Economics_Q3_Test2
Government spending is made up of (blank) and (blank) but does NOT include (blank) payments
goods, services, transfer
Formula for Real growth
(The change in the real GDP over original real GDP) times 100
Concerning the business cycle graph: Long run growth is (blank)%
2
When did the U.S. last experience a surplus?
2001
In relation to the production possibility curve- How many ways are there to get growth?
3
Consumption makes up about (blank) percent of the GDP
70
Read the following situation and decide what it is an example of: The drama department pays for microphones that cost $100, and have a lifespan of 5 years before they no longer work. They figure in that cost so they set aside $20 per month as they pay for the microphones, to have a total of $100 once the lifespan of 5 months is over. This way they can replace the microphones.
Depreciation
The idea that there is capital that is wearing out and will at some time need to be replaced is known as (blank)
Depreciation
Concerning the business cycle graph: A severe recession that lasts over a year is called a (blank)
Depression
True or false: A scholarship awarded to Hispanic students is counted in the GDP
False- No action to earn the money
True or false: A product made in Thailand by a factory full of American workers would be included in America's GDP
False- Not made in the USA
What are the 4 types of unemployment
Frictional, structural, cyclical, seasonal
C+I+G+X is the formula to calculate what
GDP
The final goods/services from that country in that year are included in the what?
GDP
When the income is greater than the spending, this is called a
surplus
What is the formula to calculate inflation?
(Change in CPI over original CPI) times 100
Formula for Real GDP
(Nominal GDP over GDP deflator) times 100
Formula for Nominal Growth
(The change in the nominal GDP over original nominal GDP) times 100
In the GDP formula (C+I+G+X) what does each letter stand for?
Consumption, Investment, Government spending, Net exports
Investment is done by
Businesses
In relation to the production function graph: When capital increases as the labor increases, this is called
Capital Widening
In relation to the production function graph: When capital increases more than the labor does, this is called
Capital deepening
In relation to the production function graph: (Blank) helps to make workers more productive, but increasing amounts of (blank) have decreasing benefits
Capital, capital
Consumption, Investment, Government spending, or Net exports? Your mom and dad pays for your college tuition
Consumption
Is it: Consumption, Investment, Government spending, or Net exports? You spend $15 on a haircut
Consumption
Is it frictional, structural, cyclical, or seasonal unemployment: When COVID hit, your uncle's flower shop lost all it's business and he had to lay off all his workers due to issues in the market.
Cyclical
When spending is greater than income, this is called a
Deficit
Debt is made up of all the (blank)
Deficits
Concerning the business cycle graph: When the graph slopes upwards (a positive slope) it is in a (blank)
Expansion
Hyperinflation is an (blank) increase in inflation
Extreme
True or false: Everything rises in price during inflation
False
Read the following and determine if it is stock or flow: You receive a paycheck for two weeks worth of work.
Flow
Would a deficit be considered stock or flow
Flow
Is it: Consumption, Investment, Government spending, or Net exports? The IRS hires you, along with 2000 new accountants to work on tax investigations
Government spending
What does GDP per capita mean?
Gross Domestic Product per person
What does GDP stand for
Gross domestic product
While GDP and CPI are similar, the CPI only measures (blank) items
Household
An extreme increase in inflation (something like 100 or 1000%) would be considered (blank)
Hyperinflation
Concerning the Expanded Circular Flow graph: The government investing would be considered an (blank)
Injection
Concerning the Expanded Circular Flow graph: The money leaked out (in taxes, savings, government borrowing, etc) finds its way back in through (transfer payments, investments, and more) which are called
Injections
Concerning the Expanded Circular Flow graph: The government taking away takes from your paycheck would be considered a (blank)
Leakage
Concerning the Expanded Circular Flow graph: Savings, Government borrowing, imports, and Transfer payments are all (blank)
Leakages
Financial transactions are (blank) included in the GDP
NOT
Is it: Consumption, Investment, Government spending, or Net exports? Your grandpa buys a car made in Tokyo
Net exports/Consumption
Are transfer payments included in the GDP
No
If Bob has never worked in a job, but currently does not have one, is he considered unemployed?
No
If I buy a ten year old car from my friend's dad, will it count towards the GDP?
No- not produced THIS year.
Is it not unemployment, frictional, structural, cyclical, or seasonal unemployment: Jamie works as an ice cream seller during the summer, and when the ice cream stand closes, Jamie goes off to her vacation home to be lazy and not do anything.
Not unemployment
Nominal GDP is (blank) adjusted for (blank)
Not, inflation
Money your grandparents receive from social security would (blank) be included in the GDP and is an example of a (blank) payment.
