econ

Claire and Don are farmers who produce beef and corn. In a​ year, Claire can produce 1010 tons of beef or 100100 bushels of corn. In a​ year, Don can produce 3030 tons of beef or 240240 bushels of corn.. To maximize their total output of beef and corn​ _______.

Don produces beef and Claire produces corn

We use a​ time-series graph to show​ ______.

. the upward trend in U.S. output over the last 25 years

Every​ day, we make many choices. We​ can't avoid having to make choices because​ _______.

. we can't afford to do all the things we'd like to do/. our wants exceed the resources available to satisfy them

One of the reasons why this rapid increase occurred during this decade was that​ ______.

. women had more time for paid employment/. more women graduated from college/. more white dash collar jobs were created

When sales of nondurable goods​ fell, ______ decreased. An example of a nondurable good is​ ______.

consumption​ expenditure; a cup of coffee

To make comparisons of real GDP between two countries we must​ ______.

convert the real GDP of one country into the same currency units as the real GDP of the other​ country, and use the same prices to value the goods and services in the countries being compared

A minimum wage set above the equilibrium wage rate for​ low-skilled workers​ _______.

creates unemployment among​ low-skilled workers

the type of unemployment that fluctuates over the business cycle is

cyclical unemployment

When the economy goes into​ recession, the biggest increase in unemployment is​ _______.

cyclical because jobs are lost in many industries as they cut production

Full employment is when there is no​ _____ unemployment​ or, equivalently, when all the unemployment is​ _____ or​ _____.

cyclical; frictional; structural

A reduction in unemployment compensation will

decrease the amount of frictional unemployment.

Which of the following events illustrates the law of​ demand: Other things remaining the​ same, a rise in the price of a good will​ ______.

decrease the quantity demanded of that good

Other things remaining the​ same, a fall in the price of peanuts will​ ________.

decrease the quantity supplied of peanuts

A poor rice harvest will​ _____ rice and​ ____ its price.

decrease the supply​ of; raise

Choose the correct statement.

Market prices and factor cost diverge because of indirect taxes and subsidies.

In the market for​ smartphones, which of the following events increases the supply of​ smartphones?

New technology that lowers the cost of making a smartphone

Who in the following statements is a ​part-time worker for economic reasons​?

Sherrie is a graduate who started working at Safeway pharmacy for 4 hours each​ day, three days a​ week, as they do not currently have a​ full-time opening.

What is a characteristic of an economy at full​ employment?

There is no cyclical unemploymentthe natural rate of unemployment prevailsthe unemployment rate is greater than zeroall remaining unemployment is either frictional or structural

The United Nations Human Development Report gives the following data for real GDP per person in​ 2002: China,​ $4,580; Russia,​ $8,230; Canada,​ $29,480; United​ States, $35,750. Life expectancy at birth is 79.3 in​ Canada, 77.0 in the United​ States, 70.5 in​ China, and 66.7 in Russia. Freedom House rates political freedom each​ year, and its ratings are as​ follows: Canada and the United​ States, 1.1​ (1.0 is the most​ free); Russia,​ 4.5; and​ China, 7.6​ (ratings in the​ 7+ range are the least​ free). How do life expectancy at birth and political freedom change the relative ranking of living standards that real GDP per person​ indicate?

They​ don't change the relative ranking because they rank countries in a similar way as real GDP per person ranks them.

When sales of durable goods​ fell, ______ decreased. An example of a durable good is​ ______.

consumption expenditure and​ investment; a car purchased by a household or a delivery van purchased by FedEx

The two types of goods and services produced are​ _______. An example of​ _______.

consumption goods and services and capital​ goods; a consumption good is your​ iPad, and an example of a capital good is the pizza oven at a pizzeria

GM and the UAW agree on restructuring​ workers' jobs. This​ restructuring, with no change in the wage​ rate, will save GM billions in labor costs. ​Source: Wall Street Journal​, May​ 22, 2009 Will this reduction of labor​ costs, with no change in the wage​ rate, change​ GM's supply of​ vehicles? The cut in labor costs with no change in the wage rate will​ ______.

increase​ productivity, which will increase​ GM's supply of vehicles

If the New England statesthe New England states introduceintroduce a minimum wage of ​$6.00 an​ hour, 5,000p ickers are employed and 0 pickers are unemployed.

grapg

The unemployment rate in this community is​ _______ the unemployment rate in the United States in 2016. The labor force participation rate in this community is​ _______ the labor force participation rate in the United States in 2016.

greater​ than; less than

On Friday May​ 14, 2009, the following headlines appeared in The Wall Street Journal. 1. US Set to Rethink​ Fed's Role 2. ​Wal-Mart Makes Electronics Push 3. ​VW, Porsche Take Break in Talks 4. Economists Foresee Protracted Recovery Macroeconomic topics are dealt with in​ ______. Microeconomic topics are dealt with in​ ______.

headlines 1 and​ 4; headlines 2 and 3

When Cindy buys a​ bike, she makes a rational choice because she thinks about​ _______.

her benefit from the bike along with the cost of the bike

The U.S. unemployment rate​ ______.

increses in ressions/ . averaged 5.8 percent between 1948 and 2016/. was lower during World War II than during the Vietnam War

The unemployment rate is the percentage of the people in the​ _____ who are unemployed.

labor force

Pump prices slide as crude oil falls to​ six-year low The average price for regular gasoline at U.S. pumps fell almost 4 cents in March to​ $2.50 a gallon. The price of crude oil dropped to​ $43.46 per barrel on March​ 17, the lowest since March 2009. ​Source: Bloomberg Business​, March​ 23, 2015 Explain the effect of a lower crude oil price on the supply of gasoline. A fall in the price of crude oil will​ ______.

lower the cost of producing gasoline and increase the supply of gasoline

A rational choice is​ ______.

made by comparing marginal benefit and marginal cost

The news headline ​"Fiber replaces aluminum in airplanes" deals with the​ ______​ question(s) of economics.

how

​You've seen that the global distribution of income is unequal. Why do you think it is​ unequal? The global distribution of income is unequal because there is an unequal distribution of​ _____

human capital and physical capital

​You've seen that the global distribution of income is unequal. Why do you think it is​ unequal? The global distribution of income is unequal because there is an unequal distribution of​ ______.

human capital and physical capital

GDP is a poor measure of economic​ well-being because it​ _______.

includes only production that is traded in markets

Saving equals​ ______

income minus consumption expenditure minus net taxes`

Between 1960 and​ 1999, the labor force participation rate​ ______.

increased mainly because the number of women who entered the labor force increased

When Leisure Island is producing on its PPF​, the opportunity cost of producing a unit of entertainment​ _______ as more entertainment is produced

increases

​Crusoe's opportunity cost of producing an extra pound of berries​ _______ as he produces more berries.

increases

The rise in net exports​ ______.

increases GDP

Read the news​ clip, then answer the following question. A doubling of the current minimum wage rate​ _______This city proposes highest minimum wage in America Berkeley Labor Council in California plans to increase the minimum wage rate each year from​ $9 an hour today until its hits​ $19 an hour in 2020.

increases the quantity of labor​ supplied, decreases the quantity of labor​ demanded, and increases unemployment

A bumper wheat crop ​ ____ wheat and​ ____ its price.

increases the supply​ of; lowers

A minimum wage set above the market equilibrium wage rate​ ______.

increases unemployment and decreases employment

Unemployment falls to 4.9​ percent, lowest in 8 years U.S. unemployment of 4.9 percent is full employment. Only​ 151,000 jobs were created in​ January, down from​ 262,000 in December. With falling oil​ prices, 7,000 energy jobs were lost in January but​ 29,000 manufacturing jobs were added. ​ Source: CNN​ Money, February​ 5, 2016 How would you expect a shrinking energy sector and an expanding manufacturing sector to influence the actual and natural unemployment​ rate? The shrinking energy sector​ _______ the unemployment rate and the expanding manufacturing sector​ _______ the unemployment rate.

increases; decreases

Real GDP per person is not an accurate measure of the standard of living because it​ ______.

omits the goods and services that people produce for themselves

The flows of the services of the factors of production are​ _______.

real flows from households through factor markets to firms

In the circular flow​ model, governments​ _______.

receive taxes and make transfers directly to households and​ firms, which do not flow the goods or factor markets

The price of ice cream

rises

The price of potato chips

rises

The price of potato chipspotato chips

rises

An increase in the demand for hot dogs brings a​______ in the price of a hot doga hot dog and​______ in the quantity of hot dogs supplied.

rise​; an increase

An example of a capital good is a​ _______.

shopping mall

The​ Z-Pop ratio​ ________.

shows an upward trend since 2000 but by 2016 it does not reach the​ pre-recession level

GDP calculated by the expenditure approach minus GDP calculated by the income approach equals​ ______.

statistical discrepancy

The economy is at full employment when all unemployment is​ _______.

structural and frictional

. complements in production

surplus;fall

A decrease in the demand for chocolate chip cookies brings a​______ of chocolate chip cookies at the original​price, and the price of a pack of chocolate chip cookies will​______ .

surplus;fall

A​ ______ is a final good and​ ______ is an intermediate good.

