Macro Economics

Let the figure represent the market for hamburgers. Holding other things constant, which of the following shocks could explain the movement from equilibrium at point A to equilibrium at point D.

news of negative health outcomes from eating chicken

In a market economy, economic activity is guided by

price and self-interest

If the overall level of prices in the economy goes up, then all of the following variables also go up EXCEPT

real GDP

Jane quits her job at a bank, which pays $40,000 per year, to enroll in a two-year graduate program. Her annual school expenses are $22,000 for tuition and $2,000 for books. What is her opportunity cost of attending the graduate program for the entire two years

$128,000

If the CPI was 114 in 1987 and is 237 today, then $20 in 1987 purchased the same amount of goods and services as

$41.58 purchases today

Suppose that the nominal interest rate is 3 percent and the real interest rate is 4 percent. Then the inflation rate is

-1 percent

Month Price of Pizza Price of Soda April $10.00 $3.50 May $12.50 $3.25 June $13.85 $3.58 Assume that the typical consumer buys 10 pizzas and 20 sodas. Assume the base period is April. What is the consumer price index for May? (Note: Round to the nearest whole number.)

112

Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 2012, the basket's cost was $77; in 2013, the basket's cost was $82; and in 2014, the basket's cost was $88. The value of the CPI in 2013 was

106.5 and the inflation rate from 2013 to 2014 was 7.3%

Year 2013 2014 2015 Adult population 4,000 5,500 6,200 Number of employed 3,400 4,300 5,600 Number of unemployed 200 600 200 The unemployment rate of this economy in 2014 was (Note: Round to the nearest tenth.)

12.2%

Suppose an economy had consumption of $4000, exports were $800, GDP was $8100, imports were $200, and investment was $1000. What must have the amount of government purchases been in this economy?

2500

Year 2013 2014 2015 Adult population 4,000 5,500 6,200 Number of employed 3,400 4,300 5,600 Number of unemployed 200 600 200 The unemployment rate of this economy in 2013 was (Note: Round to the nearest tenth.)

5.6%

Year Nominal GDP Real GDP 2012 103.6 977 2013 91.2 892.8 2014 76.5 834.9 2015 58.7 725.8 According to the table, what is the GDP Deflator in 2015? What was the inflation rate from 2014-2015

8.09; -11.7

Year 2013 2014 2015 Adult population 4,000 5,500 6,200 Number of employed 3,400 4,300 5,600 Number of unemployed 200 600 200 The labor force participation rate of this economy in 2015 was (Note: Round to the nearest tenth.)

93.5%

Which of the following events would cause the U.S. GDP deflator to rise while the U.S. CPI remains unchanged?

a U.S. producer increases the price of industrial tractors it sells to other U.S. companies

A fall in the equilibrium price for chocolate bars could have been caused by

a rise in the number of sellers

Let the figure represent the market for hamburgers. Holding other factors constant, which of the following shocks could explain the movement from equilibrium at point C to equilibrium at point D?

an increase in the price of ground beef

Suppose that your economics professor has been offered a corporate job with a 25 percent pay increase. He has decided to not take the job. For him, the marginal

benefit of teaching was greater than the marginal cost

An example of a perfectly competitive market would be the market for

copper

Demand Curve A movement from Point A to Point B on the graph indicates a(n)

increase in quantity demanded

If the government intervenes in the economy to promote efficiency, then the government is trying to

increase the growth rate of the economy

Year Price of Pizza Quantity of Pizza Price of Soda Quantity of Soda 2015 $3.00 200 $1.00 280 2016 $3.00 220 $1.50 300 2017 $4.00 250 $2.00 300 2018 $5.00 280 $2.50 340 Consider an economy that only produces pizza and soda. Assume the base year is 2015. In 2017, this economy's

real GDP was $1050, and the GDP deflator was 152.4

Bob has driven 500 miles on a vacation and then notices that he is only 25 miles from an attraction he didn't know about, but would really like to see. In computing the opportunity cost of visiting this attraction he did not plan to visit, he should include

the cost of driving the next 25 miles, but not the cost of driving the first 500 miles

Suppose there is an influx of sellers into the market for cellphones. At the same time, income goes up for the consumers of cellphones. In response to these shocks, what happens to the equilibrium price and equilibrium quantity?

the effect on the equilibrium price is ambiguous but the equilibrium quantity goes up

which of the following is included in U.S. GDP?

the imputed value of owner-occupied housing

Price QD Per Month QS Per Month $5 6,000 10,000 $4 8,000 8,000 $3 10,000 6,000 $2 12,000 4,000 $1 14,000 2,000 Suppose the current price in this market is $3. What would you expect to happen to the price?

the price will increase

John and Jane charge people to park on their lawn while attending a nearby sporting event. At the current price of $15, six people park on their lawn. If they raise the price to $20, they know that only four people will want to park on their lawn. Whether they have six or four cars parked on their lawn does not affect their costs. From this information it follows that

they should leave the price at $15