Midterm 1 ECON103
the GDP deflator is a measure of the
average level of prices of final goods and services in the economy
which of the following goods is directly counted in GDP?
a 12 inch subway sandwich purchased by a student
the nominal GDP of the US in 2018 was approximately $19.4 trillion. This means that
all of the above are true
the bureau of labor statistics would categorize a person as _________ if they were temporarily away from their job because they were ill
employed
the labor force equals the number of people
employed plus unemployed
the sum of the value added of every firm involved in producing all final goods and services _________ GDP
equals
suppose the production function in a country is, what share of output does capital receive?
0.3
which of the following would be the best measure of the cost of living?
consumer price index
the purchase of a new automobile is included in
consumption expenditures on durable goods
changing the level of government spending is an example of:
fiscal policy
which of the following would decrease the unemployment rate?
government aid to retrain unemployed workers
the skills, training, and education possessed by workers that contribute to economic growth are known as:
human capital
which one of the following is not a characteristic of competitive firm?
it hires up to the point at which the marginal product of labor equals the product price
the unemployment rate equals the number of unemployed divided by the ___________, all times 100
labor force
if technology advances, then:
more output can be obtained from the same inputs
john's disposable income increases by $1,000, and he spends $600 of it. john's:
mpc is 0.6 and he saves $400
in a closed economy, which of the following components of GDP is not included?
net exports
the purchase by a household in china of a cd produced in the US is included in US
net exports
to examine how the total production of an economy has changed over time, it would be better to examine
real GDP
suppose the labor force stays constant, and the working-age population stays constant, but a greater number of persons who were unemployed become employed. the labor force participation rate will
remain constant
in a simple closed economy, all investment spending must come from:
saving
which of the following do economists view as investment spending?
spending on physical capital
which of the following cannot be included in the Government Purchases G?
state governments transfer social security payment for the elderly
the outbreak of the bubonic plague in 1348 reduced the population of europe by about one-third within a few years, according to the neoclassical theory of distribution, which of the following is FALSE?
the marginal product of the capital increases
suppose that nominal GDP in 2018 was less than real GDP in 2018. given this information, we know for certain that
the price level in 2018 was less than the price level in the base year
suppose the marginal propensity to consume changes from 0.70 to 0.90. how will this affect the consumption function?
the slope will get steeper
if a country sold more goods and services to the rest of the world than it purchased from the other countries, then the country has a:
trade surplus
nominal GDP is GDP in a given year
valued in the prices of that year
in calculating GDP, the Bureau of Economic Analysis uses the sum of the market value of final goods and services produced. this means that the BEA
values goods and services at their market prices, multiplies them by the quantity produced, and then adds them up
