macro test 2

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

calculate private savings

wages + transfer payments + consumptions + paid taxes

Consider the data shown above for Vicuna, a country that produces only two products: oranges and shirts.Refer to Table 8-13. Real GDP for Vicuna for 2016 using 2018 as the base year equals

$5,650

Labor unions cause unemployment because the union contract wage is set

above the market wage, causing a surplus of labor

Minimum wage laws cause unemployment because the legal minimum wage is set

above the market wage, causing labor demand to be less than labor supply.

which of the following is not a financial intermediary

airlines

In 2016, Ford Motor Company's sales were rising. These events were caused by

an economic expansion

What term do economists use to refer to the conflict between the interests of shareholders and the interests of top​ management?

a​ principal-agent problem

An underground economy involves all of the following except

buying and selling of goods and services by obtaining a permit from the government.

What is the largest component of spending in the United States?

consumption spending

GDP is not a perfect measure of well-being because

GDP is not adjusted for pollution

Which of the following headlines would be more closely related to what macroeconomists study than what microeconomists study?

Real GDP grows by 2.3% in the second quarter.

What do we mean by the separation of ownership from control in large​ corporations?

Shareholders own the​ corporation, but it is controlled by managers.

Which of the following policies would reduce structural unemployment?

a job retraining program

A bond represents

a loan to a company

The informal sector can be a significant drag on the economies of developing countries because the firms in the informal sector

do not pay taxes to the government.

Gross domestic product in the economy is measured by the

dollar value of all final goods and services produced in the economy

labor force equation

employed + unemployed

The natural rate of unemployment is the amount of unemployment

equal to frictional plus structural unemployment.

In the circular flow model, the value of total income for an economy ________ the value of total production.

equals

In the circular flow model, the value of total production for an economy ________ the value of total expenditures on final goods and services.

equals

Establishing a state employment agency that speeds up the process of matching unemployed workers with unfilled jobs is an attempt to lower

frictional unemployment

Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one is called

frictional unemployment

A student who just graduated from college but has not found a job would most likely be

frictionally unemployed

final goods and services

good and services purchased by a final user and is used to calculate GDP

Which of the following would decrease the unemployment rate?

government aid to retrain unemployed workers

During the Great Depression, cyclical unemployment increased as the recession continued. This increase in cyclical unemployment

had no effect on the natural rate of unemployment

In the circular flow diagram, ________ supply the factors of production, and ________ goods and services.

households; buy

During a business cycle expansion, total production ________ and total employment ________.

increase, increase

Legalizing all forms of illegal activities

increases GDP and reduces the size of the underground economy.

Which of the following is not directly counted in GDP?

investment expenditures

If the GDP deflator is less than 100, then for that year, nominal GDP ________ real GDP.

is less than

working age eqution

labor force + not in labor force

labor force participation rate formula

labor force/working age population x 100

In 2016, Ford's sales were rising, but in early 2017, Ford's sales declined. Ford and the U.S. automobile industry were experiencing the effects of

the business cycle

The most widely used measure of inflation is based on which of the following price indices?

the consumer price index

The "underground economy" is also referred to as

the informal sector

What is the potential GDP?

the level of real GDP attained when all firms are operating at capacity.

gross domestic product

the market value of all final goods and services produced within a country in a given period of time

We say that the economy is at full employment if the unemployment rate is equal to

the natural rate of unemployment

natural state of unemployment

the normal rate of unemployment around which the unemployment rate fluctuates

inflation rate

the percentage increase in the price level from one year to the next

recession

the period of a business cycle during which total production and total employment are decreasing

expansion

the period of a business cycle during which total production and total employment are increasing

Value added equals the market price of the firm's product minus

the price of intermediate goods.

cyclical unemployment

unemployment caused by a business cycle recession

structural employment

unemployment that arises from a persistent mismatch between the skills or attributes of workers and the requirements of jobs

frictional unemployment

unemployment that occurs when people take time matching with a job

GDP is defined as the

value of all final goods and services produced within a country in a given period of time.

Real GDP is GDP in a given year

valued in the prices of the base year

Refer to Table 8-4. Consider the data above (in billions of dollars) for an economy: Gross domestic product (in billions of dollars) for this economy equals

$1,600

A very simple economy produces three goods: cameras, legal services, and books. The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above.Refer to Table 8-18. What is real GDP in 2018, using 2013 as the base year?

$10,275

Refer to Table 8-2. Suppose that a simple economy produces only four goods and services: shoes, DVDs, tomatoes, and ketchup. Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households. Using the information in the above table, nominal GDP for this simple economy equals

$6400

Consider the following data for Tyrovia, a country that produces only two products: guns and butter.Refer to Table 8-11. Real GDP for Tyrovia for 2018 using 2009 as the base year equals

$690

Refer to Table 8-1. Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. Assume all of the coffee beans are used in the production of the coffee drinks. Using the information in the above table, nominal GDP for this simple economy equals

$8,750.

inflation rate CPI formula

(CPI year x - CPI year y)/(CPI year y) X 100

employment population ratio equation

(employment/working age population) x 100

Consumer price index (CPI) formula

(expenditures in the current year/expenditures in the base year) x 100

Monthly expenditures for a family of 4 in 2017 averaged $1,400. In 2018, the cost of the same purchases was $1,500. If 2017 is the base year, what was the CPI in 2018?

