Econ test 1 study guide

suppose a country has government expenditures of $3,500, tax of $2,200 consumption of $9,000 , exports of $2,500 ,imports of $2700, transfer payments of $750 , capital depreciation of $800 and investment of $3,000 GDP equals

$15,300

Kari downloads 7 songs per month when the price is $1.29 per song and 10 songs per month when the price is $0.99 per song. Kari's behavior demonstrates the law of

Demand

assume Leo buys coffee bean in a competitive market . it follows that

Leo cannon influence the price of coffee beans even if he buy s large quantity

A Nations standard of living Is bet measured by it Real GDP per person

Real GDP per person

in 1870 , the richest country in the world was _________ , but lost its economic dominance due to implementing more socialistic policies.

The United Kingdom

the unique point of a good increases, consumers respond by buying

a larger quantity of that good and a small quantity of substitutes for that good

Good X and Y are substitutes. If the price of good Y increases , then the,

demand for good X will increase

which of the following is included in the investment component of GDP ?

spending on new residential construction but not spending on stocks and bonds

the CPI is a measure of the overall cost of

the good and services purchased by a typical consumer

which of the following is not a question addressed by macroeconomists ?

what is the impact of foreign films entering the U.S motor vehicles market ?

David earned a salary of $43,500 in 1994 and 89,000 in 2010 . the consumer price index was 148.2 in 1994 and 215.3 in 2010. David's salary in 2010 dollars is approximately,

$63,195.34

you and/or friend work together for 4 hours to produce a total of 8 bookcases. what's is productivity?

1 bookcase per hour

GDP is equal to

a market value of all final good and services reduced within a country in a given period of time, y , C+I+G+NX

in the market economy , supply and demand determine

both the quantity of each good produced and the price at which it is sold

gasoline is considered a final good if it is sold by a

gasoline station to a motorist in Los Angeles

productivity us defended as the quantity

goods and services produced form each unit of labor input

which fo the following items is included in U.S GDP ?

goods produced by foreign citizens working in the United States

gross domestic product measures

income and expenditures

the CPI differs from the GDP deflator in that

increases in the prices of foreign goods that are sold to U.S consumers show up in the SPI but not in the GDP deflator

economists differ in their views of the role with eh government promoting economic growth. At the very least, the government should

lend support to the invisible hand, which is the price system or prices, by maintaining sound and political stability

if a country were to increase its saving rate , then in the on run it would also increase its

level of income

in computing GDP, market prices are used to value final goods and services because

market prices reflect the values of goods and services

Suppose the price of a six-pack of cola rises from $3 to $3.75 and the price of a pack of mints rises from $1.25 to $1.75. If the CPI rises from 140 to 182, then people likely will buy

more cola and fewer minds

the inflation rate is defined as the

percentage change in the price level from the previous period

the Economic development minister of a country has a list of thing she thinks may explain her country's low growth of real GDP per person relative to other countries. she asks you to pick the one you think most likely explains her country's low growth. which of the following contributes to low growth?

poorly enforced property right and high corruption.

there is no shortage of scarce resources in a market economy because

prices adjust to eliminate shortages

the quantity supplied of a good is the amount that

sellers are willing and able to sell

the term inflation is used to describe a situation in which

the overall level of prices in the economy is increasing

if the supply of a product increases, then we would expect equilibrium price

to decrease and equilibrium quantity to increase