Econ Final

The CPI turns negative in the next year

If the CPI declines from one year to the next, then which one of the following statements is not true?

structural

Kevin lost his job in an automobile plant because the company switched to robots for its welding assembly line. Kevin plans to go to school to learn how to repair microcomputers. This is _____ unemployment.

B will experience greater economic growth than A

Suppose there are two economies A and B they have the same PPF, if B devotes more resources to produce capital goods than consumer goods as compared to A then in the future,

spending exceeds tax revenues in a given year

a federal budget deficit exists when federal government

foreign exchange market

a market in which the money of one nation is exchanged for the money of another nation is a

ease monetary policy

a newspaper headline reads: "Fed Cuts Federal Funds Rate for the Fifth Time This Year." This indicates that the Federal Reserve is most likely trying to

the average tax rate decreases if income decreases

a tax structure is called progressive when

employment and output reach their lowest levels

a trough in the business cycle occurs when

marginal

additional tax paid for every additional dollar earned. 10% tax rate means 10 cents of ever next dollar earned would be tax

is responsible for regulating and supervising the banks

among its duties the federal reserve

fixed

an exchange rate that is set by official gov policy is called a _____ exchange rate

short-run AS curve to the left

an increase in production costs is most likely to shift the

serves as an automatic stabilizer for the economy

as the economy declines into recession, the collection of personal income tax revenues automatically falls. this phenomenon best illustrates how a progressive income tax-system

decrease;increase

assume the economy is operating at less than full employment. An expansionary monetary policy will cause interest rates to ________ which will ______ investment spending

is bowed out from or concave to the orgin

because of increasing opportunity costs, the PPF

opportunity cost

determining the comparative advantage of a country requires that you look at the economic notion of

affect other interest rates in the economy

financial markets pay close attention to changes in the federal funds rate because these changes

real GDP must increase more rapidly than population

for a nation's real GDP per capita to rise during a year,

an absolute advantage

if a country can, with a single unit of labor, produce more of both clothing and computers than another country, then the first country has

decreasing the production of the other good

if a nation is initially producing at one point on its PPF then it can increase its production of one good only by

will increase, but the real output may increase, decrease, or remain unchanged

if aggregate demand increases and aggregate supply decreases, the price level

expansionary fiscal policy

if congress passes legislation to increase government purchases to counter the effects of a recession, then this would be an example of a(n)

investment in 2009 and negative investment in 2010

in Nov 2009 Marketopia Motors produced an automobile that was delivered to a local dealership in Dec 2009. The auto was then sold to Sharon Smith for personal use in Febuary 2010. Following national income accounting practices, this auto would be counted as part of

increase AD

in an effort to avoid recession, the government implements a tax rebate program, effectively cutting taxes for households. we would expect this to

proportional

lower income individuals pay a lower fraction of their income in taxes than higher-income individuals

cost resulting from one more unit of production

marginal cost can be defined as the change in

full time job that one could have gotten instead of going to colege

one major part of the opportunity costs of one's decision to go to college after highschool is

the protection of the environment

one of the reasons many economists approve of limiting trade would be

reduce inflation during an expansion

one purpose of discretionary fiscal policy is to

time fiscal action is taken and the time that the action has its effect on the economy

one timing problem in using fiscal policy to counter a recession is the "Implementation lag" that occurs between the

us exports will become cheaper relative to other nations products

other things being equal, which of the following is a necessary consequence of a depreciation of the US dollar against other currencies

the factories and machinery used to produce goods and services

physical capital is

export wheat

say the domestic price of what is $3.50 a bushel in the US while the world price is $4, assuming no transportation costs, the US will

frictional unemployment

search and wait for unemployment is another way to describe.

progressive

tax rate increases as taxable income increases

$10B

the economy is in a recession. the gov enacts a policy to increase purchases by $2B. The MPC is 0.8. What would be the full increase in real GDP from the change in gov purchases at a given price level?

magnifies the shifts of the AD curve

the expenditure multiplier concept of the aggregate-expenditures model

a nation's trading possibilities line lies to the right of its production possibilities line

the fact that international specialization and trade based on comparative advantage can increase world output is demonstrated by the reality that

higher in price because import competition declined

the higher price of imported products due to trade barriers causes some consumers to shift their purchases to a domestically produced product that is now

federal funds rate

the interest rate that commercial banks charge each other for very short term loans is called the

may cause the official unemployment rate to understate the true amount of unemployment

the presence of discouraged numbers

a negative

the short run Phillips Curve shows there is ______ relationship between the unemployment rate and the rate of inflation

official unemployment rate will remain unchanged

there are 10 mil part-time workers and 90 mil full time in an economy. five of the part time workers switch to full time. As a result,

measured relative to the gross domestic product

to track the public debt over time and understand its significance to the economy, it is best

RGDP increased, RGDP per capita increased, environmental quality fell

what happened when china opened up to trade with the western world?

Sanctions hurt the russian, european and american economy

what impact do sanctions on Russia have

when one is unemployed as a result of an economy's business cycle/recessions

what is cyclical unemployment?

when one is unemployed due to being in the process of moving from one job to another

what is frictional unemployment?

When one is unemployed because their skills are outdated or no longer needed.

what is structural unemployment?

some federal employees are expected to work without pay

what is true about government shutdowns?

Federal Open Market Commitee

when group aids the Board of Govenor's of the Federal Reserve System in conducting monetary policy?

cost-push inflation

when oil and energy prices rise, the economy tends to experience

lower prices and higher quantities consumed in that nation

when restrictions on imported products are removed by a nation, it will result in

an excise tax that is designed to put foreign producers at a competitive disadvantage in selling in domestic markets

which of the following best describes a protective tariff

an interest rate effect

which of the following effects best explains the downward slope of the AD curve

medium of exchange

which of the following functions of money enables society to gain the benefits of geographic and labor specialization

oil and tourism

which of the following industries have been significant in the development of Dubai?

an oven bought from a homeowner

which of the following is NOT an example of an intermediate good?

housing

which of the following is a major category for the consumer price index?

crime prevention expenses

which of the following is included in the official GDP estimate

an earned paycheck

which of the following is not an example of an investment in human capital

Free Speech

which of the following is not considered an economic right?

economists argue that NAFTA has increased GDP in all 3 countries

which of the following is true about NAFTA

will the merger of two airlines likely lead to higher costs of air travel in the economy?

which question is an example of a microeconomic question?

how will the government's budget deficit be affected by public infrastructure projects?

which question is an illustration of a macroeconomic question?

net borrowers

who benefits from inflation?

regressive

with tax of $2k on $30k income and $2k on $70k income, the structure of tax is