Chapter 21-24 Economics Test Review

more cynically unemployed

keeele economic downturn

Economic growth rate between 2011 & 2012

$4.63

montreal 2019 unemployment

6.2%

Which of the following is (are) included in investment? (ii) the purchase of an aircraft by a domestic airline

(ii) only

How do these transaction affect GDP for the current year? (a) A manufacturer pays its workers $7.5 million as wages. (b) Stockholders make $34 million worth of capital gains in two months. (c) The local hot sauce factory purchases and uses $50,000 worth of habanero peppers and $8,000 worth of salt and spices to make habanero sauce, which is then sold for $122,000.

(a) Positively affects the GDP, (b) Doesn't affect GDP as stocks aren't directly included in GDP, (c) affects GDP through the value added by the hot sauce factory's production and the sale of habanero sauce.

last L K H question

(b) "This reflects the law of diminishing returns because the increase in output gets smaller as a single factor of production or resource increases."

Suppose the typical college student spends money primarily on the products in the following table. 1. What is the cost of the basket in 2019? 2. Cost of basketball in 2020 3. 2020 inflation rate 4. Cost of living risen or fallen

1. The cost of the basket is $14,576.25 2. The cost of the basket in 2020 is $15,737 3. The 2020 inflation rate is 7.94% 4. Cost has risen

folloiwung basketball of goods

10.13%

GDP deflator if both 300 billion

100

eswatinis real gdp

3.2 billion

rate of inflation given 2006

3.22%

According to your book (and various other sources), long term unemployment is only transitory and does not lead to long run (or long-term) income loss. a. True b. False

b. False

GDP will neither increase nor decrease when a good is imported because the subtraction as a part of imports is offset by a corresponding increase in another category (e.g. consumption). a. True b. False

b. False

4 friend, frictionally unemployed

Melina, who is had been looking for work for nine months but now believes that there are no jobs for her

If an economy's GDP is $3,179,000 million and the population is 25 million, what is the approximate GDP per person?

The approximate GDP per person is $127.16. (3,179,000/25,000,000) x 100

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? a. $39,770 b. $3,980 c. $46,060 d. $26,246

a. $39,770

At some time in the US, there are some positive amount of discouraged workers and maginally attached workers; if this is true then U6 would be higher than the usually reported unemployment rate (U3). a. True b. False

a. True

Despite the flaws in the CPI, it is normally used for most COLAs (Cost of Living Adjustments) to wage for workers and is normally the basis for indexation. a. True b. False

a. True

The capital stock in an economy stops growing when: a. investment equals depreciation b. savings increases in the economy c. depreciation reaches zero d. capital accumulation begins

a. investment equals depreciation

Suppose that a CPI basket includes avocadoes, pineapples and oranges. Avocadoes become very expensive, and consumers substitute away from avocadoes and buy hummus instead. If the CPI basket does not change to reflect the move away from avocados, the result is:A) substitution bias.B) understated inflation.C) the failure to capture real variables versus nominal variables.D) quality bias.

a. substitution bias

working age pop

age 16 or older who are not in the military or institutionalized

WinSun, a Chinese firm, began producing 3-D printed houses in late 2013. These houses were produced in a fraction of the time it would take to produce a house in the regular way and at a much lower cost. This is an example of:

b. an advance in technology leading to a rice in productivity

If the local construction company buys an industrial 3d printer, this expenditure is: a. consumption b. investment c. government expenditure d. exports

b. investment

In the Solow growth model, the steady-state occurs when: a. depreciation reaches zero b. savings increases in the economy c. investment equals depreciation d. capital accumulation begins

c. investment equals depreciation

2 questions L H K

constant returns to scale

deflation is a

decrease in overall level of price

friends here is unemployed?

melinda, laid off