Chapter 9 Econ combined
Which of the following activities is an example of dumping?
Dell exports PCs to India at a price 20 percent lower than the cost of producing them.
When the economy goes into recession, the biggest increase in unemployment is _______.
cyclical because jobs are lost in many industries as they cut production
Full employment is when there is no _____ unemployment or, equivalently, when all the unemployment is _____ or _____.
cyclical; frictional; structural
The fall in net exports _______.
decreases GDP
Who in the following statements is a part-time worker for economic reasons?
Sherrie is a graduate who started working at Safeway pharmacy for 4 hours each day, three days a week, as they do not currently have a full-time opening.
In 2016, R was $12 billion; W was $37 billion; U was $11 billion; J was $15 billion; and Z was $2 billion. Calculate total expenditure and total income.
Total expenditure is $65 billion. Part 2 Total income is $65 billion.
U.S. exports are _____ produced in _____ and sold in _____.
goods and services; the United States; any other country
Which of the following is an example of an import quota? The United States _____ .
limits the quantity of auto parts that U.S. car makers may buy from China
What is rent seeking? Rent seeking is _____.
lobbying and other political activity that aims to capture the gains from trade
The additional jobs in construction and professional and healthcare services _______ the unemployment rate. Other things remaining the same, the natural unemployment rate is _______.
lowers not expected to change because the events described are normal labor turnover
Imports of goods and services are items that _____ in the United States _____ the rest of the world.
households, firms, and governments; buy from
GDP is a poor measure of economic well-being because it _______.
includes only production that is traded in markets
Saving equals _______.
income minus consumption expenditure minus net taxes
The quantity of U.S. exports to Mexico has _______ and the U.S. government's tariff revenue from trade with Mexico has _______.
increased; decreased
With free international trade, U.S. consumer surplus _______ and U.S. producer surplus _______.
increases by area A + B; decreases by area B
If the world price of a pair of shoes is $20 and Brazil opens up and trades internationally, producer surplus in Brazil _______ and consumer surplus in Brazil _______.
increases by area C + D; decreases by area C
With free trade between the United States and Canada, the United States exports tomatoes and Canada exports maple syrup. U.S. consumers _______.
of maple syrup gain more than U.S. producers of maple syrup lose3
Real GDP per person is not an accurate measure of the standard of living because it _______.
omits the goods and services that people produce for themselves
The economy is at full employment when all unemployment is _______.
structural and frictional
A _______ is a final good and _______ is an intermediate good.
tank of gasoline bought by you; jet fuel bought by Southwest Airlines
A tariff is a _____ imposed on a good when it is _____.
tax; imported
Exports of goods and services are items that firms in _____ produce and sell to _____.
the United States; any other country
The trend in the labor force participation rate of women is due in part to _______. The trend in the labor force participation rate of men is due in part to _______. The trend in the labor force participation rate of all working-age people is _______.
the creation of more white-collar jobs with flexible work hours; some men taking early retirement upward until 2000, and then downward
Saving is the amount of income that is _____ in net taxes or spent on _____ goods and services.
not paid; consumption
The labor force is the number of people employed plus the _____.
number unemployed
China's trade warriors can't hit Hollywood China imports $58.9 billion of U.S. services that include everything from Hollywood blockbusters to tourism and education. The Chinese government could easily enough cut off this flow. Source: Bloomberg, May 17, 2019 Why does China import U.S.-produced services like Hollywood movies? Part 2 China imports U.S.-produced services like Hollywood movies because _______.
the opportunity cost of producing a movie is higher in China than in the United States
If Korea imposes an import quota on U.S. oranges, losers include Korean _______ of oranges and U.S. _______ of oranges.
consumers; producers
The resulting rise in unemployment is mostly a rise in _______ unemployment because _______.
cyclical; it is related to the state of the economy
Depreciation is the _____ in the value of _____ that results from its use and from obsolescence.
decrease; capital
The business cycle is a _____ but _____ up-and-down movement of total _____ and other measures of economic activity.
periodic; irregular; production
_______ has a comparative advantage in producing shoes. With trade between Brazil and the United States, _______ exports shoes. The price of shoes in the importing country _______ and the quantity produced by the importing country _______. _______ from this trade.