tank of gasoline bought by​ you; jet fuel bought by Southwest Airlines

Exports of goods and services are items that firms in​ _____ produce and sell to​ _____.

the United​ States; any other country

What is the​ "quantity demanded"?

the amount of a good people are able and willing to buy during a specific time period and at a given price

The trend in the labor force participation rate of women is due in part to​ _______. The trend in the labor force participation rate of men is due in part to​ _______.

the creation of more​ white-collar jobs with flexible work​ hours; some men taking early retirement

When motorists increase their driving in the summer​ months, ______ and the price of a gallon of gasoline​ ____.

the demand for gasoline​ increases; rises

When an effective minimum wage is​ introduced, the number of hours of labor employed is determined by​ ______ and​ ______.

the demand for​ labor; the minimum wage

The riserise in the price of popcornpopcorn ​______ potato chipspotato chips and​ ______.

the demand​ for; increasesincreases the quantity of potato chipspotato chips supplied

Human capital is​ _______.

the knowledge and skill that people obtain from​ education, on-the-job​ training, and work experience

If we observed a fall in the price of margarine and an increase in the quantity of margarine that producers​ sell, the most likely explanation would be that​ _______.

the law of supply applies to margarinemargarine​, but some other influence on selling plans has also changed and the supply of margarinemargarine has increased

Gross national product is​ ______.

the market value of all the final goods and services produced anywhere in the world in a given time period by the factors of production supplied by the residents of that country

When cyclical unemployment increases and other things remain the​ same, ______.

the natural unemployment rate does not change

You think hard about how to allocate the next hour between walking the dog and doing housework. You decide to spend the first 45 minutes walking the dog and the remaining 15 minutes tidying your bedroom. Your decision is an example of​ _______.

making a choice at the margin

You think hard about how to allocate the next hour between watching football and going for a walk. You decide to spend the first 5 minutes watching footballl and the remaining 5 minutes going for a walk. Your decision is an example of​ _______.

making a choice at the margin

What you get from a​ one-unit increase in an activity that you enjoy is called​ _______.

marginal benefit

u get from a​ one-unit increase in an activity that you enjoy is called​ _______.

marginal benefit

the university's decision is a​ _______ decision.Economists measure the benefit you get from something by​ _______.

microecomomics

The incomes earned by the factors of production are​ _______.

money flows from firms through factor markets to households

Compared to the developing​ economies, the advanced economies have​ _______ human capital and​ _______ physical capital.

more;more

In each of the following​ transactions, classify the item as a final​ good, an intermediate​ good, or neither. Second dash hand blue jeans you bought from your friendSecond-hand blue jeans you bought from your friend is an example of​ _______. Concrete purchased by Your Swimming Pool Inc.Concrete purchased by Your Swimming Pool Inc. is an example of​ _______.

neither an intermediate nor a final good,neither an intermediate nor a final good

The sum of all incomes equals​ ______.

net domestic product at factor cos`

The value of exports of goods and services minus the value of imports of goods and services is ​_______.

net exports of goods and services

Which of the following are included in the expenditure approach to measuring​ GDP?

net exports of goods and services;.consumption expenditure investment

Michelle is a student who wants to work 20 hours a week at Cost Cutters so she can attend school. Cost Cutters schedules her for 20 hours a week. Michelle works part time for​ _______ reasons. Florence is​ semi-retired and wants to work 15 hours a week at Walgreens so she can spend time with her grandchildren. Walgreens schedules her for 15 hours a week. Florence works part time for​ _______ reasons.

noneconomic; noneconomic

Saving is the amount of income that is​ _____ in net taxes or spent on​ _____ goods and services.

not​ paid; consumption

The labor force is the number of people employed plus the​ _____.

number unemployed

You can spend the evening studying or you can go to see a movie. Your rational choice will be to spend the evening studying if​ ______.

the net benefit from spending the evening studyingspending the evening studying is greater than the net benefit from going to see a movie

You can spend the weekend at college or go home. Your rational choice will be to spend the weekend at college if​ ______

the net benefit from spending the weekend at collegespending the weekend at college is greater than the net benefit from going home

Goods and services are​ ______ and​ ______ is an example of a good and​ ______ is an example of a service.

the objects and actions that people value and produce to satisfy human​ wants; a hockey pucka hockey puck​; drycleaning

To accurately assess the relative standard of living in these​ countries, we need additional information about​ _____.

the value of household​ production, the underground​ economy, leisure, and environment differences

The labor force participation rate is the percentage of the​ _____ who are members of the labor force.

working-age population

When you choose to buy a good or service you make your decision in​ ____________ while the people who produce the good or service make their choice in​ ___________.

your​ self-interest; their self interest

The table sets out​ Crusoe's production possibilities frontier in winter. Crusoe currently catches 11.011.0 pounds of fish and picks 16.516.5 pounds of berries a day. His opportunity cost of producing a pound of berries is​ ______ because he​ ______.

zero and his opportunity cost of producing a pound of fish is​ zero; is producing inside his PPF.

A south sea island produces only coconuts. In​ 2010, the price of a coconut is ​$2.502.50 and the quantity produced is 200200. In 20172017​, the price of a coconut is ​$2.002.00 and the quantity produced is 150150. 2010 is the base year. Real GDP in 20172017 is​ ______.

​$375

In which​ year, 2000 or​ 2016, was real GDP below potential​ GDP? How can you tell from the graph to the​ right? Consider 2000 and 2016. We can tell that real GDP was below potential GDP in​ _______ because​ _______.

​2016; in 2016 the output gap is negative

Think about the trends in what and how goods and services are produced in the U.S. and global economies. Do you think that at some future​ time, there will be no jobs in the United States and all the jobs will be in developing​ economies? Why or why​ not?

​No, because we will always want personal services and entertainment and talented people will always be available to produce these items in the United States.

Bernie Sanders thinks the​ _______ measure of unemployment is more relevant than the official unemployment rate. At the start of​ 2016, this measurement was​ _______.

​U-6; 10 percent

A marginally attached worker is a person who does not have a​ job, is​ _____ and​ _____ to​ work, has​ _____ specific efforts to find a job within the previous​ _____ weeks, but has looked for work sometime in the recent past

​available; willing; not​ made; four

The resulting rise in unemployment is mostly a rise in​ ______ unemployment because​ _______.

​cyclical; it is related to the state of the economy

Depreciation is the​ _____ in the value of​ _____ that results from its use and from obsolescence.

​decrease; capital

Read the news​ clip, then answer the following questions. When people are concerned about coming into contact with swine​ flu, the demand for air travel​ ______. When consumer confidence and consumer spending​ increase, the demand for air travel​ ______. When airlines cut​ capacity, the demand for air travel​ ______.

​decreases; increases; does not change

The ​working-age population is the total number of​ _____ aged​ _____ years and over who are not in​ jail, hospital, or some other form of institutional care or in the U.S. Armed Forces.

​people; 16

The business cycle is a​ _____ but​ _____ up-and-down movement of total​ _____ and other measures of economic activity.

​periodic; irregular; production

At a business cycle​ trough, cyclical unemployment is​ ______ and at a business cycle​ peak, cyclical unemployment is​ ______.

​positive; negative

The news clip is incorrect that the value of production is​ _________.

$30 million because when Facebook pays its​ workers, it incurs a loss of​ $30 million

A shortage is the amount by which the quantity demanded* exceeds the quantity supplied* .

*

The table shows the demand and supply schedules for running shoes. The equilibrium price of a pair of running shoes is ​$90.00 and the equilibrium quantity is 700 pairs a week. If the price of a pair of running shoes 80.00​, there is a shortage of running shoe. The price of a pair rises​, the quantity demanded decreases​, and the quantity supplied increases. The market moves to an equilibrium.

*

*You buy a coffee at Starbucks. *The government buys some Dell computers *A student works at Kinko. *Donald Trump rents a building to Marriot hotels. *You pay your income tax.

*A money flow from households through goods markets to firms *A real flow from firms through goods markets to government *A real flow from households through factor markets to firms *A real flow from households through factor markets to firms *A money flow from households to government

Emily owns an ice cream parlor. In an hour she can produce 10 milkshakes or 30 ice cream sundaes. Ben also owns an ice cream parlor. In an hour he can produce 88 milkshakes or 88 ice cream sundaes. ​Emily's opportunity cost of producing 1 milkshake is​ _____. Ben's opportunity cost of producing 1 milkshake is​ _____.

. 3 ice cream sundaes3 ice cream sundaes​; 1 ice cream sundae

The Population Survey in Blogsville reports the following numbers for the past​ month: 7373 million people had​ full-time jobs. 1111 million people had​ part-time jobs. 88 million people were without work but were available for work and had made specific efforts to find a job within the past four weeks or were waiting to be recalled from a layoff. 3939 million people of working age did not have jobs and did not want jobs. Last​ month, the labor force was​ ______ million and the​ working-age population was​ ______ million.

. 92; 131

Look at​ today's newspaper and find an example of a want that is not satisfied. We​ can't anticipate what will be happening on the day that you look at your newspaper​ (or Web news​ source). But here are five​ headlines, only one of which is an example of a want that​ isn't satisfied. Which one is​ it?