107

Refer to Table 8-14. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 2018 equals

108.5

Based on the table below, in​ 2011, the value of the GDP deflator is ....

116.57

Refer to Table 8-1. Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. Assume all of the coffee beans are used in the production of the coffee drinks. Using the information in the above table, nominal GDP for this simple economy equals.

3090 units

If the GDP deflator is 142, by how much have prices changed since the base year?

42%

The GDP deflator in year 2 is 105, using year 1 as the base year. This means that, on average, the cost of goods and services is

5% higher in year 2 than in year 1.

The nominal GDP of the U.S. in 2016 was approximately $18.6 trillion. This means that

A) the value of output in 2016 was around $18.6 trillion. B) total income in 2016 was around $18.6 trillion. C) total spending in 2016 was around $18.6 trillion.

business cycle

Alternating periods of economic expansion and economic recession

What are the four major categories of​ expenditure?

Consumption, investment, government​ purchases, and net exports

Which of the following equations correctly measures GDP in an economy?

GDP = C + I + G + NX

The ________ is a measure of the price level and is calculated by dividing ________ by ________ and multiplying by 100.

GDP deflator, nominal GDP, real GDP

Why is GDP an imperfect measurement of total production in the​ economy?

GDP does not include household production or production from the underground economy

implicit costs

Indirect, non-purchased, or opportunity costs of resources provided by the entrepreneur

GDP Deflator Equation

Nominal GDP/Real GDP x 100

Nominal GDP equation

Price x Quantity

What are the three main factors affecting labor productivity growth?

Property rights, Capital, Technological change

How do we calculate Real GDP per capita?

Real GDP divided by population

if a minimum wage of $8 per hour is imposed, which of the following will result?

The quantity of labor demanded by firms will fall

public savings formula

Total taxes collected - transfer payments - government purchases

What are the four categories of​ income?

Wages, Interest,​ Rent, and Profit.

GDP equation

Y = C + I + G + NX

In a closed economy, which of the following equations reflects investment? (Y = GDP, C = Consumption, G = Government purchases, T = Taxes, and TR = Transfers)

Y-C-G

economic growth rate equation

[(real GDP year 2 - real GDP year 1)/real GDP year 1] x 100

GDP only counts...

new goods and services

The measure of production that values production using current prices is called

nominal GDP

Calculate Deflator

nominal/real gdp times 100

If Jose is 22-years old, is available to work but does not have a job and made no specific efforts to find a job for the previous month, Jose is classified in the Current Population Survey as

not in the labor force

Someone who is available for work but has not actively looked for work in the previous four weeks would be classified as

not in the labor force

unemployment rate equation

number of unemployed/labor force x 100

Rule of 70 formula

number of years to double = 70/growth rate

The Bureau of Labor Statistics would categorize a retiree who is not working as

out of the labor force.

explicit costs

out-of-pocket costs for a firm, for example, payments for wages and salaries, rent, or materials

Suppose that shortly after graduating from college you decide to start your own business. Assuming you are starting a small business and realize that you need someone with particular expertise or business skills​, which category of firm are you most likely to​ start?

partnership

To examine how the total production of an economy has changed over time, it would be better to examine

real GDP

The producer price index measures the prices that firms

receive for the goods and services they use at all stages of production.

what are the three Key Services of the Financial System?

risk sharing, liquidity, information

Emma is a road construction worker. During the winter months, Emma finds it more difficult to get work. The unemployment Emma experiences in the winter is

seasonal unemployment

A(n) ​ _____ is a financial security that represents partial ownership of a​ firm, while a​ _____ is a financial security that represents a promise to repay a fixed amount of funds.

stock, bond

A..... is a financial security representing partial ownership of a firm. While a ..... is a financial security promising to repay a fixed amount of funds.

stock; bond

Structural unemployment is the result of

technology changes or foreign competition

economic growth

the ability of the economy to increase the production of goods and services

labor productivity refers to

the quantity of goods and services that can be produced by one worker or by one hour of work

According to the text, economists consider full employment to occur when

the unemployment rate consists of only frictional and structural unemployment

When the labor market is at full employment

there is no cyclical unemployment in the economy

two ways to measure economic activity

total income or total production


संबंधित स्टडी सेट्स

Sociology 1101: Lesson 6 Quiz- Chapter 11 Race and ethnicity

View Set

ATI Pharmacology -- The Hematologic System

View Set