Econ Ch 9-12 Study Guide

Based on the following statistics, how much is consumption?

$6.49 trillion

Based on the following statistics, how much are net exports?

-$0.575 trillion

technological advancement is NOT represented by which of the following?

the adoption of an existing technology by new firms

the government passes a new investment tax credit initiative. which input in the production function changes, and what is the effect on economic growth in the country?

the capital stock increases, and economic growth is positivtely affected

the table shows statisitics for three canadian cities at several different points in time. what was the number of unemployed people (in thousands) in Toronto in january 2019?

234.2

Consider the following graphs, which are discussed in the textbook. Focus on the graph that looks at the relationship between GDP per person and infant deaths per 1,000 live births. What can explain this relationship?

As real GDP per person rises, maternal and fetal health increase due to better health care, education, sanitation, and nutrition

refer to the table below that shows data for panama. what was panama's real GDP per person in the year 2002?

$5,435.17

in may 2019, there were appeoximately 68,980,000 people in japan's labor force. about 1,650,000 people were unemployed. What was the unemployment rate?

2.4%

in may 2019, texas reported acivilan labor force of 14,012,711. the number of employed people was 13,516,387. what was the unemployment rate?

3.5%

if the frictional rate of unemployment is 1.45%, the structural rate of unemployement is 2.3% and the total unemployment rate is 6%, then we can conclude that

the equilibrium rate of unemployment is 3.75%

which of the following encourages the development of new ideas and inventions?

patents

a constant returns to scale production function means that if all inputs are increased by 75%, this should lead to output

rising by 75%

Consider the data shown in the table. Assume that the economy produces only barrels of oil. What is the real GDP for year using last year as the base year?

$4,980,000

Dale is a stay-at-home-parent whose typical day consists of getting the kids ready for school, doing the laundry, cooking three meals, and cleaning the house. How are Dale's home activities counted in GDP?

They are not counted.

Which of the following correctly shows the steps needed to calculate the inflation rate?

find out what people typically uy, collect the prices from the stores where people shop, tally up the cost of the basket of goods and services, and calculate the inflation rate

refer to the diagram of the circular flow of income. based on the diagram, the arrow going FROM box 2 to box 1 must be:

output bought by households

along the same aggregate production function, the level of ____ is the same

technology

Money illusion is the:

tendency to focus on nominal values instead of inflation-adjusted values

what is uganda's real GDP if its nominal GDP is $27.5 billion (in current US$) and the GDP deflator is 163.4?

$16.8 billion

The table shows consumer price index data for the United Kingdom. Based on this information, what is the rate of inflation in 2016?

1%

in 2017, the total population of Africa was estimated to be about 1,250,000,000 people.

1.25

the table shows statisitics for three candian cities at several different points in time. what was the number of people (in thousands) in Montreal's labor force in january 2005.

2,003.1

the aggregate production function is represented as:

Y=f(L,H,K)

henry ford's $5 per day wage is an example of

an efficency wage

during the great recession, the united states congress increased the length of time that unemployement benefits could be received from 52 weeks to 99 weeks. this change caused:

an increase in the costs for the government

Hyperinflation is:

extremely high rates of inflation

consider these four graphs of the labor market, showing four different minimum wage levels. level where there is no unemployment

graph B

the aggregate production function Y= f(L,H,K) shows that economic growth can occur if:

human capital increases

consider the graph of labor market shown here. if the government mandates a minimum wage of $25, there is a labor:

surplus of 6,000 workers

Which of the following is an example of transfer payments?

unemployment benefits

suppose a labor market is described by the demand equation, Qd=60-2w, and the

15,000,000

the table shows statisitics for three canadian cities at several different points in time. what was the number of unemployed people (in thousands) in montreal in january 2009?

181.6

refer to the following table that shows monthly data for japan. what was the unemployment rate in january 2014

3.7%

Which of the following shows the medium of exchange function of money?

Daniela goes to the store and purchases roses with U.S dollars

Which of the following is an example of a durable good?

your new car

The table shows consumer price index data for the United States. Based on this information, what is the rate of inflation in 2006?

3.22%

which of the following would lead to a slowdown in economic growth?

a reduction in the birth rate coupled with an increase in the retirement rate of a population

property rights refer to

control over a tangible or intangible resource

what is the difference between spending from a microeconomic standpoint versus spending from a macroeconomic standpoint?

in microeconomics, spending refers to spending by you, or your family or your company, whereas in macroeconomics, spending refers to the spending by all consumers, all businesses, and the government in the economy.

consider the labor market shown here. if an efficiency wage of $14 is instiuted in this market, the number of workers willing to work will

increase by 2,000

you have four friends. which of your friends can be described as "cyclically unemployed"

keele, who lost her job after her company lost a lot of customers during an econonmic downturn

Which of the following lists the functions of money?

medium of exchange, store of value, and unit of account

below is U.S economic data for 2018. What was total spending?

$20.58 trillion

you purchase a new car (produced this year) for $38,000. after six months, you sell the car for $31,500. how much does GDP rise because of these two transactions?