. Domestic programs cut to the bone/. Upper A billion people starve on a dollar a day

Choose the statement that is an example of a normative statement.

. Every American should have access to post dash secondary educationEvery American should have access to post-secondary education.

Economics studies choices that arise from one fact. What is that​ fact?

. Everyone faces scarcity

Ezra and Di are the only people in an isolated village who grow tomatoes and lettuce. Ezra has a comparative advantage in growing tomatoes if​ _______.

. Ezra's opportunity cost of producing lettuce is greater than Di's opportunity cost of producing lettuce

One of the following statements is an example of a positive statement. Which one is​ it?

. Gasoline engines create air pollution./. It is possible to meet all our energy needs with renewable sources

Explain how the following headlines concern​ self-interest and the social​ interest: 1. Business Depot​, a U.S. office supply store​, is opening in Europe opening in Europe while McDonalds is expanding in India. 2. Vitamin jars must carry dose information.

. Harrod'sHarrod's and Taco BellTaco Bell make decisions in their​ self-interest. Seat beltsSeat belts areare in the social​ interest, but people decide whether to wear themwear them in their​ self-interest.

Which of the following questions is an example of one of the two big questions that summarize the scope of economics.

. How do choices end up determining what comma how comma and for whom goods and services are produced /. When do choices made in the pursuit of self dash interest also promote the social interest question mark

Which statement is an example of economics as a policy​ tool?

. More people are buying used cars./. Interest rates are rising

One of the following statements is an example of a normative statement. Which one is​ it?

. Poverty should be abolished/. Workers must not be lazy

Consider the market for coffee. Suppose producers announce that the price of a cup of coffee will will fall next week. Explain the effect of this event on the quantity of coffee demanded and on the demand for coffee.

. The demand for coffeeThe demand for coffee decreasesdecreases.

Consider the market for smartphones. Suppose a study is published that says smartphone use is bad for health. Explain the effect of this event on the quantity of smartphones demanded and on the demand for smartphones.

. The demand for smartphonesThe demand for smartphones decreasesdecreases.

Which of the following is an example of government expenditure on goods and​ services?

. The purchase of office supplies for the office of the junior senator from New York

Consider the U.S. market for Caribbean cruises. Suppose the price of a Caribbean cruise falls. Explain the effect of this event on the quantity of Caribbean cruises demanded and on the demand for Caribbean cruises.

. The quantity of Caribbean cruises demanded increases and the demand for Caribbean cruises is unchanged.

Consider the U.S. market for ice skates. Suppose the price of a pair of ice skates falls. Explain the effect of this event on the quantity of ice skates demanded and on the demand for ice skates.

. The quantity of ice skates demanded increasesThe quantity of ice skates demanded increases and the demand for ice skates is unchanged.

In the market for skim milk, the price of a carton of skim milk rises. Explain the effect of this event on the quantity of skim milk supplied and on the supply of skim milk

. The quantity of skim milk supplied increasesThe quantity of skim milk supplied increases and the supply of skim milk is unchangedand the supply of skim milk is unchanged.

Choose the correct statement.

. The sum of wages comma interest comma rent comma and profitThe sum of wages, interest, rent, and profit is net domestic product at factor cost.

Consider the market in which publishers operate. Suppose the wage rate of printers rises. Explain how this event will change the quantity of fiction books supplied and the supply of fiction books today.

. The supply of fiction books decreases.

An example of ceteris paribus is the statement​ ______.

. To study the effect of increased tuition of student loans ,keep the interest rate constant

Does the following statement describe actions taken in​ self-interest or actions that serve the social interest or​ both? Today's business-class traveler goes on safari in southern Africa or stays at eco dash resorts that cost $ 1 comma 000 a night but do not have electricity.

. Today's business dash class travelerToday's business-class traveler​'s action is taken inin ​self-interest but not inbut not in the social interest.

Choose the statement that is an example of a positive statement.

. U.S. sugar farmers receive higher subsidies from the government than do Australian sugar farmersU.S. sugar farmers receive higher subsidies from the government than do Australian sugar farmers.

Explain how the following headlines concern​ self-interest and the social​ interest: 1. Whole Foods​, a U.S. supermarket​, is opening in Britain​, and Starbucks is expanding in China. 2. Cigarette packs must carry a health warning.

. Whole Foods and Starbucks make decisions in​ self-interest and by serving the​ self-interest of customers they contribute to the social interest.Health warnings are in the social​ interest, but​ people's decisions about whether to heed them is made in ​ self-interest.

Explain how the following headlines concern​ self-interest and the social​ interest: 1. Whole Foods​, a U.S. supermarket​, is opening in Britain while Starbucks is expanding in Asia 2. All automobiles must be fitted with seat belts

. Whole FoodsWhole Foods and StarbucksStarbucks make decisions in their​ self-interest. Seat beltsSeat belts areare in the social​ interest, but people decide whether to wear themwear them in their​ self-interest.

Identify which of the following questions is NOT a microeconomic question.

. Why does the government spend more than it collects in taxes question mark/. How does Dell decide what price to charge for a computer question mark

. Which of the following is NOT a macroeconomic question

. Will a rise in the sales tax decrease the quantity of goods and services that people buy

If the government sets a price on dog food that is below the equilibrium​ price, ______.

. a shortage of dog food occurs

Economics is all of the following except​ _______.

. a subject that tells governments what they must do/. a subject that tells countries what goods they must trade

The relationship between two variables that are unrelated can be shown by​ ______.

. a vertical line

Item 3 is​ ______ and item 4 is​ ______.

. an intermediate goodan intermediate good​; a final good that is consumption expenditure

Which of the following is an example of​ investment?

. the purchase of new bookshelves by Barnes and Noble/. the purchase of a new espresso machine by Starbucks

A university decides to change its late night bus service between the campus and student housing from a fare dash based service to a free service.student housing from a fare-based service to a free service. With this decision​ ______.

. bus ridesbus rides remain​ scarce, but the incentive to ride the busride the bus changes

If the cost of a textbook rises by a large​ amount, you have an incentive to​ _______.

. buy fewer textbooks and share with your friends

Johnny graduates from college and his income increases by ​$30 comma 00030,000. Nothing else changes. Johnny decreases the quantity of Upper T-shirts and chocolate chip cookies that he buys and increases the quantity of classical music downloads that he buys. For Johnny​, ​_______.

. classical music downloads are normal goods

In the United States​ today, three wants that are especially pressing and are not satisfied are​ ______

. cleaner energy​, better public schools​, and fewer highway accidents

If as the price of wheat bran increases​, the quantity of bread that firms plan to sell increases​, then wheat bran and bread are​ _______.

. complements in production

An electrician who is laid off because the economy is in a recession and who gets rehired some months later when theAn electrician who is laid off because the economy is in a recession and who gets rehired some months later when the expansion begins experiencesexpansion begins experiences ​______.

. cyclical unemployment

All of the following are examples of scarcity except​ _______.

. deciding whether or not Pluto should be considered a planet

For​ consumers, hot dogs and burgers are substitutes. If the price of a hot dog decreases​, the demand for burgers will​ _______.

. decreasedecrease​, and the demand curve for burgersburgers will shift leftward

For​ consumers, T-shirts and tank tops are substitutes. If the price of a T-shirt decreases​, the demand for tank tops will​ _______.

. decreasedecrease​, and the demand curve for tank topstank tops will shift leftward

Real GDP​ ______.

. does not accurately measure household production comma underground economic activity comma or life expectancy

real GDP​ ______.

. does not accurately measure leisure time, environment quality, or political freedom and social justice

Net exports of goods and services increase when​ ______.

. exports of goods and services decrease but imports of goods and services decrease by more than exports decrease

Daniel Radcliffe Earns $50 million for Final Potter Movies​" is an example of a what question.

. false

The U.S. labor force participation rate​ ______.

. increased from 59 percent in 1960 to 67 percent in 1999/. decreased between 2000 and 2016

If the price of popcorn rises, the quantity of potato chips consumed will increase and the price of potato chips Use the laws of demand and supply to explain whether the above statement is true or false. The rise in the price of popcorn ​______ potato chips and​ ______.

. increases the demand​ for; increases the quantity of potato chips supplied

If the price of frozen yogurt rises​, the quantity of ice cream consumed will increase and the price of ice cream will fall. Use the laws of demand and supply to explain whether the above statement is true or false. The rise in the price of frozen yogurt______ ice cream and​ ______.

. increasesincreases the demand​ for; increasesincreases the quantity of ice creamice cream supplied

One of the reasons why this decrease occurred was that​ _____.

. more younger men decided to remain in full time education/. more older men decided to retire early/. more men lost their jobs and decided to withdraw from the labor force

A possible headline from the local media​ is: ​"By cutting interest rates comma the Fed avoided a recession" This headline provides an example of a​ ______.

. positive statement about a macroeconomic issue

A possible headline from the local media​ is: ​"The price of roses has rocketed​" This headline provides an example of a​ ______.

