Macroecon
Which point(s) are efficient? Briefly explain why.
Points B, C, and D because this is where maximum output is produced with available resources. (in line)
The economic growth model explains growth in real GDP per capita in the long run. Because of the importance of labor productivity in explaining economic growth, the economic growth model focuses on the causes of increases in long-run labor productivity. What are the key factors that determine labor productivity? (Mark all that apply.) Part 2 A. Technological change B. Trade C. Quantity of capital per hour worked D. Efficiency wages
Quantity of capital per hour worked Technological change
From the list below, select the variable that will cause the supply curve to shift:
cost of raw materials
We can show economic inefficiency:
with points inside the production possibilities frontier.
We can show economic efficiency:
with points on the production possibilities frontier.
Suppose you were borrowing money to buy a car. Consider the following situations. Part 2 Situation 1: Suppose the interest rate on your car loan is 18.00 percent and the inflation rate is 17.00 percent. Calculate the real interest rate. 11%. (Enter your response as a percentage rounded to two decimal places.) Part 3 Situation 2: Suppose the interest rate on your car loan is 8.00 percent and the inflation rate is 5.00 percent. Calculate the real interest rate. 33%. (Enter your response as a percentage rounded to two decimal places.) Part 4 Situation 1 will be better than Situation 2 because the real interest rate is lower. Part 5 Now suppose you are JPMorgan Chase, and you are making car loans. Which situation above would you now prefer? JPMorgan Chase would prefer Situation 2.
1, 3 better than, real interest rate situation 2
Total population 125,000 Working-age population 75,000 Employed 60,000 Unemployed 7,500 Consider the data above for a simple economy. Refer to the table. The unemployment rate for this simple economy equals Part 2 A. 6.0 percent. B. 10.0 percent. C. 11.1 percent. D. 12.5 percent.
11.1
Assume the market basket for the consumer price index has three products—Cokes, hamburgers, and CDs—with the following values in 2015 and 2022 for price and quantity: Base Year (2015) 2022 Product Quantity Price Price Cokes 100 $0.50 $0.75 Hamburgers 200 2.00 2.50 CDs 10 20.00 21.00 The Consumer Price Index for 2022 equals Part 2 A. 108. B. 93. C. 121. D. 75.
121
assume the market basket for the consumer price index has two products—meat and potatoes—with the following values in 2015 and 2022 for price and quantity: Base Year (2015) 2022 Product Quantity Price Quantity Price Meat 100 $10 120 $12 Potatoes 200 2 180 3 The Consumer Price Index for 2022 equals Part 2 A. 125. B. 135. C. 129. D. 141.
129
Fill in the missing blanks in the following table. Assume for simplicity that taxes are zero. Also assume that the values represent billions of dollars. National Income and Real GDP (Y) Consumption (C) Saving (S) $10,000 $7,000 $enter your response here $11,000 $7,700 $enter your response here $12,000 $8,400 $enter your response here $13,000 $9,100 $enter your response here $14,000 $9,800 $enter your response here
3,000, 3,300, 3,600, 3,900, 4,200 MPC= C/Y marginal propensity to consume: 0.7 MPS= S/Y 0.30
Product Quantity (2018) Price (2018) Expenditure (2018) Price (2022) Expenditure (on base year quantities) (2022) Computers 1 $1,200 $1,200 $900 $900 Books 10 25 250 30 300 Burgers 50 3 150 4 200 Total $1,600 $1,400 Suppose an economy has only three goods and the typical family purchases the amounts given in the table. If 2018 is the base year, then what is the CPI for 2022? Part 2 A. 14.3 B. 87.5 C. 114.3 D. 160
87.5
If the marginal propensity to consume (MPC) is 0.9, how much additional consumption will result from an increase of $100 billion of disposable income? A. $90 billion B. $80 billion C. $10 billion D. $9 billion
90 billion
total population 125,000 Working-age population 75,000 Employed 60,000 Unemployed 7,500 Consider the data above for a simple economy. Refer to the table. The labor force participation rate for this simple economy equals Part 2 A. 54.0 percent. B. 80.0 percent. C. 88.8 percent. D. 90.0 percent.
90%
Which of the following statements is correct? A. Actual investment will equal planned investment only when inventories rise. B. Actual investment equals planned investment only when inventories decline. C. Actual investment and planned investment are always the same thing. D. Actual investment will equal planned investment only when there is no unplanned change in inventories.
Actual investment will equal planned investment only when there is no unplanned change in inventories.
Total population 125,000 Working-age population 75,000 Employed 60,000 Unemployed 7,500 Consider the data above for a simple economy. Refer to the table. The unemployment rate for this simple economy equals Part 2 A. (7,500/125,000)×100. B. (7,500/75,000)×100. C. (7,500/67,500)×100. D. (7,500/60,000)×100.
