Macro test 2
Evan purchases a wall calendar for $9, and his consumer surplus is $1. How much is Evan willing to pay for the wall calendar?
$10
Refer to table 7-3 IF you have a 2 (essentially) identical tickets that you sell to the group in an auction, assuming that each person can only buy one ticket, which of the following is closest to the selling price for each ticket?
$21
Refer to table 7-2 If there is only one unit of the good and if the buyers did against each other for the right to purchase it. Then the goos will sell for
$21 or slightly more
Refer to Table 7-2 If the price is $17, then consumer surplus in the market is
$54, and David and Alexa purchase the good.
Refer to Figure 8-3 The deadweight loss associated with the tax amounts to
$60, and this figure represent the surplus that is lost because the tax discourages mutually advantageous trades between buyers and sellers
Refer to Table 7-3 If you have a ticket that you sell to the group in an auction, who will buy the ticket?
Biyu
Refer to Figure 8-3 As a result of the tax
Consumer surplus decreases from $200 to $80
A drought in Spain destroys many red grapes causing the prices of both red grapes and red wine to rise. As a result, the consumer surplus in the market for red grapes
Decreases, and the consumer surplus in the market for red wine decreases
If Argentina exposes oranges to the rest of the world, Argentina's producers of oranges are worse off, and Argentina's consumers of oranges are better off, as a result of trade
False
If producing a soccer ball costs Jake $5, and he sells it for $40, his producer surplus is $45
False
If the United Kingdom imports tea cups from other countries, then U.K. producers of tea cups are better off, and U.K. consumers of tea cups are worse off, as a result of trade.
False
The Bureau of Labor Statistics is part of the U.S. Department of Labor
False
The World Prices of cotton is the highest prices of cotton observed anywhere in the world
False
The basic tools of supply and demand are central to microeconomics analysis but are of little use to macroeconomics
False
The inflation rate reported in the news is usually calculated from the GDP deflator rather than the consumer price index
False
When a tax is imposed on buyers, consumer surplus decreases but producer surplus increases
False
Without free trade, the domestic price of a good must be equal to the world price of a good.
False
Refer to figure 8-1 Suppose the government imposes a tax of P'-P"'. Total surplus before the tax is measured by the area
I+J+K+L+M+Y
Refer to Table 24-2 The cost of the basket
Increases from year 1 to year 2 and increased from year 2 to year 3
Refer to Figure 8-1 Suppose the government imposes a tax of P'-P"'. Total surplus after the tax is measured by the area
J+K+L+M
Micheal, a U.S. citizen, travels to Jamaica and buys a newly manufactured motorcycle made there. His purchase is included in
Jamaica's GDP, but it is not included in U.S. GDp
When a country allows trade and becomes an importer of silk, which of the following is NOT a consequence
The price received by domestic producers of silk increases.
Economists use the term inflation to describe a situation in which the economy's overall prices level is rising.
True
GDP is the most closely watched economic statistic because it is thought to be the best single measure of a society's economic well-being.
True
If Darby values a soccer ball at $50, and she pays $40 for it, her consumer surplus is $10.
True
If producing a soccer ball costs Jake $5, and he sells it for $40, his producer surplus is $35
True
Macroeconomics statistics include GDP, THe inflation rate, the unemployment rate, retail sales, and the trade deficit
True
Microeconomics and macroeconomics are closely linked
True
Taxes affect market participants by increasing the price paid by the buyer and received by the seller.
True
Taxes cause deadweight losses because they prevent buyers and sellers from realizing some of the gains from trade.
True
The CPI for 2008 is computed by dividing the price of the basket of goods and services in 2008 by the price of the basket of goods and services in the base year, then multiplying by 100.
True
The willingness to pay is the maximum amount that a buyer will pay for a good and measures how much the buyer values the good
True
When a tax is imposed, the loss of consumer surplus and producer surplus as a result of the tax exceeds the tax revenue collected by the government
True
Refer to Figure 2 From the Figure it is apparent that
Uganda has a comparative advantage in producing coffee, relative to the rest of the world
Refer to Figure 2 From the figure it is apparent that
Uganda will export coffee if trade is allowed
Net exports equal
Y - (C + I + G)
When a good is taxed
both buyers and sellers of the good are made worse off
If total spending rises from one year to the next, then
either the economy must be producing a larger output of goods and services, or goods and services must be selling at higher prices, or both.
Social Security payments are
excluded from GDP because they do not reflect the economy's production.
The CPI and the GDP deflator
generally move together
In the CPI, goods and services are weighted according to
how much consumers buy of each good or service.
Refer to Figure 2. With trade, Uganda will
import 15 units of coffee
The Social Security tax is a tax
labor
Changes in real GDP reflect
only changes in the amounts being produced
Refer to Table 24-2 The inflation rate was
positive in Year 2 and Positive in year 3
When the nation of Duxembourg allows trade and becomes an importer of software,
residents of Duxembourg who produce software become worse off; residents of Duxembourg who buy software become better off; and the economic well-being of Duxembourg rises.
A tax on an imported good is called a
tariff
The CPI is more commonly used as a gauge of inflation than the GDP deflator is because the
the CPI better reflects the goods and services bought by consumers
Core CPI is
the CPI excluding food and energy
GDP is defined as the
value of all final goods and services produced within a country in a given period of time