macroeconomics

Which of the following would shift the supply of Green Bay Packers football jerseys to the left?

The cost of the fabric used to make the jerseys increases.

Which of the following is included in the calculation of GDP?

The purchase of tutoring services from a tutor who holds citizenship outside the country but resides within the country.

Which of the following statements is correct about the relationship between the nominal interest rate and the real interest rate?

The real interest rate is the nominal interest rate minus the rate of inflation

Which of the following is an example of human capital?

The things you have learned this semester

If the consumer price index was 96 in Year 1, 100 in Year 2, and 102 in Year 3, then the base year must be

Year 2.

Gross domestic product measure

income and expenditures

In order to include many different goods and services in an aggregate measure, GDP is computed using, primarily,

market prices.

One problem with the consumer price index stems from the fact that, over time, consumers tend to buy larger quantities of goods that have become relatively less expensive and smaller quantities of goods that have become relatively more expensive. This problem is called

substitution bias

Disposable personal income is

the income that households and businesses have remaining after satisfying their obligations to the government.

GDP is defined as the

value of all final goods and services produced within the country in a given period of time

A steel company sells some steel to a bicycle company for $150. The bicycle company uses the steel to produce a bicycle, which it sells for $250. Taken together, these two transactions contribute

$250 to GDP.

The real interest rate tells you

. how fast the purchasing power of your bank account rises over time

Refer to Table 4-2 . If these are the only four buyers in the market, then the market quantity demanded at a price of $1 is

31 units.

The price index was 120 in Year 1 and 126 in Year 2. What was the inflation rate?

5.0 percent

Joe and Jim purchase vegetables at a grocery store, but Jim also grows vegetables in his backyard. Regarding these two practices, which of the following statements is correct? a. Only Joe's grocery store purchases are included in GDP. b. Only Joe's and Jim's grocery store purchases are included in GDP. c. Joe's and Jim's grocery store purchases are included in GDP. The vegetables from Jim's backyard garden are included at their market value. d. Joe's and Jim's grocery store purchases are included in GDP. The vegetables from Jim's backyard garden are included at their market value, if Jim provides this information

B, only joes and Jims grocery store purchases are included in GDP

The inflation rate you are likely to hear on the nightly news is calculated from the

CPI.

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

a typical consumer, and the CPI is computed and reported by the Bureau of Labor Statistics.

When we move along a given demand curve,

all nonprice determinants of demand are held constant.

most goods and services produced at home

and most goods and services produced illegally are excluded from GDP

Which of the following items is the one type of household expenditure that is categorized as investment rather than consumption? a. The purchase of stocks and bonds b. Spending on education c. The purchase of a new house d. The purchase of durable goods such as stoves and washing machines

c. The purchase of a new house

Two goods are substitutes when a decrease in the price of one good

decreases the demand for the other good

For any given year, the CPI is the price of the basket of goods and services in the

given year divided by the price of the basket in the base year, then multiplied by 100

A transfer payment is a payment made by

government, but not in exchange for a currently produced good or service.

When the consumer price index rises, the typical family

has to spend more dollars to maintain the same standard of living