Economics Final Pt. 1

Suppose that Tom bought a bike from Helen for $195. If Helen's reservation price was $185, and Tom's reservation price was $215, the seller's surplus from this transaction was:

$10

Assume an economy produces only hamburgers and hotdogs and the base year is 2005. Given the data in the table above, what is the value of real GDP in 2006?

$10,000

You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. What is your opportunity cost of seeing a movie this afternoon?

$12

In 2015, Pete Rich purchases a 1642 palnting by Rembrandt for $20 million. He also pays a one percent commission to the auction house that sold the painting. What is the contribution of these transactions to GDP in the year 2015?

$200,000

Bob's Barber Shop cut 3,000 heads of hair in 2014 and 3,100 in 2015. The price of a haircut was $7 in 2014 and $8 in 2015. If 2014 is the base year, what was Bob's contribution to real GDP in 2015?

$21,700

was 100 million, of whom 60 millon were employed. The country of Southland produced $2,000 billion of output in one year. The population of Southland What was average labor productivity in Southland?

$33,333

For a given seller, the figure below shows the relationship between the number of units produced and the opportunity cost of producing an additional unit of output. What is this seller's reservation price for the 250th unit?

$4

Refer to the figure below, What is the price elasticity of demand when the price of rice is $3 per pound?

0.5

The following table provides data for an economy in a certain yenr. Given the data in the table, compute the value of GDP

150

Based on the information In the table, how many people are out of the labor force?

200,000

Suppose the total benefit of watching 1 baseball game is 100, the total benefit of watching 2 games is 120, and the total benefit of watching 3 games is 125. In this case, the marginal benefit of watching the 3rd game is:

5

Which of the following would increase the investment component of U.S. GDP?

A laundry in Seattle purchases a new clothes-washing machine produced in the U.S.

Which of the following is likely to lead to a decrease in the demand for tennis balls?

An increase in the price of tennis racquets.

Major macroeconomic questions include all of the following EXCEPT:

How do monopoly firms set prices and determine quantities to produce?

Suppose that the total production of an economy consists of 10 oranges and 5 candy bars, each orange sells for $0.20, and each candy bar sells for $1.00, Which expression of the output of this economy is most consistent with the concept of GDP?

This economy produces $7.00 worth of food.

The adding up of individual economic variables to obtain economy wide totals is called:

aggregation.

Satellite TV is a close made it less costly for individual consumers to subscribe to satellite TV service. This caused the price substitute for cable TV. In the 1990's, small satellite TV units were developed that elasticity of demand for cable TV service to:

become more elastic.

You are trying to decide whether to purchase the latest Harry Potter book online or borrow it from the library. There is no charge for borrowing a book from the library, but going to the library takes more time than ordering a book online. Regardless of how you get the book, its benefit to you is the same. If the cost of buying the book online is $13, then you should:

borrow the book from the library if the cost of doing so (in terms of the extra time it takes) is leşs than $13.

Suppose that the equilibrium price of T-shirts increases and the equilibrium quantity of T-shirts decreases. This is best explained by a(n):

decrease in the supply of T-shirts.

When government revenue exceeds government spending, the nation has a:

government budget surplus.

If average labor productivity increases while population and the number of employed workers remain constant, then total output

increases.

If the market for wedding cakes is perfectly competitive, and wedding cakes sell for $95 each, then at her profit-maximizing level of output, Sarah will earn a of per day

loss: $15

Suppose 30 employee-hours can produce 50 units of output. Assuming the law of diminishing marginal returns is present, to produce 100 units of output would require:

more than 30 additional employee-hours.

The standard of living in an economy is best measured by:

output per person.

The unemployment rate is the:

percentage of the labor force that is out of work.

"U.S. exports will increase as a result of joined CAFTA," is an example of a statement, while "The U.S. should join CAFTA." is an example of a statement.

positive; normative

A measure of GDP in which quantities produced are valued at the prices of a fixed base year is called:

real GDP.

The value added by any firm equals the firm's _____ from selling the product minus ____

revenue: the cost of Inputs purchased from other firms

When a government moves from a centrally planned economy to a market economy, this is an example of ______ policy.

structural

The price elasticity of demand is a measure of.

the change in quantity demanded of a good that results from a change in its price.

Demand for the new drug is _____ while demand for one brand of the over-the-counter pain relievers is _____

the line labeled A; the line labeled B

The price elasticity of supply at a point is:

the percentage change in quantity supplied divided by the percentage change in price.

When a market is in equilibrium:

there is neither excess demand nor excess supply.