Econ

Services constitute approximately ______ of GDP.

50%

Which equation summarizes the expenditures approach to measuring GDP?

GDP = C + I + G + (X - M)

Which of the following describes the informal economy?

It is largely unmeasured.

_____ are almost 70% of GDP, while _____ are about 15% of GDP.

Personal consumption expenditures; gross private domestic investments

Which of the following will cause a movement down along a demand curve?

a decrease in the product price

A demand schedule is

a list of prices and the quantities demanded at those prices.

Prices

allow sellers to determine what goods to sell, help buyers find possible substitute goods, and contain information useful for all people involved in a transaction.

When the supply curve shifts out (to the right) and the demand curve shifts in (to the left), the equilibrium quantity will:

be indeterminate.

The three types of consumption are:

durables, nondurables, and services.

The two approaches used by government in estimating GDP are:

expenditure and income.

What does the X represent in the following formula, used to calculate GDP? GDP = C + I + G + (X - M)

exports

The law of supply states that if prices:

fall, producers will offer fewer products to the market.

An increase in supply causes the equilibrium price to ___________ and the equilibrium quantity to ___________.

fall; rise

If both demand and supply decrease, but the decrease in demand is greater than the decrease in supply, then the equilibrium price _________________ and equilibrium output _____________.

falls; falls

Gross domestic product is the total market value of all:

final goods and services produced in the United States by labor and property.

Investment in structures, equipment, software, and net inventory is known as:

gross private domestic investment.

Willingness-to-pay is the

highest value that a consumer believes a good or service is worth.

What does M represent in the following formula? GDP = C + I + G + (X - M)

imports

Suppose it is discovered that consumption of Greek yogurt leads to a longer life. This information would lead to a(n):

increase in demand.

A shift to the right of the demand curve could be caused by a(n):

increase in income if the good is normal.

The National Bureau of Economic Research:

is a nonprofit research organization that dates business cycles in the United States.

The National Activity Index:

is a weighted average of 85 indicators of national economic activity.

The market-clearing price:

is the price at which quantity demanded equals quantity supplied.

An economic recovery that produces too few jobs to significantly reduce the unemployment rate is known as a(n):

jobless recovery.

Which is NOT a determinant of supply?

national income

A market exists when

people exchange money for goods and services

Expenditures by individuals for durable goods, nondurable goods, and services is known as:

personal consumption expenditure.

The expenditure category that accounts for the largest share of GDP is:

personal consumption expenditures.

In economic markets, what "signals" information between buyers and sellers?

prices

The market economy is often called the price system because

prices provide information for both buyers and sellers

Which pair are MOST likely substitute goods?

soft drinks and lemonade

Macroeconomics was developed to explain:

the Great Depression

Which organization determines the beginning and end dates of a recession?

the National Bureau of Economic Research

A good is a normal good if:

the demand curve shifts out if income goes up

Demand refers to

the goods and services buyers are willing and able to purchase at various prices in a given period of time

Supply is defined as:

the maximum amount of a product that sellers are willing and able to provide for sale over some time period at various prices, holding all other relevant factors constant.

A business cycle is:

the periodic fluctuation of economic activity.

The national income and product accounts do all of the following EXCEPT:

track changes in income distribution

During a typical economic recovery:

unemployment drops.

A surplus exists

when quantity supplied exceeds the quantity demanded.