Econ 1202 - Quizzes section 1 (pre midterm)

If suppliers expect prices for their product to rise next year, then one would expect a: A. decrease in the quantity demanded this year. B. shift to the left in the supply curve for the product this year. C. shift to the right in the supply curve for the product this year. D. shift in the demand curve for the product this year.

B. shift to the left in the supply curve for the product this year.

(Use the table below covering the Market for Chocolate-Covered Peanuts.) If the price of chocolate-covered peanuts is $0.50, there is a: A. shortage of 70 bags per month. B. surplus of 35 bags per month. C. shortage of 35 bags per month. D. surplus of 70 bags per month.

A. shortage of 70 bags per month.

The deviations from the natural rate of unemployment in the actual rate of unemployment are: A. structural. B. frictional. C. seasonal. D. cyclical.

D. cyclical.

Gasoline, a derivative of oil, is a large part of transportation costs for many producers. If the price of oil increases at the same time that incomes fall for many consumers, one would expect the equilibrium price of many normal goods to _____, while their equilibrium quantities would _____. A. decrease; fall, rise, or stay the same B. fall; fall C. fall; rise D. fall, rise, or stay the same; decrease

D. fall, rise, or stay the same; decrease

Unemployment that is due to the time workers spend in job search is _____ unemployment. A. natural B. structural C. cyclical D. frictional

D. frictional

A nation's standard of living is best evidenced by a nation's A. Inflation per capita B. Nominal Gross Domestic Product C. Unemployment rate D. Real Domestic Product per capita

D. real Domestic Product per capita

The total value of all final goods and services produced in a given year, calculated using the prices of a selected base year, is: A. nominal GDP. B. consumption spending. C. net exports. D. real GDP.

D. real GDP.

Which statement is a key idea in economic thinking? A. The value of a good can be objectively measured and is the same for everyone. B. All of these are key ideas in economic thinking. C. Incentives matter. D. Scarcity exists for the poor but not for the rich.

incentives matter

The table describes hypothetical employment statistics in the United States in a given year. The labor force is the sum of those that are employed plus the unemployed. Based on the information, what is the unemployment rate? Specify your answer to one decimal place.

unemployment rate: 10.9

As reflected in the article entitled Endless Demand Spurs U.S. Natural Gas-Prices to Shale-Era Highs, the most recent rise in the price of natural gas is best explained by: A. a reduction in the demand for natural gas which, in turn, caused a reduction in the quantity supplied of natural gas B. an increase in the quantity demanded of natural gas. C. the expectation of a future reduction in the supply of natural gas D. a reduction in the supply of natural gas

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Based on the article "The Twilight of the Resource Curse?" please answer the following question: the few African nations that have been able to avoid the "resource curse" and enhance long term economic growth have done so by: A. cutting off all foreign trade thus moderating the business cycle B. maintaining a fixed distribution or allocation of their GDPs across consumption, net exports, private investments and government spending thus stabilizing their economies (that is, keeping consumption, investment, government spending and net exports fixed over time is necessary for sustaining economic growth) C. reducing private investment and increasing government spending to subsidize their country's exports and reduce imports which has stabilized their economies D. expanding or shifting into private investment relative to net exports (as percentages of GDP)

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In the article entitled "U.S. Home Sales and Prices Fell in August as Mortgage Rates Rose," the falling price and sales of existing homes in the United States is best explained by a(n): A. decrease in the supply of existing homes that is less than the decrease in demand for existing homes B. increase in the supply of existing homes that is greater than the increase in demand for existing homes C. decrease in the supply of existing homes coupled with an increase in demand for existing homes D. increase in the demand for existing homes

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The table below shows CPI for 2015, 2016 and 2017 in an economy. 2015 2016 2017 104 109 112 Based on the table, the price levels in the economy ____________ from 2016 to 2017. This economic condition is known as ______________. A. Increased by 4.8%, inflation B. Increased by 2.8%, disinflation C. Increased by 2.8%, deflation D. Decreased by 7.7%, deflation E. Increased by 7.7%, inflation

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The table provides information on the production of a wooden chair. Use the information to answer the question. Use the value added approach to determine the contribution to GDP.

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If the actual unemployment rate is 7% and the natural rate is 5%, then the cyclical rate is: 5%. 9%. 7%. 2%.

