ECO 201 Midterm

Gdp is equal to

all of the above are correct

Grapes are

always counted as an intermediate good

refer to figure 4-22 panel B shows which of the following?

an decrease in quantity demanded and an decrease in quantity supplied

Refer to figure 2-4 Suppose this economy is producing at point D. Which of the following statements would best explain this situation?

There is widespread unemployment in the economy

refer to figure 4-22 Panel d shows which of the following

a decrease in quantity demanded and a decrease in quantity supplied

an increase in demand is represented by

a rightward shift of a demand curve

Refer to figure 2-4 The opportunity cost of this economy moving from pointA to point B is

10 toasters

Refer to table 24-1 If 2005 is the base year then the CPI for 2005 was

100

Refer to table 24-1 If 2005 is the base year then the CPI for 2006 was

120

Refer to figure 2-1 Which arrow represents the flow of goods and services?

B

Ellen decides to hire some additional workers for her vinyl siding factory. The equilibrium wage is $14 per hour. Efficiency wage theory suggests that it is reasonable for Ellen to offer

More than $14 per hour, so as to attract a better pool of applicants

which of the following statements is corrent

buyers determine demand and sellers determine supply

the inlfation rate is calculated

by determining the change in the price index from the base year

An increase in the price of a good will

decrease quantity demanded

if the number of buyers in a markey decreases then

demand will decrease

Pekelo owns his own business. The BLS count pekelo as

employed and in the labor force

Refer to figure 2-4 This economy cannot currently produce 30 toothbrushes and 45 toasters because

given its current technology it does not have the resources to produce that level of output

In the circular flow diagram

labor flows from households to firms

Zeeman is a college student who is not working or looking for a job. The Bureau of Labor Statistics counts Zeeman as

neither in the labor force nor unemployed.

Consider a small economy in which consumers buy only two goods: apples and pears. In order to compute the consumer price index for this economy for two or more consecutive years, we assume that

neither the number of apples nor the number of pears bought by the typical consumer changes from year to year.

Changes in real GDP reflect

only changes in the amounts being produces

a model can be accurately describes as a

simplification of reality

Suppose roses are currently selling for $40 per dozen but the equilibium price of roses is $30 per dozen we would expect a

surplus to exist and the market price of roses to decrease

A very hot summer in Atlanta will cause

the demand for jackets to decrease

To calculate the CPI the BLS uses

the prices of some consumer goods

Factors of production are

used to produce goods and services

The law of supply states that other things equal

when the price of a good rises the quantity supplied of the good rises

Refer to table 24-1 If 2005 is the base year then the inflation rate in 2006 was

20%

Refer to table 24-1 The cost of the basket in 2005 was

200

Refer to figure 2-1 Which arrow represents the flow of income payments?

D

Refer to figure 2-4 It is not possible for this economy to produce at point

Point C

refer to figure 4-22 panel A shows which of the following?

an increase in quantity demanded and an increase in quantity supplied

refer to figure 4-22 panel C shows which of the following?

an increase in quantity demanded and an increase in quantity supplied

refer to figure 4-6 The movement from point A to point B on the graph is caused by

an increase in the price of the good

refer to figure 4-6 The movement from point A to point B on the graph is called

an increase in the quantity supplied

Real GDP is the yearly production of final goods and services valued at

constant prices.

Which of the following might cause the demand curve for an inferior good to shift to the left?

none of the above is correct

refer to figure 4-11 which of the four panels illustrates a decrease in quantity demanded

panel b

a microeconomist as apposted to a macroeconomist might study

the effect of rising oil prices on employment in the airline industry

The CPI is a measure of the overall cost of

the goods and services purchased by a typical consumer