macro exam 1

true

a change in price changes the quantity demanded and is represented by a movement along the demand curve

the total market value of all intermediate goods and services

a nation's GDP is

maximum combinations of goods and services an economy can produce given its available resources and technology

a production possibilities curve indicates the

true

according to the law of demand, a decrease in price leads to an increase in quantity demanded

true

all economies must make decisions concerning what to produce, how to produce it, and for whom to produce

true

cyclical unemployment stems from an insufficient level of demand in the economy

the study of production, distribution, and consumption or on a micro level how to get needs and wants from what one has

economics can be defined as the study of

true

evertime we use scarce resources in one way, we give up the opportunity to use them in other ways

false

frictional unemployment stems from an insufficient level of demand in the economy

private goods

government intervention may be appropriate to correct market outcomes because of

externalities

governments usually build highways because it is difficult to exclude individuals who don't pay for the highways from using them. what type of market failure is involved?

a decrease in the demand for bagels

if bagels and doughnuts are substitutes, then a decrease in the price of doughnuts will result in

false

if base year basket price is 13,000, current year basket price is 15,000. the CPI is 110

10,305 billion

if nominal GDP was 11,500 billion in 2003 and the price level in 2003 was 111.6, then real GDP would have been approximately

false

in the calculation of real GDP, the value of goods and services is measured in the current prices for each year

factors of production; final goods and services

individual consumers supply _____ and purchase ______

an increase in the average level of prices of goods and services

inflation is

not part of the labor force and is not counted in the unemployment rate

jack graduated from college last month, but he has not yet started looking for a job. jack is

false

land, labor, and capital are bought and sold in the product market

false

microeconomics is concerned with individual performance as well as the economy as a whole

true

one of he two reasons why we are driven to buy and sell goods and services in the market is that most of us are incapable of producing everything we want to consume

true

the CPI is a measure of changes in the average price of consumer goods and services

make international comparisons of the standard of living

the GDP per capita is the most practical way to

true

the base period is the time period used for comparative analysis for the calculation of real GDP

land, labor, capitol, and entrepreneurship

the basic factors of production include

a dollar measure of final output produced during a given time period

the best definition of GDP is

the law of increasing opportunity costs

the fundamental problem of economics is

in the labor force divided by the working age population

the labor force participation rate is the number

false

the largest source of federal revenue is the corporate income tax

true

there are never shortages or surpluses when the price in a market is equal to the equilibrium price for the market

per capita GDP

those who are interested in assessing the relative standard of living of different countries over a given time period are most likely to look at

the active search and inability of labor force participants to find jobs

unemployment is defined as

a technological improvement that reduces the cost of production

which events would cause a rightward shift in the market supply curve automobiles

number of buyers

which is a determinant of supply

a person who voluntarily runs a charity

which is included in the labor force

national defense

which is most likely a private good

the labor of a state university professor

which is purchased in a factor market

the us tax system is consistently progressive

which of the following is the best description of the us tax system

business firms

who participates in markets