ap econ unit 2
Yang has just graduated from college and is not interviewing for jobs. Yang would be described as
frictionally unemployed
as a measure of economic welfare, gdp underestimates a country's production of goods and services when there is an increase in
household production
The consumer price index does not measure the cost of inflation because
improvements in the quality of goods are not fully reflective
assuming year what is the base year what is the nominal and real gross domestic product for year two
nominal GDP $280 the real GDP $200
how did Sabrina's nominal income and row income change in 2018 compared to 2017
nominal income increased and real income increased
according to the business cycle represented in the diagram above the actual rate of employment equals the natural rate of employment when the economy is
on the potential line
an increase in the number of which of the following will leave to an increase in the unemployment rate
persons quitting part-time jobs to look for full-time ones
if an economy is at the peak of the business cycle than which of the following is true about the state of the economy
there is an inflationary gap
suppose the maximum production of melons in Ecuador decreases how old is a fact Ecuador's opportunity cost of producing fish explain
they would now produce more fish since their resources for the high opportunity cost melons are depleted so they will recall those towards fish production
The table above gives population and labor market data for an economy. The unemployment rate in this economy is
10%
assume that in economy produces just 2 goods X and Y as shown in the table above if year one is the base year of the consumer price index for your two in this economy is
175
if the consumer price index increases from 200 to 240 in a one year. And the inflation rate is
20 percent
The economy of Galactica is expanding and the actual unemployment rate exceeds the natural rate of unemployment for which year in the above diagram?
2002
if an automobile was manufactured in 2006 and sold to a customer in 2007, what was the effect on the gross domestic product in 2006 and 2007
2006 increase 2007 no change
according to the data above in which year was the real gross domestic product the largest?
2010
calculate the unemployment rate in Patti land
25-2 = 5 5/25×100 = 20 20% is the unemployment rate
assume chilies civilian working age population is 40 million the labor force participation rate in Chile is 50% and the unemployment rate is 10% calculate the number of unemployed people in Chile show your work
40×1/2 equals 20 20×.1 = 2 20-2 = 18 therefore 18 million people in Chile are employed
which of the following is an example of frictional unemployment
A college graduate interviewing for two available positions
which of the following is most likely included in gross domestic product
Ali buys a new bicycle.
which of the following will happen if the actual inflation rate is greater than the expected inflation rate
Borrowers of fixed interest rate loans will be better off.
which country has the comparative advantage in the production of fish explain using numbers
Chile has the comparative advantage because they produce 10 fish but it cost me only one melon so it cost them less to produce the same amount of fish as Ecuador
Alice who has left her job in New York, is moving to Atlanta and looking for a job, in terms of employment status, Alice can most accurately be described as
Frictionally unemployed
What can you conclude about the use of resources in Ecuador
Ecuador has a 3:1 ratio
No assume each country specialize in the production of all the good and richard? has a comparative advantage and the terms of trade or 12 units a fish in one unit of melons will Ecuador game for a trade explain
Ecuador would gain because previously they would've produced 10 fish for one melon but now they get two more fish for the same amount of melon
The nominal gross domestic product of China in 2010 is a measure of the total value in which of the following in 2010
Final goods and services produced within the borders of China
which of the following is true about the real GDP
It measures aggregate output using constant prices.
if a nation's actual real GDP is less than the potential real GDP which of the following must be true
The actual rate of unemployment exceeds the natural rate of unemployment
which of the following will be counted as unemployed by the United States bureau of labor statistics
Persons who were fired from their previous jobs and are actively applying for work
which of the following best explains why transfer payments are not included in the calculation of gross domestic product
Recipients of transfer payments have not produced or supplied goods and services in exchange for these payments.
as a measure of economic performance, GDP accounts for which of the following
Souvenir gifts purchased by tourists domestically
if 2012 is the base year which of the following is true
The CPI in your 2013 is 120
which of the following situations would benefit lenders of fixed interest rate loans
The actual inflation rate is less than the expected inflation rate
which of the following transactions will be included in the calculation of countries X gross domestic product GDP in 2020
The purchase of new construction equipment
Gross domestic product is equal to which of the following
The sum of income paid to all the factors of production
The circular flow model illustrates the equality of which of the following
Total expenditure; Total income
which of the following is correct according to the circular flow model of an economy
Total spending equals total income
Debbie as a citizen of the country of Wayland an ounce of computer software firm in Patty land is the output produced by Debbie's computer software firm included in Patty land a nominal GDP calculated and part A explain
Yes since her firms actual production is in Patti land
which of the following employed individuals represent frictional unemployment
an accounting graduate who is interviewing with a number of accounting firms
which of the following types of unemployment is caused by a recession
cyclical
public policy that generates an unexpected increase in consumer prices will inflict short run cost on all of the following except
borrowers
which of the following allows an individual to gain unexpected inflation
borrowing money at a fixed interest rate
An increase in the number of discouraged workers causes the unemployment rate to
decrease along with the labor-force participation rate
people have given up looking for jobs are classified as
discouraged workers
The measured unemployment rate is often criticized for understanding a level of joblessness because
discouraged workers are not counted in the labor force
which of the following typically occurs during a expansionary phase of the business cycle
employment increases
which of the following will most likely result from deflation
increase the real value of fixed incomes
A continuous increase in the consumer price index is
inflation
an increase in investors will increase which component of the gross domestic product
investment expenditures
A nations employment rate is the ratio of the number of unemployed seeking employment to the nations
labor force
which of the following would most likely benefit from unexpected deflation
lenders
which of the following can be considered a leakage from the circular flow of a economy activity
saving
suppose that a countries nominal gross domestic product was $1000 and your one and $2000 in U2 if year one is the base year and real GDP in year two was $1000 which of the following is true
sera goods and services were produced in the year two than year one
GDP does not account for which of the following
the depletion of natural resources
the term "value added" for a firm is best defined as which of the following
the firm's sales minus the cost of inputs purchased from other firms