Macro Exam 3

The best measure of a country's standard of living is

GDP per capita

Which country consumes the most Coca Cola

Iceland

Which of the following is an example of human capital?

a college education

Countries with high rates of economic growth tend to have

a labor force that is more productive

In economics, money is defined as

any asset people generally accept in exchange for goods and services

Increasing the growth rate of GDP per capita and sustaining this growth rate in an economy can

increase standards of living

Since 1900, real GDP in the United States has grown

more rapidly than the population

Dollar bills in the modern economy serve as money because

people have confidence that others will accept them as money

When the Federal Reserve System was established in 1913, its main policy goal was

preventing bank panics

Which of the following are goals of monetary policy?

price stability, economic growth, and high employment

The only way the standard of living of the average person in a country can increase is if _____________ increases faster than ___________

production; population

A good measure of the standard of living is

real GDP per capita

In terms of economic growth, the key measure of the standard of living is

real GDP per capita

The Fed seeks to promote stability of financial markets because

resources are lost when there is not an efficient matching of savers and borrowers

Which of the following is a function that money serves?

All of the above are correct

French fries were originally from which country

Belgium

Which country has more doughnut shops per cpita than any other country?

Canada

Which of the following assets is most liquid?

Money

Which country eats the most chocolate?

Switzerland

Because Federal Reserve Notes (paper currency) are legal tender,

U.S. creditors must accept them in payment of debts

During World War II, prisoners of war used ___________ as money

cigarettes

A good can serve as money only if

citizens accept the good as a means of payment for transactions and debts

Over the past 50 years, death among children have

declined in nearly all countries, including most low-income countries

A barter economy is an economy where

goods and services are exchanged for other goods and services

Which of the following increases labor productivity?

inventions of new machinery, equipment or software

The quantity of goods and services that can be produced by one worker or by one hour of work is referred to as

labor productivity

Economist Robert Fogel has estimated that by the year 2040, individuals in the United States will be spending

less time in the workforce and more time in leisure activities than they do today

A farm worker gets paid today in money, but plans to spend the money next week. This illustrates which function of money?

store of value

The key factors in raising standards of living in low-income countries have been increases in

technology and knowledge

Growth in real GDP per capita for the world economy was greatest during

the twentieth century