GDP rises by $38,000

the moral of the story of the Solow growth model is that:

capital accumulation alone cannot lead to sustainable economic growth

what is the difference between microeconomics and macroeconomics?

microeconomics is the study of individual decisions in specific markets, whereas macroeconomics is the study of the economy as a whole

the aggregate production function Y=f(L,H,K) shows that economic growth can occur if: (i) more labor is employed (ii) human capital is reduced (iii) the dependency ratio rises (iv) the capital stock stays constant

more labor is employed

an underemployed person is one who is

working but whose skills are not fully utilized

Consider the data shown in the table. Assume that the economy produces only textbooks. What is the nominal GDP for last year?

$250,000

the table below shows data for central african republic (CAR). what was this country real GDP per person in 2010?

$487.95

You purchase a certificate of deposit that earns an advertised rate of 1.75% interest per year. What is your real rate of return if the actual inflation rate is 1.9%?

-0.15%

You purchase a certificate of deposit and expect an inflation rate of 1.25% over the next year. Your nominal rate of interest is 2.1%. What is your expected real rate of return?

0.85%

what is sri lanka's GDP deflator if its nominal GDP is $88.9 billion (in current US$) and the real GDP is $59.34 billion?

149.8

refer to the table, which shows data for Irerland. based only on the data in this table, in which years did Ireland experience a fall in the standard of living?

2008 and 2009

the tablw shows consumer price index for the united states. based on this information, what is the rate of inflation in 1991?

4.22%

the equilibrium unemployement rate is also known as the ___ unemployment rate

long-run

the GDP deflator is an index that tracks the:

price of all goods and services produced domestically

which of the following countries enjoyed significant catch-up economic growth in the second half of the twentieth century?

south korea

In 2010, Canada's GDP was approximately $1,357 billion, and its population was about 34.12 million. What was Canada's approximate GDP per person in 2010?

$39,770

a decreasing returns to scale production function is one where increasing all inputs by a certain proportion leads to output rising by:

a smaller proportion

Consider the data shown in the table. Assume the economy produces only textbooks. What is the growth rate of real GDP between the two years using last year as the base year?

5%

the table shows statisitics for three Canadian cities at several different points in time. what was the unemployment rate in montreal in january 2019.

6.2%

refer to the table below, which shows data for the united arab emirates (UAE). What was the economic growth rate in UAE in 2010?

-5.91%

in order to be considered unemployed, a person must

-be part of the working-age population -be actively looking for work -must be non-institutionalized

if a bakery buys a second oven, hires a second baker, buys double the number of ingrediants and then produces double the number of cakes, then the bakery is experiencing:

constant returns to scale

Southeast Asian countries experience high temperatures and high humidity during the monsoon seasons. This makes working conditions difficult. Because air conditioners are expensive and consume a lot of electricity, an alternative air cooler called Eco-cooler was invented....

a technological innovation that can increase labor productivity and thus increase economic growth

In 1995, when the consumer price index was 152.38, women earned a median income of $12,130 per year. If the consumer price index in 2015 was 236.99, how much was $12,130 in 2015 dollars?

$18,865

which of the following are included in investment? (i) military spending (ii) the purchase of an aircraft by a domestic airline (iii) the purchase of $45,000 worth of bonds (iv) the purchase of $32,000 worth of stock (v) social security payments (vi) the construction of a highway by the federal government

(ii) only - the purchase of an aircraft by a domestic airline.

Consider the following basket of goods: 50 bottles of milk, 100 avocadoes, 50 apples, and eight pineapples. Suppose that last year, each bottle of milk was $2.50, each avocado was $1.50, each apple was $0.75, and each pineapple was $4. This year, each bottle of milk is $2.50, each avocado is $1.80, each apple is $0.80, and each pineapple is $4.30. What is the inflation rate between last year and this year?

10.13%

the higher the minimum wage, as compared to the equilibrium wage, the:

higher the structural unemployement rate

Menu costs are the:

marginal costs of adjusting prices

a minimum wage that is above the equilibrium wage is

an example of a price floor

which of the following would lead to a slowdown in economic growth?

an increase in the dependency ratio

Which of the following is a scaled number?

government budget deficit as a percentage of GDP

The real interest rate is the:

nominal interest rate minus the rate of inflation

If you see that the consumer price index this year is lower than the consumer price index last year, this means that:

on average, prices went down across the economy

if you see that inflation between last year and this year is 3%, this means that:

on average, prices went up across the economy by 3%

In 1971, the cost of a four-year college degree from a public university was about $1,410. The consumer price index was 40.48 in January 1971. If the current consumer price index is 251.1, what is the approximate cost of the four-year degree in current dollars?

$8,746

refer to the diagram of the circular flow of income. they key lessons from this diagram are that: (i) all flows of resources are matched by flows of money. (ii) the market value of total output must be equal to total spending. (iii) total spending must equal total income. (iv) all inputs are provide by businesses.

(i),(ii),and (iii)

You purchase a certificate of deposit and expect an inflation rate of 1.5% over the next year. Your nominal rate of interest is 2.25%. What is your expected real rate of return?

0.75%

Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the real GDP for last year using this year as the base year?

185,000

refer to the table below, which shows data for the united arab emiates (UAE). based only on the data in this table, in which years did the UAE experience an increase in the standard of living?

2011 and 2012