Not, transfer
In relation to the Loanable funds graph: Government budget deficits will (blank) interest rates
Raise
In relation to the Loanable funds graph:The point where the lines intersect is known as the (blank)
Real interest rate
Concerning the business cycle graph: A contraction that lasts at least 6 months is called a (blank)
Recession
In relation to the Loanable funds graph: The supply curve represents the
Savers
Seasonal unemployment is when you only lose your job for a (blank)
Season
Is it frictional, structural, cyclical, or seasonal unemployment: When the snow cone truck is no longer needed when summer ends, Kai lost his summer job and is now looking to work somewhere else
Seasonal
Read the following and determine if it is stock or flow: The amount of money you currently are in debt for
Stock
Is it frictional, structural, cyclical, or seasonal unemployment: Your son in 2045, when all Walmarts have made the switch to self-chekout only, lost his job as a cashier. He now has to find a new job.
Structural
Concerning the Expanded Circular Flow graph: Disposable income varies from the original "income" from the simple circular flow graph because (blank) are removed
Taxes
The following are requirements for what? -16 years or older - non-institutionalized -civilians -employed/currently seeking employment
The labor force
In relation to the production function graph: The graph curves out at a really quick rate in the beginning but the curve's slope decreases after a while, until it is only slightly increasing. Why?
The law of diminishing return
Concerning the business cycle graph: The (blank) is the lower point where the slope changes from negative to positive
Trough
True or False: Nominal GDP is not adjusted for inflation while real GDP is adjusted for inflation
True
True or false In relation to the Loanable funds graph-Government deficits keep businesses from investing because higher interest rates make it harder for the businesses to invest.
True
True or false: A financial transaction such as stocks or savings would not be included in the GDP
True
True or false: Intermediate goods are NOT included in the GDP
True
If you are out of work for at least a week and actively searched for the last 4 weeks for a job, you are considered
Unemployed
In relation to the Loanable funds graph: The demand curve represents
Who is borrowing money
If a man increases his inventory before the year is over, will it count towards the GDP
Yes
Real GDP is (blank) for (blank)
adjusted, inflation
Businesses invest by spending money on (blank)
capital
Concerning the business cycle graph: When the graph slopes downwards (a negative slope), it is in a (blank)
contraction
Cyclical unemployment is when the economy (blank) or goes in a (blank) and people lose their (blank), but will get them back when the economy (blank)
contracts, trough, jobs, expands
In relation to the Loanable funds graph: Government deficits also cause (blank)
crowding out
In relation to the Loanable funds graph: Crowding out is when the government (blank) keep businesses from being able to (blank)
deficits, invest
Stagflation is when inflation is present, but there is no (blank) growth
economic
You must be seeking (blank) or be employed in order to be considered a part of the (blank)
employment, labor force
Structural unemployment is when the job no longer ( blank) and the people now have to be (blank) for other jobs and (blank) new (blank)
exists, trained, learn, skills
The GDP includes the (blank) goods/services from that (blank) in that (blank)
final, country, year
The natural rate of unemployment says that there is always a bit of (blank) and (blank) unemployment, but the economy is doing well and the unemployment is low
frictional, structural
Inflation is the (blank) increase in prices
general
New resources, New technologies, and using resources more efficiently are the three ways to get (blank)
growth
Consumption is done by
households
Net exports are at negative five percent of the GDP because the U.S. (blank) more than it (blank) and it is a matter of exports minus imports. This winds up in a negative percentage.
imports, exports
Disinflation is when (blank) goes down
inflation
Consumption is the (blank) part of the GDP
largest
Concerning the Expanded Circular Flow graph: Saving money would be considered a (blank)
leakage
Disinflation differs from deflation in the sense that it actually (blank) inflation, while in deflation- the (blank) lowers
lowers, prices
Transfer payments are (blank) included in GDP because they are not payments for (blank) produced goods or services
not, currently
Concerning the business cycle graph: The (blank) is the higher point where the slop changes from positive to negative
peak
Deflation is when (blank) goes down and is a (blank) thing
prices, negative
Intermediate goods are goods used in the (blank) of something else, and are (blank) included in the GDP
production, NOT
In relation to the Loanable funds graph: A deficit means that the spending is greater than the income. Therefore, if there are government deficits and there is a lack of funds to support the amount of spending... interest rates have to rise in order for the costs to be covered. This shows that the government budget deficits will (blank) the interest rates
raise
The best way to measure growth is with the (blank) GDP
real
Frictional unemployment is (blank) term and (blank) last long
short, won't
In relation to the production function graph: As you move along the curve, the benefits of increasing the capital increase at a (blank) rate
slower
Would debt be considered stock or flow
stock
Government spending is done by
the government (duh)
Net exports concerns (blank) with other countries
trade
If Bobbie got laid off, and has been looking for a job for months now, he would be considered
unemployed