Macro Quiz Chapter 1

the total output of the UK's economy, divided by the country's population

What does UK GDP per capita measure?

firm

A business organization that pays wages and salaries to employ people, and purchases inputs, to produce and market goods and services with the intention of making a profit.

technological progress

A change in technology that reduces the amount of resources (labour, machines, land, energy, time) required to produce a given amount of the output.

Gross Domestic Product (GDP)

A measure of the market value of the output in the economy for a given period

entrepreneur

A person who creates or is an early adopter of new technologies, organizational forms, and other opportunities.

democracy

A political system, that ideally gives equal political power to all citizens, defined by individual rights such as freedom of speech, assembly, and the press; fair elections in which virtually all adults are eligible to vote; and in which the government leaves office if it loses.

technology

A process taking a set of materials and other inputs, including the work of people and machines, to produce an output.

Industrial Revolution

A wave of technological advances and organizational changes starting in Britain in the eighteenth century, which transformed an agrarian and craft-based economy into a commercial and industrial economy.

capitalism

An economic system in which private property, markets, and firms play an important role.

profits are claimed by the capitalists. it allows failing firms to go bankrupt.

Capitalism as an economic system can be dynamic and successful if:

Capitalism is an economic system in which, private property, markets, and firms play an important role. Which of the following statements related to the terms in this definition are correct?

Employee-owned cooperatives are not firms. An economic system is a way of organising the production and distribution of goods and services in an entire economy.

the Russian Revolution

In the 'Economist in action' video, which of the following were NOT among the reasons that Piketty gave for the fall in the incomes of the very rich during the twentieth century?

disposable income

Income available after paying taxes and receiving transfers from the government.

-2.35%

The GDP per capita of Greece was $22,494 in 2012 and $21,966 in 2013. Based on these figures, the growth rate of GDP between 2012 and 2013 (to two decimal places) was:

institution

The laws and social customs governing the way people interact in society.

private property

The right and expectation that one can enjoy one's possessions in ways of one's own choosing, exclude others from their use and dispose of them by gift or sale to others who then become their owners.

sale of illegal arms auction websites such as eBay touts selling tickets outside concert halls

Which of the following are examples of markets?

Adam Smith claimed that coordination among a large number of economic actors (producers, transporters, sellers, consumers), often unknown to each other, might spontaneously arise without any person or institution consciously attempting to create or maintain it. Adam Smith believed in the role of the government to improve societal welfare.

Which of the following statements regarding Adam Smith is correct?

labour productivity atmospheric CO2 GDP per capita

Which of the following variables have followed the so-called 'hockey-stick' trajectory—that is, little to no growth for most of history followed by a sudden and sharp change to a positive growth rate?

computers belonging to your college shares in a company

examples of private property