1. Brazil; brazil 2. Falls; Decreases 3. Both Brazil and the United States gain
The United States is using the anti-dumping argument that _______. The U.S. argument is misguided because ______.
1. Canadian lumber producers are selling lumber in the United States below the cost of production 2. it is difficult to determine whether foreign producers are selling at prices below their costs and it is unlikely that they would want to do so
Carrier Corporation can manufacture air conditioners in Mexico at a lower cost than in Indiana. The government of Indiana offers Carrier big tax breaks to manufacture in Indiana. This tax incentive is in the self-interest of ______ in the social interest. During the 2016 election campaign, Donald Trump said that NAFTA is a bad deal for America and he said he would end it. Based on what you have learned in this chapter, is he correct and why?
1. Carrier and its Indiana workers, but it is not 2. He is not correct because there are net gains from free international trade.
Suppose that the world price of sugar is 10¢ a pound, the United States does not trade internationally, and the U.S. equilibrium price of sugar is 20¢ a pound. The United States then begins to trade internationally. How does the price of sugar in the United States change? Do U.S. consumers buy more or less sugar? Do U.S. sugar growers produce more or less sugar? does the United States export or import sugar? The price of sugar in the United States _______. U.S. consumers buy _______ sugar. U.S. sugar growers produce _______ sugar. The United States _______ sugar.
1. Falls; More 2. Less; imports
Japan's arguments for restricting imports of Californian rice are that ______. The arguments are ______ because ______. Who loses from this restriction in trade?
1. Japanese farmers must be protected from cheaper but inferior foreign rice 2. incorrect; Japanese consumers would pay a higher price for Japanese rice if it were truly better than U.S. rice 3. Californian producers and Japanese consumers
_______ from this trade in roses and would lobby for a tariff on roses. When the government imposes a tariff on rose imports, the U.S. consumer surplus that is redistributed to U.S. producers is area _______. When the government imposes a tariff on rose imports, the government's tariff revenue is area _______.
1. Rose producers in the United States lose 2. B 3. D
What is the argument for this import quota on sugar? The argument is ______ because ______.
1. The import quota protects U.S. jobs. 2. incorrect; sugar growers would be more efficiently employed producing things in which the United States has a comparative advantage
GDP increased at an annual rate of 4.6 percent in the first quarter of 2019. Government expenditure grew at 7 percent, but consumption expenditure grew at a rate of 6.7 percent. Investment and exports shrank. Source: BEA, July 26, 2019 Use the figure to indicte the flows in which the items in the news clip occur. How can GDP increase at a rate of 4.6 percent if consumption expenditure increased at a rate of 6.7 percent? In the figure, _______. It is possible for GDP to increase by only 4.6 percent when consumption expenditure grew at a 6.7 percent rate because
1. U is government expenditure on goods and services and J is investment 2. the sum of investment and net exports grew at a negative rate
_______ will gain and _______ will lose from the restrictions on imports of solar panels and washing machines. With an import restriction on solar panels and washing machines, we can expect their prices to _______.
1. U.S. producers of solar panels and washing machines and the U.S. government; U.S. consumers 2. Rise
The two approaches to measuring GDP described in the news clip are the _______. The news clip is incorrect that the value of production is _______.
