Econ 104 Test 3
The output of Mexican citizens who work in Texas would be included in the
gross national product of Mexico
The process of a firm uses to turn inputs into outputs of goods and services is called
technology
Vipasna's Gyros House sells gyros. The cost of ingredients to make a gyro is $2.00. Vipsana pays her employees $60 per day. She also incurs a fixed cost of $120 per day. Calculate Vipsana's variable cost per day when she produces 50 gyros using two workers
$220
Suppose the working-age population of a fictional economy falls into the following categories: 90 are retired or homemakers, 60 have full-time employment, 20 have part-time employment, 20 do not have employment but are actively looking, and 10 would like employment but do not have any and are not actively looking. The official unemployment rate as calculated by the U.S. Bureau of labor would equal
(20/100)x100
If nominal GSP is $5 trillion and real GDP is $4 trillion, the GDP deflator is
125
If four workers can produce 18 chairs a day and five can produce 20 chairs a day, the marginal product of the fifth worker is
2 chairs
The GDP deflator in years is 105, using year 1 as the base year. This means that, on average, the cost of goods and services is
5% higher in year 2 than in year 1
When the average total cost is $16 and the total cost is $800, then the number of units of the firm is producing is
50
A country in which a significant fraction of domestic production takes place in foreign-owned factories and facilities is most likely a country where
GDP is much larger than GNP
GDP is not a perfect measure of well-being because
GDP is not adjusted for pollution
National income is equal to
GDP minus depreciation
Which of the following statements is false
Marginal cost will equal average total cost when average total cost is at its lowest point
Which of the following is likely to increase measured GDP
Marijuana becomes legal to grow and sell
A lumberjack loses his job because timber cutting restrictions were imposed by the EPA to protect the spotted owl habit. This lumberjack would be
Structurally unemployed
Red Stone Creamery currently hires 5 workers. When it added a 6th worker, its output actually fell. Which of the following statements is true
The marginal product of the sixth worker must be negative
Which of the following goods is directly counted in GDP
a 12-inch Subway sandwich purchased by a student
Which of the following is a factor of production that generally is fixed in the short run
a factory building
Which of the following policies would reduce structural unemployment
a job retraining program
Structural unemployment is the result of
a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs
Cyclical unemployment is the result of
a slowdown in the economy
A characteristic of the long run is
all inputs can be varied
Which of the following policies would reduce frictional unemployment
building an online job database that helps workers find jobs
Which of the following is not a durable good
clothing
Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to understate the true extent of joblessness
discouraged workers
If production displays economies of scale, the long-run average cost curve is
downward sloping
The natural rate of unemployment is the amount of unemployment
equal to frictional plus structural unemployment
A student who just graduated from college but has not found a job would most likely be
frictionally unemployed
GDP understates the total production of final goods and services because of the omission of
household production
During a business cycle expansion, total production ______ and total employment_____
increases; increases
A firm has successfully adopted a positive technological change when
it can produce more output using the same input
If diminishing marginal returns have already set in for Golden Lark Woodworks, and the marginal product of the 6th carpenter is 8 chairs, then the marginal product of the 7th carpenter is
less than 8 chairs
Disposable personal income equals personal income
minus personal tax payments
If firms pay what are called "efficiency wages," they pay wages that
motivate workers to increase their productivity
Which of the following is an implicit cost of production
rent that could have been earned on a building owned and used by the firm
Frictional unemployment is the result of
the search process of matching workers with jobs
The minimum scale is
the smallest output level where the firm finally reaches productive efficiency
GDP is calculated by summing up
the total market value of final goods and services produced in the economy during a period of time
Which of the following is included in both the U.S. DGP and U.S. GNP
the value of all cars produced by General Motors in the US
Suppose in 2016, you purchase a house built in 2003. Which of the following would be included in the GDP for 2016
the value of the services of the real estate agent
If the minimum wage is set above the market wage
unemployment will rise