. positive statement about a microeconomic issue

The table shows the demand and supply schedules for chocolate. Upper A drought in cocoa growing areas decreases the quantity supplied by 60 bars a day at each price. At the initial equilibrium​ price, there is a shortage of chocolate. The price of a bar of chocolate​_____ and the quantity of chocolate demanded​ _____ as the market moves to its new equilibrium.

. rises​; decreases

An increase in the demand for shirts brings a​ ______ of shirts at the original​ price, and the price of a shirt will​ ______ .

. shortageshortage​; rise

the quantity of laptops demanded decreases

. ski trips are normal goods

A relationship with a maximummaximum ​_______.

. starts out sloping upward comma and then slopes downward

Suppose that the number of jobs in the fishing industry decreases but the number of jobs in the travel industry increases.

. structural unemployment increases

At the original equilibrium​ price, a​ ____ occurs. The price of a pair of running ​____, the quantity demanded​ ____, and the quantity supplied​ ____. The new equilibrium price is​ ____ a pair.

. surplus falls​; increases decreases​; ​$80.00

When you spend two hours reading, you can read 50 pages and if you spend three hours reading, you can read 70 pages To read for the extra​ hour, you give up working out at the gym for that hour The marginal benefit from reading one more hour is​ _______. The marginal benefit from reading is measured by​ _______.

. the extra 20 pages you readthe extra 20 pages you read​; the time at the gym you are willing to give up

When new and better ways of producing all goods and services are discovered or when the quantity of capital​ increases, _______.

. the production possibilities frontier shifts outward

When you spend four hours studying comma your mark on an exam is 80 percent.you spend four hours studying, your mark on an exam is 80 percent. And if you spend five hours studying comma your mark is 85 percent.you spend five hours studying, your mark is 85 percent. To study for the extra​ hour, you give up playing cards for that hour with your friends for that hour with your friends. The marginal benefit from studying one more hour is​ _______. The marginal benefit from studying is measured by​ _______.

.the 5 percent increase in your mark​; the card game you are willing to give up

The table shows the demand and supply schedules for breadbread. If the price is ​$2.102.10 a loafloaf​, the quantity supplied​ _____ the quantity demanded and​ _____ of breadbread exists.

1)is greatergreater ​than; a surplus

The United States does not allow oranges from Brazil​ (the world's largest producer of​ oranges) to enter the United States. If Brazilian oranges were sold in the United​ States, oranges and orange juice would be cheaper. Use the laws of demand and supply to explain whether the above statement is true or false. In your​ explanation, distinguish between a change in demand and a change in the quantity demanded and between a change in supply and a change in the quantity supplied.

1. The statement is true. 2. Allowing Brazil to enter the U.S. market for oranges would increase the supply of oranges​, which would lower the price and increase the quantity of oranges demanded. 3. Oranges are an input used to produce orange juice so the supply of orange juice would increase​, which would lower its price and increase the quantity of orange juice demanded.

The labor force participation rate of women increased most during the​ _______.

1970s

On a production possibilities​ frontier, 500 pounds of apples and​ 1,200 pounds of bananas can be produced while at another point on the same​ frontier, 300 pounds of apples and​ 1,300 pounds of bananas can be produced. Between these​ points, what is the opportunity cost of producing a pound of​ bananas?

2 lbs of apples

The labor force participation rate of men decreased most during the​ _______.

2000s

Real GDP in 2015 and real GDP in 2016 are measured in ------- dollars.

2015

Bob and Elizabeth each own an ice cream parlor. In an​ hour, Bob can produce 12 milkshakes or 60 ice cream sundaes and Elizabeth can produce 22 milkshakes or 132 ice cream sundaes. Bob's opportunity cost of producing 1 milkshake is ____ ice cream sundaes. Elizabeth​'s opportunity cost of producing 1 milkshake is ____ ice cream sundaes.

5;6

At the beginning of​ 2016, the broadest measure of unemployment was at approximately​ _______ of its peak.

60 percent

The equilibrium wage rate of appleapple pickers is ​_____ an hour and the equilibrium quantity of appleapple pickers employed is_____

9.00 5,000

Every​ week, Kate plays the piano for three hours​, and her grade on each French test is 9595 percent. Last​ week, after playing for three hours​, Kate considered playing for an additional hour. She decided to play for another hour and cut her study time by one​ hour, but last week her French grade was 8080 percent. What was Kate​'s opportunity cost of the fourth hour of playing the piano​?

A 1515 percentage point drop in her French grade.

Consider the business​ cycle, and then choose the statement that is correct.

A business cycle is periodic but irregular.

Read Eye on the Price of Coffee and explain how we know that the price increased in 2014 because the supply of coffee decreased and not because the demand for coffee increased. Using the demand and supply model we know the​ following: ​_____ brings an increase in price and a decrease in​ quantity, which is what happened in the market for coffee. ​_____ brings an increase in price and an increase in​ quantity, which is not what happened in the market for coffee.

A decrease in​ supply; An increase in demand

Classify each of the following items as a final good or service or an intermediate good or​ service, and identify which is a component of consumption​ expenditure, investment, or government expenditure on goods and services. A. Upper A computer purchased for a senator's officeA computer purchased for a senator's office B. Upper A haircut bought by a studentA haircut bought by a student C. Aluminum sheets bought by BoeingAluminum sheets bought by Boeing D. Upper A new house bought by Beyoncé

A is a final good that is government expenditurea final good that is government expenditure​, B is a final service that is consumption expenditurea final service that is consumption expenditure​, C is an intermediate goodan intermediate good​, and D is a final good that is investmenta final good that is investment.

Classify each of the following items as a final good or service or an intermediate good or​ service, and identify which is a component of consumption​ expenditure, investment, or government expenditure on goods and services. A. Steel sheets bought by General MotorsSteel sheets bought by General Motors B. Upper A DVD bought by a householdA DVD bought by a household C. New cars bought by Hertz comma the car rental firmNew cars bought by Hertz, the car rental firm D. Upper A computer purchased for a senator's office

A is an intermediate goodan intermediate good​, B is a final good that is consumption expenditurea final good that is consumption expenditure​, C is a final good that is investmenta final good that is investment​, and D is a final good that is government expenditurea final good that is government expenditure.`

Which of the following is a consumption good or​ service?

A pack of bubble gum because it is an item bought by an individual and used up in the current period/A movie because an individual pays to see the movie and then watches it in the current period

Which of the following is an example of a price ceiling or price cap​?

A regulation requires cable service to be provided for no more than​ $30 a month.

Which of the following statements describes the law of market forces​?

A shortage of cabbage increased the price of cabbage and a surplus of corn lowered its price.

Which of the following is a factor of​ production?

An ATM and a strawberry field because they are used to produce goods and services

Which of the following are capital​ goods?

An interstate highway and a stealth bomber because governments buy these to increase productive resources to use during future periods to produce other goods and services/An​ airplane, a garbage​ truck, and an ATM because businesses use these to produce other goods and services in the future

​______ good is used as a component of a final good. We​ ______ add the value of intermediate goods produced to the value of final goods to measure GDP.

An​ intermediate; do not

Recovery​ won't improve unemployment Despite some optimism about the seeds of​ recovery, the Congressional Budget Office​ (CBO) sees joblessness rising. The CBO sees unemployment peaking at​ 10.4% next year from an average of​ 9.3% this​ year, before it falls to​ 9.1% in 2011. ​Source: Fortune​, August​ 25, 2009 Why does unemployment continue to rise as an expansion​ begins?

As an expansion​ begins, previously marginally attached workers look for​ jobs, exceeding the number of people hired.

Aqua Springs makes the following four statements about bottled spring water. Which statement best describes the​ firm's quantity supplied in the bottled water​ market?

At a price of​ $1 gallon, we plan to sell​ 2,000 gallons per day.

Choose the statement that is correct about U.S. unemployment.

At the height of the Great​ Depression, one in four people who wanted jobs​ couldn't find them.

​_______ has a comparative advantage in milkshakes and​ _______ has an absolute advantage in both goods.

Bob​; Elizabeth

Boeing does not manufacture all the components of the Dreamliner at its own factory in the United States because​ _________.

Boeing wants to produce the Dreamliner at the least possible cost. To do so Boeing buys from the firms that have the lowest costs for delivering the components

If Boeing manufactured all the components of the Dreamliner at its own factories in the United States all of the following would occur except ​_______.

Boeing would be able to make more business decisions about the Dreamliner

​Chained-dollar real GDP is the measure of real GDP calculated by the​ _____.

Bureau of Economic Analysis

Which of the following is a positive​ statement?

Competition among cell phone providers across the borders of​ Canada, Mexico, and the United States has driven roaming rates down.

Uncertain outlook The Commerce Department reported that in December​ 2015, retail sales rose by​ 0.2, net exports​ decreased, inventories held by businesses rose by 0.1​ percent, and total sales by businesses fell by 0.6 percent. ​Source: Commerce​ Department, February 2016 Which component of GDP changed because retail sales​ increased? Which component of GDP changed because business inventories​ increased?

Consumption​ expenditure; Investment

Uncertain outlook The Commerce Department reported that in December​ 2015, retail sales rose by​ 0.2, net exports​ decreased, inventories held by businesses rose by 0.1​ percent, and total sales by businesses fell by 0.6 percent. ​Source: Commerce​ Department, February 2016 Which component of GDP changed because retail sales​ increased? Which component of GDP changed because business inventories​ increased? ​______ changed because retail sales increased.​ ______ changed because business inventories increased.

