ECON MACRO FINAL EXAM

If Spain is said to have an absolute advantage over Brazil in the production of computer chips, this means that, given the same resources,

Spain can produce more computer chips than Brazil.

All else equal, which scenario would exhibit a country with the most economic growth?

Froland, a country known to be able to resolve most trials and legal issues within a year

Maneet is a general manager of an office supply store, and is currently assessing the effects of various market changes. The current price of ink (per cartridge) is $20 . Suppose the price of cartridges increases to $24. Determine how the market for ink cartridges changes in response What occurs in the market for ink cartridges in response to the increase in price?

Quantity supplied increases, moving up and to the right along the curve

The Japanese carmaker Honda owns production facilities in Marysville, Ohio. If the cars made there are sold exclusively in the United States, in which category would the cars be counted?

US GDP

In what way(s) does GDP per capita not provide an accurate representation of living standards?

a. GDP per capita does not account for changes in environmental quality. b. GDP per capita does not account for how people distribute their time between work and leisure. c. GDP per capita does not measure production that occurs outside of the market economy.

Real GDP per capita is NOT an adequate measure of...

well-being of each person in an economy

The table describes hypothetical employment statistics in the United States in a given year. The labor force is the sum of those that are employed plus the unemployed. Based on the information, what is the unemployment rate?

unemployment rate: 8.1

Select the term that best describes the employment status of each person. a. Anna Conda is in the Amazon on a vacation from her part-time job as a herpetologist at the Toronto Zoo b. Bill Loney does not have a job, nor does he intend to look for one. c. Brighton Early is a student. He has no job outside of the home but spends five hours each week on yard work. He is happy with his situation and is not looking for more work. d. Bonnie Ann Clyde has not had any work for six months despite filling out at least eight job applications each day.

a. employed b. out of the labor force c. out of the labor force d. unemployed

The Generator is a popular youth hostel in London located near Kings Cross. The hostel provides a bed, showers, and breakfast in their nightly fee. Suppose the quantity demanded is when the price is $90 per night and 90 when the price is $10 per night. Quantity supplied is when the price is $10 and 100 when the price is $ 80. a. In the accompanying diagram, use this information to place the supply and demand curves. b. In equilibrium, how many beds are rented? c. What is the total surplus?

b. 50 beds c. $2000

Which of the four options best represents specialization and its relationship with trade?

comparative advantage

The table shows the tons of steel or number of computers a worker can produce per month in Germany and South Korea. Use this table to answer the question. Germany should:

specialize in steel production, export steel , and import computers

The demand schedule for chicken feet, a dim sum delicacy served at some Chinese restaurants, is shown in the table. Although some people find the texture strange, others have developed a taste for it. 1. How many more chicken feet were demanded in 2018, at a price of $3.00 a pound, than in 2008? 2. Based on the demand schedule, you conclude:

1. 6.2 million pounds 2. the demand curve shifted to the right

Christine and Paul are deciding how to split their time between writing music and lyrics for their new album . Their PPFS for 72 hours of work are shown . Christine and Paul have to write music for 8 songs and lyrics for 12 songs ; 4 songs already have music. When they are done , they can go to a private island and relax from all their hard work . It is possible that they will use more than 72 hours. Once they start writing lyrics and music, assuming their hired help packs for them and their plane is waiting outside their door, in how many hours can they board the plane to their relaxing island getaway ?

1. 96 hours 2. Christine will write music for 0 hours and write lyrics for 12 hours 3. Paul will write music for 8 hours and write lyrics for 0 hours.

The US government has subsidized ethanol production since 1978. With the advent of affordable electric cars, policymakers are considering whether to allow the subsidy to expire. The accompanying graph represents the market for ethanol. Move the supply and/or demand curves to show how reducing the subsidy will affect the ethanol market.

Equilibrium price: Increase Equilibrium quantity: Decrease

The table shows information on the condition of demand and supply for designer purses, where the quality of designer purses is measured in thousands. Place the prices into the correct category.

Equilibrium: $300 Surplus: $500 and $700 Shortage: $100

Suppose the accompanying graph depicts a market for one pound bags of candy. Place the line labeled Excess Demand at a price that would generate an excess demand , or shortage . Then, determine the size of the excess demand .

Excess demand = 4 million bags

Economics is characterized by many statistics and measurementsSuppose that an analyst is interested in comparing the economy of today with the economy ten years ago. Which term is least likely to be useful for this purpose?

