Econ Practice Mid-term/Mid-Term study set

If in some year nominal GDP was $20 billion and the GDP deflator was 80, what was real GDP?

$25.0 billion

With trade, the price of tricycles in this country is

$33, with 200 tricycles produced in this country and another 320 tricycles imported.

Cuba's opportunity cost of one cooler is

0.5 radios, and Denmark's opportunity cost of one cooler is 0.125 radios.

Suppose a basket of goods and services has been selected to calculate the CPI and Year 1 has been selected as the base year. In Year 1, the basket's cost was $50; in Year 2, the basket's cost was $52; and in Year 3, the basket's cost was $55. The value of the CPI in Year 3 was

110.0

Assume that Cuba and Denmark each has 8 days available for production. Originally, each country divided its time equally between the production of coolers and radios. Now, each country spends all its time producing the good in which it has a comparative advantage. As a result, the total output of radios increased by

12.

Last year real GDP per person in the imaginary nation of Olympus was $4,260. The year before it was $4,100. By about what percentage did real GDP per person grow during the period?

4 percent

What was country Krugeveaux's GDP in 2019?

7,603

Which of the following demonstrates human capital and physical capital in that order?

For a restaurant: the chefs' knowledge about preparing food and the equipment in the kitchen

The fact that the line slopes downward reflects the fact that

Peru faces a trade-off between producing peanuts and producing cashews.

Which of the following is included in the calculation of GDP?

The purchase of tutoring services from a tutor who holds citizenship outside the country but resides within the country.

Which of the following is an example of a normative, as opposed to a positive, statement?

The social security system is a good system and it deserves to be preserved as it is.

In a simple circular-flow diagram, total income and total expenditure are

always equal because every transaction has a buyer and a seller.

When the consumer price index falls, the typical family

can spend fewer dollars to maintain the same standard of living.

According to the circular-flow diagram, if Christopher is the owner of a landscaping business and he just received $50 for mowing Mrs. Pendleton's lawn,

christopher acts as a firm who interacted in the markets for goods and services with mrs. pendleton

When trade in coffee is allowed, consumer surplus in Uganda

decreases by the area B + F.

The curve becomes flatter as the amount of capital per worker increases because of

diminishing returns to capital.

Suppose the United States has a comparative advantage over Mexico in producing pork. The principle of comparative advantage asserts that

in order to consume beyond its PPF, the United States should produce more pork than what it requires and export some of it to Mexico.

When trade in coffee is allowed, producer surplus in Uganda

increases by the area B + F + H.

An economy's production of two goods is efficient if

it is impossible to produce more of one good without producing less of the other.

Changes in real GDP reflect

only changes in the amounts being produced.

a rational decisionmaker

takes an action only if the marginal benefit of that action exceeds the marginal cost of that action

alana decides to spend 2 hours working overtime rather than going shopping with her friends. she earns $11 per hour for overtime work. her opportunity cost of working is

the enjoyment she would have recieved had she gone shopping

When a country has a comparative advantage in producing a certain good,

then specializing in the production of that good and trading for other goods could allow that country to consume at a point beyond its production possibilities frontier.

If the nominal interest rate is 5 percent and the real interest rate is 7 percent, then the inflation rate is

−2 percent.