Consumption​ expenditure; Investment

If Country A allocates more resources to producing capital goods than does Country​ B, _________.

Country A will incur a larger opportunity cost of​ growth, but it will grow more quickly than Country B

Which of the following is an example of a final good or service​?

Dan bought a Toyota Camry.

Who in the following statements is a discouraged worker​?

Dan is available to work but has not looked for a job in the past eight weeks because of repeated applications but no single offer.

Who in the following statements is a ​full-time worker and who is a ​part-time worker​?

Dan works at Subway for 8 hours each day from Monday through Friday. Mary works at​ Starbucks' for 4 hours each day on weekends.

Each of the following four events occurs​ (one at a​ time) in the market for air travel. A. Airfares rise comma while train fares don't changeAirfares rise, while train fares don't change. B. The price of jet fuel fallsThe price of jet fuel falls. C. Airlines reduce the number of flights each dayAirlines reduce the number of flights each day. D. People expect airfares to increase next summerPeople expect airfares to increase next summer.

Event A changes neither the supply of nor the demand for air travel.

Now in the market for air​ travel, four additional events occurs one at a time. E. Upper A severe winter in New York induces more people to vacation in FloridaA severe winter in New York induces more people to vacation in Florida. F. With no snow in the Rockies comma fewer people travel to the ski slopesWith no snow in the Rockies, fewer people travel to the ski slopes. G. The price of train travel risesThe price of train travel rises. H. The price of a pound of air cargo fallsThe price of a pound of air cargo falls.

Event G increasesincreases the demand for air travel.

Which of the following events in the market for Caribbean cruises illustrates the law of​ demand? 1. The price of a Caribbean cruise rises. 2. Caribbean cruises become more popular. 3. The price of a cruise to Asia falls. 4. Celebrity Cruises launches its new​ "students only" Caribbean cruises. 5. Cruise companies increase the number of leading rock artists for their onboard entertainment.

Event​ #1 only

Factories that produce smartphones can also produce smart watches. Which of the following events in the market for smartphones illustrates the law of​ supply? 1. The price of a smart watch falls. 2. A new robot technology lowers the cost of producing smartphones. 3. The price of a smartphone falls. 4. The price of a smartphone is expected to rise next year. 5. The wage rate paid to smartphone factory workers increases.

Event​ #3 only

Examples of capital include all of the following except​ _______.

Google stock

Which of the following statements describes a change in the quantity supplied and which describes a change in​ supply? I Farms are selling less chicken because the price of turkey has increased. II Farms are selling less chicken because the price of chicken has fallen. III Farms are selling more chicken because the price of chicken has risen. IV Farms are selling more chicken because the cost of chicken feed has fallen.

I and IV are changes in supply and II and III are changes in the quantity supplied

Which of the following statements about the market for chicken describes a change in the quantity demanded and which describes a change in demand​? I People are buying less chicken because the price of beef has fallen. II People are buying less chicken because the price of chicken has increased. III People are buying more chicken because the price of chicken has fallen. IV The cost of chicken feed has increased.

I is a change in demand and II and III are changes in the quantity demanded.

Which of the following statements is about a normal good​, which is about an inferior good​, which is about​ both, and which is about​ neither? I With incomes falling in the​ recession, people are buying more chicken. II People are buying more beef now that incomes have increased. III People are buying more chicken because the price of chicken has fallen. IV With higher incomes people are switching from chicken to beef.

I is​ inferior, II is​ normal, III is​ neither, and IV is both

Bill Gates has donated billions of dollars through the Bill and Melinda Gates Foundation to support​ universities, cancer​ research, a​ children's hospital, and the Seattle​ Symphony, etc. Choose the correct statement.

If Bill​ Gates' marginal benefit from a donation exceeds its marginal​ cost, his decision to make the donation is rational.

The table shows the demand and supply schedules for mouse padsmouse pads. The equilibrium price of a mouse padmouse pad is ​$2.252.25 and the equilibrium quantity is 168168 padspads a week.

If the price of a mouse padmouse pad is ​$2.002.00​, there is a shortage of mouse padsmouse pads. The price of a padpad rises ​, the quantity demanded decreases ​, and the quantity supplied increases . The market moves to an equilibrium.

Which of the following statements by Aqua Springs demonstrates that the​ firm's selling plans obey the law of supply​?

If the price of bottled water falls and all the other influences on our selling plans remain the​ same, we will cut back on production and lay off some workers

Consider how incomes are distributed within economies and across the world. Choose the statement that is correct.

Income inequality across the entire world has decreased during the past 20​ years, and extreme poverty has declined.

Indicate all the items in the following list that are not consumption goods and services and explain why. Item a​: A hamburger Item b​: A beach Item c​: A tennis racquet Item d​: An interstate highway Item e​: A university Item f​: A stealth bomber

Items b​, d​, e​, and f because they are not items that individuals and governments buy and use up in the current period.

Which of the following countries is facing a recession​?

Japan's real GDP of 3.8 percent in the first quarter decreased by 0.3 and 0.4 percent respectively in the second and third quarters of 2012.

Which of the following events in the market for smartphones illustrates the law of​ demand? 1. The price of a smartphone falls. 2. Producers announce that smartphone prices will fall next month. 3. The price of a call made from a smartphone falls. 4. The price of a call made from a​ land-line phone increases. 5.An increase in memory makes smartphones more popular.

Only Event​ #1

Which of the following statements illustrates structural unemployment​?

Outsourcing resulted in many job losses in the mid 2000s.

Which of the following is not a key idea in the economic way of​ thinking?

Poor people are discriminated against and should be treated more fairly.

Which of the following is an example of consumption expenditure​?

Rachel buying a TV.

Which of the following statements illustrates frictional unemployment​?

Robin is quitting his current job to find another that has better prospects.

Which of the following is an example of consumption goods and services​?

Ron bought a Nissan Altima last summer.

Which of the following is an example of an intermediate good or service​?

Samsung buys compressors for manufacturing refrigerators.

Classify the following newspaper headlines as positive or normative statements Statement 1 Nuclear energy costs less than oil.costs less than oil. nothing Statement 2 The minimum wage should be increased.should be increased.

Statement 1 is a positive statement because it can be tested.it can be tested. Statement 2 is a normative statement because it can't be tested.

Which of the following headlines deal with what​, how​, and for whom​ questions? A. Major league baseball's turf keepers earn about $85,000 a year, umpires earn about $350,000, and players make millions B. Smoking is on the decline C. Women earn more than men in some jobs

Statement A deals with for whomfor whom​, B deals with whatwhat​, and C deals with for whomfor whom.

Which of the following headlines deal with what​, how​, and for whom​ questions? A. e-Textbooks displace traditional textbooks B. Snowboard sales beat skis C. Airports install more self dash check in machines

Statement A deals with whatwhat​, B deals with whatwhat​, and C deals with howhow.

The following news items are either normative or positive statements. 1. Pets are killed for food in Zimbabwe 2. Higher income taxes will lead to a decrease in work hours 3. The United States should spend more on the environment and less on space exploration. 4. Flat screen is better than than traditional television.

Statements # 3 and # 4 are normative.

Here are four statements about the types of unemployment. Which of these statements is​ correct? 1. An unemployed graduate searching for a first jobAn unemployed graduate searching for a first job is an example of frictionalfrictional unemployment. This type of unemployment arises from normal laborarises from normal labor turnoverturnover. 2. An unemployed textile worker in South Carolina who loses her job because of competition from ChinaAn unemployed textile worker in South Carolina who loses her job because of competition from China is an example of structuralstructural unemployment. This type of unemployment arises when changes in technology or international competition change the skillsarises when changes in technology or international competition change the skills needed to perform jobsneeded to perform jobs. 3. An unemployed textile worker in South Carolina who loses her job because of competition from ChinaAn unemployed textile worker in South Carolina who loses her job because of competition from China is an example of cyclicalcyclical unemployment. This type of unemployment arises inin recessionsrecessions. 4. An autoworker who loses his job because of a slowdown in the economyAn autoworker who loses his job because of a slowdown in the economy is an example of structuralstructural unemployment. This type of unemployment arises inin recessionsrecessions.

Statements 1 and 2 are​ true; the others are false

Here are four statements about the types of unemployment. Which of these statements is​ correct? 1. An autoworker who loses his job because of a slowdown in the economyAn autoworker who loses his job because of a slowdown in the economy is an example of cyclicalcyclical unemployment. This type of unemployment increases in recessions andincreases in recessions and decreases in expansiondecreases in expansion. 2. An unemployed graduate searching for a first jobAn unemployed graduate searching for a first job is an example of frictionalfrictional unemployment. This type of unemployment arises from normal laborarises from normal labor turnoverturnover. 3. An unemployed graduate searching for a first jobAn unemployed graduate searching for a first job is an example of structuralstructural unemployment. This type of unemployment arises when changes in technology or internationalwhen changes in technology or international competition change the skills needed to perform jobscompetition change the skills needed to perform jobs. 4. An unemployed textile worker in South Carolina who loses her job because of competition from ChinaAn unemployed textile worker in South Carolina who loses her job because of competition from China is an example of frictionalfrictional unemployment. This type of unemployment arises when changes in technology or internationalwhen changes in technology or international competition change the skills needed to perform jobscompetition change the skills needed to perform jobs.