Nominal GDP

Suppose the country of Altaria only produces one style of good, pink tutu last year, nominal GDP was $50,000 and this year it is $200,000. What can be definitively concluded?

None of the statements are necessarily ture.

The table shows mortality rates , expressed as the number of children per thousand live births that die yearly , for children in various countries , along with the country's GDP per capita , an economic measure of the relative standard of living in 2005 . Based on this information, what conclusion can be made?

The wealthiest countries have the lowest mortality rates.

Consider two economic regions, region A and region B. If region A has strict union protection laws present, while region B lacks union protection laws, we can expect that region. A will have ____ unemployment rate compared to region B holding all else constant.

a higher

The average rate of growth for slow-growth countries is around 2% per year, and for fast-growth, greater than 5% per year. a. Suppose the growth rate of the economy is 2The size of the economy roughly doubles every... b. If instead the growth rate is 7%, the doubling time for the economy is... c. Economic growth is important to understand because...

a. 35 years b. 10 years c. it is closely tied to standard of living

The table shows real GDP per capita RGDP PC ) for the fictitious country of Amerucana for a three-year span of time Enter your answers as percentages rounded to one decimal place. a. What is the growth rate of real GDP per capita from 2011 to 2012 b. What is the growth rate of real GDP per capita from 2012 to 2013

a. 4.2 b. 4

Use the accompanying graphs below to answer the questions about the market for Apple's current generation iPhone. a. Move the supply and or demand curve to illustrate how an across-the-board cut in the price of all apps on the Apple App Store affects the market for iPhones Move the supply and/or demand curve to illustrate how a decrease in the price of Samsung's current Galaxy smartphone impacts the market for iPhones. b. Move the supply and or demand curve to illustrate how a decrease in the price of Samsung's current Galaxy smartphone impacts the market for iPhones.

a. The price of iPhones in A is now $600. The shift in A is due to a change in price of a: complementary good b. The price of iPhones in B is now $400. The shift in Bis is due to a change in the price of a substitute good.

a. A car manufacturer from outside the U.S. builds another car factory in Indiana. b. Skip Dover buys his parents a home that was completed earlier this year. c. Skip Dover buys a kayak as a gift. d. Veterans Affairs, a federal government agency, orders more pens for all their branches. e. Barbie Dahl buys a 1960s ranch-style home so she can be closer to campus. f. This year, Skip Dover is more business-focused, so he invests in bonds. g. A new brand of guitars, which are produced in Nashville, become a must-have for all rock stars in Europe. h. A popular video game in the US is produced by a Finnish video game company. i. A candy is popular in Indiana but some are from another country. j. The average salary for a California state senator is a little over 90,000. k. A premium candymaker located in Tacoma sells almond candy in high-end stores in China. L. Barbie Dahl decides to take French lessons in college.

a. Investment b. Investment c. Consumption d. Government purchase e. Not part of this years GDP f. Not part of this years GDP g. Exports h. Imports i. Imports j. Government purchases k. Exports L. consumption

a. Given the information in the table, select the answer that best describes the condition of this economy in 2007. b. What is the value of cyclical unemployment in 2009?

a. The economy is in an exceptional expansion because Y is greater than Y* b. 0.75

Consider the labour statistics for the country of Menap, which consists of five districts and a capital region with varying degrees of poverty Round your answers to two decimal places. a. What is the labor force in Menap? b. What is the unemployment rate in Menap?

a. labor force: 414 millions of workers b. unemployment rate: 32.85%

Suppose the accompanying graph represents the supply and demand curve for labor in the country of Bangladesh. Bangladesh is thought to have "sweatshops" in which workers endure long hours and are paid relatively little. Suppose that the workers form a union that negotiates higher wages and better working conditions. a. Move the points labeled L_{D} which represents quantity of labor demanded, and L_{S} which represents the quantity of labor supplied, to show the effect of the union's actions. The two points are currently at the equilibrium point b. What happens to unemployment as a result of the union's demands? c. The union's demands have an effect similar to...

