Macro exam 1 part 2

The current US economy is based primarily on the production of:

Services

According to the updated international data provided on Supplemental Handout #2, Per Capita GDP in the United States was approximately $_______ for year 2019.

$65,000

According to page 32 of the Required Course Textbook, the US population has increased by an average of ___ per year.

1%

According to Supplemental Handout #5, America's poverty rate was _____ in year 2018.

11.8%

According to page 29 of the Required Course Textbook, the United States has only ___ of the world's arable land.

12%

According to the national data provided on Supplemental Handout #3, approximately ___% of the US population (25 years of age +) had earned an Advanced College Degree in year 2019.

13%

According to page 29 of the Required Course Textbook, the United States produces ___ of the world's output.

20%

According to the updated national data provided on Supplemental Handout #4, the 20% of American households with the lowest incomes received approximately ____ of total income in year 2019.

3 percent

According to page 32 of the Required Course Textbook, on average, US output has grown by roughly ___ per year.

3%

According to the national data provided on Supplemental Handout #3, approximately ___% of the US population (25 years of age +) had earned a Bachelor's Degree in year 2019.

36%

According to page 29 of the Required Course Textbook, the United States has less than ___of the world's population.

5%

According to the updated national data provided on Supplemental Handout #4, the 20% of American households with the highest incomes received approximately ____ of total income in year 2019.

52 percent

According to the national data provided on Supplemental Handout #3, approximately ___% of the US population (25 years of age +) had earned a high school diploma or GED in year 2019.

90%

According to the national data provided on Supplemental Handout #3, which racial/ethnic group had the largest percentage of its population earning a 4-year college degree in year 2019?

Asian

Which of the following is an example of an external cost?

Automobile exhaust fumes.

Statement 1: One-fifth of the population, rank ordered by income, is called an income quintile.Statement 2: In year 2019, each income quintile contained approximately 25.7 million households.

Both statements are correct.

The government establishes the rules of the game for economic transactions in order to:

Legitimatize and enforce contracts.

When World War II ended, some of America's resources moved easily from the production of military goods back to the production of consumer goods. This process is referred to as: Outsourcing Capital adaptation Externality Factor mobility

Factor mobility

By studying the distribution of income, we can observe how America answers the:

For whom to produce question.

In year 2018, the poverty rate was lowest for which nativity group in America?

Foreign-born individuals who became naturalized citizens

According to the national data provided on Supplemental Handout #3, which racial/ethnic group had the smallest percentage of its population earning a 4-year college degree in year 2019?

Hispanic

According to the national data provided on Supplemental Handout #3, which racial/ethnic group had the smallest percentage of its population earning a high school diploma or GED in year 2019?

Hispanic

In year 2018, the poverty rate was highest for which type of household in America?

Households with only a female head of household present

According to page 34 of the Required Course Textbook, which of these statements BEST describes the education gap among nations? America has more than 100,000 public and private schools, but many low-income countries have fewer than 100 public and private schools. In America, almost all young people attend high school, but in many low-income countries, less than half the population ever attends high school. Due to high family incomes, scholarships and student grants/loans, most young people in America can afford to attend college. Due to low family incomes and a lack of scholarships and student grants/loans, most young people in low-income countries cannot afford to attend college. All of these statements are used in the Required Course Textbook to describe the education gap between nations.

In America, almost all young people attend high school, but in many low-income countries, less than half the population ever attends high school.

As a nation's average education level increases, the nation's level of productivity:

Increases and the nation's production possibilities curve shifts to the right.

According to page 36 of the Required Course Textbook, the process known as outsourcing leads to:

Increases in total output and temporary job losses for some workers.

Which of the following is NOT an example of an improvement to human capital?

Increasing the number of machines available to workers

According to page 35 of the Required Course Textbook, which of the following activities is likely to use the most capital-intensive production process? Farming in Third World countries. Apparel production in China. Oil refining in the United States. Automobile production in Russia.

Oil refining in the United States.

A Monopoly exists when:

Only one firm produces the entire market output of a good.

When Monopolies exist:

Output prices tend to be higher and the level of output produced tends to be lower.

In year 2018, the poverty rate was lowest for which level of work experience in America?

People who work full time and year round

In year 2018, the poverty rate was lowest for which educational attainment group in America?

People with a four-year college degree or more

Statement 1: The Per Capita GDP statistic is an indicator of how much output the average person would get if all output were divided up evenly among the population.Statement 2: The Per Capita GDP statistic tells us how much output a specific person actually consumed during a given calendar year.

Statement 1 is correct but Statement 2 is incorrect.

In year 2018, the poverty rate was highest for which racial/ethnic group in America?

The Black population in America

The term productivity is a measure of:

The amount of output produced per unit of labor input

Suppose you are told that Brazil's national output increased by 4% last year, while Switzerland's national output increased by only 2% last year. The population of Brazil grew by 6% last year, while Switzerland's population grew by only 1% last year. Based on this data, you can conclude that:

The average standard of living decreased in Brazil but increased in Switzerland.

The term externalities refers to:

The costs and benefits of a market activity borne by a third party.

Gross Domestic Product (GDP) is a statistic designed to measure:

The dollar value of the final goods and services produced in America during a given time period.

Suppose YOU are a one-person household with a total income of $38,199. According to the updated national data provided on Supplemental Handout #4, in which income quintile would you have been classified for year 2019?

The fourth fifth

The term human capital refers to:

The knowledge and skills possessed by workers.

A nation's Per Capita GDP statistic will increase in value if:

The nation's output increases more rapidly than the population increases.

When we compare a poor household in America to the average household in a low-income country like Haiti:

The poor household in America consumes far more in terms of goods and services, relative to the average household in Haiti.

When an Economist describes a production process as being capital intensive, she means that:

The production process uses a lot of machinery and very little labor.

Suppose YOU are part of a two-person household. Both household members work full-time jobs, and the household's total income is $123,675. According to the updated national data provided on Supplemental Handout #4, in which income quintile would you have been classified for year 2019?

The second fifth

According to the World View box "Income Share of the Rich" from page 39 of the Required Course Textbook, what is the relationship between economic development and income inequality?

There is a negative (or inverse) statistical relationship between economic development and income inequality. As a country becomes more developed economically, the country experiences less income inequality.

According to the updated international data provided on Supplemental Handout #1, which country had the world's largest economy in year 2019?

United States

According to the updated international data provided on Supplemental Handout #2, which country had the highest per capita GDP in year 2019?

United States

According to the national data provided on Supplemental Handout #3, which racial/ethnic group had the largest percentage of its population earning a high school diploma or GED in year 2019?

White