Economics_Q3_Test2

Formula for Real growth

(The change in the real GDP over original real GDP) times 100

When did the U.S. last experience a surplus?

2001

In relation to the production possibility curve- How many ways are there to get growth?

3

Consumption makes up about (blank) percent of the GDP

70

Read the following situation and decide what it is an example of: The drama department pays for microphones that cost $100, and have a lifespan of 5 years before they no longer work. They figure in that cost so they set aside $20 per month as they pay for the microphones, to have a total of $100 once the lifespan of 5 months is over. This way they can replace the microphones.

Depreciation

The idea that there is capital that is wearing out and will at some time need to be replaced is known as (blank)

Depreciation

Concerning the business cycle graph: A severe recession that lasts over a year is called a (blank)

Depression

True or false: A scholarship awarded to Hispanic students is counted in the GDP

False- No action to earn the money

True or false: A product made in Thailand by a factory full of American workers would be included in America's GDP

False- Not made in the USA

What are the 4 types of unemployment

Frictional, structural, cyclical, seasonal

C+I+G+X is the formula to calculate what

GDP

The final goods/services from that country in that year are included in the what?

GDP

When the income is greater than the spending, this is called a

surplus

What is the formula to calculate inflation?

(Change in CPI over original CPI) times 100

Formula for Real GDP

(Nominal GDP over GDP deflator) times 100

Formula for Nominal Growth

(The change in the nominal GDP over original nominal GDP) times 100

Concerning the business cycle graph: Long run growth is (blank)%

2

Investment is done by

Businesses

In relation to the production function graph: When capital increases as the labor increases, this is called

Capital Widening

In relation to the production function graph: When capital increases more than the labor does, this is called

Capital deepening

In relation to the production function graph: (Blank) helps to make workers more productive, but increasing amounts of (blank) have decreasing benefits

Capital, capital

Consumption, Investment, Government spending, or Net exports? Your mom and dad pays for your college tuition

Consumption

Is it: Consumption, Investment, Government spending, or Net exports? You spend $15 on a haircut

Consumption

In the GDP formula (C+I+G+X) what does each letter stand for?

Consumption, Investment, Government spending, Net exports

Is it frictional, structural, cyclical, or seasonal unemployment: When COVID hit, your uncle's flower shop lost all it's business and he had to lay off all his workers due to issues in the market.

Cyclical

When spending is greater than income, this is called a

Deficit

Debt is made up of all the (blank)

Deficits

Concerning the business cycle graph: When the graph slopes upwards (a positive slope) it is in a (blank)

Expansion

Hyperinflation is an (blank) increase in inflation

Extreme

True or false: Everything rises in price during inflation

False

Read the following and determine if it is stock or flow: You receive a paycheck for two weeks worth of work.

Flow

Would a deficit be considered stock or flow

Flow

Is it: Consumption, Investment, Government spending, or Net exports? The IRS hires you, along with 2000 new accountants to work on tax investigations

Government spending

What does GDP per capita mean?

Gross Domestic Product per person

What does GDP stand for

Gross domestic product

While GDP and CPI are similar, the CPI only measures (blank) items

Household

An extreme increase in inflation (something like 100 or 1000%) would be considered (blank)

Hyperinflation

Concerning the Expanded Circular Flow graph: The government investing would be considered an (blank)

Injection

Concerning the Expanded Circular Flow graph: The money leaked out (in taxes, savings, government borrowing, etc) finds its way back in through (transfer payments, investments, and more) which are called

Injections

Concerning the Expanded Circular Flow graph: The government taking away takes from your paycheck would be considered a (blank)

Leakage

Concerning the Expanded Circular Flow graph: Savings, Government borrowing, imports, and Transfer payments are all (blank)

Leakages

Financial transactions are (blank) included in the GDP

NOT

Is it: Consumption, Investment, Government spending, or Net exports? Your grandpa buys a car made in Tokyo

Net exports/Consumption

Are transfer payments included in the GDP

No

If Bob has never worked in a job, but currently does not have one, is he considered unemployed?

No

If I buy a ten year old car from my friend's dad, will it count towards the GDP?

No- not produced THIS year.

Is it not unemployment, frictional, structural, cyclical, or seasonal unemployment: Jamie works as an ice cream seller during the summer, and when the ice cream stand closes, Jamie goes off to her vacation home to be lazy and not do anything.

Not unemployment

Nominal GDP is (blank) adjusted for (blank)

Not, inflation

Money your grandparents receive from social security would (blank) be included in the GDP and is an example of a (blank) payment.