a. look at graph b. unemployment increases c. a minimum wage

Determine which economic principle is illustrated by each scenario. a. The owner of a snow cone trailer realizes that the demand for snow cones is low during the winter and closes shop the temperature warms back up near summertime. b.The local river has so much pollution that three-eyed fish are formingRegulations are therefore enacted to limit the amount of chemicals dumped into the river c. At a high-end restaurant, the restaurant owner has one chef at a meat station, one chef at a vegetable station, and one chef, who has an artistic eye, plates the food she is given. The result is increased service speed, enabling the kitchen to serve more customers in the evening. d During the summer, a bumper crop of oranges in Florida causes a surplus in the supply of oranges nationwide. As a result, prices fall to compensate for the surplus, and consumers enjoy the fruits of the fruits of the farmers' labor.

a. market efficiency b. government intervention c. specialization d. equilibrium

The supply schedule contains individual supply curves for the only two firms in a hypothetical market for stuffed animals. Use the schedule to answer the questions. a. A third firm would mean... b.with two firms in the market, the market quantity supplied at $7 is:

a. market supply increases b. 9200 stuffed animals

Refer to the hypothetical data in the table to answer the three questions a. What was the real interest rate in 2020? b. What was the inflation rate in 2021? c. What was the nominal interest in 2022?

a. 2% b. -6% c. 8%

a. What is the GDP per person (per capita) for country A? b. What is the GDP per person for country B? c. Which country has the largest average GDP per person?

a. 20,000 b. 25,000 c. country B

Which transaction is NOT included in gross domestic product?

Francis receives her social security check

The following table the labor hours need to produce one unit of output.

Kate has a comparative advantage in sweaters, while Mary has a comparative advantage in dresses.

The graph shows a supply curve for notebook paper. Please fill in the supply schedule.

1. 0.10 - 1 2. 0.14 -2 3. 0.20 - 3 4. 0.28 - 4 5. 0.40 - 5 6. 0.56 - 6 7. 0.79 - 7 8. 1.20 - 8 9. 1.90 - 9

1. select every area on the graph that represents consumer surplus. 2. Select every area on the graph that represents producer surplus.

1. A 2. B

Sugarcane is vulnerable to the cane beetle, which can substantially reduce crop yields. Suppose that a new beetle-resistant species of sugarcane is developed and productivity increases as a result. Use the terms to identify the effect on each of the related factors. 1. As productivity increases, the price of sugar will _____ 2. The quantity demanded for sugar will then ______ 3. Given the change in the price of sugar, the price of cookies will ______ 4. The price of honey, also used as a sweetener, will ______ 5. Responding to changes in the sugar market, the price of textiles will ______

1. decrease 2. increase 3. decrease 4. decrease 5. not change

Label each scenario by deciding whether the opportunity cost has increased or decreased. 1. Emily is deciding between her two favorite restaurants. One makes Indian food and the other makes Chinese food. The Indian restaurant has just raised its prices. The opportunity cost of Chinese food has... 2. Jacob has a bagel or a muffin for breakfast. Muffins are on sale, so they cost $1 less than usual The opportunity cost of eating a bagel has... 3. Taylor has to take time off work to study. Since her wage has increased from $10/hour to $15/hour, the opportunity cost of studying has... 4. Justin decides to take the bus to school instead of driving to school. The price of gasoline has just decreased. The opportunity cost of taking the bus has...

1. decreased 2. increased 3. increased 4. increased

1. The price that results when quantity demanded equals quantity supplied is most correctly called the... 2. A surplus exists...

1. equilibrium price 2. when quantity supplied exceeds quantity demanded

A farmer produces both beans and corn. If she has to give up 16 bushels of corn to get 6 bushels of beans, her opportunity cost for 1 bushel of beans is...

2.67 bushels of corn

Which person can be categorized as a discouraged worker?

Andy Friese was formerly employed at Reliable Auto. He has been out of work for six month , and he gave up looking for work over a month ago.

The hypothetical data in the table below displays the percentage that unemployment benefits replace take- home pay for workers in different countries. What country would you expect to have the lowest long-term unemployment rate?

Australia

Determine whether each of the scenarios given creates incentives for economic growth or not.

Creates an incentive for growth: -private property ownership - a market economy -legally protected investments Does not create an incentive for growth - civil conflict - a command (non-market) economy

Classify the economic factors according to whether or not they encourage investment and economic growth in a country. Encourage investments in physical and human capitalDo not encourage investments in physical and human capital

Encourage investments in physical and human capital. - property rights -dependable legal system - competitive markets Do not encourage investments in physical and human capital - political instability - corrupt government - trade restrictions

Why is increased technological knowledge for a nation important for growth?

It allows the nation to be more productive in goods and services that it produces.