Statements 1 and 2 are​ true; the others are false.

Choose the correct statement.

Statements​ A, B, and C are correct A. Gross domestic product​ (income approach)​ + statistical discrepancy​ = Gross domestic product​ (expenditure approach). B. Statistical discrepancy​ = gross domestic product​ (expenditure ​approach)minus−gross domestic product​ (income approach). C. Gross domestic product​ (expenditure ​approach)minus−statistical discrepancy​ = Gross domestic product​ (income approach)..

Are either or both of these newspaper headlines positive or normative​? 1. The minimum wage should be increased.should be increased. nothing 2. Gasoline engines pollute urban air.pollute urban air.

Statement​ #1 is a normative statementnormative statement because it can't be tested.it can't be tested. Statement​ #2 is a positive statementpositive statement because it can be tested.

Are either or both of these newspaper headlines positive or normative​? 1. We ought to cut back on our use of coal.on our use of coal. nothing 2. The Butterfly House must be kept near 80 degrees or the butterflies won't fly..

Statement​ #1 is a normative statementnormative statement because it can't be tested.it can't be tested. Statement​ #2 is a positive statementpositive statement because it can be tested.

Are either or both of these newspaper headlines positive or normative​? 1. Hydrogen is a cleaner fuel than gasoline.is a cleaner fuel than gasoline. nothing 2. Gasoline powered vehicle should be replaced with a cleaner technology.should be replaced with a cleaner technology. nothing

Statement​ #1 is a positive statementbecause it can be tested.it can be tested. Statement​ #2 is a normative statement because it can't be tested.

Consider unemployment in the industrialized world. Choose the correct statement

The Eurozone has a higher average unemployment rate than the United States.

Which of the following is an example of government expenditure on goods and services​?

The White House buying internet services.

Consumers eating higher food costs With higher gasoline​ prices, the demand for ethanol increased. Because ethanol is made from​ corn, the price of corn​ rose, which in turn increased the price of​ bread, chicken,​ cheese, and the​ fast-foods that use cheese. As people in China and India become​ richer, they are eating more beef and chicken and less rice and tofulong dash—another source of higher food prices in the United States. ​Source: USA TODAY​, September​ 6, 2007 Explain why food prices in the United States will rise as people in India and China become richer and can afford to buy beef and chicken.

The demand for food produced in the United States​ increases, the demand curve shifts​ rightward, and the price of food rises.

Which of the following is an example of a price floor​?

The government guarantees that potato farmers will receive at least​ $50 a ton.

When Sally runs for four hours, and her grade on the economics test is 8080 percent. Last​ week, after running for four hours​, Sally considered running for a fifth hour. She decided to run for one additional hour and cut her study time by one​ hour, but her economics grade fell to 6060 percent. What can you conclude about Sally​'s marginal benefit and marginal cost of the fourth hour of running​?

The marginal benefit from the fourth hour of running exceeded its marginal cost.

Which of the following statements by Tom demonstrates that his buying plans obey the law of demand​?

The only thing​ that's changed is the price of​ textbooks: they've become more expensive and now​ I'm not buying as many.

In the market for​ jeans, which of the following events increases the demand for a pair of​ jeans?

The price of a denim skirt​ (a substitute for​ jeans) rises.

In the market for skim milk commaIn the market for skim milk, the price ofthe price of a carton of skim milka carton of skim milk risesrises. Explain the effect of this event on the quantity of skim milkskim milk supplied and on the supply of skim milkskim milk.

The quantity of skim milk supplied increases and the supply of skim milk is unchanged

Consider what is included in the measurement of​ GDP, and then choose the correct statement.

The underground​ economy, which is not included in GDP is the part of the economy that is hidden from the view of the government.

Consider U.S. unemployment and choose the correct statement.

There is always someone without a job who is searching for​ one, so there is always some unemployment.

What is a characteristic of an economy at full​ employment?

There is no cyclical unemployment/The unemployment rate equals the natural unemployment rate/. All unemployment is frictional and structural

U.S. economy ended 2015 with slow growth GDP increased at an annual rate of 0.7 percent in the final quarter of 2015. Government expenditure grew at the same 0.7 percent​ rate, but consumption expenditure grew at a rate of 2.2 percent. Investment and net exports shrank. ​Source: BEA News​ Release, January​ 29, 2016 Use the figure to indicte the flows in which the items in the news clip occur. How can GDP increase by 0.7 percent if consumption expenditure increased at a 2.2 percent​ rate?

U is government expenditure on goods and services and J is investment

The graph shows the unemployment rate in the United States from 1960 to 2016. The average unemployment rate was lowest during the 1960s and it resulted from​ ______.

Vietnam war defence spending and consumer spending encouraged by expanded social programs

GDP in the United States increased between 2016 and 2017. Which of the following could NOT account for this​ increase?

We paid lower prices for our goods and services and production remained constant.

Choose the correct statement.

What we do in pursuit of our self dash interest can further the social/. Choices that are the best for society as a whole are said to be in the social interest. /. Social interest and self dash interest can come into conflict.

​______ is an example of U.S. consumption expenditure.

Your purchase of a flight on American Airlines

​______ is an example of U.S. consumption expenditure.

Your purchase of a model car kit

An example of a consumption good and service is​ _______.

a chocolate chip cookie

The average unemployment rate was highest during the 1980s and it resulted from​ ______.

a deep recession

The NBER Committee​ _______.

based its decision on peaks in the data on real personal​ income, real​ manufacturing, wholesale and retail​ sales, industrial​ production, and​ employment, which all peaked between November 2007 and June 2008

Classify each of the following items as a final good or an intermediate​ good, and classify the expenditure on each final good as consumption expenditure or​ investment: Item 1. New airplanes bought by United AirlinesNew airplanes bought by United Airlines Item 2. Upper A new bridge across the creek in the Augusta National Golf ClubA new bridge across the creek in the Augusta National Golf Club Item 3. Mufflers bought by Ford Motor CoMufflers bought by Ford Motor Co Item 4. Banking services bought by a studentBanking services bought by a student Item 1 is​ ______ and item 2 is​ ______.

a final good that is investmenta final good that is investment​; a final good that is investment

Item 3 is​ ______ and item 4 is​ ______.

a final good that is investmenta final good that is investment​; a final good that is investment

Which of the following is included in the measure of U.S.​ GDP?

a pizza produced and sold in the United States

An example of a capital good is​ ____________.

a satellite communication system

When using the income approach to measure GDP at market​ prices, in addition to summing all factor incomes it is necessary to​ ______.

add indirect taxes less subsidies to convert aggregate income from factor cost to market prices

The expenditure approach to measuring U.S. GDP equals​ ______.

all expenditure on final goods and services produced in the United States in a given time period

Classify each of the following items as a final good or an intermediate​ good, and classify the expenditure on each final good as consumption expenditure or​ investment: Item 1. Cardboard boxes bought by Amazon.comCardboard boxes bought by Amazon.com Item 2. Banking services bought by a studentBanking services bought by a student Item 3. Upper A new apartment buildingA new apartment building Item 4. Upper A new bridge across the creek in the Augusta National Golf ClubA new bridge across the creek in the Augusta National Golf Club Item 1 is​ ______ and item 2 is​ ______.

an intermediate goodan intermediate good​; a final good that is consumption expenditure

An economy produces only fun and food. The table shows the prices and the quantities of fun and food produced in 2016 and 2017. The base year is 2016. Potential GDP in 2016 is​ $270 and it grew by 1 percent in 2017. The economy is in​ ______ because​ ______ between 2016 and 2017.

an​ expansion; real GDP is increasing

Capital goods​ _______.

are goods that businesses and governments buy to increase productive resources to use during future periods to produce other goods and services

Consumption goods and services​ _______.

are items that individuals and governments buy and use up in the current period

The natural unemployment rate is the unemployment rate when the economy is​ _____.

at full employment

The people of Leisure Island have 50 hours of labor a day that can be used to produce entertainment and good food. The table shows the maximum quantity of either entertainment or good food that Leisure Island can produce with different quantities of labor.

attainable and inefficient

Cyclical unemployment is the fluctuating unemployment over the business cycle that increases during​ _____ and decreases during​ _____.

a​ recession; an expansion

The percentage of the employed people who have​ part-time jobs increases in​ _______ because​ _______.

a​ recession; firms cut work hours

If Ezra has an absolute advantage in growing tomatoes and lettuce​, he will​ _______.

be more productive than di

----has a comparative advantage in the production of milkshakes.

ben

The standard of living can be easily compared​ ______.

between China and Russia or between Canada and the United​ States, because household​ production, the underground​ economy, leisure​ hours, and the environment are similar in each pair

Suppose that the United States and Cuba decide to open up trade. If each country specializes in the good in which it has a comparative​ advantage, ______ will gain from that trade because​ ______.

