ECON

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

In which of the periods below was the inflation-adjusted deficit largest?

In 2009-2011

Federal Spending in 2013 was

$3.8 trillion

If a market basket was defined in 2005, it cost $10,000 to purchase the items in that basket in 2005 and cost $11,000 to purchase those identical goods in 2006, then the inflation rate from 2005 to 2006 is

(110-100)/100 *100% = 10%

Between 1955 and 2006, Federal Spending as a percentage of GDP ranged between

16% and 22%

Use the Aggregate Supply - Aggregate Demand model to determine which of the following will lead to higher aggregate output

A cut in interest rates

Which of the following will increase macroeconomic equilibrium prices

An increase in input prices

Fiscal Policy is controlled by

Congress and the President

Real Gross Domestic Product adjusts Gross Domestic Product

by adjusting for inflation

Suppose the Federal Reserve wanted to fight inflation by increasing interest rates. Doing so would

decrease aggregate demand

Suppose the U.S. was to experience a series of terrorists' attacks aimed at the electricity grid. This would likely

decrease aggregate supply

An economist worrying about the economic impact of environmental regulations would model that impact with a

decrease in aggregate supply

The tax cuts of 2001 and 2003 that came in the form of tax rebate checks are good examples of _____ fiscal policy

discretionary

The portion of the Obama stimulus package that cut taxes is best thought of as

discretionary (and expansionary) fiscal policy

One of the reasons that Real Gross Domestic Product is not synonymous with social welfare is

domestic production (cooking, laundry and such) are not counted

If it costs ConEd approximately $20 per additional ton of air pollution abated, but it costs PG&E only $10 per additional ton of air pollution abated, a marketable pollution permit trading for $14 per ton could

earn PG&E $4 per ton and save ConEd $6 per ton

Tradable emmission permits

encourage polluting companies to look at the value of reducing pollution just as they look at they value of increase production

If the unemployment rate rises because the number of people not working but searching for work rises, economists would attribute this to the

encouraged worker effect

One of the reasons that Real Gross Domestic Product is not synonymous with social welfare is

environmental quality is ignored

The tax cuts of 2001 and 2003 that came in the form of tax rebate checks are good examples of

fiscal policy

Economists assume that early in the process of cleaning a dirty environment there are relatively

high benefit-low cost things than can and should be done first

If, in response to a weak employment picture, a law was passed to increase the number of lanes on all interstate highways by at least on lane this would likely

increase aggregate demand

in reaction to the recession of 2001, a tax cut was passed in which tax rebate checks were sent to millions of American families. This was intended to

increase aggregate demand

One of the reasons that Real Gross Domestic Product is not synonymous with social welfare is

it ignores the value of leisure

Any event that creates a "crisis in confidence" is likely to lead to

lower aggregate prices

In the diagram above, if the monopolist produced at output Q*, they would

make a positive profit

The reason given why the CPI overstates the cost of living is it

makes no attempt to control for substitution to cheaper goods

The concept of "clean enough" to an economist means the

state of cleanliness where the marginal cost of cleaning equals the marginal benefit of cleaning

The aggregate supply-aggregate demand diagram models

the economy as a whole

The inflation rate is

the percentage increase in the price index from one year to the next

An indicator of the degree of competition in an industry is the concentration ratio. It measures

the percentage of sales in the industry by the largest firms

the key difference(s) between perfect competition and monopolistic competition is

the products sold are slightly different in monopolistic competition

One of the reasons that Real Gross Domestic Product is not synonymous with social welfare is

the underground economy (unreported and illegal income and sales) is not counted

The national debt is the

total amount owed by the federal government

A reason why the CPI overstates the cost of living is it

updates the market basket infrequently thereby missing the steep price decline in the early adoption period

Using marginal analysis, an economist would judge the proper distribution of government spending by comparing

whether the last dollar spent on one program would have been better spent on another

Using marginal analysis, an economist would judge the proper size of government by comparing

whether the last dollar spent would have been better left in private hands

One of the consequences of the overstatement of the CPI is that

Social Security taxes are higher than they would otherwise be

Which of the following will increase macroeconomic equilibrium real gross domestic product

a decrease in input prices

Which of the following will increase macroeconomic equilibrium real gross domestic product

a decrease in taxes

Congress and the President have control of the tax system and government spending. As a result their policies will exactly impact

aggregate demand

The Federal Reserve has indirect control over short term interest rates and as a result their ability to control economic activity is through

aggregate demand

The argument that a Balanced Budget Amendment would be "pro-cyclical" means that it would cause

bad times to be worse than they would otherwise be

In 2014, the largest item in the Federal Budget was

national defense & homeland security

According to the Bureau of Labor Statistics, the Consumer Price Index was

never intended to measure increases in the cost of living but many use it that way

... year old that wants a job but can't find one is

not counted at all

With 125 million people working, 8 million out of work and looking for work, and 147 million neither working nor looking for work, underemployment would be illustrated by people in the

part of the 125 million holding low-skill jobs when they wanted high-skill jobs

With 125 million people working, 8 million out of work and looking for work, and 147 million neither working nor looking for work, underemployment would be illustrated by people in the

part of the 125 million holding part time jobs when they wanted full-time jobs


संबंधित स्टडी सेट्स

Pediatric unit questions for test

View Set

:) CHAPTER 41: MEGERS AND TAKEOVERS

View Set

BIO 313 Details of Digestive System

View Set

Marketing Chapter 2 The Marketing Plan

View Set