If Mary can bake more cakes in one day than Sarah can bake in one day, then...

Mary has an absolute advantage in baking cakes.

Suppose there are only two goods produced in an economy: phones and mealsMaria is adept at assembling electronics but has poor skills at preparing food. Mike is an accomplished chef but is not very skilled at assembling electronics. Currently Mike and Maria each work independently, and they each produce both meals and phones. However, they are considering trading some of their respective output with each other, but only if that would allow each person to become more prosperous Which statement is not true?

Mike and Maria will both gain only if they trade the same number of phones for the same number of meals.

Which statement accurately characterizes the distribution of real GDP per person internationally?

Real GDP per person varies greatly across countries.

Suppose the accompanying graph depicts a market for one pound bags of candyPlace the line labeled Shortage at a price that would generate a shortage and then, determine its size.

Shortage= 4 million bags

Suppose the accompanying graph depicts a market for one-pound bags of candyPlace the point labeled Surplus to show a price that would generate a surplus. Then, determine the size of the excess surplus.

Surplus= 6 million bags

The accompanying graph represents the supply of printer ink cartridges. The current price of ink (per cartridge) is $20 and is indicated by the point on the supply curve. Suppose the price of cartridges increases to $24. Illustrate on the graph how the market for Ink Cartridges changes.

The quantity supplied of ink cartridges has increased by 2 billion.

You have a part-time job that pays $8 per hour manager has asked you to work four extra hours on Friday night, but you already have plans for dinner and a movie with a friend on Friday night. Under what conditions will you choose to work on Friday night? Consider the economic way of thinking in answering this question and also assume that you are rational (even if you do not think you are rational) and can afford dinner and a movie.

You value the extra pay more than the Friday night activities (in terms of marginal benefits, marginal costs, and your utility)

Use the table to answer questions about the demand for and supply of Blu-ray movies. A. what is the equilibrium price per movie? B. At a price of $12 per movie...

a. $10 b. a surplus of 20 movies occurs.

Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $4.25. Michelle was willing to pay up to $7.25 for the cappuccino, and Paul's Cafe and Bakery was willing to accept $ 2.75 for the cappuccino. Based on this information, answer the following questions. a. Michelle's consumer surplus: b. Paul's Cafe and Bakery producer surplus:

a. $3.00 b. $1.50

The table contains prices and output for a two-good economy. Nominal and real GDP in 2013 are both $33,500. Use the information in the table to answer the questions. a. What is nominal GDP in 2014? b. What is real GDP in 2014 c. Real output from 2013 to 2014 has...

a. $40,000 b. $27500 c. decreased

The corresponding graph shows the GDP (gross domestic product ) deflator for a hypothetical economy at several points in time. Use this graph to answer the questions. a, Inflation occurred in what time period or periods? b. Deflation occurred in what time period or periods?

a. (1861-1914) and (1914-1939) b. (1776-1861)

The Canadian nominal interest rate in 2010 was 0.90%. Inflation in 2009 was measured at 2.52%Calculate the real interest rate. Round your answer to two places after the decimal b. Which of the statements is true?

a. -1.62 b. The nominal interest rate is typically greater than the real interest rate due to inflation

Use the table on the hypothetical price of coffee beans and the Consumer Price Index (CPI) in Locoland to answer the questions Please round all answers to the nearest whole number. a. What is the inflation rate between 2010 and 2011? b. What is the percentage change in the price per pound of coffee between 2010 and 2011?

a. 26% b. 86%

Juan Valdez, a coffee farmer in Colombia , sells his coffee to Cafe Emporium , a U.S. firm which specializes in gourmet coffee blends a. What must be true of this arrangement? b. What can we infer from the fact that Juan voluntarily entered into a contract with Cafe Emporium?

a. None of these statements must be true b. Juan is better off as a result of his deal with Cafe Emporium

Use the information in the table about the mythical kingdom of Ruritania to answer the questions . Answers should be percentages rounded to one decimal place. a. What was the labor force participation rate in 2013? b. What was the labor force participation rate in 2015?

a. labor force participation rate in 2013: 61.2% b. labor force participation rate in 2015: 51.6%

For each of the scenarios, calculate the surplus and indicate if it is a producer surplus or a consumer surplus. 1. Alice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off which she found online. She selects and purchases a pair of jeans which cost $35 pre-discount. 2. Nicole has a hockey puck from the 2010 Winter Olympic Games and puts it up for sale on eBay. She will only sell the puck if the winning bid is greater than or equal to $500. After bidding closes, the last bid stands at $500. 3. Claire is trying to sell her used calculus textbook online. She asks for $150 or the best offer and is willing to sell for anything over $100. She is able to sell it for $125 4. Rpy is willing to pay $2.50 for a sports drink. He puts $5.00 into the vending machines and pushes the button for the sports drink without noticing that the price has increased to $2.75 until he counts the change he gets back.