1. expenditure approach and the income approach 2. $30 million because when Facebook pays its workers, it incurs a loss of $30 million
With the removal of U.S. tariffs, the price that U.S. consumers pay for goods imported from Mexico will _______, and the quantity of U.S. imports from Mexico will _______. The winner from the removal of U.S. tariffs on goods imported from Mexico is _______ and the loser is _______
1. fall; increase 2. U.S. consumers of goods imported from Mexico; U.S. producers of goods that are imported from Mexico
1. The United States exports LNG because _______. 2. _______ from U.S. exports of LNG. 3. The graph shows the domestic demand for and domestic supply of LNG in the United States and the world price of LNG. With international trade in LNG, U.S. producers _______ and U.S. consumers _______. 4. The graph shows the demand for LNG in India DI , the supply of LNG in India SI , and the world price of LNG. With international trade in LNG, Indian consumers _______ and Indian producers _______.
1. it has a comparative advantage in producing LNG 2. U.S. LNG producers and LNG consumers of U.S. LNG in other countries gain 3. gain area B + D; lose area B 4. gain the area B + D; lose the area B
An anti-dumping tariff _______. To encourage the U.S. government to raise the tariff on solar panel and washing machine imports, U.S. solar panel and washing machine manufactures might argue that ______.
1. raises the price of the imported good so that the domestic price reflects what the importing country believes is the true cost of production 2. foreign exporters of solar panels and washing machines are engaging in predatory pricing
The unemployment rate is the percentage of the people in the _____ who are unemployed.
labor force
U.S. tariffs imposed on Chinese-produced goods could cause companies to move production out of China because the tariff _______. _______ lose from the Trump tariffs. _______ gain from the Trump tariffs.
1. raises the price of Chinese-produced goods sold in the United States relative to the same goods produced in other countries 2. U.S. consumers; Firms in the United States and other Asian countries
Suppose that the world price of steel is $100 a ton, India does not trade internationally, and the equilibrium price of steel in India is $60 a ton. Suppose that India now begins to trade internationally. How does the price of steel in India change? How does the quantity of steel produced in India change? How does the quantity of steel bought by India change? Does India export or import steel? The price of steel in India _______. The quantity of steel produced in India _______. The quantity of steel bought by India _______. India _______ steel.
1. rises; increases 2. decreases; exports
1. China has a comparative advantage in producing _______. China _______ shoes. 2. In China, shoe _______ lose and shoe _______ gain from international trade in shoes. 3. China _______ from this trade in shoes. 4. The graph shows the domestic demand for and domestic supply of shoes in China and the world price of a pair of shoes. With international trade in shoes, China's producers _______ and China's consumers _______. 5. China's net gain from trade in shoes is _______.
1. shoes; exports 2. consumers; producers 3. gains 4. gain area B + D; lose area B 5. area D
1. China has a comparative advantage in producing _______. China _______ coal. 2. In China, coal _______ gain and coal _______ lose from international trade in coal. 3. China _______ from this trade in coal. 4. The graph shows the demand for coal in China DC , the supply of coal in China SC , and the world price of coal. With international trade in coal, Chinese consumers _______ and Chinese producers _______. 5. China's net gain from trade in coal is _______.
1. shoes; imports 2. users; producers 3. gains 4. gain the area B + D; lose the area B 5. area D
Dumping occurs ______. Who in the United States loses from foreign firms' dumping of solar panels and washing machines?
1. when a foreign firm sells its exports at a lower price than its cost of production 2. U.S. producers of solar panels and washing machines and U.S. workers in the solar panel and washing machine industries
Person- Work hours- Activity Candy-20-works at own business. Also completed application forms and attended two job interviews. Jerry-40-works at GM Meg-10-student weekend job Joey-0-on vacation from bank Serena-10-part-time check-out clerk who wants a full time job Ari-0-waiting for recall to regular job in 2 weeks Kosta-0-stopped looking for work; going back to school Mimi-0-retired Harry-0-retired Hank-12-works at own business unpaid For these 10 people, the unemployment rate is ____ percent and the labor force participation rate is ____ percent. The unemployment rate in this community is _______ the unemployment rate in the United States in 2019. The labor force participation rate in this community is _______ the labor force participation rate in the United States in 2019.
