ECO MIDTERM STUDY GUIDE CHAPTER.....

Suppose price is measured along the vertical axis on a graph. When price changes, there will be a

movement along the curve

Total surplus with trade exceeds total surplus without trade by

$1,280

The increase in total surplus resulting from trade is

$1,280 since consumer surplus increases by $3,520 and producer surplus falls by $2,240

Refer to table 23-5. What was this country's nominal GDP in 2016?

$10,000.

Refer to Figure 9-1. With trade, total surplus in the guatemalan coffee and market amounts to

$1870 Dollars

Refer to Figure 9-3 Without trade, the equilibrium. prices of roses is

$4 and the equilibrium quantity is 300

Refer to Scenario 9-1 If Boxland prohibits international trade in cardboard, then the equilibrium prices of a ton of cardboard is

$52 and the equilibrium quantity of cardboard is 96 tons

Without trade, total surplus amounts to

$6,480

Refer to Table 2-1 If the production possibilites frontier is bowed outward, then which of the following could be maximum number of tennis balls produced when 300 tennis rackets are product?

4,500

Refer to Table 2-3. What is the opportunity cost to Footville of increasing the production of shoes from 400 to 800?

400 bushels of wheat

Table 2-3 Which is the opportunity cost of increasing the production of corn from 400 bushels to 800 bushels?

400 bushels of wheat

Refer to the table 23-3 What are the GDP deflators and the inflation rate for 1931?

9.16, -10.3.

Consumer surplus in this market after trade is

A

The nations of land forbid international trade. In Wheatland, you can buy one pound of corn for three pounds of fish. In other country you can buy one pound of corn for two pounds of fish. These facts include that

If we lend words who allow trade, it would import corn.

Which of the following is not an advantage of a multi lateral approach? To free trade over A unilateral approach.?

In multilateral approach acquires the agreement of two or more Nations.

Over the last few decades, Americans have chosen to cook less at home and eat more at restaurants. This changes its behavior by itself has.

Increase measure GDP by the value added by the restaurant. Preparation and serving of the meals

A Texas household receives a Social Security check for $1500 which is uses to purchase a $40 pair of shoes made in Thailand by Thailand firm, A $1240. Television made by a Korean firm in Korea and 220 on groceries from a local store as a result, US GDP

Increases by $220

The percentage change in the price level from one period to another is called.

Inflation Rate.

The world price Of eight ton of steel is 650. Before Russia allowed trade and steel, the price of a ton of steel there was 1000. Once Russia allowed trading. And still with other countries. Russia began.

It Importing steel and the price per ton in Russia decreased to $650

International data on GDP and socioeconomics variable.

Leaves no doubt that a nation's GDP is closely associated with its citizen standard of living.

Denmark is an importer of computer chips, taking the world price of $12 per chip is given. Suppose Denmark imposes a $5 tariff on ships. Which of the following alchemist possible?

More Danish Dash produce chips are sold in Denmark.

National income differs from net national product because.

Of a statistical discrepancy

Join Jim Purchase vegetables at a grocery store, but Jim also grows vegetable in his backyard. Regarding these two practices, which of the following statements is correct?

Only Joe's and Jim grocery store purchases are included in GDP.

Which of the following steps does an economists not take when studying the economy?

Publish theories before testing them

A recession has traditionally have been defined as a period during which.

Real GDP declines for two consecutive quarters.

When the nations of, world of. Allows trade and becomes an expert. Border of silk,

Residence of world over who produces Silk. Become Better off.; Residents of worldova Who buy silk become Worldova ; In the economics well-being of worldova raises.

Refer to Table 2-2 Which of the following statements is correct?

The opportunity cost of an additional 200 shoes increases as more shoes are produced

Table 2-2 Which of the following statements is correct?

The opportunity cost of an additional 200 shoes increases as more shoes are produced.

A survey of professional economists revealed that more than three-fourths of them agreed with fourteen economic propositions. Which of the following is not one of those purpose?

The united states should withdraw from the North American Free Trade Agreement (NAFTA).

How economists not like mathematicians, physicists, and biologists?

They cannot run lab experiments in the same way that other scientists can.

Suppose the world price of cardboard is $45. Then, relative to the no-trade situation, international trade in cardboard.

benefits Boxlandian consumers by $721 and hams Boxlandian producers by $598.50.

A transfer payment is a payment made by.

government, but not in exchange for a currently produced good or service.

The General Agreement on Tariffs and Trade (GATT) was initiatied in response to

high tariffs imposed during the Great Depression of the 1930s.

Sometimes economists disagree because their scientific judgments differ. Which of the following instances best reflects this source of disagreement?

one economists believes the government should tax household's income; another economists believes the government should tax a household's consumption because it will cause households to save more.

Assume for Vietname, that the domestic price of textiles without international trade is higher than teh world price of textiles. This sugessts that, in the producttion of textiles,

other countries. have a comparative advantage over Vietnam and Vietnam will import textiles

Refer to Figure 2-4 Graph (a) Production is

possible at point J,K,L and M, but efficient only at points J,L, and M.

