econ 202 exam 1
exports exceed imports by $50 billion.
Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals $200 billion, and government spending equals $260 billion, then:
140
If 2009 is the base year, the bundle price of goods in 2009 is $500, and the bundle price of goods in 2010 is $700, the 2010 consumer price index is
40%
If 2009 is the base year, the bundle price of goods in 2009 is $500, and the bundle price of goods in 2010 is $700, the inflation rate between 2009 and 2010 is
120
If nominal GDP in 2001 is $18 trillion and real GDP is $15 trillion, the GDP deflator in 2001 is
20%
If nominal GDP in 2001 is $18 trillion and real GDP is $15 trillion. Suppose we use 2000 as the base year, what is the inflation rate between 2000 and 2001?
prices in 2010 are lower than prices in the base year.
If real GDP in 2010 using 2009 prices is higher than nominal GDP of 2010, then
5%
If real GDP per capita grows from $10,000 to to $10,500, then the growth rate is:
nominal GDP is greater than real GDP.
If the GDP deflator is greater than 100, then
80%
If the labor force is 320,000 and the total population 16 years of age or older is 400,000, the labor-force participation rate is
3.1%
If the number of people classified as unemployed is 20,000 and the number of people classified as employed is 620,000, what is the unemployment rate?
non-existent
In a price-setting relation, there is a _________ relationship between real wage and employment.
declined
In the US, shares of investment in GDP have always _________ before economic recessions.
fluctuating
In the US, shares of investment in GDP have been _________ .
18%
In the US, shares of investment in GDP have been around ___________
before 1980s
In the US, trade surplus could be observed______
positive
In the wage setting relation, there is a __________ relationship between real wage and employment
the unemployment rate increases
In the wage-setting relation, the nominal wage tends to decrease when
unemployment benefits decrease.
In the wage-setting relation, the nominal wage tends to decrease when
Imports higher than exports
Trade deficit means
The total amount of goods and services produced within a country in a year per person.
What is GDP per capita?
economic growth does not translate into job creation.
When the Okun's Law does NOT hold, it implies that __________.
The increase in growth of real GDP per capita that many countries have experienced at some point after the 19th century.
When the textbook refers to "history's hockey stick", it is referring to:
automobiles, furniture
Which of the following are most likely classified by economists as consumer durable goods?
a new tire you buy for your personal car
Which of the following is a good or service counted in GDP at a current year?
computer purchased by Federal Express to track shipments
Which of the following is an example of a final good or service?
the pizza sauce you purchase to make pizzas to sell for a fund-raiser for an organization you belong to
Which of the following is an example of an intermediate good?
the purchase of 100 shares of AT&T stock by your grandfather.
Which of the following is not counted as a part of GDP?
the PS is horizontal
With the real wage on the vertical axis and employment (N) on the horizontal axis, we know that
the WS curve is upward sloping.
With the real wage on the vertical axis and employment (N) on the horizontal axis, we know that
in the prices of a base year.
Real GDP is gross domestic product measured
increasing
Shares of personal consumption in GDP has been ________ since 1980s in the US.
11538.46
Suppose GDP per capita of Chile increased by 4% between 2012-2013 and the GDP number equals to 12,000 in 2013. What is the GDP per capita in Chile in 2012?
an upward shift in the PS curve
Suppose that increased international trade makes product markets more competitive in the U.S. Given this information, we would expect to observe which of the following?
. a downward shift in the PS curve
Suppose that the US federal allows firms in several industries to merge with each other, which consequently increased monopoly power for those companies. Given this information, we would expect to observe which of the following?
stay constant (move along the curve)
Suppose the actual employment rate increases. This will cause the PS curve
a movement along the WS and the PS curves.
Suppose the actual unemployment rate increases. This will cause
7.27%
The GDP deflator in year 2 is 110 and the GDP deflator in year 3 is 118. The rate of inflation between years 2 and 3 is
10% higher in year 2 than in year 1
The GDP deflator in year 2 is 110 using year 1 as a base year. This means that, on average, the price of goods and services is
5% higher in year 1 than in year 2.
The GDP deflator in year 2 is 95 using year 1 as a base year. This means that, on average, the price of goods and services is
ratio of nominal GDP to real GDP multiplied by 100.
The GDP deflator is the
5%
The GDP per capital of China was $10,000 in 2017 and $10,500 in 2018. The growth rate of GDP between 2017 and 2018 was equal to
1970s
The US started to engage in rapid globalization (high international trade) since ________
nominal wage; real wage
The _____________ is set by the firm in dollars while the ___________ describes how much the wage can buy for the worker.