Not, transfer

In relation to the Loanable funds graph: Government budget deficits will (blank) interest rates

Raise

In relation to the Loanable funds graph:The point where the lines intersect is known as the (blank)

Real interest rate

Concerning the business cycle graph: A contraction that lasts at least 6 months is called a (blank)

Recession

In relation to the Loanable funds graph: The supply curve represents the

Savers

Seasonal unemployment is when you only lose your job for a (blank)

Season

Is it frictional, structural, cyclical, or seasonal unemployment: When the snow cone truck is no longer needed when summer ends, Kai lost his summer job and is now looking to work somewhere else

Seasonal

Read the following and determine if it is stock or flow: The amount of money you currently are in debt for

Stock

Is it frictional, structural, cyclical, or seasonal unemployment: Your son in 2045, when all Walmarts have made the switch to self-chekout only, lost his job as a cashier. He now has to find a new job.

Structural

Concerning the Expanded Circular Flow graph: Disposable income varies from the original "income" from the simple circular flow graph because (blank) are removed

Taxes

The following are requirements for what? -16 years or older - non-institutionalized -civilians -employed/currently seeking employment

The labor force

In relation to the production function graph: The graph curves out at a really quick rate in the beginning but the curve's slope decreases after a while, until it is only slightly increasing. Why?

The law of diminishing return

Concerning the business cycle graph: The (blank) is the lower point where the slope changes from negative to positive

Trough

True or False: Nominal GDP is not adjusted for inflation while real GDP is adjusted for inflation

True

True or false In relation to the Loanable funds graph-Government deficits keep businesses from investing because higher interest rates make it harder for the businesses to invest.

True

True or false: A financial transaction such as stocks or savings would not be included in the GDP

True

True or false: Intermediate goods are NOT included in the GDP

True

If you are out of work for at least a week and actively searched for the last 4 weeks for a job, you are considered

Unemployed

In relation to the Loanable funds graph: The demand curve represents

Who is borrowing money

If a man increases his inventory before the year is over, will it count towards the GDP

Yes

Real GDP is (blank) for (blank)

adjusted, inflation

Businesses invest by spending money on (blank)

capital

Concerning the business cycle graph: When the graph slopes downwards (a negative slope), it is in a (blank)

contraction

Cyclical unemployment is when the economy (blank) or goes in a (blank) and people lose their (blank), but will get them back when the economy (blank)

contracts, trough, jobs, expands

In relation to the Loanable funds graph: Government deficits also cause (blank)

crowding out

In relation to the Loanable funds graph: Crowding out is when the government (blank) keep businesses from being able to (blank)

deficits, invest

Stagflation is when inflation is present, but there is no (blank) growth

economic

You must be seeking (blank) or be employed in order to be considered a part of the (blank)

employment, labor force

Structural unemployment is when the job no longer ( blank) and the people now have to be (blank) for other jobs and (blank) new (blank)

exists, trained, learn, skills

The GDP includes the (blank) goods/services from that (blank) in that (blank)

final, country, year

The natural rate of unemployment says that there is always a bit of (blank) and (blank) unemployment, but the economy is doing well and the unemployment is low

frictional, structural

Inflation is the (blank) increase in prices

general

Government spending is made up of (blank) and (blank) but does NOT include (blank) payments

goods, services, transfer

New resources, New technologies, and using resources more efficiently are the three ways to get (blank)

growth

Consumption is done by

households

Net exports are at negative five percent of the GDP because the U.S. (blank) more than it (blank) and it is a matter of exports minus imports. This winds up in a negative percentage.

imports, exports

Disinflation is when (blank) goes down

inflation

Consumption is the (blank) part of the GDP

largest

Concerning the Expanded Circular Flow graph: Saving money would be considered a (blank)

leakage

Disinflation differs from deflation in the sense that it actually (blank) inflation, while in deflation- the (blank) lowers

lowers, prices

Transfer payments are (blank) included in GDP because they are not payments for (blank) produced goods or services

not, currently

Concerning the business cycle graph: The (blank) is the higher point where the slop changes from positive to negative

peak

Deflation is when (blank) goes down and is a (blank) thing

prices, negative

Intermediate goods are goods used in the (blank) of something else, and are (blank) included in the GDP

production, NOT

In relation to the Loanable funds graph: A deficit means that the spending is greater than the income. Therefore, if there are government deficits and there is a lack of funds to support the amount of spending... interest rates have to rise in order for the costs to be covered. This shows that the government budget deficits will (blank) the interest rates

raise

The best way to measure growth is with the (blank) GDP

real

Frictional unemployment is (blank) term and (blank) last long

short, won't

In relation to the production function graph: As you move along the curve, the benefits of increasing the capital increase at a (blank) rate

slower

Would debt be considered stock or flow

stock

Government spending is done by

the government (duh)

Net exports concerns (blank) with other countries

trade

If Bobbie got laid off, and has been looking for a job for months now, he would be considered

unemployed