both​ countries; consumption possibilities in both Cuba and the United States will lie outside their PPFs

If the cost of a textbook falls by a large​ amount, you have an incentive to​ _______.

buy more textbooks

Net taxes are taxes paid minus​ _____.

cash benefits received from governments

At the beginning of​ 2016, the unemployment rate was​ _______.

close to the natural unemployment rate and the economy was close to full employment

When making these​ donations, Bill Gates​ ______.

compares his marginal benefit from making a donation and the marginal cost

A substitute is a good that is​ _____ another​ good, and a complement is a good that is​ _____ another good.

consumed in place​ of; consumed together with

Uncertain outlook The Commerce Department reported that in December​ 2015, retail sales rose by 0.2​ percent, net exports​ decreased, inventories held by businesses rose by 0.1​ percent, and total sales by businesses fell by 0.6 percent. ​Source: Commerce​ Department, February 2016 Explain the effect of the fall in net exports on GDP.

decreases GDP

An increase in the minimum wage​ ______.

decreases employment and increases unemployment if it is set above the equilibrium wage rate

Suppose leather jackets is a complement in production of beef. An increase in the price of leather jackets will​ ______ the equilibrium price of beef and​ ______ the equilibrium quantity of beef.

decrease​; increase

Uncertain outlook The Commerce Department reported that in December​ 2015, retail sales rose by 0.2​ percent, net exports​ decreased, inventories held by businesses rose by 0.1​ percent, and total sales by businesses fell by 0.6 percent. ​Source: Commerce​ Department, February 2016 Does the statement that total sales by businesses fell by 0.6 percent mean that GDP decreased by 0.6​ percent? Explain your answer. The statement that total sales by businesses fell by 0.6 percent means that GDP​ ______ because​ ______.

did not change by 0.6​ percent; GDP measures production of all final goods and services and​ "total sales by​ businesses" includes final and intermediate goods and services

National income less retained profits plus transfer payments less personal income taxes equals​ ______.

disposable personal income

With production of 100100 units of entertainment and 5050 units of good​ food, the people of Leisure Island​ _______.

do not face a tradeoff

The standard of living cannot be easily compared in​ ______ and​ ______ because​ ______.

either China or​ Russia; either Canada or the United​ States; in each pair household​ production, the underground​ economy, leisure​ hours, and the environment are different

The labor force is the number of people​ _______.

employed plus the number of people unemployed

Facebook is the reason for the productivity​ slowdown, no, really ​Facebook's WhatsApp is free and it sells no advertising. So​ WhatsApp's value of production in GDP is zero. Assume that​ WhatsApp's services are produced by 300 people all of whom earn​ $100,000 a year. By this​ measure, WhatsApp's value of production in GDP is​ $30 million. ​Source: Forbes​, February​ 13, 2016 What are the two approaches to measuring GDP described in the news​ clip? Why is one of these measures of the contribution of WhatsApp to GDP​ wrong?

expenditure approach and the income approach

An economy decides to double the number of college graduates this year. The economy will​ ______.

experience economic growth next year because the increase in human capital will shift the PPF outward next year but at a cost of less consumption this year.

The items that firms in the United States produce and sell to the rest of the world are​ ______. The items that​ households, firms, and governments in the United States buy from the rest of the world are​ ______.

exports of goods and​ services; imports of goods and services

The statement​ "If the price of frozen yogurt rises​, the quantity of ice cream consumed will increase and the price of ice cream will fall​" is

false

The statement​ "If the price of popcornpopcorn risesrises​, the quantity of potato chipspotato chips consumed will increaseincrease and the price of potato chipspotato chips will fallfall​" is

false

​"New York Transit Workers Strike for Better Pay​" is an example of a what question.

false

​"Robot Can Operate Vacuum Cleaner​" is an example of a for whom question.

false

Gross domestic product is the market value of all the​ ______ in a given time period.

final goods and services produced by all firms located in the United States

U.S. gross domestic product is the market value of all the​ ______ produced​ ______ in a given time period.

final goods and​ services; within the United States

The news headline ​"American Airlines pilot talks fail to produce deals with the​ ______​ question(s) of economics.

for whom

Unemployment falls to 4.9​ percent, lowest in 8 years U.S. unemployment of 4.9 percent is full employment. Only​ 151,000 jobs were created in​ January, down from​ 262,000 in December. With falling oil​ prices, 7,000 energy jobs were lost in January but​ 29,000 manufacturing jobs were added. ​ Source: CNN​ Money, February​ 5, 2016 Using the information provided in the news​ clip, which types of unemployment were present in the U.S. economy in January​ 2016? The unemployment that is present in the U.S. economy in January in 2016 is​ _______.

frictional and structural because the economy is at full employment

Which of the following are included in the income approach to measuring​ GDP?

indirect taxes less subsidies; rent​; interest

An increase in inventories of durable goods increases​ _______.

investment

The table shows the demand and supply schedules for chocolate bars. If the price is ​$2.30 a chocolate bar​, the quantity supplied​ _____ the quantity demanded and​ _____ of chocolate bars exists.The table shows the demand and supply schedules for chocolate bars. If the price is ​$2.30 a chocolate bar​, the quantity supplied​ _____ the quantity demanded and​ _____ of chocolate bars exists.

is greater ​than; a surplus

The table shows the demand and supply schedules for bread. If the price is ​$2.752.75 a loaf​, the quantity supplied​ _____ the quantity demanded and​ _____ of breadbread exists.

is greatergreater ​than; a surplus

A discouraged worker​ ______.

is a marginally attached worker who has not made specific efforts to find a job within the previous four weeks because previous unsuccessful attempts were discouraging

Hundreds line up for 5 p.m. Eminem ticket giveaway Hundreds of Eminem fans lined up today for a chance to get a free ticket to the Detroit​ rapper's secret concert. Despite the fact that tickets would not be released before 5​ p.m., people lined up all day. ​Source: Detroit Free Press​, May​ 18, 2009 Eminem announced on MySpace that he planned to release his new album Relapselong dash—first album in 5 yearslong dash—on the same day as his free concert in DetroitRead the news​ clip, then answer the following question. ​Eminem's decision to give a free concert​ _______.

is a rational choice if the marginal benefit he receives from the concert is greater than its marginal cost

When the unemployment rate​ ______ the natural unemployment​ rate, real GDP​ ______ potential GDP.

is less than​; is greater than/equals; equals

When the output gap is​ positive, the unemployment rate​ ______ the natural unemployment rate. When the output gap is​ negative, the unemployment rate​ ______ the natural unemployment rate.

is less​ than; is greater than

Other things remaining the​ same, the natural unemployment rate​ _______.

is not expected to change because the events described are normal labor turnover

The natural unemployment rate ​ ______.

is teh unemployment rate at full employemnt

The following statements about the business cycle are correct except ​______.

it is a regular predictable cycle in real GDP around potential GDP

Consider the functional distribution of income. The largest percentage of income paid to the factors of production is paid to​ _________.

labor

Which of the following events in the market for timber beams illustrates the law of​ supply? 1. The wage rate of sawmill workers rises. 2. The price of sawdust rises. 3. The price of a timber beam rises. 4. The price of a timber beam is expected to rise next year. 5. Environmentalists convince Congress to introduce a new law that reduces the amount of forest that can be cut for timber. 6. A new technology lowers the cost of producing timber beams.

only event 3

The law of demand states that​ ______, the​ ______ the price of a​ good, the smaller is the quantity​ demanded; and the​ ______ the price of a​ good, the greater is the quantity demanded.

other things remaining the​ same; higher; lower

Total expenditure in the United States is equal to consumption expenditure plus investment​ ______.

plus government expenditure on goods and services plus net exports

The output gap is real GDP minus​ _____ expressed as a percentage of​ _____.

potential​ GDP; potential GDP

The price controls described in the news clip are​ ______

price ceilings

A substitute in production is a good that is​ _____ another​ good, and a complement in production is a good that is​ _____ another good.

produced in place​ of; produced together with

Which of the following are included in the income approach to measuring​ GDP?

profitprofit​; wageswages​; interest

The main taxes of the federal government do not include​ _______.

property taxes

A demand schedule is a list of the​ ______ at each different price when all other influences on buying plans remain the same. A demand curve is a graph of​ _____ .

quantities​ demanded; a demand schedule

A supply schedule is a list of the​ ______ at each different price when all other influences on selling plans remain the same. A supply curve is a graph of​ _____ .

quantities​ supplied; a supply schedule

Read the news​ clip, then answer the following question. Heavy rain​ _______.Rain delays to U.S. planting lift corn and soybean prices Heavy rain has delayed the planting of corn and soybeans.

raises the price of corn and soybeans because the supply of corn and soybeans decreases

The unemployment rate is​ ______.

the percentage of the people in the labor force who are unemployed

The labor force participation rate is​ ______.

the percentage of the​ working-age population in the labor force

As the market moves to​ equilibrium, _______.

the price of a loafloaf fallsfalls​, the quantity demanded increasesincreases​, and the quantity supplied decreases

The supply curve of timber beams shifts leftward when​ ______.

the price of a timber beam is expected to rise next year or a new law reduces the amount of forest that can be cut for timber