16.7%; 60% greater than; less than
The table shows some of the items in the U.S. National Income and Product Accounts in 2015. Use the expenditure approach to calculate GDP in 2015. Question content area bottom left Part 1 GDP in 2015 using the expenditure approach is Item Amount (trillions of dollars) Consumption expenditure 12.1 Government expenditure 3.2 Indirect taxes less subsidies 1.2 Depreciation 2.8 Net factor income from abroad 0.2 Investment 3.0 Net exports −0.5 Statistical discrepancy −0.3
17.8 trillion
The average unemployment rate was lowest during the _____ and it resulted from _______. The average unemployment rate was highest during the _____ and it resulted from _______.
1960's; Vietnam war defence spending and consumer spending encouraged by expanded social programs 1980's; a deep recession
Real GDP was below potential GDP in _______ because the Z-Pop ratio shows that _______. Real GDP is below potential GDP in _______ because the output gap is _______.
2010; less than 90 percent of the working-age population is fully utilized 2010; negative
In mid-2019, the broadest measure of unemployment was at approximately _______ of its peak.
40 percent
Classify each of the following items as a final good or service or an intermediate good or service, and identify which is a component of consumption expenditure, investment, or government expenditure on goods and services. A. New cars bought by Hertz, the car rental firm B. Aluminum sheets bought by Boeing C. A haircut bought by a student D. A new limousine for the president
A is a final good that is investment, B is an intermediate good, C is a final service that is consumption expenditure, and D is a final good that is government expenditure.
Recovery won't improve unemployment Despite some optimism about the seeds of recovery, the Congressional Budget Office (CBO) sees joblessness rising. The CBO sees unemployment peaking at 10.4% next year from an average of 9.3% this year, before it falls to 9.1% in 2011. Why does unemployment continue to rise as an expansion begins?
As an expansion begins, previously marginally attached workers look for jobs, exceeding the number of people hired.
Chained-dollar real GDP is the measure of real GDP calculated by the _____.
Bureau of Economic Analysis
_______ changed because retail sales increased. _______ changed because business inventories increased.
Consumption expenditure; Investment
Which of the following is an example of a final good or service?
Dan bought a Toyota Camry.
who in the following statements is a discouraged worker?
Dan is available to work but has not looked for a job in the past eight weeks because of repeated applications but no single offer.
Who in the following statements is a full-time worker and who is a part-time worker?
Dan works at Subway for 8 hours each day from Monday through Friday. Mary works at Starbucks' for 4 hours each day on weekends.
The national accounts of Parchment Paradise are kept on (you guessed it) parchment. A fire in the statistics office destroys some accounts, leaving only the data on the right. Calculate GDP (expenditure approach) and depreciation. GDP (income approach) 2,900 Consumption expenditure 2,000 Indirect taxes less subsidies 100 Interest, rent, and profit 500 Investment 800 Government expenditure 400 Wages 2,000 Net factor income from abroad 50 Net exports
GDP (expenditure approach) is $3,000. Part 2 Depreciation is $300.
The table shows some of the items in a country's National Income and Product Accounts in 2018. Calculate the country's GNP and the country's national income in 2018. Consumption expenditure 7.3 Government expenditure 1.9 Indirect taxes less subsidies 0.7 Depreciation 1.2 Net factor income from abroad 0.1 Investment 1.6 Net exports −0.4 Statistical discrepancy
GNP in 2018 is $10.5 trillion. Part 2 National income in 2018 is $9.3 trillion.
Which of the following countries is facing a recession?
Japan's real GDP of 3.8 percent in the first quarter decreased by 0.3 and 0.4 percent respectively in the second and third quarters of 2012.
The table shows some data for an economy. If the base year is 2019, calculate the economy's nominal GDP and real GDP in 2020. In 2019 Item Quantity Price Apples 60 $0.50 Oranges 80 $0.25 In 2020 Item Quantity Price Apples 160 $1.00 Oranges 220 $2.00
Nominal GDP in 2020 is $600. Part 2 Real GDP in 2020 is $135.
Which of the following statements illustrates structural unemployment?
