Macroeconomics review from quizzes for exam 3 (11/1/15)
Which of the following is an example of the "brain drain"
A country's most highly educated workers emigrate to rich countries
In a small closed economy investment is $20 billion and private savings is $22 billion. What are public savings
-$2 billion and $20 billion
In the U.S., each additional year of schooling has historically raised a person's wages on average by about
10%
Workers searching for jobs that best suit them is most closely associated with
Frictional unemployment
Workers waiting for jobs to open up is most closely associated with
Structural unemployment
if the wage is kept above equilibrium wage for any reason, the result is
Structural unemployment
In which of the following cases would it be necessarily be true that national savings a private savings are equal
The government's tax revenue is equal to its expenditures
Which of the following equations represents GDP for an open economy
Y=C+I+G
Minimum-wage laws can keep wages
above equilibrium and cause a surplus of labor
The level of real GDP person
and the growth rate of the real GDP per person vary widely across countries
If an american-based firm opens and operates a new watch factory in Panama, then it is engaging in
foreign direct investment
Efficiency wages
increase structural unemployment by keeping wages above equilibrium
In the long run, a higher saving rate
increases the level of productivity
Sectoral shift in demand for output
increases unemployment due to job search
The source of the supply of loanable funds
is savings and the source if demand for loanable funds is investment
the primary economic function of the financial system is to
match one person's savings with another person's investment
Suppose that real GDP grew more in Country A than Country B last year
nothing can be assumed about either the standard of living or productivity
Which of the following items plays a role in determining productivity
physical capital, natural resources, and technological knowlesge
A firm may pay efficiency wages in an attempt to
reduce incentives to shirk, reduce turnover, and attract a well-qualified pool of applicants
Other things the same, a higher interest rate induces people to
save more, so the supply of loanable funds slopes upwards
When a large, well-known corporation wishes to borrow directly from the public, it can
sell bonds
if the government's expenditures exceeded its receipts, it would likely
sell bonds directly to the people
What is measured along the vertical axis of the graph
the interest rate
Collective bargaining refers to
the process by which unions and firms agree on the terms of employment
Pollee is the CEO of a corporation that hires nonunion labor. According to the theory of efficiency wages, if she decides to pay her workers more then the competitive equilibrium wage, then
the profit on her firm might increase
which of the following does the level of real GDP per capita measure
the standard of living
The Peapod Restaurant uses all of the following to produce vegetarian meals. Which of them is and example of physical captial
the tables and chairs in the restraunt
A closed economy does not
trade with other markets
Which of the following is human capital?
understanding how to repair cars
When a union bargains successfully with employers, in that industry,
unemployment and wages increase