macro
. Allocative efficiency refers to:
the production of the product mix most wanted by society
When the price of a product rises, consumers with a given money income shift their purchases to other products whose prices are now relatively lower. This statement describes:
the substitution effect
Productive efficiency refers to:
the use of the least-cost method of production
Proponents of economic growth make all of the following arguments except:
there is a direct relationship between a growing real GDP and rising pollution
Which of the following is a true statement?
Economists who support economic growth say that it is the most practical route to the higher standards of living that the vast majority of people desire.
. If two goods are complements
a decrease in the price of one will increase the demand for the other.
The rationing function of prices refers to the:
capacity of a competitive market to equalize quantity demanded and quantity supplied
. A price ceiling means that:
government is imposing a legal price that is typically below the equilibrium price.
. A price floor means that:
government is imposing a minimum legal price that is typically above the equilibrium price.
Economists who believe that the 1995-2012 rise in the average rate of productivity growth may be long lasting claim that the above-normal economic growth in the United States between 1995 and 2012 was caused by:
increased entrepreneurial activity, application of information technology, and global competition.
The historical reallocation of labor from agriculture to manufacturing in the United States has:
increased the average productivity of labor
More than half the growth of real GDP in the United States is caused by:
increases in the productivity of labor
A demand curve:
indicates the quantity demanded at each price in a series of prices.
Proponents of economic growth say that pollution:
occurs, not because of growth, but because common resources are treated as free goods.
Allocative efficiency is concerned with:
producing the combination of goods most desired by society.
A nation's infrastructure refers to:
public capital goods such as highways and sanitation systems.
Labor productivity is measured by
real output per worker hour.
An inferior good is:
not accurately defined by any of these statements.
Economists use the term "demand" to refer to:
. a schedule of various combinations of market prices and amounts/quantities demanded.
A normal good is one:
. for which the consumption varies directly with income
(Consider This) Over the past several decades, the percentage of women in the paid U.S. workforce has:
. increased due to higher wages, expanded job accessibility, changing preferences and attitudes, and other factors
. Network effects are
. increases in the value of a product to each user, including existing users, as the total number of users rises.
Economic historians date the start of the Industrial Revolution around the year 1776, when James Watt:
. invented and built a more powerful and efficient steam engine.
Countries that have experienced modern economic growth have also tended to:
. move toward more democratic forms of government
In this market, economists would call a government-set minimum price of $50 a:
. price floor.
(Consider This) Ticket scalping refers to:
. reselling a ticket at a price above its original purchase price.
Economies of scale refer to:
. the fact that large producers may be able to use more efficient technologies than smaller producers.
Allocative efficiency involves determining:
. the mix of output that will maximize society's satisfaction.
(Last Word) The inverse dependency ratio is defined as:
. the number of people of working age divided by the number of dependents
In constructing a demand curve for product X:
. the prices of other goods are assumed constant.
Between 1950 and 2012, U.S. real GDP per capita grew at an average annual rate of about:
2.0%
In 1998, living standards in the United States were nearly ______ times higher than those in Africa.
20
. Based on the annual number of hours worked per capita, labor supply in the United States exceeds that of France by about _______ percent.
34
Globally, on average test scores of eighth-grade math and science students, the U.S. ranks (as of 2011):
9th and 10th, respectively.
Which of the following institutional structures is most likely to promote growth?
A well-enforced system of patents and copyrights
Which of the following statements is correct?
Between 1953 and 2011, increases in labor productivity account for more of the growth in U.S. real GDP than do increases in the quantity of labor
Which of the following statements is correct?
The amount of real capital used per worker has increased historically in the United States.
. Other things equal, which of the following would increase labor productivity the most?
The increase in the stock of real capital exceeds the increase in inputs of labor.
. In moving along a demand curve, which of the following is not held constant?
The price of the product for which the demand curve is relevant.
Which of the following is correct?
Total output = worker-hours × labor productivity
Markets, viewed from the perspective of the supply and demand model:
assume many buyers and many sellers of a standardized product.
Real GDP per capita is found by:
dividing real GDP by population.
Economic growth is best defined as an increase in
either real GDP or real GDP per capita
A market:
is an institution that brings together buyers and sellers.
The demand for most products varies directly with changes in consumer incomes. Such products are known as:
normal goods.
The law of demand states that, other things equal
price and quantity demanded are inversely related.
The supply curve shows the relationship between
price and quantity supplied
In this market, economists would call a government-set maximum price of $40 a:
price ceiling
The percentage of U.S. adults with a high school education or has:
risen from 41 percent in 1960 to 88 percent in 2012
Graphically, the market demand curve is:
the horizontal sum of individual demand curves.
