Final

The father of modern supply and demand analysis is

Alfred Marshall

Suppose it is discovered the consumption of Greek yogurt leads to a longer life. This information would lead to an

Increase in demand

_____ government spending, ______ transfer payments, and ______ all increase aggregate demand

Increasing; increasing; decreasing

Bus tickets are often considered ______ goods because

Inferior, as income rises, the demand for bus tickets falls

If television sellers expect the prices of televisions to fall in the future, we are likely to see the

Supply of televisions to increase

In turns of the laffer curve, when tax rates are 0

Tax revenues are 0

What is an example of an inferior good?

City bus

We are least likely heading into a recession when the national activity index equals

.81

The US public debt fell during the _____ and rose during the _____

1950's; 2010

What is an example of gross private domestic investment

A change in business inventories

What is the difference between a change in quantity supplied and a change in supply

A change in the market price affects the quantity supplied but not the supply

Which of the following will cause an increase in the quantity demanded for iPhones?

A decrease in the price of iphones

The demand of gasoline is rising, what is a statement that describes a possible cause

Consumers expect prices to rise in the near future

The largest component of GDP is

Consumption expenditure

A critical of the national bureau of economics researches business cycle dating committee is that it

Dates peaks and troughs only after the fact

When the supply curve shifts out and to the right, and the demand curve in and to the right, equilibrium price will

Decrease

A decrease in the quantity supplied of iPads is caused by an

Drop in the price of ipads

Suppose the federal reserves national activity index increased to -.13 in June from -.29 in May. What is the best interpretation of this finding

Economic activity improved slightly from May to June, but the rate of economic growth is below its historical trend

Suppose that quantity supplied of a product equals 8 and quantity supplied equals 5. This market most likely is

Experiencing a surplus of this product

Which of the following would NOT affect the supply of new automobiles

Higher interest rates for new car financing

What category is an example of discretionary spending

Hurricane relief funds

What transaction would be included in the national income and product accounts

Jaclyn is paid for her work as a volunteer coordinator for a women's shelter

A criticism of GDP per capita

Might not fully reflect the standard of living for the typical citizen

A leather company producers shoes and belts, what will the company do if it expects the price of shoes to rise in the near future

Move resources from belt production to shoe production, thereby decreasing the supply of belts

Why is not a leakage that reduces the size of the spending multiplier

Personal investment in human capital

Other factors held constant, as the price of an iPad rises the

Quantity demanded for iPads fall

What component of GDP included college tuition

Services

Suppose in a market for iPhones the following two take place: (1) the cost of making iPhones falls and (2) the price of data plans fall. What happens to the equilibrium price and equilibrium quantity

The equilibrium price is indeterminate and the equilibrium quantity rises

The national activity index was discovered by

The federal reserve bank of chicago

Demand refers to

The good and services buyers are willing and able to purchase at various prices, in a given period of time

According to the law of supply, producers will supply more of their products when

The price rises

Electricity is essential in the production of aluminum, if electricity prices increase

The supply curve for aluminum shifts left ward

What is not a concern involving GDP as a measure of economic activity

The value of investments in stock and bond markets