2%

Consider an economy that produces only DVDs and DVD players. Last year, 10 DVDs were sold at $20 each and 5 DVD players were sold at $100 each, while this year 15 DVDs were sold at $10 each and 10 DVD players were sold at $50 each. Nominal GDP this year is: A. $650. B. $500. C. $100. D. $700.

A. $650.

Assume that the consumer price index for 2009 was 72.6 and for 2010 was 82.4. What was the inflation rate between the two years? A. 13.5% B. 11.9% C. 9.8% D. 0.88%

A. 13.5%

The Supply of Coconuts is reflected below. If the prices of inputs (e.g., labor, fertilizer, and fuel) used to produce and transport coconuts decreased, it could be represented in the figure as a movement from: A. E to B. B. B to A. C. C to A. D. A to B.

A. E to B.

The figures below show how supply and demand might shift in response to specific events relating to the tomato market. Suppose scientists discover that eating a tomato a day prevents aging. Which panel BEST describes how this will affect the market for tomatoes? A. Panel C B. Panel A C. Panel D D. Panel B

A. Panel C

If a nation's rate of inflation falls from a 6% inflation rate in 2021 to a 4% inflation rate in 2022 this best described as ______________. A. disinflation B. deflation C. hyperinflation D. the luck of the Mets.

A. disinflation

Scarcity: A. is faced by all individuals and societies. B. can be eliminated with adequate resources. C. is eliminated with greater technology. D. is synonymous with poverty.

A. is faced by all individuals and societies.

In the figure (production possibility curve) below, Eastland has a comparative advantage in producing: A. oranges only. B. both oranges and peaches. C. peaches only. D. neither oranges nor peaches.

A. oranges only

In the following situation, indicate what type of unemployment Melanie is facing. Is it frictional, structural or cyclical? When Melanie and her co-workers refused to accept pay cuts, her employer outsourced her programming tasks for workers in another country. This phenomenon is occurring throughout the programming industry. Melanie is experiencing ____ unemployment. A. structural B. cyclical C. frictional

A. structural

Because of scarcity: A. we face tradeoffs in nearly every choice we make. B. choices are unlimited. C. resources are limitless. D. wants are limited.

A. we face tradeoffs in nearly every choice we make

When the economy suffers a downturn and the incomes of many people decrease, vacationers are more likely to take car trips than to fly. Which statement provides one possible explanation for this phenomenon? A. Air travel and travel by car are complementary goods. B. Air travel is a normal good and travel by car is an inferior good. C. Air travel is an inferior good and travel by car is a normal good. D. Air travel and travel by car are both normal goods.

B. Air travel is a normal good and travel by car is an inferior good.

Which example illustrates cyclical unemployment? A. A geologist is permanently laid off from an oil company because of a technological advance. B. An autoworker is laid off because a recession has caused a decline in sales. C. A worker at a fast-food restaurant quits work and attends college. D. A real estate agent leaves a job in Texas and searches for a similar, higher-paying job in California.

B. An autoworker is laid off because a recession has caused a decline in sales.

Because of international trade, a country may: A. consume inside its production possibility frontier. B. consume outside its production possibility frontier. C. avoid opportunity costs. D. find its production possibility frontier shifting outward.

B. consume outside its production possibility frontier

Natural unemployment equals _____ unemployment plus _____ unemployment. A. frictional; cyclical B. frictional; structural C. cyclical; structural D. frictional; both structural and cyclical

B. frictional; structural

Adam Smith, in his "An Inquiry into the Nature and Causes of the Wealth of Nations," argued that the the principal reason or cause that drives a nation's economic growth is: A. increases in labor productivity caused by technological progress B. increases in labor productivity caused by the division of labor and specialization C. increases in the number of unproductive laborers relative to productive laborers since they demand more goods and services which increases overall demand D. government investments in infrastructure such as ports and schools that increase labor productivity

B. increases in labor productivity caused by the division of labor and specialization

The article entitled "How Aging Japan Defied Demographics and Revived its Economy" best reflects: A. the impact of Japan's decreased labor force participation rate for those over 65 years old on Japan's economy B. the impact of Japan's increased female labor force participation rate on Japan's production possibility curve and gross domestic product. C. how, despite the aging of Japan's population, the total employment for those from the age of 25-54 has increased rapidly in Japan and is expected to increase through 2050. D. the impact of Japan's decreased female labor force participation rate on Japan's production possibility curve and gross domestic product.