Consumption + Investment + Government Spending + Exports - Imports
The correct formula to calculate GDP based on its spending components is:
Consumption
The largest component of the expenditure side of GDP in the United States is:
Investment
The most volatile component of GDP in the United States and Europe is:
the labor force minus the number of people employed.
The number of people unemployed equals
0.9
The price setting equation is represented by the following: P = (1+m)W. When firms have very high market power, m would equal to
0
The price setting equation is represented by the following: P = (1+m)W. When there is perfect competition (firms have no power), we know that m will equal
135 million
The total number of people employed... Labor force participation rate: 75% Total population 16 years of age and older: 200 million Unemployment rate: 10%
15 million
The total number of people unemployed.. Labor force participation rate: 75% Total population 16 years of age and older: 200 million Unemployment rate: 10%
equals 150 million
the labor force Labor force participation rate: 75% Total population 16 years of age and older: 200 million Unemployment rate: 10%
$1600
A company produced 8 dishwasher machines in 2010. The company sold 6 in 2010 and added 2 to its inventories. The market value of the dishwasher machines in 2010 was $200 per unit. What is the value of this company's output that will be included in the 2010 GDP?
a downward shift in the WS curve
A decrease in the minimum wage will tend to cause which of the following?
a downward shift in the WS curve
A reduction in unemployment benefits will tend to cause which of the following?
decrease
According to the Okun's Law, during the 1990s economic boom, we can expect that the unemployment rate should _______.
increase
According to the Okun's Law, in the midst of economic recession, such as in 2008-2009, we can expect that the unemployment rate should _______.
GDP Deflator
An economics professor is discussing a measure of inflation over time based on all the components of GDP. Which measure is it?
an upward shift in the WS curve
An increase in the minimum wage will tend to cause which of the following?
an upward shift in the WS curve
An increase in unemployment benefits will tend to cause which of the following?
a reduction in equilibrium employment
Based on our understanding of the labor market model WS-PS, we know that an increase in the minimum wage will cause
The model assumes that demand or labor demand is constant.
Based on our understanding of the labor market model WS-PS, we know that an increase in the minimum wage will cause the results as two answers above. The main reason is
no change in the real wage
Based on price setting behavior, we know that a reduction in the unemployment rate will cause
no change in the real wage.
Based on price setting behavior, we know that a reduction in the unemployment rate will cause
an increase in the real wage
Based on wage setting behavior, we know that a reduction in the unemployment rate will cause
an increase in the real wage.
Based on wage setting behavior, we know that a reduction in the unemployment rate will cause
26010
Between 2000-2002, GDP per capita of Spain grew at 2% per year. If GDP per capita equals to $25,000 in 2000, GDP per capita in Spain equals to $................... in 2002.
unemployment rate increases
Diane lost her job and immediately started looking for another job. As a result the
all are correct
For you to be considered out of the labor force, you can be
increased
From the US GDP, shares of government spending have always ___________ during economic recessions.
$500
A company produced 5 dishwasher machines in 2010. The company sold 6 in 2010 (by selling 1 dishwasher machine from their inventory from last year.) The market value of the dishwasher machines in 2010 was $100 per unit. What is the value of this company's output that will be included in the 2010 GDP?
in the labor force
Cheryl graduated from college a month ago and is now without work. She accepted a job that will start next month. Today, Cheryl is
68%
Consumption in the United States is about ____________ of GDP.
households.
Consumption is the purchase of goods and services by:
the overall price level.
Inflation is an increase in
the amount spent on new factories and machinery.
Investment (I) includes
employed
James is a high school student. James works as a part-time employee after school at a fast food restaurant. James is categorized as __________
not in labor force
Katherine has been thinking about looking for work in the past four weeks, but there was no specific effort she has made. Katherine is counted as _________.
employed
Lisa spends most of her time taking care of her home and children, but she helps in her husband's computer software business all day on Friday, Saturday, and Sunday. Lisa is counted as __________.
in current dollars
Nominal GDP measures the value of all goods and services
The unemployment rate is falling.
Okun's Law describes the relationship between GDP growth and the change in unemployment such that when GDP growth is high:
unemployment rate; GDP growth
Okun's Law is an empirical observation that shows that the change in the ___________ falls when __________ is faster.