1. Alice has a consumer surplus, her surplus is $5 2. Nicole has a producer surplus, her surplus is $0 3. Claire has a producer surplus, her surplus is $25 4. Roy has a consumer surplus, his surplus is $-0.25

Assume Sophie and Chad can both make candles and cookies and the only limited resource in their time, all other resources they have access to are plentiful. 1. Who has the absolute advantage in making cookies? 2. Who was the absolute advantage in making candles? 3. Who has the comparative advantage in making cookies? 4. Who has the comparative advantage in making candles?

1. Chad 2. Neither 3. Chad 4. Sophie

1. What does the term monetary neutrality mean? 2. What does monetary neutrality nor imply about the use of monetary policy? Mechanisms should be introduced to ensure that the Federal Reserve is making sound decisions.

1. Changes in the money supply have no real effects on the economy in the long run. 2. Mechanisms should be introduced to ensure that the Federal Reserve is making sound decisions.

For each scenario, determine whether the resulting changes will affect the supply curve, the demand curve, or both. 1. The price of goose feathers, an input for pillows, increases sharply. In the market for pillows, 2. Researchers develop a higher-yielding, insect-repellant strain of rice. In the market for rice, 3. Michael is fired from his job after working there for over 20 years and eats out less as a result. In the market for restaurants,

1. the supply curve shifts 2. the supply curve shifts 3. the demand curve shifts

Suppose that Ned can produce potato chips or computer chips. If he only produces potato chips then he can produce 25 in in one day. If he only produces computer chips, then he can produce 50 in one day. What is the opportunity cost of producing potato chips in terms of computer chips/potato chip?

2

Below is the market for hair conditioner. Draw the total producer surplus on the graph using the shaded area labeled PS.

Draw the right triangle above the supply curve, where the side of the triangle does not touch below the demand curve.

Suppose that Georgiania was a thriving empire in its golden age. Business was booming and it was the center of international trade under the leadership of Emperor Raphael IIIHis empire's pride and joy was the trading of green and black tea, and he decreed that their entire economy should be built around it. However, in the mid 1800s, Georgiania experienced a severe economic downturn when the other nations of the world created an embargo on tea from Georgiania, which led to civil strife due to thousands of workers being laid off. a. A downward fluctuation in the economy like this is know as... b. The correct term is a key component of...

a. a recession b. macroeconomics

Please match each scenario with the term it best identifies A. The government implements a new policy where people receiving unemployment benefits must provide proof that they are searching for work. Otherwise, they will lose their benefits in 1 month. B. The government decides to give all unemployed workers a free account on a federal job bank allowing workers to find jobs easier than ever before and hopefully expediting re-employment. C. Chelsea recently lost her job as an accountant. However, thanks to her stellar resume, she is able to quickly find a new job after two weeks. Much to her pleasure, she receives a tax credit because she was able to quickly find a new job. D. Simon is a junior chef at a three-star Michelin-renowned restaurant La Table. He loses his job and applies for, and is accepted into, a state-funded program that allows unemployed individuals to take medical technician courses at their local c

a. work test b. job-search assistance c. early employment bonus d. job retraining

In Table 12.1, the inflation rate stated for Greece is -0.1, and for Japan, it is -0.2What do these negative numbers imply about inflation? These negative numbers imply, that these countries are experiencing...

deflation

The accompanying graph depicts a market for Electric Vehicles It is expected that a bill giving a $12,500 tax credit for the purchase of an electric vehicle will be passed next month. It's all over the news, and there is enough support for it to pass easily through the Senate and the House of Representatives Demonstrate on the graph how the market for electric vehicles will change immediately after the announcement that the bill will be passed next month.

demand shifts to the left

During the Great Inflation of roughly 1965 to 1982, there was a strong correlation between money supply growth and inflation in several high-inflation countries. However, the correlation between money supply growth and inflation was less strong in several low-inflation countries. a. One possible reason for a weaker correlation in low-inflation economies is that some of these countries were on the gold standard. suffered from hyperinflation. experienced rapid increases in real GDP experienced increases in velocity?

experienced rapid increase in real GDP.

