Economics
Open market operations are the
Purchase of sale of government securities by the Fed
The production function describes the relationship between
Real GDP and the quantity of labor employed
When a commercial bank receives a deposit it must keep part of the deposit as cash reserves to satisfy it's
Required reserves
Which of the following counts as M1
5,000 in a checking account
The above figure shows a nations production function point b is
Attainable if the nation uses resources effectively
The objects that we use as money today are
Currency and deposits
The monetarist model expands the keynesian model by proposing that
Decreases in the quantity of money lead to higher interest rates
The production function displays
Diminishing returns
Human capital can be increased through
Education on training and work experience
Scarcity requires we
Make choices about what goods and services to produce
Which of the following is not considered one of the factors of production
Technology
The four main policy tools the federal reserve system uses to influence the interest rate are setting
The discount rate open market operations extraordinary crisis measures and setting the required reserve
Investment is defined as
the purchase of new capital goods by firms
Macroeconomics includes the study of the
Choices made by individuals and businesses
The federal reserve system provides banking services to______ because________
Commercial banks ; it is a central bank with the primary purpose of regulating financial institutions and markets
According to the expenditure approach to measuring GDP in the United states the largest component of GDP is
Consumption expenditure
The expenditure approach to measuring GDP is done by using data on only
Consumption expenditure investment government expenditure on goods and services and net exports of goods and services
The level of GDP the economy produces at full employment is called
Potential GDP
The keynesian macroeconomic model states that
The economy is inheritly unstable and government intervention is required to maintain continued growth
What would be an example of a government good
The local license office purchases a new digital camera and printer
The opportunity cost of a decision is measured in terms of
The next best thing given up
According to the keynesian macroeconomic model which of the following was responsible for starting the great depression
Too little private spending
Total expenditure equals total income
Because firms pay out everything they receive as in on to the factors of production
In calculating GDP economists
Can measure either total expenditure or total income
Items bought by businesses to help produce other goods and services are called
Capital goods
The difference between consumption and capital goods is that
Capital goods are to produce additional goods while consumption goods are not
The main policy making body of the federal reserve system is the
Federal open market committee
The US dollar is called
Fiat money because the law decrees it is money
Canada has nationalized health care so that everyone regardless of their ability to pay has some access to health care. Based on this observation Canada has decided that everyone regardless of their ability to pay is the answer to what macroeconomic question
For whom will health care be produced
The expenditure approach values__________ and the income approach values
Goods and services at market prices ; goods and services at factor prices
The concept of human capital describes
Human skills the quality of labor
Scarcity exists because
Human wants exceed the resources available to satisfy them
Which of the following statements best describe the study of economics? Economics studies how
I've make choices in the face of scarcity
Which of the following best describes macroeconomics
It analyzes the aggregate effects on the national economy of the choices made by individuals firms and governments
The main goals of monetary policy include all of the following except
Keeping the long term nominal interest rate equal to the real interest rate plus the inflation rate
At any given time which factor of production is not fixed
Labor
The classical macroeconomic model proposes that
Markets work effectively to produce the best macroeconomic outcomes
The functions of money are
Medium of exchange unit of account and store of value
Which of the following is not included in the income approach to calculating gdp
Net exports of goods and services
Which of the following is a macroeconomic topic
Northwest airlines analyzes the benefits of adding one more flight to salt Lake city
In order to measure gross domestic product we can follow
Two approaches the expenditure and income approach
The above figure shows a nations production function point a is
Unattainable given the state of the economy
If the purchase of used goods was to be incorporated into measuring GDP using expenditure approach, then
We will be counting the value of the used goods both at the time of their production and at the time of their production and at the time of their re-sale
The benefit from a good or service that you purchase is measured by
What you are willing to give up to obtain the good or service
In economics cost is measured as________, and benefit is measured as_____.
What you must give up to get something what you are willing to give up to get it