macro exam 2- extra problems

Dale is a stay-at-home-parent whose typical day consists of getting the kids ready for school, doing the laundry, cooking three meals, and cleaning the house. How are Dale's home activities counted in GDP?

they are not counted.

Technological advancement is NOT represented by which of the following? A) the adoption of existing technology by new firms B)the invention of robotic meal preparation C)the invention of the light bulb D) the creation of new apps designed to enhance efficiency and reduce wastage in production lines

the adoption of an existing technology by new firms

Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the real GDP for last year using this year as the base year? LAST YEAR- 100 tons fo frozen fish sold & $1,800 actual price THIS YEAR- 105 tons of frozen fish sold & $1,850 actual price

$185,000

if C=$1,000, I= $500, G=$800, X= 400, and M= $600, what is the value of GDP?

$2,100

Below is U.S. economic data for 2018. What was total spending? consumption- $13.999 trillion investment- $3.591 trillion government spending- $3.591 trillion exports- $2.510 trillion imports- $3.148 trillion

$20.58 trillion

Consider the data shown in the table. Assume that the economy produces only textbooks. What is the nominal GDP for last year? LAST YEAR- 5,000 textbooks sold and $50 actual price THIS YEAR- 5,250 textbooks sold and $55 actual price

$250,000

In 2010, Canada's GDP was approximately $1,357 billion, and its population was about 34.12 million. What was Canada's approximate GDP per person in 2010?

$39,770

Consider the data shown in the table. Assume that the economy produces only barrels of oil. What is the real GDP for this year using last year as the base year? LAST YEAR- 80,000 barrels of oil sold & $60 actual price THIS YEAR- 83,000 barrels of oil sold & $63 actual price

$4,980,000

If China's economy maintains a 7% annual growth rate over the next 20 years, about how large will its economy be in 20 years if its current GDP is $12 trillion?

$48 trillion

The aggregate production function Y = f(L, H, K) shows that economic growth can occur if:(i) human capital increases.(ii) labor productivity falls.(iii) the capital stock in the country depreciates.(iv) the depreciation rate increases.

(i) only

Which of the following is (are) included in investment?(i) military spending(ii) the purchase of an aircraft by a domestic airline(iii) the purchase of $45,000 worth of bonds(iv) the purchase of $32,000 worth of stock(v) social security payments

(ii) only

based on the following statistics, how much are net exports? consumption- $12.312 trillion investment- $ 3.371 trillion government spending- $2.412 trillion exports- $2.357 trillion imports- $ 2.932 trillion

-$0.575 trillion

In 2017, the total population of Africa was estimated to be about 1,250,000,000 people. This number, in billions, is:

1.25.

If Greenville's GDP doubled over 5 years, what was the approximate annual growth rate (using the rule of 70)?

14%

based on the following statistics, how much is consumption? total spending- 11.62 trillion investment- 2.56 trillion government spending- 2.95 trillion exports- 1.80 trillion imports- 2.18 trillion

6.49 trillion

ll of the following are considered factors of production except A) a vacant piece of land that has never been used. B) an antique sewing machine that Jill still uses to alter clothes. C) Randy, who has worked as a mechanic for twenty years. D)All of the above are factors of production.

All of the above are factors of production.

Which of the following would represent the fastest annual growth of GDP per capita? -An increase in real GDP of 5% and population growth of 1%. -An increase in real GDP of 6% and population growth of 4%. -An increase in real GDP per capita of 3%. -An increase in real GDP of 2% and a population decline of 1%.

An increase in real GDP of 5% and population growth of 1%.

Suppose that GDP is $50 million in 2015 but falls to $48 million in 2016, and that no changes in personal consumption expenditures, gross private domestic investment, and government spending are recorded. What must have happened to net exports to cause this change?

From 2015 to 2016, the difference between exports and imports must have fallen by $2 million.

You purchase a new car (produced this year) for $38,000. After six months, you sell the car for $31,500. How much does GDP rise because of these two transactions?