C. (7,500/67,500)×100.
A columnist for Forbes argues that: "Even if China is always better than Spain at producing textiles, if the best thing that Spain could be doing is textiles then that's what Spain should be doing." Source: Tim Worstall, "Inditex's Zara and the Power of Comparative Advantage," forbes.com, July 7, 2015. What does the columnist mean by writing that China "is always better than Spain" in producing textiles (which include clothing, sheets, and similar products)?
China can produce textiles at a lower cost in terms of resources than Spain can.
Suppose that the economy enters into a recession and that, as a result, Rusty Z. Wrench loses his job as a delivery truck mechanic and remains unemployed. When the economy recovers, Rusty's previous employer rehires him. What is the best classification for his time as an unemployed truck mechanic? Part 2 A. Frictionally unemployed B. Cyclically unemployed C. Seasonally unemployed D. Structurally unemployed
Cyclically unemployed
According to Costco's CEO, Jim Sinegal: "Paying good wages and keeping your people working for you is good business...Imagine that you have 120,000 loyal ambassadors out there who are constantly saying good things about Costco. It has to be a significant advantage for you." Sources: Alan B. Goldberg and Bill Ritter, "Costco CEO Finds Pro-Worker Means Profitability," ABCnews.com, Aug. 2, 2006; Lori Montgomery, "Maverick CEO Joins Push to Increase Minimum Wage," Washington Post, Jan. 30, 2007. What is Costco's CEO referring to? Part 2 A. Efficiency wages B. Union contracts C. Marketing strategies D. Structural unemployment
Efficiency wages
Use the data for the United States in this table to answer the following questions: Year Real GDP Per Capita (2012 prices) 2017 $58,208 2018 $59,607 2019 $60,698 2020 $58,453 2021 $61,856 *Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis. Part 3 The percentage change in real GDP per capita between 2017 and 2021 was 6.276.27%. (Enter your response rounded to two decimal places and include a minus sign if necessary.) Part 4 The average annual growth rate in real GDP per capita between 2017 and 2021 was 1.591.59%. (Enter your response rounded to two decimal places and include a minus sign if necessary.)
GFP change: 6.27 average annual growth: 1.59
Question content area Part 1 What is the effect on inventories, GDP, and employment when aggregate expenditure (total spending) exceeds GDP? Part 2 A. Inventories decrease, GDP decreases, and employment increases. B. Inventories increase, GDP increases, and employment decreases. C. Inventories decrease, GDP increases, and employment increases. D. Inventories increase, GDP increases, and employment increases.
Inventories decrease, GDP increases, and employment increases.
Use the figure to calculate the marginal propensity to consume (MPC) between point A and point B. Part 2 MPC = enter your response here. (Enter your response rounded to two decimal places.)
MPC=(y1-y2)/(x1/x2) MPC= (3750-2250)/(5000-3000) MPC = .75
Suppose the United Kingdom and Norway both produce oil and fish oil, which are sold for the same prices in both countries. The following table shows combinations of both goods that each country can produce in a day, measured in thousands of barrels, using the same amounts of capital and labor: Who has the comparative advantage in producing oil? Can these two countries gain from trading oil and fish oil?
Neither country has a comparative advantage producing oil because their opportunity costs of producing oil are equal. These countries cannot gain from trade because neither has a comparative advantage producing either good.
Does either country have an absolute advantage in producing both goods?
Neither country has an absolute advantage in both goods because the United States can produce more boots but Canada can produce more shirts.
In January 2021, the working-age population of the United States was 250.9 million. The working-age population is divided into those in the labor force (160.2 million) and those not in the labor force (100.7 million). The labor force is divided into the employed (150.0 million) and the unemployed (10.1 million). Those not in the labor force are divided into those not available for work (93.6 million) and those available for work (7.1 million). Finally, those available for work but not in the labor force are divided into discouraged workers (0.6 million) and those currently not working for other reasons (6.5 million). Use this data to help determine which one of the following statements is true:
Option D) Both A and B
Use the following production possibilities frontier for a country to answer the following questions. Part 2 Which point(s) are unattainable? Briefly explain why.
Point A because it is outside the production possibilities frontier. (outside line)
Identify whether each of the following transactions will take place in the factor marketLOADING... or in the product marketLOADING... and whether households or firms are supplying the good or service or demanding the good or service. Part 2 George buys a Tesla Model S. George buys a Tesla Model S.Takes place in the _________ market.The household _____________ the good and the firm ___________ the good.Tesla increases employment at its Fremont plant.This takes place in the ________ market.The households __________ the labor and the firm ___________ the labor.George works 20 hours per week at McDonald's.This takes place in the ________ market.The household __________ the labor and the firm ___________ the labor.George sells land he owns to McDonald's so it can build a new restaurant.This takes place in the _________ market.The household ___________ the factor of production and the firm ____________ the factor of production.
