MACRO - midterm 2 (ch9-10)

In 2017, the total population of Africa was estimated to be about 1,250,000,000 people. This number, in billions, is: A. 125. B. 1,250. C. 1.25. D. 12.5.

C

Which of the following countries enjoyed significant catch-up economic growth in the second half of the twentieth century? A. United States B. South Korea C. Argentina D. Spain

B

The table below shows data for Central African Republic (CAR). What was this country's real GDP per person in 2010? (GDP = $2,140,503,193 pop. = 4,386,768) A. $487.95 B. $504.75 C. $471.63 D. $336.93

A

Which of the following is an example of transfer payments? A. unemployment benefits B. military salaries C. interest earned on savings in banks D. government loans

A

You purchase a new car (produced this year) for $38,000. After six months, you sell the car for $31,500. How much does GDP rise because of these two transactions? A. GDP rises by $38,000. B. GDP rises by $31,500. C. GDP rises by $69,500. D. GDP rises by $6,500.

A

Southeast Asian countries experience high temperatures and high humidity during the monsoon seasons. This makes working conditions difficult. Because air conditioners are expensive and consume a lot of electricity, an alternative air cooler called an Eco-cooler was invented. This device does not use electricity, is made from readily available soda bottles, and works by funneling air into a room. This scenario is an example of: A. decrease in labor force participation rate in Southeast Asian countries B. development of human capital C. rise in productivity causing an increase in technology D. technological innovation that can increase labor productivity and thus increase economic growth

D

If a bakery buys a second oven, hires a second baker, buys double the number of ingredients, doubles the size of the bakery, and then produces double the number of cakes, then the bakery is experiencing: A. constant returns to scale. B. an increase in labor productivity. C. increasing returns to scale. D. technological advancement.

A

Consider the following graphs, which are discussed in the textbook. Focus on the graph that looks at the relationship between GDP per person and infant deaths per 1,000 live births. What can explain this relationship? (life satisfaction, avg yrs of schooling, infant mortality, life expectancy) A. As real GDP per person rises, infant mortality rises. B. Infant mortality declines only when GDP per person is above $25,000 per year. C. As real GDP per person rises, maternal and fetal health increase due to better health care, education, sanitation, and nutrition. D. As life expectancy increases, GDP per person increases at the same rate.

C

memorize circular flow diagram

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In 2010, Canada's GDP was approximately $1,357 billion, and its population was about 34.12 million. What was Canada's approximate GDP per person in 2010? A. $39,770 B. $26,246 C. $3,980 D. $46,060

A

Based on the following statistics, how much are net exports? exports = $2.357 tril imports = $2.932 tril A. $20.67 trillion B. -$0.575 trillion C. $2.357 trillion D. $0.575 trillion

B

Refer to the table below, which shows data for the United Arab Emirates (UAE). What was the economic growth rate in UAE between 2009 and 2010? (GDP per person: 2009-$36,024.06 2010-$33,893.30) A. 2.26% B. -15.15% C. -5.91% D. -11.27%

C. -5.91%

Based on the following statistics, how much is consumption? total spending = $11.62 tril investment = $2.56 tril govt spending = $2.95 tril exports = $1.8 tril imports = $2.18 tril A. $6.49 trillion B. -$0.38 trillion C. $5.13 trillion D. $11.62 trillion

A

What is the difference between microeconomics and macroeconomics? A. Microeconomics is the study of the economy as a whole, whereas macroeconomics is the study of individual decisions in specific markets. B. Microeconomics is the study of individual decisions in specific markets, whereas macroeconomics is the study of the economy as a whole. C. Microeconomics focuses only on the forces of individual demand and individual supply, whereas macroeconomics focuses only on policy making for the economy. D. Microeconomics is the study of individual decisions in specific markets, whereas macroeconomics is the study of government policies.

B

Refer to the diagram of the circular flow of income. The key lessons from this diagram are that: (i) all flows of resources are matched by flows of money. (ii) the market value of total output must be equal to total spending. (iii) total spending must equal total income. (iv) all inputs are provided by businesses. A. (i), (ii), (iii), and (iv) B. (ii) and (iii) C. (i), (ii), and (iii) D. (i) and (iv)

C

Which of the following is (are) included in investment? (i) military spending (ii) the purchase of an aircraft by a domestic airline (iii) the purchase of $45,000 worth of bonds (iv) the purchase of $32,000 worth of stock (v) social security payments (vi) the construction of a highway by the federal government A. (i) and (vi) B. (i), (ii), (v), and (vi) C. (ii), (iii), and (iv) D. (ii) only

D

Consider the data shown in the table. Assume that the economy produces only barrels of oil. What is the real GDP for this year using last year as the base year? last yr = 80,000 , $60 this yr = 83,000 , $63 A. $5,229,000 B. $4,980,000 C. $5,104,500 D. $4,800,000

B

The moral of the story of the Solow growth model is that: A. capital accumulation is the key to sustained economic growth. B. capital accumulation alone cannot lead to sustainable economic growth. C. technological advance cannot sustain continuous economic growth. D. human capital growth does not lead to economic growth.

