ECO 201 Midterm
Gdp is equal to
all of the above are correct
Grapes are
always counted as an intermediate good
refer to figure 4-22 panel B shows which of the following?
an decrease in quantity demanded and an decrease in quantity supplied
Refer to figure 2-4 Suppose this economy is producing at point D. Which of the following statements would best explain this situation?
There is widespread unemployment in the economy
refer to figure 4-22 Panel d shows which of the following
a decrease in quantity demanded and a decrease in quantity supplied
an increase in demand is represented by
a rightward shift of a demand curve
Refer to figure 2-4 The opportunity cost of this economy moving from pointA to point B is
10 toasters
Refer to table 24-1 If 2005 is the base year then the CPI for 2005 was
100
Refer to table 24-1 If 2005 is the base year then the CPI for 2006 was
120
Refer to figure 2-1 Which arrow represents the flow of goods and services?
B
Ellen decides to hire some additional workers for her vinyl siding factory. The equilibrium wage is $14 per hour. Efficiency wage theory suggests that it is reasonable for Ellen to offer
More than $14 per hour, so as to attract a better pool of applicants
which of the following statements is corrent
buyers determine demand and sellers determine supply
the inlfation rate is calculated
by determining the change in the price index from the base year
An increase in the price of a good will
decrease quantity demanded
if the number of buyers in a markey decreases then
demand will decrease
Pekelo owns his own business. The BLS count pekelo as
employed and in the labor force
Refer to figure 2-4 This economy cannot currently produce 30 toothbrushes and 45 toasters because
given its current technology it does not have the resources to produce that level of output
In the circular flow diagram
labor flows from households to firms
Zeeman is a college student who is not working or looking for a job. The Bureau of Labor Statistics counts Zeeman as
neither in the labor force nor unemployed.
Consider a small economy in which consumers buy only two goods: apples and pears. In order to compute the consumer price index for this economy for two or more consecutive years, we assume that
neither the number of apples nor the number of pears bought by the typical consumer changes from year to year.
Changes in real GDP reflect
only changes in the amounts being produces
a model can be accurately describes as a
simplification of reality
Suppose roses are currently selling for $40 per dozen but the equilibium price of roses is $30 per dozen we would expect a
surplus to exist and the market price of roses to decrease
A very hot summer in Atlanta will cause
the demand for jackets to decrease
To calculate the CPI the BLS uses
the prices of some consumer goods
Factors of production are
used to produce goods and services
The law of supply states that other things equal
when the price of a good rises the quantity supplied of the good rises
Refer to table 24-1 If 2005 is the base year then the inflation rate in 2006 was
20%
Refer to table 24-1 The cost of the basket in 2005 was
200
Refer to figure 2-1 Which arrow represents the flow of income payments?
D
Refer to figure 2-4 It is not possible for this economy to produce at point
Point C
refer to figure 4-22 panel A shows which of the following?
an increase in quantity demanded and an increase in quantity supplied
refer to figure 4-22 panel C shows which of the following?
an increase in quantity demanded and an increase in quantity supplied
refer to figure 4-6 The movement from point A to point B on the graph is caused by
an increase in the price of the good
refer to figure 4-6 The movement from point A to point B on the graph is called
an increase in the quantity supplied
Real GDP is the yearly production of final goods and services valued at
constant prices.
Which of the following might cause the demand curve for an inferior good to shift to the left?
none of the above is correct
refer to figure 4-11 which of the four panels illustrates a decrease in quantity demanded
panel b
a microeconomist as apposted to a macroeconomist might study
the effect of rising oil prices on employment in the airline industry
The CPI is a measure of the overall cost of
the goods and services purchased by a typical consumer