econ

accounts for the largest amount of spending in the economy.

Personal Consumption Expenditures

The expenditure approach calculates GDP by adding:

Personal Consumption expenditures, Gross Private Domestic Investment, Government Purchases and Net Exports

Which of the following represents a characteristic of capitalism?

Private property Competition Freedom of choice

efficiency refers to producing products at the lowest cost and ______________________ efficiency refers to producing the products that are most wanted by society.

Productive, Allocative

Which of the following represents a service.

Purchasing a pizza at Dominos Purchasing A barbequed chicken at a supermarket Purchasing a birthday cake

Labor inputs as measured by hours of work times Labor productivity as measured by output per worker equals:

Real GDP

Which of the following represents the best measurement of a nation's standard of living

Real GDP per capita

The labor market represents a:

Resource market

Opportunity cost in an economy exists because:

Resources are limited

Assume that the U.S. can produce apples at a cost of $5 a bus, hel and Canada can produce apples at a cost of $6 per bushel . Which nation has to comparative advantage?

U.S.

Which of the following is a supply factor that contributes to long term economic growth?

an increase efficiency increases in aggregate spending at a higher rate than potential GDP improvements in technology

The economic basis for trade is based upon:

an unequal distribution of resources among nations never attemp to make something if you can buy it cheaper specialization based on comparative advantage

A market is in equilibrium:

at a price where the demand and supply curve intersect

Economic theories are:

based on economic facts

Economic theories provide useful information to support:

business decisions government policy decisions proposed legislation

The basis for trade is based upon:

comparative advantage

Which of the following represents capital as an economic resource:

construction equipment

Which of the following is used to calculate GDP under the Income approach

corporate profits

The sale of a imported product in a domestic market at a price below cost is referred to as

dumping

A decrease in the price of Shell gasoline will:

ecrease the demand for Exxon gasoline

Restricting import licenses to reduce imports is referred to as a :

non-tariff barrier

Which of the following is a characteristic of a capitalist economy:

private property

The law of demand:

reflects an inverse relationship between price and quantity demanded

Which of the following statements applies to microeconomics:

sales of household appliances declined in 2008.

A tax levied on an imported good is a ________________________.

tariff

Which of the following represents an assumption in the PPC model ?

the economy is achieving full employment and full production Resources remain fixed for a given period of time Technology remains fixed for a given period of time

National Income Accounting helps economists and policymakers:

Asses the economy's health Adjust economic policies to safeguard and improve the economy's health Track economic growth over the long run

In a command system economic resources are primarily

Owned by Government

An increase in the demand for wine with supply remaining the same would:

increase the market price and market quantity

A technological advance in the production of natural gas would:

increase the supply of natural gas

Which of the following is an argument for a protective tariff?

increased domestic employment cheap foreign labor increased domestic emplyment

Coffee beans are an example of which type of resource:

land

A nation will be a net exporter of beef if its domestic price of beef is ______________________ than the global market price of beef.

less than

Society faces economic choices because of:

limited resources

Which of the following best describes the definition of economics:

limited resources versus unlimited wants

Which of the following economic principles explains the rationale behind decision making?

marginal analysis

A _______________ represents the interaction between buyers and sellers and where an exchange of products occurs for a specific price.

market

determine on how the goods should be produced in a capitalist system.

Businesses

is the United States' biggest trading partner as measured volume of trade (exports plus imports)

Canada

Which of the following economic systems can respond faster to a change in consumer tastes/preferences for goods and services.

Capitalism

Which of the following measures income after taxes that households receive

Disposable Income

Economic theories are based upon

Economic facts

is a market where goods are purchased by households and sold by firms.

The product market

A nations standard of living depends upon:

The production of goods and services

According to the Rule of 70, if an economy achieves an annual economic growth rate of 7% it will take _______________ years for the economy to double its output.

10

Which of the following represents a land based resource?

A farm, Oil, Coffee beans

Which of the following will increase demand for a firm's products?

A firm that opens new stores in different geographic markets

The economist who advocated the use of a market system in his classic work "The Wealth of Nations " was ?

Adam Smith

Which of the following contributes to economic growth?