B. the impact of Japan's increased female labor force participation rate on Japan's production possibility curve and gross domestic product.

Real GDP is: A. the value of the production of all final goods and services measured in current prices. B. the value of the production of all final goods and services adjusted for price changes. C. calculated by adding up only the real number of all items sold in the United States, regardless of their prices. D. the projected future value of GDP.

B. the value of the production of all final goods and services adjusted for price changes.

Suppose that nominal GDP is $1,000 in 2009 and $1,500 in 2010. If the overall price level increased by _____% between 2009 and 2010, we could say that real GDP _____. A. less than 50; decreased B. more than 50; increased C. 50; stayed constant D. 50; increased

C. 50; stayed constant

Suppose the country of Altaria only produces one style of good, pink tutu. Last year, nominal GDP was $50,000 and this year it is $200,000. What can be definitively concluded? A. The rate of unemployment decreased. B. Output in Altaria quadrupled. C. None of the statements are necessarily true. D. All of the statements are necessarily true. E. The standard of living in Altaria increased.

C. None of the statements are necessarily true.

As discussed in the article entitled "Why Intellectual Property Rights Protection Matters for Economic Growth," the strengthing or better enforcement of intellectual property rights would be best reflected as: A. a contraction or inward shift of a nation's production possibilities curve or frontier B. the movement along a nation's production possibilities curve or frontier C. an expansion or outward shift of a nation's production possibilities curve or frontier D. production beyond or outside a nation's production possibilities curve or frontier

C. an expansion or outward shift of a nation's production possibilities curve or frontier

Which factor would NOT result in an increase in the supply of a good? A. a beneficial technological change B. an increase in the number of suppliers C. an increase in input prices D. a decrease in input prices

C. an increase in input prices

An economy is said to have a comparative advantage in the production of one good if it: A. has the highest opportunity cost of producing a particular good. B. can produce more of all goods than another economy. C. has the lowest opportunity cost of producing a particular good. D. can produce fewer of all goods than another economy.

C. has the lowest opportunity cost of producing a particular good.

What is the main goal of macroeconomic policy activism? A. to increase government debt B. to expand the size of the federal government C. none of the answers are correct D. to implement Keynesian macroeconomic policies E. reduce economic growth to reduce inflation

C. none of the answers are correct

(Use the Demand and Supply of Wheat Schedules below.) If a price of $10 temporarily exists in this market, a _____ of _____ bushels per period will result. A. shortage; 8,000 B. surplus; 4,000 C. surplus; 8,000 D. shortage; 10,000

C. surplus; 8,000

The United States and Germany can produce both wheat and aluminum. The table shows the maximum annual output combinations of wheat and aluminum that can be produced. Assume constant costs. Based on the table: A. Germany has a comparative advantage in aluminum and an absolute advantage in aluminum. B. Germany has an absolute advantage in aluminum and a comparative advantage in wheat. C. the United States has a comparative advantage in wheat and an absolute advantage in wheat. D. the United States has a comparative advantage in both aluminum and wheat.

C. the United States has a comparative advantage in wheat and an absolute advantage in wheat.

Cyclical unemployment is the result of: A. normal job turnover (job searches). B. the minimum wage. C. the business cycle. D. discrimination.

C. the business cycle.

Based on the Production Possibilities for Indonesia and Malaysia set forth below, Indonesia has a comparative advantage in producing _____, while Malaysia has a comparative advantage in producing _____. A. microchips; tires B. both microchips and tires; neither good C. tires; microchips D. neither good; both microchips and tires

C. tires; microchips

In the figure below, assume that the economy is operating at point A. The opportunity cost of expanding submarine production and moving to point C is equal to _____ million tons of strawberries: A. 50 B. 800 C. 2 D. 200

D. 200

The cornerstone of economic progress articulated by Adam Smith was: A. Pursuit of social interest, technological change and Freedom to/of Trade (markets) B. Pursuit of social interest towards social welfare. C. Development and growth of large companies such as Google, Walmart and the like. D. Pursuit of self interest, Division of labor/Specialization and Freedom to/of Trade (markets)

D. Pursuit of self interest, Division of labor/Specialization and Freedom to/of Trade (markets)

Adam Smith strongly believed that merchants (businessmen and women) acted in the best interests of society and the public. True or False?

