Macro economics

Which of the following statements is false?

. B. Trade − offs do not apply when the consumers purchase a product for which there is excess supply, such as a stock clearance sale.

If the economy is currently producing at point D, what is the opportunity cost of moving to point B?

. D. 0 forks

The figure to the right shows various points on three different production possibilities frontiers for a nation. Consider the following events: a. a reduction in the patent protection period to no more than 2 years b. a war that destroys a substantial portion of a nation's capital stock c. the lack of secure and enforceable property rights system Which of the events listed above could cause a movement from W to V

. D. a and c only

The figure to the right shows the demand and supply curves for the coffee market. The government believes that the equilibrium price is too low and tries to help almond growers by setting a price floor at $7.00. What is the value of the portion of consumer surplus that has been transferred to producer surplus as a result of the price floor?

1,200

In the United States, ________ percent of all firms are corporations

18

Of the following high − income countries, which has the highest obesity rate?

USA

If in the market for bananas the supply curve has shifted to the right, then

b. the supply of bananas increased

The table above shows the demand schedules for cashews of two individuals (Jordy and Amy) and the rest of the market. At a price of $6, the quantity demanded in the market would be

c. 103

The health care system in ________ is referred to as a single payer health care system, and is a system in which the government provides national health insurance to all residents

canada

An decrease in supply is caused by a decrease in the price of the product.

false

Any output combination along a production possibility frontier is associated with overused or unattainable resources

false

Changes in the health of the average person are relatively unimportant as an indicator of changes in the standard of living.

false

There is a shortage of every good that is scarce.

false

To increase gas mileage, automobile manufacturers make cars small and light. Large cars absorb more of the impact of an accident than small cars but yield lower gas mileage. These facts suggest that a positive relationship exists between safety and gas mileage.

false

A decrease in the price of inputs will cause the supply curve for a product to shift to the right.

true

A tax is efficient if it imposes a small excess burden relative to the tax revenue it raises.

true

Developing countries with large informal sectors tend to have firms that invest less in capital equipment.

true

Today, the United States charges an average tariff rate of less than 1.5 percent

true

About ________ of research on new medicines is carried out in the United States.

two-thirds

The equations above describe the demand and supply for Pauline's Pickled Pomegranates. The equilibrium price and quantity for Pauline's Pickled Pomegranates are $30 and 15 thousand units. What is the value of consumer surplus?

225,000

The equations above describe the demand and supply for Pauline's Pickled Pomegranates. What are the equilibrium price and quantity (in thousands) for Pauline's Pickled Pomegranates?

30 adn 15,000

In the United States in 2016, the health care industry was the largest employer in ________ states

35

Suppose you have inherited $ from your aunt. However, you will not receive this until your aunt's estate is settled, which will take one year. If the interest rate is percent, then what is the present value of your inheritance?

45,296.30

If the number employed is 190 million, the number unemployed is 10 million, and the working − age population is 250 million, then the labor force participation rate is

80%

If the number of unemployed workers is 19 million, the number in the working age population is 500 million, and the unemployment rate is 4%, what is the labor force participation rate?

95%

The figure to the right shows the U.S. demand and supply for leather footwear. Suppose the government allows imports of leather footwear into the United States. What will be the domestic quantity supplied?

A.

Assume Dina's Diner only produces sliders and hot wings. A combination of 60 sliders and 25 hot wings would appear

A. along Dina's production possibilities frontier.

Holding all other personal characteristics − such as age, gender, and income − constant, economists would expect that

A. people without health insurance will be less likely to be overweight than people with health insurance.

Without technological advancement, how can a nation achieve economic growth?

A. through an increase in supplies of factors of production

Torrie is thinking of starting up a small business selling hand painted wine glasses. She is considering setting up her business as a sole proprietorship. What is one disadvantage to Torrie of setting up her business as a sole proprietorship

As a sole proprietor, torrie would face unlimited liability

The first example of comparative advantage appeared in a book that was published in 1817. This example showed that mutually beneficial trade between two countries (England and Portugal) was possible. The example assumed that two goods (wine and cloth) could be produced by both countries. Which of the following describes the conclusion of this example?

B.