GDP rises by $38,000

Suppose one has data for the following categories: net interest, government spending, corporate profits, net exports, gross private domestic investment, rental income, and personal consumption expenditures. Which measure of GDP can be calculated?

GDP using the expenditures approach.

What is the difference between spending from a microeconomic standpoint versus spending from a macroeconomic standpoint?

In microeconomics, spending refers to spending by you, or your family, or your company, whereas in macroeconomics, spending refers to the spending by all consumers, all businesses, and the government in the economy

Which of the following government actions would represent the largest increase in physical capital? A)Taxes on corporate earnings. B)Tax credits to offset college tuition. C)Investment in hospitals and other health care facilities to modernize their operations. D)Expansion of research and development in biotechnology.

Investment in hospitals and other health care facilities to modernize their operations.

What is the difference between microeconomics and macroeconomics?

Microeconomics is the study of individual decisions in specific markets, whereas macroeconomics is the study of the economy as a whole.

Which of the following policies would likely not promote economic growth? A) Awarding scholarships to bright high school students. B) Replacing old snow plows with new state-of-the-art snow plows. C) Reducing the number of student visas issued to international students. D) Offering after-work computer enhancement classes.

Reducing the number of student visas issued to international students.

Which of the following countries enjoyed significant catch-up economic growth in the second half of the twentieth century? Spain United States South Korea Argentina

South Korea

The government passes a new investment tax credit initiative. Which input in the production function changes, and what is the effect on economic growth in the country?

The capital stock increases, and economic growth is positively affected

Why does a small difference in economic growth result in a large difference in wealth over time?

The effect of compounding allows growth to build upon previous growth.

Along the same aggregate production function, the level of _____ is the same.

technology

Suppose the production function for the country of Westlandia is Q = K + L, where Q is output, K is capital, and L is labor. Which of the following statements is true about this production function? A)Westlandia could achieve economic growth with labor alone. B)Labor exhibits diminishing marginal returns. C)Capital exhibits diminishing marginal returns D)All of the above statements are true

Westlandia could achieve economic growth with labor alone.

The aggregate production function is represented as:

Y = f(L, H, K).

southeast Asian countries experience high temperatures and high humidity during the monsoon seasons. This makes working conditions difficult. Because air conditioners are expensive and consume a lot of electricity, an alternative air cooler called an Eco-cooler was invented. This device does not use electricity, is made from readily available soda bottles, and works by funneling air into a room. This scenario is an example of:

a technological innovation that can increase labor productivity and thus increase economic growth.

Suppose Jollyland has a population of 1,000 people and a GDP of $1 million, while Follyland has a population of 8,000 people and a GDP of $8 million. Which country has a higher GDP per capita?

both countries have the same GDP per capita

Suppose Hyperpolis's GDP increases by 15%, and its inflation rate is 12%, while Superpolis's GDP increases by 6%, and its inflation rate is 3%. Assuming the population in both countries remained constant, which economy grew faster?

both economies grew at the same rate

If a bakery buys a second oven, hires a second baker, buys double the number of ingredients, doubles the size of the bakery, and then produces double the number of cakes, then the bakery is experiencing:

constant returns to scale.

Which of the following is a scaled number? -the country's national debt -the sum of all incomes earned in the economy -government budget deficit as a percentage of GDP -total tax revenues in the economy

government budget deficit as a percentage of GDP

If Galaxia has a GDP that is 10 times larger than that of Myopia, which country would likely have greater marginal returns to capital based on the law of diminishing marginal returns to capital?

myopia

The moral of the story of the Solow growth model is that:

technological advance cannot sustain continuous economic growth.

Which of the following encourages the development of new ideas and inventions? A) negative economic growth B) patents C) government control or resources D) capital accumulation

patents

A constant returns to scale production function means that if all inputs are increased by 75%, this should lead to output

rising by 75%

Which of the following is an example of a durable good? your new car fresh flowers from the florist your haircut a soft drink

your new car