Refer to Figure 2-4, Graphs (a). Production at point K is

possible but inefficient

Economists at the Department of the Treasury

provide advice on tax policy to the President.

When the nation of Worldova allows trade and becomes an exporter of silk,

residents of Worldova who produced silk become better off; residents of Worldova who buy silk become worse off; and the economic well-being of Worldova rises.

The graph shown is known as a

scatterplot

The "unfair-competition" argument might be cited by an American who believes that

the French government's subsidies to French farmer justify restrictions on American imports of French agricultural products

The area C+D+E+F represents

the decrease in consumer surplus caused by the tariff

Consumer surplus in this market before trade is

A+B

When constructing a production possibilities frontier, which of the following assumptions is not made?

The quantities of the factors of production that are available are increasing over the relevant time period.

Refer to Figure 2-3 Suppose this economy is producing at Point D. Which of the following statements would best explain this situation?

There is widespread of unemployment in the economy

With trade, this country

imports 320 tricycles.

The point where both x and y are zero is known as the

origin

The bowed-outward shape of the production possibilities frontier can be explained by the fact that

the opportunity cost of one good in terms of the other depends on how much of each good the economy is producing.

Refer to Table 23-1, Net National Products for. Chereaux in 2019 is

$198

A steel company sells some steel toy bicycle company for $150. The bicycle company uses the steel to produce a bicycle, which. It sells for $250. Taking together these two transaction contributes.

$250 to GDP.

Refer to Table 23-4. This country's inflation rate from 2016 to 2017 was.

23.1%.

Refer to Figure 9-1 in the absence of trade, total surplus in Guatemala is presented by the areas.

A + B + C + D + F.

Morgan buys a refrigerator for his new home. To which of the arrows does this transaction directly contributes?

A and B

Which of the following is not an advantage of a multilateral approach to free trade over a unilateral apprach?

A multilateral approach requires the agreement of two or more nations.

Which of the following transaction does not take place in the markets for factors of production in the circular-flow diagram?

A women buys corn for dinner

Total surplus in this market before trade is

A+B+C

GDP and GNP are identical when

All domestic productions is by domestically owned producers and no foreigner production is carried out by domestic producers.

Refer to Figure 9-5. Producer surplus in the market before trade is.

B+C

Refer to Figure 9-4 Producer surplus in this market after trade is

B+C+D

Producer surplus in this market before trade is

C

The outer loop of circular flow diagram represents the flow of dollars in the economy? Which of the following is not measured in dollars and therefore does not appear on the outer loop?

Capital

In the national income accounts, depreciation is Called

Consumption of fixed capital.

Refer to Figure 9-6. The dead weight loss increased by the tariff is represented by the area.

D+F

The deadweight loss created by the tariff is represented by the area...

D+F

The change in total surplus in this market because of trade is

D, and this area represents a gain in total surplus

Refer to Figure 9-6. Government. Revenue raised by the tariff is represented By the area.

E.

If total spending rises from one year to the next, then.

Either the economy must be producing a large output of goods and services, or goods and services must be selling at higher prices, or both.

If the price of a dress is three times the price of a pair of shoes, then a pair of shoes contributes.

Exactly 1/3 as much to GDP as does a Dress.

Which of the following correctly orders the US Income measures from largest to smallest

Gross National product, Net National product, National income, Personal income, disposable personal income.

Refer to Figure 2-5 Which of the following events would explain the shift of the production possibilities frontier from A to B?

The economy experienced a technological advance in the production of books

Which of the following areas of study typifies macroeconomics as opposed to microeconomics?

The effect on the economy of changes in the nation's unemployment rate

We to the following is not a commonly advanced argument for trade Restrictions?

The efficiency argument.

Disposable personal income is.

The income that households and businesses have remaining after satisfying their obligations to the government.

Figure 2-8 The movement from point A and point B is

a movement along the demand curve

Most goods and services produced at home

and most goods and services produced illegally are excluded from GDP

When a country that imports a particular good imposes a tariff on that good,

consumer surplus decreases in total, surplus decreases on the market for that good.

In the circular-flow diagram, which of the following items flows from households to firms through the markets for good and services?

dollars spent on goods and services

The world piece of a ton of steel is $1,000. Before Russia allowed trade in steel, the price of a ton of steel there was $650. Once russia allowed trade in steel with other countries, Russia began

exporting steel and the price per ton in Russia increased to $1,000.

In the markets for good and services in the circular-flow diagram

firms provide households with output

In the circular-flow diagram, in the markets for

goods and services, households are buyers and firms are sellers

According to the circular-flow diagram, if Jalyssa is a worker who delivers flowers fro Happy Day Flower Company, she participation

in the markets for factors of production exchanging labor for income

This infant-industry argument

is based on the belief that proctoring industries when they are young will pay off later

Where can an economy not produce?

outside its production possibilities frontier

when two variable have a positive correlation,

they tend to move in the same direction