macro exam 2

productivity

-The extent to which inputs are converted into outputs -Productivity is the key driver for economic growth, and rises when labor is able to produce greater quantities and higher values of output. - The primary reason the American standard of living is so high is that American workers produce more per hour than do workers in most other countries

Last year, the consumer price index (CPI) was 115 while the consumer price index for this year is 125. The rate of inflation is:

8.7%

business cycle

Alternating periods of macroeconomic expansion and contraction are known as:

40,000

Company DEF produces gizmos. One particular batch cost $50,000 to produce. Because market conditions were bad at the time of sale, they were sold at a loss for $40,000. The value of the gizmos included in the GDP is:

Structural

During the 1970s, when handheld calculators became popular and replaced slide rules in performing computations, workers in the slide rule industry lost their jobs. These workers' unemployment status is:

real GDP per capita.

Economic growth is most commonly measured by:

500,000

If output equals A × (5K + 2L), what is output if A equals 2,000, capital equals 10, and labor equals 100?

35 years

If the growth rate in an economy is 2%, its GDP will double in about:

equals the total income earned in the resource market.

In a simple circular flow diagram, total spending on goods and services in the product market:

it is difficult for innovators to profit from their efforts.

In the absence of copyright and patent laws:

it increases labor productivity

Investment in human capital is important because:

frictionally unemployed

Jennifer did not work during college. She just obtained a bachelor's degree in marketing, and she is now looking for a marketing job in the retail industry. Jennifer is considered:

.Jennifer received news that she is getting a 5% raise. However, the Bureau of Labor Statistics just reported that prices are rising by 7%. Based on the given information, which of the following is true?

Jennifer is losing purchasing power by 2%

Exports minus imports

Next exports is equal to:

Jordan Meadows lost his job as an airline pilot and has not been able to find another job as a pilot. Since he is old enough to be eligible for his pension, he decides to retire and devote himself to caring for his elderly parents. According to the Bureau of Labor Statistics, Jordan is:

Not in the labor force

1.25 chairs per hour

Rocky Gap Furniture hires ten employees working eight hours each to produce 100 rocking chairs. What is the productivity of these workers?

Which of the following transactions is not included in GDP?

Someone sells drugs in a vacant lot

Consumption expenditure

The largest component of GDP is:

harmed standards of living. caused severe credit crunches. slowed down economic growth. All of the answers are correct.

The recent global financial instability:

cyclical unemployment is zero.

When the economy is operating at the natural rate of unemployment:

ensuring a stable

When the government enforces contracts between two parties, it is acting in its role to promote economic growth by:

technology improvements

Which of the following occurrences is the key explanation for the high economic growth in the United States in the past century?

an elementary school

Which of the following resources is an example of infrastructure?

Which of the following people would be counted as unemployed?

a downhill ski instructor who looks for work during the summer

which of the following is the best example of an investment as defined by economists?

a firm buying personal computers for its secretarial staff

Cyclical unemployment results from

a recession in the economy

People who are not currently employed, but say they want a job are counted as unemployed only if they

are actively seeking employment

Your cousin recently graduated from Harvard Law School and has not found a job after looking for one last week. She can be described as

frictionally unemployed

The higher the productivity of a nation, the:

higher is its standard of living

Inflation can be caused by

increases in aggregate demand or decreases in aggregate supply

Short-run economic growth

is represented by a movement from a point inside the PPF to a point on the PPF

Long-run economic growth

is represented by an outward shift of the entire PPF

Investment in human capital is important because

it increases labor productivity

In the absence of copyright and patent laws:

it is difficult for innovators to profit from their efforts

Physical capital includes

manufactured products that are used to produce other goods and services

Which of the following is NOT a factor in the production function?

money

Which of the following would be included in GDP?

payment of the monthly telephone bill by Mr. Laconic

Economic growth is most commonly measured by:

real GDP per capita

Which of the following is Not an investment in human capital?

researching automated production techniques

Which of the following two things can people do with money received as disposable personal income?

spend money or put it into savings

Frictional unemployment refers to unemployment that results from

taking the time to find the best job

Gross domestic product includes final goods and services, but not intermediate goods because

the value of the intermediate goods is already included in the value of the final goods

Suppose you received a 3 percent increase in your nominal wage. Over the year, inflation ran about 6 percent. Which of the following is true?

your real wage fell