An increase in a nation's resources over time

Economic growth is measured by:

An increase in real GDP per capita over time

Which of the following is counted under the income approach in measuring GDP ?

Compensation of employees

accounts for the largest amount of income earned from output of goods and services.

Compensation of employees

Which nation best reflects a command system

Cuba

Which of the following represents a service ?

Dental cleaning urchasing a pizza from Dominos Purchasing a birthday cake at the bakery

The study of economics revolves around the concept of:

Efficiency

represents individuals who set the strategy, combine the resources,advance innovation and bear financial risk if their firms fail.

Entreprenuers

Gross Private Domestic Investment includes:

Final purchases of tools, machinery and equipment by businesses

Which of the following are excluded from GDP ?

Financial Transactions The sales of used cars Social security benefit payments

Any point on the Production Possibilities Curve represents:

Full employment and full production Productive Efficiency Potential GDP

measures the total output of all final goods and services produced in the economy over one year period of time.

GDP

Which of the following represents a durable good?

Household Appliances

The _______________ determines what goods are produced in a capitalist system.

Household sector

represent the buyers in the product market in a pure capitalist system.

Households

The circular flow model of pure capitalism indicates that:

Households supply the resources

A trade deficit occurs if :

Imports are greater than exports

Which of the following is a factor of economic growth?

Improved technology Increased resources more educated and trained labor force

The economic philosopher who promoted communism was:

Karl Marx

A nation faces tradeoffs because of:

Limited resources

Which of the following best describes the study of economics?

Limited resources versus unlimited wants

Which of the following would increase the demand for green beans?

Medical research validates the health benefits of eating green beans

An economic study of the U.S. automobile industry would reflect:

Microeconomic analysis

The government has in the past placed a price floor on:

Milk

You drive to a retail store that is 20 miles from your home and purchase a shirt on sale for $30 How much did the shirt cost you?

More than $30

Which of the following contributes to economic growth in the long run?

Net Investment was positive for the year

Which of the following increases the productive capacity of the economy for the next year.

Net investment is positive for the current year

Which of the following measures the value of a given year's output based upon the prices in the year in which the output is produced

Nominal GDP

Which economic principle indicates that in order to get something you must give something up?

Opportunity cost

Which of the following is true about the rationale for trade?

The buyer and seller benefits from trade

Which of the following would increase the supply of oranges during the present period?

The expectation of a decrease in the price of oranges in the near future

Which of the following will cause an increase in demand for the Apple I-10 cell phone during the present period:

The expectation of a price increase in the near future for the I-10

A price ceiling occurs when:

The government establishes a maximum price that is below the equilibrium price

refers to the fact that when an individual pursues their economic self- interest he/she also promotes the economic well- being of the society to which he/she belongs.

The invisible hand

Prices for goods and services in a capitalist system are determined by:

The market

Macroeconomics approaches the study of economics from the point of view of:

The national economy

The global market price for oil is based upon:

The price where the import demand cuve and the export supply curve intersect

Which of the following represents positive economics?

What is the current unemployment rate

The economy of Switzerland is best described as

a capitalist economy

Which of the following would increase the demand for Nike sports apparel?

a decrease in the price of Nike athletic footwear

The unintended outcome of a price ceiling would be:

a product shortage

Which of the following would the government most likely impose a price ceiling?

health care insurance

The various types of consumer goods produced in a capitalist system are determined by:

households

The simple circular flow model shows that:

households are on the demand side of the product market and the supply side of the resource market

The PPC model illustrates the basic principle that:

if an economy is producing at a maximum level of output more consumer goods can only be produced if less capital goods are produced.

A buyer will purchase a second piece of pizza :

if marginal benefit is greater than marginal cost

A decrease in the supply of Maine lobsters with demand remaining the same would:

increase the market price and decrease the market quantity

A price floor occurs when:

the government establishes a minimum price which is above the market price

Which of the following is a normative economic statement:

the government should extend unemployment benefits if the unemployment rate is higher than 7%

Which of the following best illustrates macroeconomic analysis:

the measurement of U.S. GDP measuring the unemployment rate for the U.S. economy measuring the total amount of income earned by U.S. households

A nation's standard of living is based upon:

the production of goods and services

A point inside the PPC curve indicates?

unemployment and underemployment