Econ Final

Which of the following is a *macroeconomics* question?

What determines the minimum wage?

Economics is the study of the _____ people make to attain their goals, given their ____ resources

choices, scarce

Diamonds are an example of

commodity money

Gold is an example of

commodity money

Platinum is an example of a

commodity money

Which of the above statements demonstrates that economic agents *respond to incentives*

soda drinkers purchase more soda from a grocery store that sells soda at a lower price than other rival grocery stores in the area

A farm worker gets paid today in money, but plans to spend the money next week. This illustrates which function of money?

store of value

Which aggregate supply curve has a positive slope?

short run only

lower personal income taxes

increase aggregate demand

The Federal Reserve's four monetary policy goals are

price stability, high employment, economic growth, stability of financial markets and institutions

Home Depot sells new and used doors to contractors who build new homes. Home Depot also sells new and used doors to homeowners. Which of the following would be *counted* in GDP?

the sale of a new door to a homeowner

Which of the following is a *normative* economic statement?

Global warming should be at the top of every economic agenda.

Consider: which of the above statements demonstrates that economic agents respond to incentives?

Homeowners take steps to increase security b/c they believe its *more costly* to allow burglaries than to *install* monitoring equipment manufacturers produce *more* of a particular cell phone when its selling price *rises*

Which of the following is likely to *increase* measured GDP?

Marijuana becomes legal to grow and sell.

Which of the following is a *positive* economic statement?

The minimum wage law causes unemployment

The "International trade effect" states

an increase in the price level will lower net exports

If you have trouble finding a job because of a slow down in the overall economy, we would say that you are

cyclically unemployed

higher personal income taxes

decrease aggregate demand

The five most important variables that determine the level of consumption are

disposable income, wealth, expected future income, price level, and interest rate.

A student who just graduated from college but has not found a new job would most likely be

frictionally unemployed

In a centrally-planned economy, who decides what goods and services will be produced?

the government