Econ midterm two study set

Suppose average GDP growth rate is 5%. At this rate, how many years will it take GDP to double? A. 14 years B. 0.07 years C. 5 years D. 70 years

A

Suppose the nominal rate of interest is 9% and the rate of inflation is 5%. The real rate of interest is ___. A. 4% B. 13% C. 9% D. 5%

A

Suppose the table below represents the population for a hypothetical country. Assume that this data is collected in the month of March. What is the unemployment rate in this country for March? (look at chart) A. 8.3% B. 31.3% C. 6.3% D. 9.1%

A

What impact would you expect a natural disaster to have on the economy's potential output (ceteris paribus)? A. There would be no change. B. You Answered It would shift to the left. C. It would shift to the right.

A

From the following table, if you use CPI in year 1984 as the base year, what is number that is the closest to the CPI in 2021? (look at table) A. 700 is the closest to CPI in 2021 B. 500 is the closest to CPI in 2021 C.100 is the closest to CPI in 2021 D. 300 is the closest to CPI in 2021

B

Gross domestic product measures the value of ___. A. all goods and services produced in a year B. all final goods and services produced in a year C. all final goods and services sold in a year D. all goods and services sold in a year

B

In the economy that is represented by the production possibilities curves in the diagram below, the move from point B to C represents ____. (look at diagram) A. a recession resulting in unemployment B. economic growth from acquiring additional resources C. an expansion due to using resources more efficiently D. the effect of developing a new technology

B

In the following circular flow diagram, the upper half of the diagram represents the spending half and the lower half of the diagram represents the income half. The part of the model labeled C is the ___ sector. (look at diagram) A. public B. household C. business D. foreign

B

North Freedland has an adult population of 100,000. Of these people, 72,000 are employed and 8,000 are unemployed. The country's labor force is ____. A. 100,000 B. 80,000 C. 8,000 D. 72,000

B

North Freedland has an adult population of 100,000. Of these people, 72,000 are employed and 8,000 are unemployed. The unemployment rate is ____. A. 80% B. 10% C. 1% D. 90%

B

Suppose that this year a small country has a GDP of $500 billion. Also assume that I = $100 billion, G = $150 billion, and Xn = $20 billion (net export). How big is C? A. $770 billion B. $230 billion C. $380 billion D. $270 billion

B

Which of the following statements is TRUE? A. The unemployment rate shows the percentage of the entire population that is not working. B. The labor force is composed of those that are employed and those that are unemployed. C. People that work more than one job are counted more than once for the purpose of measuring employment. D. Full employment means that the unemployment rate is 0%.

B

Assume the economy is growing at a rate of 3%. According to the rule of 70 ___. A. the size of the economy will double in 2.1 years B. the size of the economy will double in 2,333 years C. the size of the economy will double in 23 years D. the size of the economy will double in 210 years

C

How can an increase in economic growth be represented on a Production Possibilities Frontier (PPF)? A. Moving from a point inside the PPF to a point outside the PPF B. A shift inward of the frontier C. A shift outward of the frontier D. Moving from a point outside the PPF to a point inside the PPF

C

In the following circular flow diagram, the upper half of the diagram represents the spending half and the lower half of the diagram represents the income half. The part of the model labeled B is the ___ market. (look at diagram) A. resource B. foreign exchange C. product D. financial

C

North Freedland has an adult population of 100,000. Of these people, 72,000 are employed and 8,000 are unemployed. The labor force participation rate is ____. A. 8% B. 72% C. 80% D. 10%

C

A decrease in the average price of goods and services over time is ___. A. devaluation B. disinflation C. depreciation D. deflation

D

A sheep herder raises sheep for their wool. A textile mill converts the wool to cloth for use in clothing. A clothing company uses the wool cloth to make a sweater. Assume that the total product of these firms represents the only components of the sweater and that they will have no other uses. Use the following table to determine which of the following statements is true. (look at table) A. Sheep Land Ranch has added $19.00 of value. B. Bill's Mill has created $47.00 of value. C. Sweaters R Us added $75.00 of value to the production. D. The total value added for the production of sweaters is $75.00.

D

Gross domestic product is based on A. who produced the goods. B. who sold the goods. C. where goods are sold. D. where goods are produced.

D

If a country is able to improve the level of technology it has available, all else equal we would expect ___. A. its long-run aggregate supply would increase B. the price level would fall C. its production possibilities curve would shift outward D. all of the above

D

In the economy that is represented by the production possibilities curves in the diagram below, the move from point A to B represents ____. (look at diagram) A. the effect of developing a new technology B. economic growth from acquiring additional resources C. a recession resulting in unemployment D. an expansion due to using resources more efficiently

D

Suppose the CPI had a value of 130 in Year A and in Year B it has a value of 143. The rate of inflation from the end of Year A to the end of Year B is ____. A. 19% B. 110% C. 91% D. 10%

D

The following table about the composition of GDP has been contaminated. Now Fed hires you to recover each number that has been covered by the stains. Which of the following choice represents the correct numbers combination? (look at table) A. (2009II X-M, 2009IV G, 2010I C) = (2959.2, -339.1, 10362.3) B. (2009II X-M, 2009IV G, 2010I C) = (10362.3, 2959.2, -339.1) C. (2009II X-M, 2009IV G, 2010I C) = (-339.1, 10362.3, 2959.2) D. (2009II X-M, 2009IV G, 2010I C) = (-339.1, 2959.2, 10362.3)

D

The table below contains data for Caprianum, a country that produces only two products: cars and sunglasses. The real GDP for 2019 using 2010 as the base year equals _____. (look at table) A. $2,000,000 B. $2,350,000 C. $3,300,000 D. $2,850,000

D

Two countries, Hanover and Oberfell, have different rates of economic growth. This difference is probably the result of ___. A. a difference in resources B. the unemployment rate is higher in one country than the other C. one country being bigger than the other D. the labor productivity in one country is greater than the labor productivity in the other

D

Which is NOT correct about human capital? A. Skills, knowledge, and the quality of workers are considered human capital. B. Government programs that raise the literacy rate improves the rate of e-conomic growth because people accumulate human capital through thoseprograms. C. Economists believe that those who receive high salary possess high human capital. D. Investment in human capital has little effect on the long-term economic growth.

D

Which of the following factors are NOT the ways to increase productivity? A. Advanced technological progress B. Better R&D decisions made by firm manager C. Introducing more competition D. Increasing government spending on subsidizing firms' production

D

Which of the following is not a component of the business cycle? A. Peak B. Expansion C. Trough D. Discount factor

D

Which of the following is not included in the natural unemployment rate? A. None of the above B. Structural unemployment C. Frictional unemployment D. Cyclical Unemployment

D

Which of the following statements is NOT true regarding the circular flow diagram? A. The circular flow diagram illustrates how one entity's spending becomes another entity's income B. The inner arrows show the flow of real items in the economy. C. The outer arrows show the corresponding flow of money in the economy. D. Household spending becomes revenue to business through the resource market.

D