macro mid term

8. if in some year nominal gdp was 18 billion and the gdp deflator was 120 what was real gdp

15 billion

10. if the consumer price index was 96 in 2012, 100 in 2013, and 102 in 2014 then base year must be..

2013

13. An increase in the price of imported coffee shows up

b. in the consumer price index, but not in the GDP deflator

19. Which of the following is an example of human capital?

b. knowledge learned from reading books

35. Unions contribute to

b. structural but not frictional unemployment.

3. Which of the following is included in the calculation of GDP?

a. The purchase of tutoring services from a tutor who holds citizenship outside the country but resides within the country.

4. Micah buys a used car for $10,000 and spends $200 on a new radio that is made in the U.S. The end result of these two transactions is

a. U.S. consumption purchases increase by $200 and U.S. GDP increases by $200

14. With respect to the consumer price index, the substitution bias arises because

a. prices of goods and services do not change in the same proportion from year to year.

18. The key determinant of the standard of living in a country is

a. the amount of goods and services produced from each hour of a worker's time.

2. Because every transaction has a buyer and a seller,

b. every transaction contributes equally to an economy's income and to its expenditure.

21. Which of the following is generally an opportunity cost of investment in human capital?

b. forgone present wages

30. People who are unemployed because they are in search of a job that suits their skills are included within

b. frictional unemployment

16. A worker received $5 for a daily wage in 1930. What is the value of that wage today if the CPI was 17 in 1930 and is 230 today?

c. $67.65

15. Sophia puts money in the bank and earns a 5 percent nominal interest rate. If the inflation rate is 2 percent, then after one year,

c. Sophia will have 5 percent more money, which will purchase 3 percent more goods

23. Which of the following would be included as investment in the GDP accounts?

c. a firm increases its capital stock

29. Esmerelda worked part-¬time for her mother's business without pay. Tabitha worked part-time but is looking for a full-time job. Who is counted as "employed" by the Bureau of Labor Statistics?

c. both Esmerelda and Tabitha

25. In a closed economy, if Y, C, and T remained the same, a decrease in G would

c. increase public saving but not private saving.

9. when the consumer price index rises the typical family

has to spend more dollar to maintain the same standard of living

20. Country A and country B are the same except country A currently has more capital. Assuming diminishing returns, if both countries increase their capital by 100 units and other factors that determine output are unchanged, then

c. output in country A increases by less than in country B.

5. Which of the following items is the one type of household expenditure that is categorized as investment rather than consumption?

c. the purchase of a new house

24. GDP = $5 trillion; consumption = $3.1 trillion; government purchases = $0.7 trillion; and taxes = $0.9 trillion. For this economy, investment amounts to

d. $1.2 trillion

22. Institutions that help to match one person's saving with another person's investment are collectively called the

d. financial system.

17. Which of the following measures how the level of well-being in a country has changed over time?

d. growth rate of real GDP per person.

33. Michael decides to hire some additional workers for his roofing company. The equilibrium wage is $17 per hour. Efficiency wage theory suggests that it is reasonable for Michael to offer

d. more than $17 per hour in order to attract a better pool of applicants

1. Which of the following topics are more likely to be studied by a macroeconomist than by a microeconomist?

d. the percentage of the labor force that is out of work, and differences in average income from country to country

6. real GDP will increase

only when you take viagra

7. if real gdp double and gdp deflator doubles, then nominal Gdo

quadruples

unions

raises the wages of unionized workers and raise unemployment