ECON Ch. 6

Suppose an apple pie sells at a grocery store for $5. Suppose that the grocery store purchased it from a baking company for $4. Suppose the baking company paid $2 for ingredients, $1 for labor, and made $1 in profit. What is the GDP contribution of the pie?

$5

Which of the following individuals would NOT be considered a part of the Labor Force?

A 15 year old who babysits for a neighbor.

Which of the following describes the economy of Angola?

An economy that has discovered a vast resource base, including oil, diamonds, and uranium, yet wealth is not equally distributed with evident government corruption. Most likely considered a developing country

Which of the following represents the concept of opportunity cost

Angola pursues a program of converting forest land into banana plantations.

Which of the following explains why the economy of Angola struggled from the mid-1970's to early 2000's?

Civil war

Which of the following explains recent trends in the development of Angola's economy?

Desire for increased diversification away from oil towards a variety of agricultural products.

Countries with high levels of health care, stable political structures, and strong economies are known as:

Developed countries

Venezuela is experiencing hyperinflation because its government has relied exclusively on using revenues from its copper resources in order to finance social programs to feed its impoverished citizens.

False

Which of the following is not one of the issues with using Real GDP?

It adjusts for inflation

What point identifies the end of an expansion in the business cycle?

Peak

Which of the following would be considered a "final good" in the calculation of this year's GDP for a country?

Purchase of cereal yesterday for breakfast this morning.

Which of the following best describes U.S. labor productivity?

Rapid increase in late 1960's and moderate increase in 1990's, but lower levels of productivity gains in recent years.

Of the following countries, which countries would be classified as "developing"?

South Sudan, located in Africa

Price levels in a country could be rising or falling depending on the amount of goods and services supplied, in addition to changes in the quantity of money in circulation

True

If the inflation rate turns out to be greater than was is expected to be, the clear winners are

borrowers

When price levels are falling, this is called:

deflation

A student has just completed a business degree and is looking for her first job. While she is looking, she would be classified as:

frictionally unemployed

One subject for the study of macroeconomics is

inflation

A key characteristic of emerging markets is they:

tend to possess increasing industrialization, relying heavily on industrial manufacturing.

Which U.S. population group is largely responsible for the increase in the labor force participation rate during the period from 1950 to 2000?

women