MACRO FINAL
Refer to the table above. Assume Dina's Diner only produces sliders and hot wings. What is Dina's opportunity cost of producing hot wings?
0.8 sliders
The above is the labor data for Aridia. 1 Refer to the table above. The number of adults not in the labor force of Aridia in 2011 was
1,100.
Refer to the table above. The unemployment rate of Aridia in 2010 was
12.5%
Refer to the table above. The labor-force participation rate of Aridia in 2012 was
56.25%
Of the following, which is the best example of good with a perfectly inelastic demand?
A diabetic's demand for insulin
Refer to the table above. Assume Dina's Diner only produces sliders and hot wings. A combination of 80 sliders and 100 hot wings would appear
Along Dina's production possibilities frontier
What is the difference between an "increase in demand" and an "increase in quantity demanded"?
An "increase in demand" is represented by a rightward shift of the demand curve while an "increase in quantity demanded" is represented by a movement along a given demand curve.
If an increase in income leads to a decrease in the demand for Ramen noodles, then Ramen noodle is
An inferior good.
The 1973 Oil Shock was the result of OPEC countries imposing an oil embargo on the US. During the period, the US saw long queues at gas stations as supply of oil decreased. During this period, the US oil market would be characterized by
An inward/leftward shift of the supply curve.
The area ________ the market demand curve and ________ the market price is equal to the total amount of consumer surplus in a market.
Below; above
Refer to the figure above. The Great Plague of 1665-1666 wiped out a fifth of London's population. This sudden decrease in population would be represented by a movement from
D2 to D1.
________ refers to the reduction in economic surplus resulting from not being in competitive equilibrium.
Deadweight loss
An outward shift of a nation's production possibilities frontier represents
Economic growth.
Refer to the table above. What is Tammi's opportunity cost of grooming a dog?
Half a bathed cat
What would happen in the market for loanable funds if the government were to increase the tax on interest income?
Interest rates would rise.
For each bottle of wine that Italy produces, it gives up the opportunity to make 10 pounds of cheese. France can produce 1 bottle of wine for every 25 pounds of cheese it produces. Which of the following is true about the comparative advantage between the two countries?
Italy has the comparative advantage in wine.
Economic efficiency in a competitive market is achieved where
Marginal benefit is exactly equal to the marginal cost of the last unit and total surplus is maximized.
The slope of a production possibilities frontier
Measures the opportunity cost of producing one more unit of a good.
Refer to the table above. Assume Dina's Diner only produces sliders and hot wings. A combination of 120 sliders and 100 hot wings would appear
Outside Dina's production possibilities frontier.
Refer to the table above. Which of the following statements is true?
Tammi has a comparative advantage in both tasks.
Refer to the table above. Which of the following statements is true?
Tammi has an absolute advantage in both tasks.
If a country allows trade and, for a certain good, the domestic price without trade is higher than the world price,
The country will be an importer of the good.
The principle of opportunity cost is that
The economic cost of using a factor of production is the alternative use of that factor that is given up.
The income effect of a price change refers to the impact of a change in
The price of a good on a consumer's purchasing power.
Suppose Brazil has a comparative advantage over other countries in producing almonds, but other countries have an absolute advantage over Brazil in producing almonds. If trade in almonds is allowed, Brazil
Will export almonds.
If a country allows trade and, for a certain good, the domestic price without trade is higher than the world price,
a. The country will be an importer of the good.
Institutions that help to match one person's saving with another person's investment are collectively called the
financial system.
Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called
frictional unemployment.
suppose the world price of a television is $300. Before Paraguay allowed trade in televisions, the price of a television there was $350. Once Paraguay began allowing trade in televisions with other countries, Paraguay began
importing televisions and the price of a television in Paraguay decreased to $300.
Economists reason that the optimal decision is to continue any activity up to the point where the
marginal benefit equals the marginal cost
In economics, the term ________ refers to a group of buyers and sellers of a product and the arrangement by which they come together to trade.
market
Which of the following do unions not cause?
reduced wages in industries without unions
People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium are best classified as
structurally unemployed.
Which of the following is a financial intermediary?
the stock market
Refer to the table above. What is Horace's opportunity cost of grooming a dog?
two-thirds of a bathed cat
Refer to the figure above. What is the value of consumer surplus at the equilibrium price?
$120,000
the basic economic problem of __________ has always existed and will continue to exist
scarcity
The figure above refers to the fish market in an economy. The imposition of a tariff in this market
Decreases the number of fishes imported by 200.
Refer to the figure above. What is the value of the portion of producer surplus at the equilibrium price?
$135,000
Which of the following equations represents GDP for a closed economy?
Y = C + I + G
