macro test 2 review
which of the following is not a cause of frictional unemployment
minimum wage laws
the primary economic function of the fictional system is to
match one persons savings with another persons investment
suppose a basket of goods and service has been selected to calculate the CPI and 2002 has been chosen as the base year. in 2002 the baskets cost was 75; in 2004 the baskets cost was 79.50; and in 2006 the basket cost was 85.86. the value of the CPI was
100 in 2002, 106 in 2004, 114.48 in 2006
suppose the economy is closed with national saving of 2 trillion, consumption of 8 trillion and government purcases of 1 trillion. what is GDP
11 trillion
for this economy, investment amounts to
12000
suppose that in a closed economy GDP is equal to 11000, taxes are equal to 2500 consumption equals 7000, and government purchases equal 3000. what are private savings and public saving
1500 and -500 respectively
in june 2009 the bls reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. based on these numbers the labor force participation rate was
154/234.9
the consumer price index was 225 in 2006 and 234 in 2007. the normal interest rate during this period was 6.5%. what was the real interest rate during this period
2.5%
if 2009 is the base year, then the inflation rate in 2009 was
36.1
if the government imposes a minimum wage of 8, then how many workers will be unemployed
4000
a worker received 5 for a daily wage in 1930. what is the value of that wage today if the CPI was 17 in 1930 and is 215 today?
63.24
in 2009 is the base year, then the CPI for 2008 was
73.5
wages in excess of their equilibrium level help explain
both structural unemployment and the natural rate of unemployment
which of the following expressions must be equal to national saving for a closed economy
Y-C-G
which of the following statement is true
americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers
ths economy government is running a
budget surplus of 3000
the traditional view of the production process is that capital is subject to
diminishing returns, so that other things the same, real GDP in poor countries should grow at a faster rate than in rick countries
to be counted as employed in the US labor force statistics a person
does not have to be working for pay if they are working for a family business and does not have to be working full time
which of the following is correct
historically, in periods where the rate of population growth was high, so was the rate of growth in world real GDP per person
an increase in the minimum wage
increase structural unemployment
which of the following statements is not correct
malthus argued that charity and government aid was an effective way to reduce poverty
angelica is an unpaid homemaker who works as a volunteer at the local red cross and is currently not looking for a paid job. the bureau of labor statistics counts angelica as
neither in the labor force nor unemployed
country A and B are the same except country A currently has a lower level of capital assuming diminishing returns, if both countries increase their capital by 100 units and other factors that determine output are unchanged, then
output in country A increase by more than in country B
if your firms production function has constant returns to scale, then if you double all your inputs, your firms output will
output in country A increase by more than in country B
the economys inflation rate is the
percentage change in the price level from the previous period
which of the following items plays a role in determining productivity
physical capital, natural resources, technological knowledge
in a closed economy, what does (Y-T-C) represent
private saving
a firm may pay efficiency wages in an attempy to
reduce incentives to shirk, reduce turnover, attract a well qualified pool of applicants
because of its effect on the amount of capital per worker, in the short term an increase in the working population is likely to
reduce productivity. other things the same, this decrease will be larger in a poor country
which of the following is correct
the CPI is better than the GDP deflator at reflecting the goods and services bought by consumers
the economys two most important financial markets are the
the bond market and the stock market
economists use the term inflation to describe a situation in which
the economys overall output of goods and services is rising faster than the economys overall price level
this position and/or slope of the supply curve are influenced by
the level of national savings and public saving, decisions made by people who have extra income they want to save and lend out
other things the same, if a country raises its saving rate, then in the long run
the level of real GDP is higher but the growth rate of real GDP is unchanged
which of the following events could explain a shift of the demand for loanable funds curve from D1 to D2
the tax code is reformed to encourage greater investment
the consumer price index is used to
turn dollar figures into meaningful measures of purchasing power
which of the following is correct
unemployment rate = number of unemployed / (number of employed + number of unemployed) x 100
which of the following is not correct
unions play a much larger role in the US labor market now than they did in the past
in an imaginary economy, consumers buy only hot dogs and hamburgers. the fixed basket consists of 10 hot dogs and 6 hamburgers. a hot dog costs 3 in 2006 and 5.4 in 2007. hamburger costs 5 in 2006 and 6 in 2007. which of the following statements is correct?
when 2007 is chosen as the base year, the inflation rate is 50 percent in 2007
workland has a population of 10000, of whom 7000 work 8 hours a day to produce a total of 224000 final goods. laborland has a population of 5000, of whom 4000 work 12 hours a day to produce a total of 120000 final goods
workland has higher productivity but lower real GDP per person than laborland