MacroEcon Exam 1
a. average labor productivity.
Output per employed worker is called Select one: a. average labor productivity. b. output per person. c. average standard of living. d. total output.
d. microeconomics
A study that deals with the salaries of university professors would be considered. a. macroeconomics. b. economic naturalism. c. real economics. d. microeconomics.
b. the extra benefits of seeing the movie are greater than the extra costs of seeing the movie.
According to the Cost-Benefit Principle, you should go see the latest Fast and Furious movie with your friends this weekend if Select one: a. the average benefit you get from going to the movies is greater than the average cost of a ticket. b. the extra benefits of seeing the movie are greater than the extra costs of seeing the movie. c. you can afford to go to the movies. d. you really like action movies.
d. it has a relative abundance in the natural resources needed to produce a cars.
A country is most likely to have a comparative advantage in the production of cars if Select one: a. it has strict environmental protection laws governing automobile emissions. b. its citizens prefer driving cars to other forms of transportation. c. it imports most of the raw materials necessary to produce cars. d. it has a relative abundance in the natural resources needed to produce a cars.
a. fiscal
A decision by Congress to reduce spending in order to balance the government's budget is an example of _____ policy. Select one: a. fiscal b. aggregation c. monetary d. structural
d. controls the nation's monetary policy.
A nation's central bank Select one: a. determines the nation's fiscal policy. b. is the bank that holds deposits for the most customers in the nation. c. is the bank that has the most neutral lending policy. d. controls the nation's monetary policy.
b. see the big picture; obscuring the details
Aggregation allows economists to ______ at the cost of ________. Select one: a. make normative statements; ignoring positive analysis b. see the big picture; obscuring the details c. see the details; obscuring the big picture d. make positive statements; ignoring normative analysis
b. positive
Analysis that aims at determining only the economic consequences of a particular policy is called _____ analysis. Select one: a. normative b. positive c. fiscal d. monetary
d. the substitution effect of a price change.
As coffee becomes more expensive, Joe starts drinking tea instead of coffee. This is called Select one: a. a decrease in reservation price. b. the income effect of a price change. c. a decrease in demand. d. the substitution effect of a price change.
a. $10,000
Assume an economy produces only hamburgers and hot dogs and the base year is 2019. Quantities ProducedPrices2019202020192020Hamburgers2,0003,000$ 2$ 3.00Hot dogs3,0004,000$ 1$ 1.50 Given the data in the table above, what is the value of real GDP in 2020? Select one: a. $10,000 b. $ 7,000 c. $ 5,000 d. $10,500
b. can produce more of one good without producing less of the other good.
Consider a graph of a production possibilities curve. If a producer is operating at an inefficient point, then that producer a. cannot produce more of one good without giving up some of the other good. b. can produce more of one good without producing less of the other good. c. must be at an unattainable point on the production possibilities curve. d. must be specializing in activities for which it has a comparative advantage.
a. more of a good as its price falls.
Demand curve illustrates the fact that consumers tend to purchase. Select one: a. more of a good as its price falls. b. more of a good as their income rise. c. name-brand products more frequently than generic products. d. more of a good as it becomes more popular.
a. employed, unemployed, or out of the labor force.
Each person who is 16 years or older is considered to be in one of the following categories: Select one: a. employed, unemployed, or out of the labor force. b. part-time worker, full-time worker, or out of the labor force. c. part-time worker, full-time worker, or unemployed. d. employed, unemployed, or discouraged worker.
a. increase in the amount of productive resources.
Economic growth can result from a(n) Select one: a. increase in the amount of productive resources. b. decrease in the number of workers available. c. increase in number of the minimum wage jobs. d. increase in the amount of consumer goods produced.
b. they are useful for describing general patterns of behavior.
Economists use abstract models because Select one: a. computers have allowed economists to develop abstract models. b. they are useful for describing general patterns of behavior. c. every economic situation is essentially the same, so specific details are unnecessary. d. every economic situation is unique, so it is impossible to make generalizations.
d. trade surplus.
If its exports are greater than its imports, then a country has a Select one: a. trade deficit. b. government budget surplus. c. government budget deficit. d. trade surplus.
d. increased more rapidly than population increased.
If living standards in a country, as measured by output per person, increase, then total output must have Select one: a. decreased more rapidly than population decreased. b. increased at the same rate that population increased. c. increased more slowly than population increased. d. increased more rapidly than population increased.
a. excess supply.
If price is above the equilibrium price, then there will be Select one: a. excess supply. b. neither excess supply nor excess demand. c. both excess supply and excess demand. d. excess demand.
a. $200,000
In 2019, Pete Rich purchased a 1642 painting by Rembrandt for $20 million. He also paid a 1 percent commission to the auction house that sold the painting. What was the contribution of these transactions to GDP in the year 2019? Select one: a. $200,000 b. $2 million c. $0 d. $20.2 million
c. $16,000; $20,000
In Econland total output is $4 billion, population equals 250,000 people, and, of these, 200,000 are employed workers. Output per person in Econland equals _______ and average labor productivity equals ______. Select one: a. $16,000; $16,000 b. $20,000; $20,000 c. $16,000; $20,000 d. $20,000; $16,000
d. lower than; higher than
In the 1950s and 1960s the European unemployment rate tended to be ______ the U.S. unemployment rate, while in the 1990s the European unemployment rate tended to be ____ the U.S. unemployment rate. Select one: a. lower than; lower than b. higher than; higher than c. higher than; lower than d. lower than; higher than
a. the general level of prices.
