Macroecon Final S2022

if mark has an absolute advantage over Beth in preparing meals, then

mark can prepare more meals in a given period of time than beth

three equivalent ways to measure GSP are total _________, total _________, and total __________

production, income, expenditure

real GDP measures _________; nominal GDP measures___________

current output at base year prices; current output at current prices

during the recession, construction workers were laid off from their jobs because the building of homes came to a halt.

cyclical unemployment

if 2009 is the base year, then the real GDP in 2009 is _________ the nominal GDP in 2009

equal to

the law of supply states

firms supply more of a product as the price of the product rises

in general, individuals and nations should specialize in producing goods ___________ other individuals or nations

for which they have a lower opportunity cost compared to

suppose GDP per capita is growing at an annual rate of 3%. it will take __________ years to double

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equation for GDP using expenditure approach

GDP = consumption + investment + government purchases + exports - imports

the profit from American Airlines production in the US is included in the US ________

GDP and GNP

what would not shift the economy's entire PPF outward

a reduction in unemployment

suppose bob can produce more jeans than Joe in a day. bob has a ___________ advantage over joe in sewing jeans.

absolute

the law of demand implies that, other things remaining the same,

as the price of a good rises, the quantity of that good demanded will decrease

people who would like to work full time, but are able to find only part time work are

counted as employed

martha did not like her job as a receptionist , so she quit and is looking for one that better suits her artistic talents. Ting Pei would like to work, but employers are not willing to hire him because he doesn't speak english. Martha is __________ unemployed and Ting Pei is ___________ unemployed

frictionally; structurally

consider the market for coffee. if the price of coffee beans increases, and scientists reveal that consumption of coffee decreases the risk of heart disease, then the new equilibrium price of coffee will be

higher (supply goes down, demand goes up)

economic growth can result from a(n)

increase in the amount of productive resources

suppose that the price for fully electric vehicle made by Toyota increases. The quantity of fully electric cars sold in the market will

increase, because toyota would be willing to sell more fully electric vehicles and because other auto manufactures would want to enter the market and also sell fully electric vehicles.

during the early 1990s, companies started downsizing. one of the results of this was the permanent reduction in the number of middle management positions. this change in the way businesses operate would have

increased the natural rate of unemployment

according to the principal of diminishing returns, if the number of workers is increased beyond the point of diminishing returns, then the additional worker:

increased total output by less than the amount of previous workers

an increase in the price of soda causes a decease in the quantity of soda demanded

law of demand

on a graph of a production possibilities curve (PPC), an inefficient point is

necessarily an attainable point

when people who were previously looking for jobs stop looking for jobs, they are

not in the labor force

a rich nation will trade with a poor nation because the

poor nation has the comparative advantage in a product

producers of TVs will be able to lower the wage rate that they pay their workers. you predict that the supply curve of TVs shifts

rightward, the price falls

suppose that ramen noodles are an inferior good. when income decreases, the equilibrium quantity of ramen noodle will _________ and the equilibrium price of ramen noodles will ________

rise;rise

an individual worked for an airline that went out of business because the airline was unable to meet new federal safety standards

structural unemployment

dora lost her job when the textile factory closed. she does not have skills to work in another industry and has been unemployed for over a year

structural unemployment

the PPC shows

the maximum amount of one good that can be produced for every possible production level of the other good

real GDP is

the nominal value of all goods and services produced in the domestic economy corrected for inflation or delfation

suppose you live in a house. what is the opportunity cost of living in the house

the opportunity cost includes the rent you could have received from a tenant if you didn't live there

if a market is not in equilibrium, what is likely to occur

the price will adjust to bring the market to equilibrium

flour is a basic ingredient in all bread making. If the price of flour increases:

the supply of bread decreases

if the price of rubber, an input in the production of tired, increases

the supply of tired will decrease

combinations of goods outside the PPF have which characteristics

they are not attainable given our existing stock of resources and technology

real GDP is gross domestic product measured

using the prices of a specified base year