Economics

Open market operations are the

Purchase of sale of government securities by the Fed

The production function describes the relationship between

Real GDP and the quantity of labor employed

When a commercial bank receives a deposit it must keep part of the deposit as cash reserves to satisfy it's

Required reserves

Which of the following counts as M1

5,000 in a checking account

The above figure shows a nations production function point b is

Attainable if the nation uses resources effectively

The objects that we use as money today are

Currency and deposits

The monetarist model expands the keynesian model by proposing that

Decreases in the quantity of money lead to higher interest rates

The production function displays

Diminishing returns

Human capital can be increased through

Education on training and work experience

Scarcity requires we

Make choices about what goods and services to produce

Which of the following is not considered one of the factors of production

Technology

The four main policy tools the federal reserve system uses to influence the interest rate are setting

The discount rate open market operations extraordinary crisis measures and setting the required reserve

Investment is defined as

the purchase of new capital goods by firms

Macroeconomics includes the study of the

Choices made by individuals and businesses

The federal reserve system provides banking services to______ because________

Commercial banks ; it is a central bank with the primary purpose of regulating financial institutions and markets

According to the expenditure approach to measuring GDP in the United states the largest component of GDP is

Consumption expenditure

The expenditure approach to measuring GDP is done by using data on only

Consumption expenditure investment government expenditure on goods and services and net exports of goods and services

The level of GDP the economy produces at full employment is called

Potential GDP

The keynesian macroeconomic model states that

The economy is inheritly unstable and government intervention is required to maintain continued growth

What would be an example of a government good

The local license office purchases a new digital camera and printer

The opportunity cost of a decision is measured in terms of

The next best thing given up

According to the keynesian macroeconomic model which of the following was responsible for starting the great depression

Too little private spending

Total expenditure equals total income

Because firms pay out everything they receive as in on to the factors of production

In calculating GDP economists

Can measure either total expenditure or total income

Items bought by businesses to help produce other goods and services are called

Capital goods

The difference between consumption and capital goods is that

Capital goods are to produce additional goods while consumption goods are not

The main policy making body of the federal reserve system is the

Federal open market committee

The US dollar is called

Fiat money because the law decrees it is money

Canada has nationalized health care so that everyone regardless of their ability to pay has some access to health care. Based on this observation Canada has decided that everyone regardless of their ability to pay is the answer to what macroeconomic question

For whom will health care be produced

The expenditure approach values__________ and the income approach values

Goods and services at market prices ; goods and services at factor prices

The concept of human capital describes

Human skills the quality of labor

Scarcity exists because

Human wants exceed the resources available to satisfy them

Which of the following statements best describe the study of economics? Economics studies how

I've make choices in the face of scarcity

Which of the following best describes macroeconomics

It analyzes the aggregate effects on the national economy of the choices made by individuals firms and governments

The main goals of monetary policy include all of the following except

Keeping the long term nominal interest rate equal to the real interest rate plus the inflation rate

At any given time which factor of production is not fixed

Labor

The classical macroeconomic model proposes that

Markets work effectively to produce the best macroeconomic outcomes

The functions of money are

Medium of exchange unit of account and store of value

Which of the following is not included in the income approach to calculating gdp

Net exports of goods and services

Which of the following is a macroeconomic topic

Northwest airlines analyzes the benefits of adding one more flight to salt Lake city

In order to measure gross domestic product we can follow

Two approaches the expenditure and income approach

The above figure shows a nations production function point a is

Unattainable given the state of the economy

If the purchase of used goods was to be incorporated into measuring GDP using expenditure approach, then

We will be counting the value of the used goods both at the time of their production and at the time of their production and at the time of their re-sale

The benefit from a good or service that you purchase is measured by

What you are willing to give up to obtain the good or service

In economics cost is measured as________, and benefit is measured as_____.

What you must give up to get something what you are willing to give up to get it