Outsourcing resulted in many job losses in the mid 2000s.
Which of the following is an example of consumption expenditure?
Rachel buying a TV.
Which of the following statements illustrates frictional unemployment?
Robin is quitting his current job to find another that has better prospects.
Which of the following is an example of an intermediate good or service?
Samsung buys compressors for manufacturing refrigerators.
Use these four statements to distinguish among the three types of unemployment: frictional, structural, and cyclical. Which of these statements is correct? 1. An autoworker who loses his job because of a slowdown in the economy is an example of cyclical unemployment. This type of unemployment increases in recessions and decreases in expansion. 2. An unemployed graduate searching for a first job is an example of frictional unemployment. This type of unemployment arises from normal labor turnover. 3. An unemployed graduate searching for a first job is an example of cyclical unemployment. This type of unemployment arises when changes in technology or international competition change the skills needed to perform jobs. 4. An unemployed textile worker in South Carolina who loses her job because of competition from China is an example of frictional unemployment. This type of unemployment arises when changes in technology or international competition change the skills needed to perform jobs.
Statements 1 and 2 are true; the others are false.
Which of the following is an example of an export subsidy?
The U.S. government pays farmers $100 per ton of sugar sold to Canada.
Which of the following is an example of government expenditure on goods and services?
The White House buying internet services.
An economy produces only fun and food. The table shows the prices and the quantities of fun and food produced in 2020 and 2021. The base year is 2020. Calculate the percentage increase in real GDP in 2021. In 2020 Item Quantity Price (dollars) Fun 36 2 Food 62 4 In 2021 Item Quantity Price (dollars) Fun 37 3 Food 64 8
The percentage increase in real GDP in 2021 is 3.1 percent.
The figure shows the flows of expenditure and income in an economy. In 2013, U was $2.0 trillion, V was $2.5 trillion, W was $6.0 trillion, J was $1.0 trillion, and Z was $1.5 trillion. Calculate total income, net taxes, and GDP.
Total income is $10.5 trillion. Part 2 Net taxes equal $2 trillion. Part 3 GDP is $10.5 trillion.
The New York Times thinks the _______ measure of unemployment is more relevant than the official unemployment rate. In mid-2019, this measurement was _______.
U-6; 7 percent
With free trade, the United States exports soybean to China and imports clothing from China. The winners from this trade are _______ and the losers are _______.
U.S. buyers of clothing; U.S. clothing producers
The people who support restricted international trade say that _______.
U.S. firms won't be able to compete with low-wage foreign labor if trade is free
If the lobbying is successful and the U.S. government imposes an import quota, _______ gain and _______ lose.
U.S. growers of tomatoes; U.S. consumers of tomatoes
The table shows some of the items in a country's National Income and Product Accounts in 2018. What was GDP as measured by the income approach in 2018? What was net domestic product at factor cost in 2018? Consumption expenditure 7.3 Government expenditure 1.9 Indirect taxes less subsidies 0.7 Depreciation 1.2 Net factor income from abroad 0.1 Investment 1.6 Net exports −0.4 Statistical discrepancy 0
Using the income approach, GDP in 2018 was $10.4 trillion. Part 2 In 2018, net domestic product at factor cost was $8.5 trillion.
When using the income approach to measure GDP at market prices, in addition to summing all factor incomes it is necessary to _______.
add indirect taxes less subsidies to convert aggregate income from factor cost to market prices
The fundamental force driving international trade is comparative _______.
advantage: the country with the lower opportunity cost of production exports the good
The expenditure approach to measuring U.S. GDP equals _______.
all expenditure on final goods and services produced in the United States in a given time period
If potential GDP in 2020 was $270 and it grew by 1 percent in 2021, in which phase of the business cycle is the economy? The economy is in _______ because _______ between 2020 and 2021.
an expansion; real GDP is increasing
The U.S. consumer surplus that is redistributed to U.S. producers and importers is _______ and the import quota creates a deadweight loss equal to _______.