Inflation is the increase in Select one: a. the general level of prices. b. imports relative to exports. c. total output. d. total output per worker.
b. coffee and tea are substitutes.
It is likely that for most people Select one: a. coffee and coffee mugs are substitutes. b. coffee and tea are substitutes. c. coffee and nondairy creamer are subs. d. coffee and coke are complements.
d. $5,000
Lauren was accepted at three different graduate schools, and she must choose one. Elite U costs $50,000 per year and did not offer Lauren any financial aid. Lauren values attending Elite U at $60,000 per year. State College costs $30,000 per year and offered Lauren an annual $10,000 scholarship. Lauren values attending State College at $40,000 per year. NoName U costs $20,000 per year and offered Lauren a full $20,000 annual scholarship. Lauren values attending NoName at $15,000 per year. What is Lauren's economic surplus from attending State College instead of her next best alternative? Select one: a. $40,000 b. $10,000 c. $20,000 d. $5,000
c. the performance of national economies and ways to improve that performance
Macroeconomics differs from microeconomics in that macroeconomics focuses on a. prices in specific markets. b. production in specific markets. c. the performance of national economics and ways to improve that performance. d. individual choices and group behavior in individual markets.
d. discouraged
People who say that they would like to have a job but have not made an effort to find a job in the past four weeks, are called ______ workers. Select one: a. chronically unemployed b. involuntary part-time c. unemployed d. discouraged
a. opportunity costs tend to increase with increases in production.
Production possibilities curves for large economies are generally bow-shaped because Select one: a. opportunity costs tend to increase with increases in production. b. specialization gives some producers a comparative advantage. c. as more resources are used to produce a good, those resources become less expensive. d. opportunity costs tend to decrease with increases in production.
b. cakes; pies
Refer to the accompanying table. Based on their comparative advantage, Kate should specialize in making _______ while Julia should specialize in making _______. Time to Make a PieTime to Make a CakeKate60 minutes75 minutesJulia45 minutes90 minutes Select one: a. pies; cakes b. cakes; pies c. both pies and cakes; neither pies nor cakes d. neither pies nor cakes; both pies and cakes
c. excess demand will lead the price to rise.
Suppose supply decreases, but there is no change in demand. As the market reaches its new equilibrium Select one: a. excess supply will lead the price to rise. b. excess demand will lead the price to fall. c. excess demand will lead the price to rise. d. excess supply will lead the price to fall.
b. U.S PPC shift outward faster than Nepal.
Suppose that Nepal invests less in new factories ad equipment than does the U.S. This will likely cause a. Nepal's production possibilities curve to shift outward faster than U.S. b. U.S PPC shift outward faster than Nepal. c. Nepal's PPC to shift inward faster than U.S d. U.S PPC to shift inward faster than Nepal.
d. excess supply will lead the price of broccoli to fall.
Suppose that when the price of broccoli is $4 per pound, buyers wish to buy 500 pounds per day and sellers wish to sell 800 pounds per day. In this case Select one: a. excess demand will lead the price of broccoli to rise. b. excess supply will lead the price of broccoli to rise. c. excess demand will lead the price of broccoli to fall. d. excess supply will lead the price of broccoli to fall.
a. a market
The entire group of buyers and sellers of a particular good or service makes up Select one: a. a market b. the demand curve. c. the supply curve. d. the equilibrium price and quantity.
b. 25
The unemployment rate in the United States at the peak of the Great Depression was _____ percent. Select one: a. 10 b. 25 c. 5 d. 20
b. percentage of the labor force that is out of work.
The unemployment rate is the Select one: a. number of workers in the labor force. b. percentage of the labor force that is out of work. c. number of workers unemployed. d. percentage of the population that is out of work.
c. leisure
Using real GDP to compare the level of economic well-being in two countries may be misleading because the value of ______ contributes to economic well-being but is excluded from real GDP. Select one: a. formal education b. capital goods c. leisure d. services
d. Total output of a country
Which of the following is the most aggregated value? Select one: a. Total output of an industry b. Total output of a city c. Total output of a firm d. Total output of a country
b. The price farmers receive for their wheat rises.
Which of the following would cause an increase in quantity of wheat supplied? Select one: a. The price firms pay for liability insurance falls. b. The price farmers receive for their wheat rises. c. The price of fertilizer farmers use in their fields falls. d. New, better technology for farming is introduced.
d. A laundromat in Seattle purchases a new washing machine produced in the U.S.
Which of the following would increase the investment component of U.S. GDP? Select one: a. A laundromat in Mexico purchases a new washing machine produced in the U.S. b. You purchase a new washing machine produced in France. c. You purchase a new washing machine produced in the U.S. d. A laundromat in Seattle purchases a new washing machine produced in the U.S.
b. What causes difference in wages b/w men & women?
major macroecon questions include all of the following except Select one: a. What are the causes of unemployment b. What causes difference in wages b/w men & women? c. What causes econ growth? d. Why doe inflation vary over time and across countries?
A) $5
matt has decided to purchase his textbooks for the semester. His options are to purchase the books online with next-day delivery at a cost of $175, or to drive to campus tomorrow to buy the books at the university bookstore at a cost of $170. Last week he drove to campus to buy a concert ticket because they offered25 percent off the regular price of $16. The benefit to Matt of buying his books at the university bookstore intead of online is. a. $5 b. $9 c. $170 d. $175