In 20008, Betserai was a 10-year-old quin trillionaire living in Bulawayo, Zimbabwe. He was literally rolling in money. In fact, Berserai has so much money that he decided to make kites out of billions of dollar bills instead of putting the money into the bank to earn interest. None of Betserai's friends bothered to save their money either. Which statement best explains the phenomenon?

Rapid rises in price levels of the Zimbabwe dollar are nearly worthless in terms of purchasing power.

Suppose that, due to a rapid increase in the population of children moving in from other states , the demand for teddy bears in Vermont increases dramatically Eventually , many of those families with children who moved to Vermont decide to move back to their home states due to personal aversions to snow and cold weather. As a result, the statewide demand for teddy bears decreases, which lowers teddy bear prices. Using the chart, please determine the order in which the invisible hand will lead events to occur as described.

1st: Price of teddy bears increases 2nd: supply of teddy bears increases 3rd: new market equilibrium 4th: price of teddy bears decreases 5th: supply of teddy bears decreases

Suppose that Ned can produce potato chips or computer chips. If he only produces potato chips then he can produce 12 in in one day. If he only produces computer chips, then he can produce 16 in one day. What is the opportunity cost of producing potato chips in terms of computer chips?

4/3

Institutions can promote economic growth by increasing savings and investment, promoting the development of new technologies, and ensuring that resources flow to their most productive uses. Identify whether each institution encourages growth or restricts growth. a. A competitive market system _____ economic growth. B. Free trade _____ economic growth. C. Protectionist trade policies ______ economic growth. D. Heavy government regulation ______ economic growth. E. Patents and copyrights ______ economic growth. F. Command-based systems _____ economic growth.

A. Encourages B. Encourages C. Restricts D. Restricts E. Encourages F. Restricts

The table presents information about the productivity of digital cameras and personal computers in the United States and Japan. The data are presented in units of output her hour of work. A. Who has an absolute advantage in producing digital cameras? B. Who has an absolute advantage in producing computers? C. Who was a comparative advantage in producing digital cameras? D. Who was a comparative advantage in producing computers?

A. United States B. Japan C. Unites States D. Japan

For each example listed, decide if the good is a normal good or an inferior good. Make sure you answer from the perspective of the individual or individuals doing the buying or consuming. A. Billy's mom increases his weekly allowance by $5. As a result, Billy increases the number of apps he downloads on his smartphone. Smartphone apps are ______ good. B. Susan gets a 15 percent performance bonus at work. She can finally stop eating so many frozen pizzas and eat something more tasty. Frozen pizzas are ______ good. C. Mike is an appliance salesman. Refrigerator sales in his store have fallen and so has his commission. Mike decides to switch from name-brand cereal to generic cereal. Generic cereal is ______ good. D. Hair stylist Molly loses a few of her clients and cuts back on the number of smoothies she buys during the week Smoothies are _____ good.

A. a normal good B. an inferior good C. an inferior good D. a normal good

U.S. GDP in 2004 was $853.3 billion, and in the previous year, it was $11, 142.2 billion. a. What was the rate of growth of GDP in 2004? b. What is a key feature of Real GDP growth as an indicator of economic health?

a. 6.38% b. It is the broadest indicator available and a good snapshot summary of U.S. economic activity

The accompanying diagram depict's Alex's demand for shoes. a. If shoes cost 50 a pair, how many pairs of shoes will Alex buy? At $50 a pair Alex buys ______ pairs of shoes. b. Alex decides to quit her part-time job working at the student union. Adjust the graph to reflect any resulting change in her demand assuming that shoes are a normal good. c. After quitting her job, if shoes are still 50 a pair, Alex will now buy how many pairs of shoes? At 50 a pair Alex buys ____ pairs of shoes

a. 5 c. 3

Use the table to answer the questions. Assume firms pay all profits out to resource owners, there is no depreciation, and there are no taxes. a. Enter the value of GDP in 2010. b. Use the factor income approach to calculate employee compensation in 2010.