False

Generally capitalist economies do not experience alternating periods of economic expansion and contraction but rather experience little cyclicality. True or False?

False

Long-term unemployment is usually frictional. True or False?

False

Robert Malthus has generally been acknowledged as the one economist whom correctly predicted the impact and role of population growth after the 18th century. True or False?

False

Smithian Growth refers to economic growth driven by technological change and innovation. False or True?

False

Structural unemployment arises solely from technological change. True or False?

False

Match each definition with the appropriate measurement of economic output. a. the market value of all final goods and services produced by resources owned by citizens of a particular country in a given year b. GDP adjusted to base year prices c. GDP divided by population d. GDP adjusted for differences in the cost of living in different countries e. the market value of all final goods and services produced by resources located in a particular country in a given year

a. -- b. real GDP c. GDP per capita d. GDP PPP e. --

Consider the table. Shirts Year: 2013; Price: $5; Quantity: 2000 Year: 2014; Price: $8; Quantity: 1900 Pants Year: 2013; Price: $15; Quantity: 3000 Year: 2014; Price $20; Quantity: 2500 The table contains prices and output for a two good economy. Nominal and real GDP in 2013 are both $55,000. Use the information in the table to answer the questions. a. What is nominal GDP in 2014? b. What is real GDP in 2014? Use 2013 as the base year. c. Real output from 2013 to 2014 has - stayed the same. - decreased. - increased. - experienced inflation.

a. 65200 b. c. decreased

The table shows employment statistics for a fictional country. Use the information to answer the questions. Round your percentages to two decimal places. Category Number of people Employed: 4905 Unemployed: 492 Not in the labor force: 581 a. What is the total labor force? b. What is the labor force participation rate? c. What is the unemployment rate? Suppose 266266 of the 492492 unemployed people have been unemployed for so long that they stop looking for work. d. What is the new labor force? e. What is the new labor force participation rate? f. What is the new unemployment rate?

a. What is the total labor force? 5397 b. What is the labor force participation rate? 90.28 c. What is the unemployment rate? 9.12 Suppose 266266 of the 492492 unemployed people have been unemployed for so long that they stop looking for work. d. What is the new labor force? 5131 e. What is the new labor force participation rate? -- f. What is the new unemployment rate? 4.4

The people described are out of work. Determine the appropriate classification for each person. a. After several months of searching for a job, LaDainian has decided to stop looking. He instead spends his time golfing and spending time with his family. LaDainian is... b. Terrell does not have a job. For many years, Terrell's skills were highly desired and he had no trouble finding work. Terrell still has many of these same skills but he is finding that employers now desire different attributes in employees. Terrell is... c. Abby is a stellar employee. However, her employer has gone out of business due to a recession and Abby has no job as a result. Abby will surely be able to find a job in the future but remains looking for a job currently. Abby is... d. Deron does not currently have a job. Many firms would like to hire him, in Dallas and Brooklyn in particular, but Deron remains out of work as he evaluates potential jobs in search for a proper match. Deron is...

a. not in the labor force b. structurally unemployed c. cyclically unemployed d. frictionally unemployed

Please select the economic term that is best described by each statement: a. People have limited resources to satisfy unlimited wants. - scarcity - business cycle -tradeoffs - recession - entrepreneurship - margins b. Everything you do requires giving up something (time, money, etc.). - tradeoffs - recession - scarcity - budgeting - margins - financial capital

a. scarcity b. tradeoffs

In the figure (production possibility curve) below, points A, B, E, and F: - indicate combinations of guns and butter that society can produce using all of its factors efficiently. - indicate increasing opportunity costs for guns but decreasing opportunity costs for butter. - indicate constant opportunity costs for guns and increasing costs for butter. - indicate that society wants butter more than it wants guns.

indicate combinations of guns and butter that society can produce using all of its factors efficiently.

When the government chooses to use resources to build tourist centers, the selected resources are no longer available to build highways. This BEST illustrates the concept of: opportunity cost. macroeconomics. scarcity. efficiency.

opportunity cost