The supply curve of timber beams shifts rightward when​ ______.

the price of sawdust rises or new technology lowers the cost of producing timber beams (arrow)

In market​ equilibrium, at the equilibrium price and equilibrium quantity​, ​_____ .

the quantity demanded equals the quantity supplied and equals the quantity bought and sold

If the price of a laptop rises​, with all other influences on buying plans remaining the​ same, _______.

the quantity of laptopslaptops demanded decreases

Demand is​ _____, when all other influences on buying plans remain the same.

the relationship between the quantity demanded of a good and the price of the good

Supply is​ _____, when all other influences on buying plans remain the same.

the relationship between the quantity supplied of a good and the price of the good

It is possible for GDP to increase by only 0.7 percent when consumption expenditure grew at a 2.2 percent rate because​ _______.

the sum of investment and net exports shrank

​Summer's here. So are higher gas prices The price of gasoline increased 15 percent in the past three​ weeks, mainly because of refinery shutdowns in the United States. As motorists increase their driving in the coming​ months, the price is predicted to rise further. CNN Money​, May​ 21, 2009 Explain why the price rose in the past three weeks and why it is expected to rise in the coming months.When refineries shut​ down, ______ and the price of a gallon of gasoline​ ____.

the supply of gasoline​ decreases; rises

Full employment is defined as a situation in which​ _______.

the unemployment rate equals the natural unemployment rate

Potential GDP is the value of real GDP when​ _______.

the unemployment rate equals the natural unemployment rate

The​ "law of​ demand" refers to the fact​ that, other things remaining the​ same, when the price of a good​ rises,

there is a movement up along the demand curve to a smaller quantity demanded.

Economists use the ceteris paribus assumption​ _______.

to isolate the factor of interest and investigate its effects in the clearest possible way

Bumper Harvest in the Napa Valley​" is an example of a what question.

true

When the government introduces a minimum wage above the current market wage​ rate, _______.

unemployment increases

If the BLS included all marginally attached workers as being​ unemployed, the​ _______ would be​ _______.

unemployment​ rate; higher

The trend in the labor force participation rate of all​ working-age people is​ _______.

upward until​ 2000, and then downward

Choose the best answer to the following multiple choice questions. A nation will experience economic growth if it does each of the following things except​ ______.

use all its resources to produce consumption goods

You buy a pair of eye glasses The opportunity cost of the pair of eye glasses is best defined as the​ _______.

value of the​ highest-valued alternative given up to buy the pair of eye glasses

You buy a textbook. The opportunity cost of the textbook is best defined as the​ _______.

value of the​ highest-valued alternative given up to buy the textbook

The BLS counts Jody as being unemployed if she​ _______.

wants a job and is willing to take a job but after searching last week cannot find a job

Hundreds of Eminem fans lined up today for a chance to get a free ticket to the Detroit​ rapper's secret concert. Despite the fact that tickets would not be released before 5​ p.m., people lined up all day. ​Source: Detroit Free Press​, May​ 18, 2009 Eminem announced on MySpace that he planned to release his new album Relapselong dash—first album in 5 yearslong dash—on the same day as his free concert in Detroit.Read the news​ clip, then answer the following question. For people who scored​ tickets, the concert​ ______ free because​ ______.

was​ not; the time they spent lining up for tickets could have been used doing something else

The news headline ​"Space travel only for rich and fitSpace travel only for rich and fit​" deals with the​ ______​ question(s) of economics.

what and for whom

Economists measure the benefit you get from something by​ _______.

what you are willing to give up to get it

ternational Air Transport Association reported that passenger numbers fell by 11 percent last month. What will be the impact of swine​ flu? Recovery of passenger numbers depends on a rise in consumer confidence and a return to increased consumer spending. In response to the fall in passenger​ numbers, airlines cut capacity.Read the news​ clip, then answer the following questions. When people are concerned about coming into contact with swine​ flu, the demand for air travel​ ______. When consumer confidence and consumer spending​ increase, the demand for air travel​ ______. When airlines cut​ capacity, the demand for air travel​ ______.

​decreases; increases; does not change

Based on this​ information, differences in real GDP per person​ ______ correctly rank the standard of living in these countries because​ ______.

​do; when other factors that influence the standard of living are similar the differences in real GDP per person are​ small, but when these other factors are not​ similar, the differences are huge

A marginally attached worker is a person who​ _______.

​doesn't work, is available and willing to​ work, but​ hasn't looked for a job recently

Marla is an associate at JCPenney who wants to work 40 hours week but works 25 hours a week because sales at JC Penney are slow. Marla works part time for​ _______ reasons. Joe is a server at Olive Garden who wants to work 40 hours a week but works 15 hours a week because the number of patrons at Olive Garden has decreased. Joe works part time for​ _______ reasons.

​economic; economic

When the unemployment​ rate_______ the natural unemployment​ rate, real GDP is​ _______ potential GDP and the output gap is​ _______.

​exceeds; below; negative

Net exports of goods and services is the value of​ _____ of goods and services​ _____ the value of​ _____ of goods and services.

​exports; minus; imports

In 2014 and​ 2015, the unemployment rate was​ _______ and the output gap was​ _______.

​falling; gradually shrinking

​"As more people buy fuel dash efficient hybrid cars people buy fuel-efficient hybrid cars​, the demand for gasoline will decrease and the price of gasoline will fall. The fall in the price of gasoline will decrease the supply of gasoline​." This statement is​ ______ because​ ______.

​false; as the price of gasoline falls​, the supply of gasoline does not decrease

​"As more people buy gas dash guzzling carsmore people buy gas-guzzling cars​, the demand for gasolinegasoline will increaseincrease and the price of gasolinegasoline will riserise. The riserise in the price of gasolinegasoline will increaseincrease the supply of gasolinegasoline​." This statement is​ ______ because​ ______.

​false; as the price of gasolinegasoline risesrises​, the supply of gasolinegasoline does not increase

When the unemployment rate is​ ______ than the natural unemployment​ rate, cyclical unemployment is​ _______.

​less; negative

Real GDP is the value of the​ _____ goods and services produced in a given year expressed in terms of the prices in​ _____ year. Nominal GDP is the value of the​ _____ goods and services produced in a given year expressed in terms of the prices of ​ _____ year.

​final; a​ base; ​final; that same

Gross domestic product ​(GDP​) is the market value of all the​ _____ goods and services produced​ _____ a country in a given time period.

​final; within

A circular flow model shows the interrelationship between the​ ____ markets and the​ ____ markets.

​goods; factor

Imports of goods and services are items that​ _____ in the United States​ _____ the rest of the world.

​households, firms, and​ governments; buy from

When a firm decides to use skilled professionals to produce its​ output, it is answering the​ ______ question. When a firm decides to produce SUVs rather than compact cars​, it is answering the​ ______ question. Who gets the goods and services that are produced answers the​ ______ question.

​how; what; for whom

​Below-trend real GDP growth​ _______ the unemployment rate and​ _______.

​increases; cyclical unemployment increases Your answer is correct.

Bill​ Gates' decision about his donations​ ______ made on the margin because​ ______.

​is; he considers the benefit and cost of donating one additional dollar

Consider the incomes paid to the factors of production. Wages are paid to​ ____ and interest is paid to​ ____

​labor; capital

Potential GDP is the value of real GDP when all the​ economy's factors of production​ - _____,​ _____, _____, and​ _____ - are fully​ _____.

​labor; capital;​ land; entrepreneurial​ ability; employed

Which of the following correctly lists the categories of factors of​ production?

​land, labor,​ capital, and entrepreneurship

A minimum wage law is a government regulation that makes hiring labor services for​ _____ than a specified wage​ _____.

​less; illegal

The price of a loafloafof breadbread ​_____ and the quantity of breadbread demanded​ _____ as the market moves to its new equilibrium.

​rises ; decreases

When floods wiped out the banana crop in Central​ America, the equilibrium price of bananas​ ______ and the equilibrium quantity of bananas​ ______.

​rose; decreased

At the original equilibrium​ price, a​ ____ occurs. The price of a mouse padmouse pad ​____, the quantity demanded​ ____, and the quantity supplied​ ____. The new equilibrium price is​ ____ a padpad.

​shartage ; rises; decreases​; increase; ​$2.50

A rent ceiling creates a​ ______ of housing if it​ ______ the equilibrium rent.

​shortage; is less thanIn the market for​ jeans, which of the following events increases the demand for a pair of​ jeans?

The markets of wheat and rice influence each other because wheat and rice​ are______.

​substitutes, so a higher price of rice will increase the demand for wheat

A decrease in the demand for chocolate with no change in the supply of chocolate will create a​ ______ of chocolate at​ today's price, but gradually the price will​ ______.

​surplus; fall

Capital consists of​ _______.

​tools, instruments,​ machines, buildings, and other items that have been produced in the past and that businesses now use to produce goods and services

The Great Depression was a period of high​ _____, low​ _____, and extreme economic hardship that lasted from​ _____ to​ _____.

​unemployment; incomes;​ 1929; 1939

One of the big questions in economics​ is: What determines​ ______ goods and services are​ produced?

​what, how, and for whom