a. 560 b. 235

Classify the items according to the expenditure approach to Canada's GDP calculation. a. Personal consumption expenditures (C) b. Gross private domestic investment (I) c. c. Government consumption and gross investment (G ) d. Exports ( EX) e. Imports (IM )

a. Tyler purchases a lattefrom his local coffee shop to boost his energy while working b. A local coffee shop buys a new coffee press to help their workers make drinks more quickly c. The government built new road to accommodate the surge of customers that are driving to a local coffee shop d. Taking advantage of its growing reputation, a Canadian coffee shop begins selling T- shirts online to customers in the United States e. Colombiancoffee beans are sold to Canadian consumers

a. What is inflation? b.Which scenario provides the best evidence that inflation has occurred?

a. an increase in overall price level b. A person whose salary has increased can purchase fewer goods and services.

a. Recessions typically hurt: b. What is the general trend observed among economic indicators? c. The most commonly referenced indicator of the state of the labor market is...

a. both firms and individuals b. Many economic indicators rise and fall together. c. the unemployment rate

Match the definition with the correct type of unemployment. Not all of the terms will be used. a. Unemployment caused by recessions b. Unemployment that normally occurs due to turnover as workers switch jobs c. The unemployment rate that exists when the economy is operating at potential.

a. cyclical unemployment b. frictional unemployment c. natural unemployment

All of the goods below are either sold in perfectly competitive markets or in secondary markets that are also competitive Suppose that the market, or the secondary market, starts in equilibrium. For each scenario, determine whether there would be upward or downward pressure on the price immediately after the event. a. An outbreak of mad cow disease causes Americans to abstain from eating beef. b. An impending nuclear war causes people to stock up on twonkies, a popular snack cake provided by many companies. c. The Nile River floods this year added an exceptional amount of silt to the soil, resulting in increased crops of cotton. d . Sub-zero weather in New York, where the Super Bowl is being played, causes people to become disinterested in watching the Super Bowl live. What happens to ticket prices in the scalping market?

a. downward pressure on price b. upward pressure on price c. downward pressure on price d. downward pressure on

Lacey is in the market for a used lawn mower. She is willing to pay $500. What is Lacey's economic surplus if she buys a lawn mower for 350? B. If she is only willing to make a purchase if the price she pays is less than or equal to her willingness to pay she is following the...

a. economic surplus : $150 b. rational rule

Much of the economic news we read about can be reinterpreted into our "Mv=PY" framework. Turn each of the following news headlines into a precise statement (rise or fall) about M, v, P, or Y. a . "Deposits in U.S. banks fell in 2015." This headline is about a ___ in ____. b. "American businesses are spending faster than ever." This headline is about a ___ in ___. c. "Prices of most consumer goods rose 12% last year ." This headline is about a ___ in ___. d. "Workers produced 4% more output per hour last year." This headline is about a ___ in ___ e. "Real GDP increased 32% in the last decade" This headline is about a ___ in ___. f. "Interest rates fall: Consumers hold more cash." This headline is about a ___ in ___

a. fall; M b. rise; v c. rise; P d. rise; Y e. rise; Y f. fall; v

Complete the sentences about structural and frictional unemployment. a. ___unemployment includes those involved in job search. Revealed Answer b. ____ unemployment can be caused by a minimum wage c. ____unemployment includes cyclical unemployment d. _____ Unemployment is affected by the pace of technological progress. e. ____unemployment can be caused by efficiency wages. f. ____unemployment arises from a labor surplus in a given market. g. _____ unemployment can result from new people entering the force h. _____ unemployment typically declines in times of high economic growth i. ____ unemployment can arise from the actions of labor unions.

a. frictional b. structural c. Neither frictional nor structural d. structural e. structural f. structural g. frictional h. neither frictional nor structural i. structural

a. The natural rate of unemployment equals... b. Identify whether the actions or scenarios would likely increase or decrease the natural rate of unemployment. i. Increasing the minimum wage ii. Reducing workers ' collective bargaining rights iii. Extra financial benefits for the unemployed iv. A large number of young people entering the labor force v. More funding for government worker training programs vi. An increase in union membership vii. An increase in information about job opportunities.

a. frictional unemployment plus structural unemployment b. - i. increase -ii. decrease -iii. increase -iv. increase -v. decrease -vi. increase -vii. decrease