Steve Ballmer organized government spending data on the basis of four "missions" for government that he identified in the preamble to the U.S. Constitution. Which of the four "missions" had the highest level of spending at all levels of government

B. secure the blessings of liberty to ourselves and our prosterity

If the price of train tickets decreases, what will be the impact in the market for bus travel ?

B. the demand curve for bus travel shifts to the left

If a firm expects that the price of its product will be lower in the future than it is today

B. the firm has an incentive to increase supply now and decreasse supply in the futrue

Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. Assume all of the coffee beans are used in the production of the coffee drinks. Using the information in the above table, nominal GDP for this simple economy equals

C.

van runs a custom jewelry shop in Sparkle City. He is debating whether he should extend his hours of operation. Ivan figures that his sales revenue will depend on the number of additional hours the jewelry shop is open as shown in the table to the right. He would have to hire a worker for those hours at a wage rate of $25 per hour. What is Ivan's marginal cost if he decides to stay open for six hours instead of five hours?

C. $25

The table to the right shows the demand and supply schedules for the low − skilled labor market in the city of Westover. Suppose that the quantity of labor demanded decreases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?

C. W=$8.00; Q=350,000

Suppose that when the price of hamburgers increases, the Ruiz family increases their purchases of hot dogs. To the Ruiz family,

C. hamburgers and hotdogs are substitues

Increasing opportunity cost along a bowed-out production possibilities frontier occurs because

C. some factors of production are not equally suited to producing both goods or services.

Suppose your expenses for this term are as follows: tuition: $9,000, room and board: $1,500, books and other educational supplies: $1,000. Further, during the term, you can only work part time and earn $3,000 instead of your full time salary of $8,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college?

D. 15,000

The formulas for calculating the price of a stock and the price of a bond are similar because

D. both represent streams of payment over time A. bonds have a fixed maturity date

The size of the underground economy would tend to decrease if the government of a country

D. decreased government regulations on businesess

When Tesla, a U.S. company, purchases Italian − made Pirelli tires for its automobiles, the purchase is

a U.S. import and an italian export

Consumers usually pay less than the total cost of medical treatment because

a thrid party usaually an insurance company often pays most of the bill

Which of the following would increase gross private domestic investment in an economy?

an increase in the level of apples inventory

Of the different types of businesses, a ________ has the most government rules and the most government regulations affecting it.

corporation

Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to understate the true extent of joblessness?

discouraged workers

As percentage of imports, the largest product category of U.S. imports from China is

electronic products

In the circular flow model, the value of total production for an economy ________ the value of total expenditures on final goods and services

equals

Estonia and Morocco can produce both swords and belts. Each country has a total of 40 available labor hours for the production of swords and belts. The table above shows the output per hour of work, the production and consumption quantities without trade, and the production numbers with trade. Which country has a comparative advantage in producing swords?

estonia

Assume that Honduras has a comparative advantage in producing bananas and exports bananas to Brazil. We can conclude tha

hondoruas has a lower opp cost of producing bananas relative ot brazil

In the 1973 movie Save the Tiger, Jack Lemmon plays Harry Stoner, the CEO of a clothing manufacturer whose business has fallen on hard times. In one of the key scenes of the movie, Stoner tries to convince his partner that they should hire someone to burn one of their buildings in order to collect on their insurance policy. Harry Stoner's actions are an example of

morla hazard

A full − time student who is not working is categorized as

not in labor force

Someone who is available for work but has not actively looked for work in the previous four weeks would be classified as

not in labor force

"Taxes are what we pay for a civilized society." This statement was made by

oliver wendell holmes

Economists assume that

optimal decisions are made at the margin

Juliana, Gabrielle, and Marcela want to start a business they are the only owners and the company does not issue stock. The type of business they want to start is a

partnership

One reason some manufacturing companies began moving production to China in the early 2000s was due to lower wages that could be paid to Chinese workers. Moving manufacturing to China to take advantage of lower wages so goods could be produced at a lower cost than if produced in the United States exemplifies which key economic idea?

people respond to economic incentives

How are intermediate goods treated in the calculation of GDP?

their value is not counted seperatley

A corporation is limited to how many owners?

there is no limit to the number of owners