final quiz for macro

C. A typical consumer.

The CPI is a measure of the overall cost of the goods and services bought by...

B. The goods and services purchased by a typical consumer

The CPI is a measure of the overall cost of...

B. $22,000

Tyler and Camille both live in Oklahoma. A new-car dealer in Oklahoma bought a new car from the manufacturer for $18,000 and sold it to Tyler for $22,000. Later that year, Tyler sold the car to Camille for $17,000. By how much did these transactions contribute to the U.S. GDP for the year?

D. Comparative advantage

What is the fundamental basis for trade among nations?

B. Rises, and the price received by sellers falls

When a tax is placed on a product, the price paid by buyers...

B. The Department of Labor

Which entity within the U.S. government is responsible for computing and reporting the CPI?

D. All of the above are included in GDP

Which of the following domestically produced items is NOT included in GDP?

A. The CPI can be used to compare dollar figures from different points in time.

Which of the following statements is correct?

B. Induces buyers to consume less, and sellers to produce less

A deadweight loss is a consequence of a tax on a good because the tax...

C. $21.50

A farmer sells five pounds of pecans to a Smith's Fresh Pecans for $10. Smith's Fresh Pecans resells three pounds for $4.50 per pound. The remaining pecans are shelled and canned and sold for a total of $8.00. Taking these transactions into account, how much is added to GDP?

C. Other countries have a comparative advantage over Vietnam and Vietnam will import textiles.

Assume, for Vietnam, that the domestic price of textiles without international trade is higher than the world price of textiles. This suggests that, in the production of textiles...

B. If the purchaser uses them to make wine to sell to others but not if the purchaser eats them.

Grapes are considered intermediate goods...

A. Income and expenditures

Gross domestic product measures...

A. ((CPI in 2013 - CPI in 2012)/CPI in 2012) x 100

If 2012 is the base year, then the inflation rate for 2012 equals...

A. The country will be an exporter of the good

If a country allows trade and, for a certain good, the domestic price without trade is lower than the world price...

B. Sellers of the good

If a tax shifts the supply curve upward (or to the left), we can infer that the tax was levied on...

D. Consumers buy more tea than beer.

In the calculation of CPI, tea is given greater weight than beer if...

D. $50

In the market for widgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. The equilibrium quantity in the market for widgets is 200 per month when there is no tax. Then a tax of $5 per widget is imposed. The price paid by buyers increases by $2 and the after-tax received by sellers falls by $3. The government is able to raise $750 per month in revenue from the tax. The deadweight loss from the tax is...

C. A minimum wage that firms may pay workers

Minimum wage laws dictate...

D. And most goods and services produced illegally are excluded from GDP.

Most goods and services produced at home...

C. Can generate inequities of their own

Price controls...

A. Total surplus before the tax

Refer to Figure 8-1. Suppose the government imposes a tax of P1 - P3. The area measured by I+J+K+L+M+Y represents...

A. Deadweight loss due to tax

Refer to Figure 8-1. Suppose the government imposes a tax of P1 - P3. The area measured by I+Y represents the...

A. Consumer surplus after the tax

Refer to Figure 8-1. Suppose the government imposes a tax of P1 - P3. The area measured by J represents...

B. Consumer surplus before the tax.

Refer to Figure 8-1. Suppose the government imposes a tax of P1 - P3. The area measured by J+K+I represents...

A. Total surplus after the tax

Refer to Figure 8-1. Suppose the government imposes a tax of P1 - P3. The area measured by J+K+L+M represents...

A. Tax revenue

Refer to Figure 8-1. Suppose the government imposes a tax of P1 - P3. The area measured by K+L represents...

D. Producer surplus before the tax.

Refer to Figure 8-1. Suppose the government imposes a tax of P1 - P3. The area measured by L+M+Y represents...

C. Producer surplus after the tax.

Refer to Figure 8-1. Suppose the government imposes a tax of P1 - P3. The area measured by M represents...

B. J

Refer to Figure 8-1. Suppose the government imposes a tax of P1 - P3. The consumer surplus after the tax is measured by the area...

D. Tax revenue

The benefit the government receives from a tax is measured by...

C. Tax revenue

The government's benefit from a tax can be measured by...

D. Canada forbids international trade in soybeans.

The market for soybeans in Canada consists solely of domestic buyers of soybeans and domestic sellers of soybeans if...

D. The prices of some consumer goods

To calculate the CPI, the Bureau of Labor Statistics uses...

C. Compare the reduced welfare of buyers and sellers to the amount of revenue the government raises

To fully understand how taxes affect economic well-being, we must...

D. Not included in current GDP because GDP only measures the value of goods and services produced in the current year.

Transactions involving items produced in the past, such as the sale of a 5-year-old automobile by a used car dealership or the purchase of an antique rocking chair by a person at a yard sale, are...

D. J+K+I

Refer to Figure 8-1. Suppose the government imposes a tax of P1 - P3. The consumer surplus before the tax is measured by the area...

C. I+Y

Refer to Figure 8-1. Suppose the government imposes a tax of P1 - P3. The deadweight loss due to the tax is measured by the area...

A. M

Refer to Figure 8-1. Suppose the government imposes a tax of P1 - P3. The producer surplus after the tax is measured by the area...

C. L+M+Y

Refer to Figure 8-1. Suppose the government imposes a tax of P1 - P3. The producer surplus before the tax is measured by the area...

A. K+L

Refer to Figure 8-1. Suppose the government imposes a tax of P1 - P3. The tax revenue is measured by the area...

B. J+K+L+M

Refer to Figure 8-1. Suppose the government imposes a tax of P1 - P3. Total surplus after the tax is measured by the area...

D. I+J+K+L+M+Y

Refer to Figure 8-1. Suppose the government imposes a tax of P1 - P3. Total surplus before the tax is measured by the area...

A. A

Refer to Figure 9-9. Consumer surplus in this market after trade is...

B. A+B

Refer to Figure 9-9. Consumer surplus in this market before trade is...

C. B+C+D

Refer to Figure 9-9. Producer surplus in this market after trade is...

D. C

Refer to Figure 9-9. Producer surplus in this market before trade is...

B. D, and this area represents a gain in total surplus because of trade.

Refer to Figure 9-9. The change in total surplus in this market because of trade is...

C. A+B+C+D

Refer to Figure 9-9. Total surplus in this market after trade is...

B. A+B+C

Refer to Figure 9-9. Total surplus in this market before trade is...

B. Monthly

The CPI is calculated...