the market price.