Study chapters 1-6

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We have the following information for the economy of Machinland for the year 2009. All data are in billion dollars.

$1,230,00 billion $1,131,60 billion

PC​ Bell, a computer manufacturer that sells computer systems directly to​ customers, buys a computer chip for ​$99 software for$300and a printer for $50 .If the value added by PC Bell from selling this system​ (including the printer and the​ software) is ​$1 comma 400 ​,what is the price at which the system is​ sol

$1,849

The following data on capital stock​ (plant, equipment, housing and​ inventory) are available for the Republic of Capita for the year of 2009.Stock of capital on January​ 1, 2009:$12,000 billion. Stock of capital on December​ 31, 2009: ​$12 comma 750 billion From this one can conclude that in​ 2009, the level of net investment?

$900 billion

The following national income accounting data for the year 2009 are available for a country. All data are in billion dollars. for this​ country, GDPbillion and Final Sales​ = ​$ 10,000.00 billion.

1) $9,975.00 2)10,000.00 billion

the diagram to the right illustrates the supply curve for hot dogs by​ Frank's Frankfurters, a local hot dog producer. Calculate the dollar value of producer surplus if equilibrium price is ​$0.20 per doze

1) 1 million hot dogs per month

Consumer sovereignty is more likely to be observed in what type of economic​ system? Free enterprise is more likely to be observed in what type of economic​ system?

1) A mixed system 2) A mixed system

For each of the following​ situations, identify the full cost (opportunity cost) ​involved: 1)Monique quits her $60 comma 000per-year job as an accountant to become a​ full-time volunteer at a​ women's shelter. 2)he Agrizone Corporation invests $14.0million in a new inventory tracking system 3)Taylor receives ​$500from his grandmother for his birthday and uses it all to buy shares of stock in​ Harley-Davidson, Inc. 4)Hector decides to spend the summer backpacking across Europe after he graduates from Yale ColumbiaUniversity. 5)After receiving her​ master's degree, Molly chooses to enter the doctoral program in Political Scienceat the University of Texas 6)Sanjay chooses to use his vacation time to paint the exterior of his house 7)After a night of​ karaoke, Tiffany forgets to set her alarm and sleeps through her Calculus final exam

1) All of the above 2)he opportunity cost of investing in a new inventory tracking system is any other projects Agrizone could have invested in. 3)A and B only 4)All of the above. 5)he opportunity cost of entering a doctoral program is the time Molly could have spent on other activities 6)all of the above 7)he opportunity cost of​ Tiffany's decision is a better grade on the exam

During a recession​,output unemployment, and employment

1) Falls, Increases, Falls

Government policies that deal with taxes and spending are known aswhile other policies dealing with the control of the​ nation's short-terminterest rates are called

1) Fiscal Policy 2) Monetary Policy

Classical economists believed that unemployment would not persist because prices and wages are flexible ​, while Keynesians believe that they are sticky ​, therefore unemployment will persist without government intervention to spur aggregate demand.

1) Flexible 2) Sticky

The market for lobster is shown in the diagram to the right. Assume that in​ 2011, 15,000 square miles of lobstering waters off the coast of Maine were closed. ​1.) Using the line drawing​ tool, illustrate the effects of the closure. Properly label this line. ​2.) Using the point drawing tool​, identify the new equilibrium. Label this point​ 'B'.Part 2Carefully follow the instructions above and only draw the required objects. Part 3After the closure of the lobstering​ waters, at the original equilibrium price of​ $5.00 per​ pound, quantity supplied is less than quantity demanded. Part 4This shortage is eliminated as prices rise .

1) Less than 2) shortage 3)Rise

With increased access to wireless technology and lighter​ weight, the demand for tablet computers has increased substantially. Tablets have also become easier and cheaper to produce as new technology becomes available.When consumers purchase tablet​ computers, the interaction and exchange occurs in themarket, while the resources used to produce the tablets are bought and sold in

1) Product 2) Factor

the economy of Tuland produces only two products fish and calculators. The following information is available for production and prices of​ Tuland's products for the years 2009 and 2010

1)3000.00 2)330.00 3)3570.00 4)3946.50 5)10.55% 6)11.00% 7)10.77%

How many inches are in one​ foot?

12

Every Friday​ night, Gustavo pays ​$39.99to eat nothing but crab legs at the​ all-you-can-eat seafood buffet at the M Resort in Las Vegas. On​ average, he consumes 20crab legs each Friday.

