Macro-Economic Thinking

Given X = 22+10-((5/25)*100), X is ________. Responses

12

Sam wants to improve his GPA. to earn a 4.0 this semester. His prior GPA was a 2.75. Imagine that there is an equation that says his new GPA could be calculated based on the number of hours he spends studying, his class attendance, and his prior GPA. Written as an equation, it is Grade = (0.50 x hours spent studying) + (0.25 x class attendance hours) + (0.25 x prior GPA). Sam plans to attend class for 4 out of 4 hours each week. Use the equation to determine approximately how many hours per week Sam needs to study to earn a 4.0.

4.6 hours

What is impossible in a world of scarcity?

Meet all of society's wants.

When creating a graph for your economics course, which axis is most commonly used to represent price (p)?

Price is most commonly represented on the y-axis.

Every day, 500 airplanes in San Francisco incur an additional 30 minutes of airport delays when flying into or out of the airport. In Chicago, the delays amount to 15 minutes for 1,200 airplanes. If the price of time is $30/hour in San Francisco and $20/hour in Chicago, which airport incurs the largest opportunity cost?

San Francisco

What can be assumed if an economic model can accurately predict outcomes?

The assumptions of the model are generally accurate.

A store sells 50 slices of pizza per hour for $4 each, but on discount days, it sells 100 slices per hour for $2. Based on these two data points, what would be the slope for the relationship between the price and the quantity of pizza sold? (Price is on the vertical axis).

The slope is -1/25

When tasks involved with producing a good or service are divided among many workers with different skills, businesses

can produce a greater quantity of those goods or services.

Some highways have commuter or express pass lanes. During rush hour lanes on the highway move slowly or often are stop and go, but the express lanes continue to move at a faster pace. Express pass users pay for a transponder and monthly fees to have express lane access even with no other people in their cars. In this example, the drivers who purchase these express passes are probably Responses

drivers who value speed and convenience more than those in the stop and go lanes and are willing to pay additional express pass fees for the option of avoiding traffic jams.

fiscal policy

eco. policies that involve government spending and taxes(gov)

productive resources

inputs used in production of good and services to make a profit: land labor, capital and entrepreneurship, also called the factors of production

The distinguishing feature of economic capital (as opposed to financial capital, like money) is that it

is productive.

Charlie is researching the relationship between the number of hours he spends on social media and his success in his classes. He sets up an equation to better understand the implications of this relationship. This describes a ________.

mathematical function.

If an economist is trying to predict the impact of a tax cut on economic activity in the U.S., what is/are the best tool(s) for her to use in order to test out her economic model?

mathematical functions

Macroeconomic policies that focus on credit and interest rates or controlling the money supply are called

monetary policies.

monetary policy

policy that involves altering the level of interest rates, credit, and the extent of borrowing(fed. reserve)

Darryl is starting a company helping people put up and take down holiday lights on their homes. He determines that the larger the house, the more likely people are to use his company to put up their lights. If Darryl were to plot the relationship between home size and willingness to pay for holiday light installation services, the line on the graph would show a

positive slope.

The ________ shows the interaction between households and firms in the goods and services market as well as in the labor market. This simplifies a complex economy, enabling economists to better observe and understand behavior.

the circular flow diagram

In the case of a negative relationship between two variables, all else remaining constant

the value of the two variables will move in opposite directions from each other.

Economists would say that individual decisions are determined by

trade-offs.

What combination of model characteristics are frequently used in the most effective economic models?

useful and simple.

and, or natural resources, include(s) the fertility of the land, minerals below it, and

water and air.

A graph in the xy plane with a single point at 3 on the x (horizontal) axis and a vertical line upwards from that point to infinity would be represented by the equation

x=3

Given that total spending for a certain household will always include a base amount of $1000/month, and that additional spending is equal to half of any income earned, we can predict total household spending with a model y=b+mx, where

y represents total spending.