Econ Quiz Questions
you sell your old bedroom set to your roommate for 1,800 dollars and buy a brand new one for 16,000. how much is added to GDP
16,000
The value of a car produced and sold in 2010 and sold again in 2020 should be included in GDP for
2010 only
Real GDP for the year 2000 (measured in 2005 dollars) is equal to
2015 prices x 2000 quantities
country produces 20 smartphones and 10 blu-ray players in 2019 priced at 100$ and 200$ its GDP in 2019 would be
4,000
use the spending approach to national income accounting to calculate GDP for this country
Consumption+investment+government+exports- imports
Suppose there is a decrease in supply in a market and no change in demand. What will happen to the equilibrium price and quantity ?
Equilibrium price will rise; equilibrium quantity will fall
suppose there is an increase in demand in a market and no change in the supply. what will happen to the equilibrium prince and quantity?
Equilibrium price will rise; equilibrium quantity will rise
How is the GDP deflator calculated
GDP Deflator = (Nominal GDP/Real GDP) x 100
When a german firm produces a vehicle in the US the production is part of US
GDP but not GNP
Most choices involve ___________, which involves comparing the benefits and costs of choosing a little more or a little less.
Marginal analysis
what is absolute advantage
The ability to produce more of a good or service than competitors using the same amount of resources.
Which of the following is most likely a topic of discussion in macroeconomics
a decrease in the unemployment rate
which of the following would move the PPF further out
a technological improvement
When a country produces a good more cheaply than another nation, it has a ________ in producing that product.
absolute advantage
the primary difference between absolute and comparative advantage is
absolute advantage means being able to produce a good more efficiently than the other country and comparative advantage ,means producing a good at a lower opportunity cost
A tire installed on a vehicle in an automobile manufacturing plant is counted as
an intermediate good, and so its market price is not counted part of GDP
what data are used to calculate GDP
both quantities and prices of goods
Which of the following best characterizes the circular flow of income
businesses buy resources from households, and households use their income to buy goods and services from businesses
Booms and busts refer to the
changes in economic growth over time
Economic surplus in a market is the sum of ____ surplus and ___surplus
consumer; producer
What are the categories used to calculate GDP during spending
consumption, investment, government, and net exports
a production possibility frontier shows
different outputs of two goods that may be produced with the existing resources
Suppose, in an effort to prevent the population from declining, Italy begins offering new mothers extended periods of paid family leave from work and, consequently, the birth rate per women increases. If so, then this could best be characterized as an example of people responding to
economic principles
If nominal GDP decreases from 2019 to 2020 we know that during that time
either production, or prices, or both deceased
The circular flow diagram of economic activity is a model of the
flow of goods, services, and payment between households and firms
In the___________, households receive goods and services and pay firms for them
goods and services market
How does producer surplus change as the equilibrium price of a good rises or falls? As the price of a good rises, producer surplus______ and the price of a good falls, producer surplus_____.
increase; decrease
If macroeconomics looks at the economy as a whole, it focuses on which of the following
inflation
A computer chip sold to dell is an example of a
intermediate good
Macroeconomics
is concerned with the expansion and contraction of the overall economy
In the___________, households work and receive payment from firms
labor market
If the U.S. Bureau of Economic Analysis (BEA) added up the values of every good and service sold during the year, would the total be larger or smaller than measured gross domestic product (GDP)?
larger; the value of all goods and services sold would include intermediate goods
in a competitive market, with many buyers and sellers and no government restrictions, economic surplus is at a____ when the market is in_____.
maximum; equilibrium
how to calculate nominal GDP
multiply units produced by price
trde is
positive sum game
If real GDP decreases from 2019 to 2020 we know that during that time
production decreased
When the government imposes price floors or ceilings,
some people win and some people lose, and there is a loss of economy efficiency
Producer surplus is
the difference between the lowest price a firm will be willing to accept and the price it actually receives
which of the following transactions will be included in this years GDP
the purchases of a Nissan automobile produced in Tennessee
Macroeconomics is most likely to include the study of
the study of the economy as a whole, including topics such as inflation, unemployment, and economic growth