area B; area D + E
The natural unemployment rate is the unemployment rate when the economy is _____.
at full employment
A marginally attached worker is a person who does not have a job, is _____ and _____ to work, has _____ specific efforts to find a job within the previous _____ weeks, but has looked for work sometime in the recent past.
available; willing; not made; four
Cyclical unemployment is the fluctuating unemployment over the business cycle that increases during _____ and decreases during _____.
a recession; an expansion
The percentage of the employed people who have part-time jobs increases in _______ because _______.
a recession; firms cut work hours
Why did the NBER report that the 2008 recession began before real GDP had fallen for two successive quarters? The NBER Committee _______
based its decision on peaks in the data on real personal income, real manufacturing, wholesale and retail sales, industrial production, and employment, which all peaked between November 2007 and June 2008
The standard of living can be easily compared _______. The standard of living cannot be easily compared in _______ because _______.
between China and Russia or between Canada and the United States, because household production, the underground economy, leisure hours, and the environment are similar in each pair either China or Russia and either Canada or the United States; in each pair household production, the underground economy, leisure hours, and the environment are different
How do reports about the growth rate of real GDP influence you? Reports about the growth rate of real GDP ________. Does a reported increase in the U.S. standard of living mean that your personal standard of living is increasing? Are all of your production activities recorded in the National Income and Product Accounts? How could you value your nonmarket production?
can help you to make decisions about when you should stay in school and when you should look for a job No because U.S. real GDP per person is the standard of living on average No, only market activities are included in the National Income and Product Accounts By valuing the opportunity cost of the production
Net taxes are taxes paid minus _____.
cash benefits received from governments
The statement that total sales by businesses rose by 1.5 percent means that GDP ______ because ______.
did not change by 1.5 percent; GDP measures production of all final goods and services and "total sales by businesses" includes final and intermediate goods and services
Based on this information, differences in real GDP per person _______ correctly rank the standard of living in these countries because _______. To accurately assess the relative standard of living in these countries, we need additional information about _______.
do; when other factors that influence the standard of living are similar the differences in real GDP per person are small, but when these other factors are not similar, the differences are huge the value of household production, the underground economy, leisure, and environment differences
Marla is an associate at JCPenney who wants to work 40 hours week but works 25 hours a week because sales at JC Penney are slow. Marla works part time for _______ reasons. Joe is a server at Olive Garden who wants to work 40 hours a week but works 15 hours a week because the number of patrons at Olive Garden has decreased. Joe works part time for _______ reasons. Michelle is a student who wants to work 20 hours a week at Cost Cutters so she can attend school. Cost Cutters schedules her for 20 hours a week. Michelle works part time for _______ reasons. Florence is semi-retired and wants to work 15 hours a week at Walgreens so she can spend time with her grandchildren. Walgreens schedules her for 15 hours a week. Florence works part time for _______ reasons.
economic; economic noneconomic; noneconomic
U.S. imports are _____ produced in _____ and sold in _____.
goods and services; any other country; the United States
Gross domestic product is the market value of all the _______ in a given time period.
final goods and services produced by all firms located in the United States
The unemployment that is present in the U.S. economy in April 2019 is _______.
frictional and structural because the economy is operating above full employment
When the output gap is positive, the unemployment rate _______ the natural unemployment rate. When the output gap is negative, the unemployment rate _______ the natural unemployment rate.
is less than; is greater than
The following statements about the business cycle are correct except _______.
it is a regular predictable cycle in real GDP around potential GDP
A country will export wheat if, with no international trade, _______.
its opportunity cost of producing wheat is below the world price
Why will one job not last your entire life? Because _______. When you decide to quit your job, what type of unemployment will you enter? Why? What are some of the population categories used in the Current Population Survey that you will pass through during your lifetime? What labor market conditions do you think would make it easier for you to find work?