2.00- the avarage cost $2- the marginal cost

The following equations describe the supply and demand for crude oil in the United States in the​ mid-1980s: Upper Q Subscript s=minus2 ​(1/2)PUpper Q Subscript d=15minus ​(1/4)Pwhere price is giv

8.75

The following national income accounting data for the year 2009 are available for a country. All data are in billion dollars.

9,040.00 9,000.00

The fundamental​ decision-making units in a market economy​ are:

A AND B ONLY

In order for an economy to be​ successful, there must be some form of organization. Firms produce products that are marketed and sold. There must be people who desire to purchase and consume the products that are produced by the firms. This group of individuals that consumes the products that are produced in a market economy are known as households . Which of the following is true in a market​ economy?

A household demands goods and services from the market and supplies factor inputs

The condition that exists when quantity supplied exceeds quantity demanded at the current price​ is:

A surplus or excess supply

is an organization that transforms resources into products.

A) A FIRM B) Are the primary producing units in a market economy

Which of the following is a reason to study​ economics?

All of the above

A person who​ organizes, manages, and assumes the risks of a​ firm, taking a new idea or a new product and turning it into a successful business is known as

An Entrepreneur

The diagram to the right illustrates a demand curve . Economists have learned the most important factor in determining an​ individual's demand for a single product is the relationship between price and quantity demanded . The demand curve depicts the specific relationship between price and quantity demanded. This is known as the law of demand. How do economists define the law of​ demand?

A​ negative, or​ inverse, relationship between quantity demanded and price

Short-run fluctuations of an economy are called

Business cycle

Which field of economics deals primarily with the problems faced by​ low-income countries?

Economic development

​"In general, profit opportunities are rare. At any​ time, many people are searching for​ them, and as a​ consequence, few​ exist

Efficient Market

On a time series​ graph, time is measured along the vertical scale

False

During the​ 1960's, many economists believed that the government could regulate both unemployment and inflation atthe same time. This is known asthe macroeconomy.

Fine-Tuning

What two important functions does a market system ​perform?

It provides an automatic mechanism for distributing scarce goods and services and determines both the allocation of resources among producers and the final mix of outputs

Much of modern macroeconomics has roots in the works of

John Maynard Keynes

Consumer​ surplus:

is the difference between the maximum amount a person is willing to pay for ag good and its current market price

When considering the circular flow of economic activity​, households supply resources​ (inputs) such that the resources supplied by the households may be thought of as being provided in individual markets.

In the labor​ market, households earn wages by supplying labor to firms that demand it.

What is the primary difference between income and​ wealth?

Income is a flow variable; wealth is a stock variable

A World Bank brief entitled Natural Capital Accounting contains the following​ statement: "(A) major limitation of GDP is the limited representation of natural capital. The full contribution of natural capital like​ forests, wetlands, and agricultural land does not show​ up."

Increase Do not increase or decrease

During the late eighteenth and early nineteenth​ centuries, increases in the productivity of​ agriculture, new manufacturing​ technologies, and the development of more efficient modes of transportation led many people in England to move from the countryside to the city.This period of massive economic change is generally referred to as the

Industrial revolution

The term​ 'stagflation' was created in the​ 1970's to describe an economy experiencing both

Inflation and economic stagnation

There are three important properties to remember about demand curves . Describe these properties

It has a negative slope, which intersects the X, or quantity, axis, and intersects the Y, or price, axis

The field of economics that deals primarily with the factors that determine wage​ rates, employment, and unemployment is​ called:

Labor economics

Which of the following statements uses the concept of equity to argue against the legalization of casino​ gambling? Part 2

Legalized casino gambling places an unfair burden on​ nongamblers, who must now tolerate the increased traffic that the activity necessarily produces.

A formal statement of​ theory, usually a mathematical statement of a presumed relationship is called a MODEL . A VARIABLE can change over time or across observations. between two or more​ variables, is called

MODEL, VARIABLE, C- It allows researcher to isolate the effect of one event on another without the influence of outside variables

Which of the following describes the economic system in the United​ States?

mixed economy

W hen words are insufficient to explain the quantitative relationship between two variables​ (i.e., stimulus and​ response, cause and​ effect), economists often use Mathematical equations This quantitative relationship between variables can also be presented using graphs

Mathematical equations & Graphs

Determine whether each of the following is covered by microeconomics or macroeconomics.

Microeconomics, Macroeconomics ,Microeconomics, Macroeconomics

Your college bookstore receives a shipment of new economics texts for​ $60,000. This transaction is

Not included in GDP calculation, since books bought by the bookstore are intermediate goods.

