econ
Government purchases include
Federal, state, and local government expenditures
(Consider This) What is the difference between financial investment and economic investment?
Financial investment refers to the purchase of assets for financial gain; economic investment refers to the purchase of newly created capital goods
Prices for oil and other commodities tend to be
Flexible
There are several ways to measure aggregate output. The one favored by the Bureau of Economic Analysis is
Gross domestic product
Sticky output prices are caused by
All of the above are reasons for sticky output prices
Compensation of employees
All of the answers are correct
The National Income and Product Accounts (NIPA) for the United States are compiled by the
Bureau of economic analysis
The agency responsible for compiling the National Income and Product Accounts for the U.S. economy is the
Bureau of economic analysis
(Consider This) Suppose that Toyota buys a factory previously owned by Chrysler Motors. Economists would
Not considered this to be an economic investment, because no new capital is created through the purchase
U.S. GDP in 2021 was about
23 trillion
Answer this question based on the given information for an economy in some year. Dollar value of resource extraction activity = $20 billion Dollar value of production activity = $50 billion Dollar value of distribution activity = $60 billion Dollar value of final output = $100 billion Gross output for this economy equals
230 billion
National income accountants define consumer durable goods as products that have an expected life of
3 years or more
For which of the following goods and services are prices leaststicky?
Airline ticket
Inflation is defined as
A general increase in the price level
The period when output and living standards decline is referred to as
A recession
To manage the problem of adding dissimilar items when calculating GDP, the BEA
Adds the monetary values of each final good or service produced
Interest consists of the money households receive on
All of the answers are correct
The two broad categories of the nation's stock of capital
Are informally referred to as tools and recipes
The U.S. government agency responsible for compiling the national income accounts is the
BEA
Most retailers try to maintain stable prices as much as they can
Because consumers would be annoyed if the price of a product cost one day and another price another day
Buying new furniture for your home would increase
Consumer durable goods and therefore personal consumption expenditures
Buying a new pair of jeans for yourself would increase
Consumer nondurable goods and consequently personal consumption expenditures
Savings are generated whenever
Current income exceeds current spending
What are demand shocks? Describe a positive demand shock and a negative demand shock.
Demand shocks are unexpected changes in the demand for goods and services. A positive demand shock occurs when actual demand is higher than expected. A negative demand shock occurs when actual demand is lower than expected.
One principle of economic growth is the notion that, to raise living standards over time, an economy must
Devote some portion of its current output to increasing it future output
The Industrial Revolution began in
England in the late 1700s
What social problems have been linked to higher rates of unemployment?
Higher unemployment rates are linked with social problems like higher crime rates, greater political unrest, and higher rates of depression and heart disease among unemployed people. fewer jobs go around to students who stay in college longer and higher crime rates
For an economy to increase investment, it must
Increase saving
Government purchases
Indirect purchases of resources
An increase in the overall level of prices in an economy is called
Inflation
a price war
Is possible when a firm has just one or two major rivals
National income accountants define consumer nondurable goods as products that have an expected life of
Less than 3 years
A higher rate of investment now will generate
More future production
The system that measures the economy's overall performance is formally known as
National income accounting
The Bureau of Economic Analysis compiles the NIPA accounts. The letters NIPA represent
National income and product accounts
(Consider This) Which of the following is an example of economic investment?
New balance buys a new machine that increases shoe production
The largest expenditure component of GDP is
Personal consumption expenditures
Retailers that attempt to keep prices stable and predictable cause
Price inflexibility
The three statistics that are the main focus for those measuring macroeconomic health are
Real GDP, inflation, and unemployment
When economists refer to "investment," they are describing a situation where
Resources are devoted to increasing future output
The business cycle depicts
Short-run fluctuations in output and employment
Which of the following goods have prices that are least flexible?
Soda
Human-made resources that are referred to as "recipes" includes
Spending on new writing that increase the flow of entertainment and education
Transfer payments are not included in government purchases because
Such payments generate bo production
To signify government purchases, national income accountants use
Symbol G
Spending that pays for new or improved software is in
The recipe category of investment
What are the three primary measures used in macroeconomics to assess the performance of an economy?
The three key statistics are real GDP, unemployment, and inflation and are the standards by which economists keep track of long-run growth and short-run fluctuations. Policy makers will attempt to maximize growth while minimizing unemployment and inflation.
Which of the following will be included in U.S. GDP?
The value of the cars produced at a japanese- owned toyota factory in ohio
The average amount of time between price changes for gasoline is
Two to three weeks
In 2020, the three largest economies in the world were (listed in order, from largest)
Usa, china, japan
