Econ Exam 2
Item quantity price price (2011) (2011) (2012) salt 2 $1 $2 bread 20 $2.5 $3 The data in the table above shows the consumption by families in a small (poor) economy. The families consume only salt and bread. The reference base period is 2011. The cost of the CPI market basket in 2011 is
$52
Item quantity price quantity price (2011) (2011) (2012) (2012) Sneakers 2 $55 2 $60 Manicures 1 $35 1 $40 Consumers in a country but only two goods, sneakers and manicures. The prices and quantities purchased by urban households are in the table above. The reference base year is 2011. The inflation rate between 2011 and 2012 is
10.3 percent
The reference base period for the CPI has an index number of
100
In 2013, the reference base period for the CPI for the nation of Webot, a typical consumer spent 30$ on potatoes and 150$ on steak. If the price of steak is 15$ and the price of potatoes is 1$ then there are ______ units of steak and ______ units of potatoes in the CPI market basket
10;30
Item quantity price price (2011) (2011) (2012) salt 2 $1 $2 bread 20 $2.5 $3 The data in the table above shows the consumption by families in a small (poor) economy. The families consume only salt and bread. The reference base period is 2011. The CPI in 2012 is
123.1
year CPI 1994 90 1996 95.5 1998-2000 100 2002 104 The table above gives the CPI for a nation. Based on the table, we can determine that the reference base period is
1998-2000
Item quantity price price (2011) (2011) (2012) salt 2 $1 $2 bread 20 $2.5 $3 The data in the table above shows the consumption by families in a small (poor) economy. The families consume only salt and bread. The reference base period is 2011. The inflation rate between 2011 and 2012 is
23.1 percent
If the cost of the CPI market basket at current period prices is $1000 and the cost of the CPI market basket at base period prices is $350, the CPI is
400
If the cost of the CPI market basket at current period prices is $275 and the cost of the CPI market basket at base period prices is $350, the CPI is
79 current price/base price x 100
________ wrote "The General Theory"
John Maynard Keynes
The Monetarist economist who said "inflation is always and everywhere a monetary phenomenon" is ________
Milton Friedman
After the passage of the North American Free Trade Agreement, which made it less expensive to import goods from Mexico, workers in some industries found their factories being relocated to Mexico to take advantage of lower labor costs. These workers experienced what type of unemployment
Structural
When measuring GDP
The expenditure on goods and services by all levels of government are included
The CPI is a measure of the
average prices paid by consumers for a fixed basket of goods and services
Consumption expenditure includes spending
by households
Economists define investment to include purchases of
capital goods and inventories
The type of unemployment that arises from a decrease in real GDP is called
cyclical unemployment
In 2008 as the economy moved into a recession,
cyclical unemployment increased
A reduction in unemployment benefits will
decrease the amount of frictional unemployment
When Jamie purchases a classic 1968 Plymouth Cuda convertible from Shane, GDP
does not change, because the car was not produced this year
The working age population includes
employed and unemployed people over the age of 16
An unpaid worker in a family business is classified as
employed if the person worked at least 15 hours in the previous week
Net exports of goods and services is equal to the value of
exports minus the value of imports
If consumption was 70 percent of GDP and investment and government expenditure were both 18 percent each, then we see that
exports must be less than imports
Investment is the expenditure done by
firms
A measure of a country's production is its
gross domestic product
Gross domestic product measures the
market value of the final goods and services produced in a given year within a country
To be considered unemployed, a worker must have had
no employment during the week before the survey and be actively looking for a job
When the unemployment rate equals the natural unemployment rate, most likely the economy is producing
on the PPF
Bo's actions would
raise the September unemployment rate and lower the October unemployment rate
A recession conventionally is defined as a decrease in
real GDP that lasts for at least six months
Which type of unemployment is most likely to lead unemployed workers to retrain or relocate?
structural
Structural unemployment is the result of
technological change or foreign competition
Frictional unemployment is the result of
the normal process of jobs being created and destroyed
In order to measure gross domestic product, we can follow
two approaches: the expenditure approach and the income approach
Suppose the CPI in 1983 is 100 and the CPI this year is 172. These values for the CPI mean that
typically, a good whose price was $100 in 1983 had a price of $172 this year
Item quantity price price (2011) (2011) (2012) salt 2 $1 $2 bread 20 $2.5 $3 The data in the table above shows the consumption by families in a small (poor) economy. The families consume only salt and bread. The reference base period is 2011. The cost of the CPI market basket in 2010 is
unable to calculate because information is needed about the quantities purchased in 2010
_______ wrote "The Wealth of Nations"
Adam Smith
An Austrian economist, ______ wrote "Road to Serfdom"
Friedrich Hayek