jobs are created and destroyed, technology and international competition change the skills needed and locations of jobs, and personal reasons lead to changes in job choice Frictional unemployment if the decision is part of normal labor turnover unassociated with recession You are out of the labor force when you retire Low unemployment rate and high Z-Pop ratio
The working-age population is the total number of _____ aged _____ years and over who are not in jail, hospital, or some other form of institutional care or in the U.S. Armed Forces
people; 16
The output gap is real GDP minus _____ expressed as a percentage of _____.
potential GDP; potential GDP
Why do we care about the unemployment rate? We care because it _______. What is the standard of way of determining if the economy is at full employment? We compare _______. Why might the standard way of determining full employment not be the best method? Is there a new and possibly better way of determining if the economy is at full employment? What is a better measure of full employment—using the Z-Pop ratio or the natural unemployment rate?
provides an indication of the underutilization of labor resources the unemployment rate with the natural unemployment rate It doesn't include all underutilized labor. Yes, the Z-Pop ratio The Z-Pop ratio because it includes under utilized labor omitted from the official and natural unemployment rates.
Potential GDP is the value of real GDP when _______.
the unemployment rate equals the natural unemployment rate
Why do we care about the timing of business cycle turning points and phases? We care because _______. Why did the NBER date the recession at November 2007 when the economy did not experience two successive quarters of negative real GDP growth until the second quarter of 2008? The NBER _______. Why is real GDP the most reliable measure of aggregate domestic production? If the two measures of real GDP give "conflicting stories", does that mean we need new measures of real GDP?
they give information to the government to hit the accelerator or step on the brakes determined that significant data other than real GDP indicated that the economy was in a recession Real GDP measures activity in all sectors of the economy—households, firms, and government. No, most often the two measures of real GDP give similar stories. The peak of the last recession was an unusual situation.
The Great Depression was a period of high _____, low _____, and extreme economic hardship that lasted from _____ to _____.
unemployment; incomes; 1929; 1939
If the BLS included all marginally attached workers as being unemployed, the _______ would be _______.
unemployment rate; higher
The BLS counts Jody as being unemployed if she _______.
wants a job and is willing to take a job but after searching last week cannot find a job
Which of the following is an example of the infant-industry argument? Our biotech industry _____ .
will have a comparative advantage when learning-by-doing lowers our cost of production
A marginally attached worker is a person who _______.
doesn't work, is available and willing to work, but hasn't looked for a job recently
When the unemployment rate _______ the natural unemployment rate, real GDP is _______ potential GDP and the output gap is _______.
exceeds; below; negative
Net exports of goods and services is the value of _____ of goods and services _____ the value of _____ of goods and services.
exports; minus; imports
Over the past few years prior to 2019, the unemployment rate was _______ and the output gap was _______. In 2019, the unemployment rate was _______.
falling; gradually shrinking below the natural unemployment rate and the economy was operating above full employment
Real GDP is the value of the _____ goods and services produced in a given year expressed in terms of the prices in _____ year. Nominal GDP is the value of the _____ goods and services produced in a given year expressed in terms of the prices of _____ year.
final; a base; final; that same
Gross domestic product (GDP) is the market value of all the _____ goods and services produced _____ a country in a given time period.
final; within
A recession _______ the unemployment rate and _______.
increases; cyclical unemployment increases
Potential GDP is the value of real GDP when all the economy's factors of production - _____, _____, _____, and _____ - are fully _____.
labor; capital; land; entrepreneurial ability; employed
The figures show the U.S. market for shoes and Brazil's market for shoes if there is no international trade. Who in the United States loses from free trade in shoes with Brazil? If the United States and Brazil engage in free trade, U.S.______ of shoes lose because ______.
producers; the price of shoes falls, the quantity of shoes they sell decreases, and producer surplus decreases
The U.S. tariff on paper _______ the U.S. price of paper, _______ U.S. production of paper and _______ the U.S. gains from trade.
raises; increases; decreases
The labor force participation rate is the percentage of the _____ who are members of the labor force.
working-age population
