econ.

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

How do expansionary policies differ from contractionary​ policies?

A. Expansionary policies seek to reduce the severity of​ recessions, while contractionary policies seek to slow down the economy when it grows too fast. B. Expansionary policies seek to increase economic growth and increase​ employment, while contractionary policies seek to reduce the risk of excessive price inflation. C. Expansionary policies seek to shift the labor demand curve to the​ right, while contractionary policies seek to shift it to the left. (All of the above.)

Suppose the following table shows the supply schedule and demand schedule for windshield wiper fluid in Country 1. Fill in the blank at the top of each​ column, indicating whether it represents the supply or demand for windshield wiper fluid.

Qd-million oz (first coulomb) Qs- million oz (second coulomb) Graph: -d negative slope & s positive slope crossing at (50,10) mark point

The aggregate production function describes the relationship between the​ ____________.

aggregate GDP of a nation and its factors of production.

Marginal analysis ▼ sometimes always never picks out ▼ a different the same optimum as minimization of total cost.

always the same

Central banks undertake quantitative easing programs to​ ____________.

work around the problems when​ short-term nominal interest rates approach zero. more forcefully and directly impact the interest rates relevant for investment decisions. (a & c)

Upper A woman sells old CDs at a garage sale for $ 85 that she had collected over the years at a total cost of $ 400. In this​ case, current GDP

does not change

Would countercyclical policy still be enacted if central bankers were appointed by popular​ vote?

no

Factors of production are the​ ____________.

nputs used to produce other goods and services in an economy.

Consumer sentiment is likely to be __________ with real GDP.

positively correlated

Scott loves to go to baseball​ games, especially home games of the Cincinnatti Reds. All else​ equal, he likes to sit close to the field. He also likes to get to the stadium early to watch batting practice. The closer he parks to the stadium the more batting practice he is able to watch​ (the garages all open​ simultaneously). Find​ Scott's optimal seat type and parking garage using the information that follows. ​ Scott's optimal seat type is ​Scott's optimal parking is

club seating under stadium parking

As the real interest rate​ rises, the opportunity cost of current consumption ▼ . This causes the credit supply curve to have a ▼ slope. If an economy has a large aging population that is​ increasing, one would expect the credit supply curve to shift ▼ .

rises positive rightward

By how much would current GDP change in response to each of the following​ transactions? Dell sells a $ 2 comma 000 computer right off the assembly line to a student. In this​ case, current GDP

rises by $2,000

Suppose​ that, in the United​ States, the inflation rate is at 3.2 percent​ (the target inflation rate is 2​ percent). Rapidly rising prices and low interest rates have spurred business to hire more workers and invest in new facilities. Which of the following is likely to be true of the U.S. economy if there is a rapid rise in prices and low interest​ rates?

The U.S. economy could experience unsustainable​ expansion, resulting in a sharp economic downturn.

What policies could the government and the central bank use to achieve the goal of slowing down the economic​ expansion?

The government could raise taxes​ and/or reduce​ expenditures, while the central bank could raise interest rates.

Changing corporate tax rates is an example of countercyclical ____ policy. If the government lowers corporate tax​ rates, its goal would be a ________shift of the _________________ curve

Fiscal, rightward, labor demand

Which of the following statements regarding marginal analysis is​ true?

If total cost is​ rising, marginal cost could be falling.

Based on your answers in the previous​ parts, which of the following functions is likely to be true if the central bank works​ independently?

It would be able to control​ short-term interest rates to regulate inflation.

For​ Belgium, the opportunity cost of producing 1 million pounds of chocolate is 250 comma 000 gourmet​ pastries, whereas for Italy the opportunity cost is 750 comma 000 gourmet pastries. Given the information​ above, a possible loser from trade is​ ____________.

Italian chocolate makers

In this​ case, _______ has the comparative advantage in grilling hamburgers.

Moe

Which of the following mechanisms can the Fed use to implement a contractionary countercyclical monetary​ policy?

Selling government bonds in an open market operation.

Maria can purchase shirts for ​$20.50 each. She considers the benefit of one shirt to be ​$45.00​, but with each additional shirt she purchases the benefit decreases by ​$5. According to the Principle of Optimization at the​ Margin, Maria will purchase ___shirts. ​(Enter your response as a whole number​.)

The Principle of Optimization at the Margin states that an optimal feasible alternative has the property that moving to it makes you better off and moving away from it makes you worse off. According to the Principle of Optimization at the​ Margin, Maria will purchase 5 shirts.

Use the data in the table below to fill in the last two columns that represent the total market demand and supply for the newly formed economic union. ​(Upper Q Subscript Upper D Superscript 1 represents the quantity demanded for Country​ 1, while Upper Q Subscript Upper S Superscript 3 represents the quantity supplied for Country​ 3.)

The market demand curve ​(Upper Q Subscript Upper D Superscript Upper M​) is the sum of the individual demand curves of all potential buyers. This new market demand curve is found by summing the quantity demanded at each price for the countries within the economic union. The market supply curve ​(Upper Q Subscript Upper S Superscript Upper M​) is the sum of the individual supply curves of all the potential sellers. This new market supply curve is found by summing the quantity supplied at each price for the countries within the economic union. Aggregating quantity demanded and supplied means fixing the price and adding up the quantities that each country either demands or supplies. It is important to remember that quantities are being added​ together, not prices.

Which of the following would not be considered a cause for concern with economic​ experiments?