Each of the scenarios occurred this year but it fails to one of the criteria for the definition of Canada's GDP. a. Dr. A. Just trades acne treatments with Kit Katz for dog-sitting services This transaction violates the ______ criterion. b. Don E. Brook buys only vintage shirts because he wants a new look. This transaction violates the ________ criterion. c. Easton West buys Roots sweatshirts. Roots is headquartered in Toronto, Ontario but produces in India This transaction violates the _____ criterion. d. Joy Rider makes guacamole from limes that her neighbor Bea Kind, gave to Joy from her tree. This transaction violates the ______ criterion e. Yum n' Yummy restaurant buys onions, zucchini, and potatoes for use in the famous Yum n' Yummy omelet This transaction violates the _____ criterion. f. Trudy Ages buys her dream home that was made in the 1970. This transaction violates the ____ criterion.

a. market value b. produced within a certain time frame c. produced within a certain country's boundaries d. market value e. final good or service f. produced within a certain time frame.

a. If a government provides substantial benefits to the unemployed while they look for work, it reduces the ____ of being unemployed. b. For unemployed workers, the length of unemployment will be determined by many factors, including the duration Answer or period of time, during which their benefits are provided and the ____ of their benefits, including the values of insurance, food stamps, and medical benefits. c. Government and regulations often ____ businesses from hiring new workers, due to the additional cost of managing and navigating the bureaucratic regulatory environment as well as the difficulty of hiring or firing workers quickly, due to government oversight and involvement in the process. supply curve whereas d. In the labor market, individuals who are willing to work are represented by the ___ curve, whereas employers are represented by the ___ curve.

a. opportunity cost b. size c.discourage d. supply; demand

Indicate whether each scenario describes an investment in human capital or physical capital. a. Angus buys a new tractor for his wheat farm b. Cecile buys textbooks and notebooks so she will be ready for the new school year. c. Bruce goes back to school to learn a new computer programming language. d. Ethel learns to use a keyboard so she can produce her weekly newspaper column faster than she can when writing it by hand. e . The local sugar factory hires Daniel and trains him in the use of the factory's processing machinery human capital

a. physical capital b. physical capital c. human capital d. human capital e. human capital

a. Consumer surplus is equal to the difference between _____ and the market price. b. Consumer surplus is shown graphically as the area ______ the market price .

a. the maximum price a buyer is willing to pay b. under the demand and above

a. Which definition best describes real GDP? b. Consider a simple economy that produces two goods: fries and burgers. The table shows the economy's production over several years. Calculate the real GDP for 2006 using 2004 as the base year.

a. the production of goods and services valued at constant prices b. 46

The country of Sabora currently bans all international trade. Sabora makes high-quality spears and is currently producing as many spears as the local population wishes to buy at $50 each. Other countries currently produce and sell spears at $125 each. The newly elected president of Sabora decides to allow international trade for the first time in Sabora's existence. They will begin trade next yearSaboran spear-makers will happily engage in trade. Assume there is free trade, and that Sabora will sell all the spears they make Indicate which statements are true after trade is liberalized. a. greater quantity of Sabora's spears are supplied at a higher price. b. There will be movement along Sabora's supply curve. c. Sabora's supply will shift to the left. d . Sabora's supply curve will shift to the right e. Sabora's spear prices are lower for the same quantity. f. A greater quantity of Sabora's spears are supplied at

a. true b. true c. false d. false e. false f. true g. will increse

Determine whether each of the individuals is considered unemployed or not unemployed. a. Erik volunteers for 10 hours per week at his children's school and does no other work. He sends his resume to 10 potential employers daily. b.Laura works 20 hours in a paid position for her local animal shelter. c. Pete had a knee replacement two weeks ago and will not be available to work at his job as a mechanic for the next three months. d.Alex just turned 16 and started applying for jobs. He has not found a company that will hire him yet. e. James quit his job to stay at home with his children and has not worked in 15 years, nor has he looked for work.

a. unemployed b. not employed c. not employed d. unemployed e. not employed

a. Suppose that the money supply is $1 trillion and nominal GDP is $5 trillion. What is the velocity of money? b. Now, suppose that the velocity of money permanently increases by 20%. If the money supply is not changed in response, which result will occur in the short run? c. What will happen in the long run if the money supply is not changed in response?

a. velocity of money: 5 b. Unemployment will fall, real GDP will rise, and prices will rise. c. Real GDP will be unchanged, nominal GDP will rise, and prices will rise.

a. Producer surplus is the difference between_______. b. Producer surplus is shown graphically as the area ________ the market price.

a: market price and the minimum price a seller is willing to accept. b. above the supply curve and below

Which best describes technological knowledge?

knowledge used to produce goods and services