When a price ceiling is​ imposed, the price system is prohibited from rationing the product in the market in which the ceiling was imposed. What other alternative rationing methods are available to determine who receives the scarce​ commodity?

Queuing, favoring customers, and ration coupons

he Economics in Practice describes prosperity and recession as they are depicted in literature. In​ mid-2009, there was a debate about whether the U.S. economy had entered an economic expansion. Look at the data on real GDP growth and unemployment and describe the pattern since 2007. The debate about whether the U.S. economy had entered an economic expansion in​ mid-2009 occurred because there was a

a) Drop in employment but a rise in real GDP

The process of converting inputs into useful output is called production . These inputs are also known as the factors of production . Part 2 Which of the following is not included in this list of​ inputs?

a) Production b) the factors of production c) Energy

What is the opportunity cost of spending 2 hours studying for a biology​ exam?

Time spent studying for one of your other classes

When graphing two​ variables, if the line slopes upward as you move from left to right then the variables exhibit a positive relationship

True

​Toyota, a​ Japan-based company manufactures a Camry automobile in​ Kentucky, USA and sells it in Japan. This transaction is included in

U.S. GDP under exports

If price is increasing as quantity​ increases, the slope of the line representing different prices and their corresponding quantities will be positive. If the value of X changes from 16 to 24 when the value of Y changes from 12 to​ 8, the slope of the line between those two points is

a) True B) -0.5

When graphing two​ variables, the point at which the graph intersects the horizontal axis is called the

X​-intercept.

The diagram to the right illustrates a supply curve. The development of the supply curve will be studied when you know a little more about costs. For​ now, assume that as price​ increases, revenues​ increase, and, ceteris paribus​, profits rise.​ Therefore, firms will supply a greater quantity. The supply curve depicts the specific relationship between price and quantity​ supplied, known as the law of supply. How do economists define the law of​ supply?

a POSITIVE relationship between Quantity supplied and price

Deflation is a phenomenon that describes

a decrease in the overall price level

Since​ 1970, the longest recession in the United States began in Since​ 1970, the highest unemployment rate in the United States occurred during the recession that began in

a) 1980 b)1980

Problem​ statement: right arrowThe line labeled D1in the graph to the right shows the number of cups of lemonade that Caroline and Emily can sell at their lemonade stand at various prices. Caroline and Emily have noticed that they sell more lemonade when​ it's hotter.lick anywhere on the graph to open a window with a control labeled Temperature. If you use the slider to change the​ temperature, the line will shift. Change the temperature from 80 degrees to 90degrees.At a price of​ $0.50, how many more or fewer cups of lemonade do Caroline and Emily sell when the temperature is 90degrees than when the temperature is 80​ degrees?

a) 5

There are 8 innings in a typical baseball game. The sun revolves around the earth. 3x(4+1)=15

a) 9 b) False c)15

Macroeconomists tend to combine many markets into one. For​ example, the behavior of all households and firms together is called

aggregate behavior

Consider the following​ statement: ​"Statistics tell us that ice cream sales increase during the summer months. It is also the case that reported burglaries increase during the same period. We can​ conclude, therefore, that increased ice cream sales cause an increase in​ burglaries. The conclusion of this​ statement:

falls victim to ​"post hoc, ergo propter​ hoc."

Ford Motor Co. produces a Focus automobile in its factory in Germany and sells it in India. This transaction is added to

german GSP under exports

In the circular flow of economic​ activity, there are two kinds of markets in which firms and households interact. In the product​ market

goods or services are exchanged

The fundamental difference between microeconomics and macroeconomics is that microeconomics analyzes the decisions made by HOUSEHOLD AND FIRMS while macroeconomics deals primarily with

hOUSEHOLD AND FIRMS & the Economy as a whole

Transfer payments are not included in GDP calculation because these are

income received, but not as payment for providing current goods and services

In the base year ​, nominal GDP

is always equal to real GDP

Producer​ surplus:

is the difference between the current market price and the cost of production for the firm.

To fund its budget​ deficit, the government can borrow by

selling treasury bills to the public

A circular flow diagram shows

the income received and payments made by each sector of the economy, firms, households, government, and the rest of the world

In the circular flow of economic​ activity, there are two kinds of markets in which firms and households interact. In the factor​ market:

the resources used to produce goods and services are exchanged

An economic system is a social system in​ which

the three basic economic questions are addressed

One reason why GDP is not a good measure of national​ well-being is that it fails to take into account

value of leisure

In a ​laissez-faire economic​ system:

​government's role is limited to protecting and enforcing property rights and providing public goods.


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