The subjects are often randomized.

f the labor force is 180 million and the unemployment rate is 7.0 ​percent, the number of people considered employed is ______ million. ​(Round your response to two decimal places.​) If the labor force participation rate is 80 ​percent, the number of potential workers is ______million. ​(Round your response to two decimal places.​)

The unemployment rate is the percentage of the labor force that is​ unemployed: Unemployment rate equals 100 % times (Unemployed Over Labor force) The labor force participation rate is the percentage of potential workers who are in the labor​ force: Labor force participation rate equals 100 % times (Labor force Over Potential workers) In this​ scenario, the number of people considered employed is 167.40 million and the number of potential workers is 225.00 million.

Which of the following is likely to be true if the central bankers were political appointees that could be hired and fired by the​ president?

They would be reluctant to increase the federal funds rate during an economic expansion.

Suppose that two​ workers, Joe and​ Moe, work at a​ fast-food restaurant. Joe can grill 50 hamburgers per hour or fry 25 pounds of french fries per hour. Moe can grill 80 hamburgers per hour or fry 20 pounds of french fries per hour. Using comparative​ advantage, determine whether Joe or Moe should grill hamburgers. The opportunity cost to Joe of grilling hamburgers is ____ pounds of french fries. ​(Round your response to two decimal places.​)

This implies that Joe forgoes 25 pounds of french fries for every 50 hamburgers that he​ grills, or 25​/50 ​= 0.50 forgone pounds of french fries for every hamburger that he grills.

Why would central banks want to clamp down when the economy is​ growing?

To prevent inflationary forces from gathering momentum. To block the formation of unsustainable speculative asset bubbles. (a & c)

Quantitative easing is​ ____________.

a variation on the central​ bank's traditional manner of conducting open market operations. B. an attempt by the central bank to more directly impact​ long-term interest rates. C. the central​ bank's purchase of​ long-term bonds in the open market. Your answer is not correct.D. all of the above.

An economic enterprise that defines and upholds property rights incentivizes citizens to work and save. This example of ▼ efficiently utilizes factors of production in order to move from a ▼ society to a ▼

and institutional labor-intensive capital-intensive

Kevin can write 250 textbook pages per year or edit 500 textbook pages per year. Amy can write 120 textbook pages per year or edit 480 textbook pages per year. In this​ scenario, Kevin has the absolute advantage in _____________ textbook pages and Amy has the comparative advantage in ___________

both editing and writing editing

To support an undervalued​ currency, a foreign government would need to​ ____________.

buy dollars and sell its local currency.

An experiment would be conducted to determine __________ among the chosen variables. Subjects should be assigned ________ selectively randomly to either a test or control group in order to get the most unbiased comparison.

causation randomly

GDP per capita ▼ account for​ distribution; consequently, economic growth may actually reduce ▼

does not equality

whom she formerly paid $ 60 comma 000 a year. After they are married comma her husband continues to wait on her as before comma and she continues to support him as before minus but as a husband rather than as an employee comma that is comma not with a regular salary. In this​ case, current GDP

falls by $60,000

What are the similarities and the differences between monetary and fiscal​ policies?

he manner​ (or ways) in which they work. d The aspect of the labor market they impact. s The result their implementation seeks to achieve. s The entities​ (or authorities) that oversee them. d

For any price above​ $5 absolutely nobody will buy your​ lemonade, but for any price below​ $5 you find that you are able to sell as much lemonade as you like.

horizontal line @ 5

In​ general, apartment rental prices __________ as the opportunity cost of commuting​ rises, indicating a strong ____________ relationship between rents and commutes.

increase negative

Given the​ circumstances, the countercyclical monetary policy adopted by the Federal Reserve is likely to result in​ a(n)

increase in the federal funds rate

The opportunity cost to Moe of grilling hamburgers is _________ nothing pounds of french fries. ​(Round your response to two decimal places.​)

in​ contrast, Moe forgoes 20 pounds of french fries for every 80 hamburgers that he​ grills, or 20​/80 ​= 0.25 forgone pounds of french fries for every hamburger that he grills.

The average number of initial applications for unemployment insurance is likely to be __________ with real GDP

negatively correlated

Making a prediction today about the​ world's population in twenty years based on current growth trends is an example of _______ economics. Advising the residents of a town to choose a toll road over a freeway extension due to a limited budget and high trucking usage is an example of ________ economics.

positive normative

The Conference Board publishes data on Business Cycle Indicators​ (BCI). The Composite Index of Leading Economic Indicators is one of the three components of the BCI. Changes in leading economic indicators usually precede changes in GDP. Some of the variables tracked by the index are listed below. i. The average weekly hours worked by manufacturing workers ii. The average number of initial applications for unemployment insurance iii. The amount of new orders for capital goods unrelated to defense iv. The amount of new building permits for residential buildings v. The​ S&P 500 stock index vi. Consumer sentiment Examine each variable and explain whether it is likely to be positively​ correlated, negatively​ correlated, or uncorrelated with real GDP. The average weekly hours worked by manufacturing workers is likely to be ▼

positive correlation

The amount of new building permits for residential buildings is likely to be__________ with read GDP

positively correlated

The amount of new orders for capital goods unrelated to defense is likely to be ▼ with real GDP.

positively correlated

The​ S&P 500 stock index is likely to be _________ with real GDP

positively correlated

When graphing the new total market supply and demand​ curves, these curves will be​ _________ the individual​ countries' demand​ curves, since these curves are derived by​ _________.

to the right​ of; summing quantities at a given price.

There is only one buyer. For any price above​ $100, this buyer wants nothing. For any price at or below​ $100, this buyer wants exactly 20 units.

vertical line @ 20 stops at 100

Appendectomy is a​ life-saving operation that some people need. Regardless of the​ price, the quantity demanded is​ 300,000 every year.

vertical line @ 300,000


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