B

Which of the following encourages the development of new ideas and inventions? A. negative economic growth B. capital accumulation C. government control of resources D. patents

D

Refer to the table below, which shows data for the United Arab Emirates (UAE). Based only on the data in this table, in which year(s) did the UAE experience an increase in the standard of living?

2010 to 2011 and 2011 to 2012

Which of the following is an example of a durable good? A. your new car B. your haircut C. a soft drink D. fresh flowers from the florist

A

Refer to the table below that shows data for Panama. What was Panama's real GDP per person in the year 2002? (GDP = $17,116,370,199.13 pop.= 3,149,188) A. $5,493.64 B. $6,172.87 C. $5,435.17 D. $5,558.09

C

Along the same aggregate production function, the level of _____ is the same. A. economic growth B. technology C. labor D. capital

B. technology

Below is U.S. economic data for 2018. What was total spending? consumption = $13.999 tril investment = $3.628 tril govt spending = $3.591 tril exports = $2.510 tril imports = $3.418 tril A. $23.73 trillion B. $21.86 trillion C. $20.58 trillion D. $21.22 trillion

C

Dale is a stay-at-home-parent whose typical day consists of getting the kids ready for school, doing the laundry, cooking three meals, and cleaning the house. How are Dale's home activities counted in GDP? A. They are counted by assigning a value that is equivalent to what it would have taken to pay a housekeeper to perform the same tasks. B. They are counted at market value. C. They are counted by subtracting Dale's opportunity cost in terms of lost income. D. They are not counted.

D

A constant returns to scale production function means that if all inputs are increased by 75%, this should lead to output: A. falling by more than 75% B. rising by more than 75% C. falling by less than 75% D. rising by 75%

D. rising by 75%

Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the real GDP for last year using this year as the base year? last yr = 100 , $1800 this yr = 105 , $1850 A. $180,000 B. $185,000 C. $191,625 D. $194,250

B

Technological advancement is NOT represented by which of the following? A. the adoption of an existing technology by new firms B. the invention of the light bulb C. the invention of robotic meal preparation D. the creation of new apps designed to enhance efficiency and reduce wastage in production lines

A

The government passes a new investment tax credit initiative. Which input in the production function changes, and what is the effect on economic growth in the country? A. The capital stock decreases, and economic growth is negatively affected. B. The capital stock increases, and economic growth is positively affected. C. Technological advance occurs, but there is no effect on economic growth. D. Human capital is enhanced, and economic growth is positively affected.

B

What is the difference between spending from a microeconomic standpoint versus spending from a macroeconomic standpoint? A. In microeconomics, spending refers to domestic spending, whereas in macroeconomics, spending refers to foreign spending. B. In microeconomics, spending refers to spending by you, or your family, or your company, whereas in macroeconomics, spending refers to the spending by all consumers, all businesses, and the government in the economy. C. In microeconomics, spending refers to one individual's spending, whereas in macroeconomics, spending refers to government expenditure. D. In microeconomics, spending refers to expenditure on consumer goods only, whereas in macroeconomics, spending refers to business expenditures only.

B

Which of the following is a scaled number? A. total tax revenues in the economy B. the sum of all incomes earned in the economy C. government budget deficit as a percentage of GDP D. the country's national debt

C

Consider the data shown in the table. Assume that the economy produces only textbooks. What is the growth rate of real GDP between the two years using last year as the base year? last yr = 5,000 , $50 this yr = 5,250 , $55 A. 2.5% B. 10% C. 15% D. 5%

D

Consider the data shown in the table. Assume that the economy produces only textbooks. What is the nominal GDP for last year? last yr = 5,000 , $50 this yr = 5,250 , $55 A. $262,500 B. $275,625 C. $288,750 D. $250,000

D

The aggregate production function Y = f(L, H, K) shows that economic growth can occur if: (i) human capital increases. (ii) labor productivity falls. (iii) the capital stock in the country depreciates. (iv) the depreciation rate increases. A. (i), (ii), (iii), and (iv) B. (i) and (iv) C. (iii) only D. (i) only

D

The aggregate production function is represented as: A. H = f(L, Y, K). B. K = f(L, H, Y). C. L = f(Y, H, K). D. Y = f(L, H, K).

D