Product Demands, Supplies Factor Supply, Demands Factor Supplies, Demands Factor Supplies, Demands
A columnist for Forbes argues that: "Even if China is always better than Spain at producing textiles, if the best thing that Spain could be doing is textiles then that's what Spain should be doing." Source: Tim Worstall, "Inditex's Zara and the Power of Comparative Advantage," forbes.com, July 7, 2015. The columnist notes that, in fact, Spain exports significant quantities of textiles. If his description of the situation in China and Spain is accurate, briefly explain how Spanish firms are able to export textiles in competition with Chinese firms.
Spain must be able to produce textiles at a lower opportunity cost than China can.
Prior to 2019, Tesla operated only a single factory, located in Fremont, California. In late 2019, Tesla opened a second factory in Shanghai China. Initially the plant produced only Model 3 cars and Model Y SUVs. Source: Trefor Moss, "Tesla Starts Delivering China-Made Model Y Crossover," Wall Street Journal, January 18, 2021. Assume a graph illustrates the production possibilities frontier showing the trade-off Tesla faces between producing Model 3 cars and Model Y SUVs on the x-axis and producing the original Model S and Model X cars on the y-axis before the factory in China began production. How would Tesla's factory in China starting production affect the production possibilities frontier?
The PPF will have the same y-intercept but will pivot outward along the x-axis.
Suppose initially that the United States is consuming 12 boots and 4 shirts and Canada is consuming 4 boots and 8 shirts, as indicated in the figure. Then, suppose the United States and Canada specialize by each only producing the good for which they have a comparative advantage and then trade. In particular, suppose the United States trades Canada half of its production for half of what Canada produces.
The United States will have 88 additional shirt(s) after the trade (enter a numeric response using an integer) and 66 additional boot(s). Part 8 At the same time, Canada will be able to consume 44 additional shirt(s) as a result of the trade and 1414 additional boot(s).
Question content area Part 1 How are the demand and supply curves similar to one another? How are the demand and supply curves different?
The demand and supply curves are both the graphical representation of the relationship between price and quantity. The difference is that the demand curve is downward sloping: it is the relationship between price and the quantity that consumers demand in the market, while the supply curve is upward sloping: it is the relationship between price and the quantity that producers are willing and able to supply to the market.
Which one is best suited to find the quantity demanded at a price of $4.00?
The demand schedule
If demand decreases and supply increases, which of the following will definitely occur?
The equilibrium price will decrease.
If demand and supply both increase, which of the following will definitely occur?
The equilibrium quantity will increase.
Suppose we can divide all the goods produced by an economy into two types: consumption goods and capital goods. Capital goods, such as machinery, equipment, and computers, are goods used to produce other goods. Is it likely that the production possibilities frontier... in this situation would be a straight line: ... click on the icon for an example or bowed out:... click on the icon for an example?
The production possibilities frontier would likely be bowed out because not all resources are equally well suited to produce both consumption and capital goods.
Refer to the graph. A change in demand is illustrated by the move from ________, and a change in quantity demanded is illustrated by a movement from ________. A. point A to point B; point A to point C B. point C to point B; point C to point A C. point C to point A; point A to point B Your answer is correct. D. point B to point A; point C to point A Part 2 Which of the following would not shift the demand curve for a good or service? A. a change in the price of a related good Your answer is not correct. B. a change in expectations about the future price of the good or service C. a change in the price of the good or service This is the correct answer. D. a change in income
a change in the price of a good or a service
Refer to the graphs below. Each graph shows the supply curve for smartphones. Figure 1 QuantityPriceS1S2 The image, labeled Figure 1, shows the supply curve for smartphones. The horizontal axis measures the quantity and the vertical axis measures the price. In the graph, S subscript 1 is the initial upward-sloping supply curve. An arrow shows that S subscript 1 shifts rightward to S subscript 2. S subscript 2 is parallel to S subscript 1. Figure 2 QuantityPriceS2S1 The image, labeled Figure 2, shows the supply curve for smartphones. The horizontal axis measures the quantity and the vertical axis measures the price. In the graph, S subscript 1 is the initial upward-sloping supply curve. An arrow shows that S subscript 1 shifts leftward to S subscript 2. S subscript 2 is parallel to S subscript 1. Figure 1 illustrates ________, and Figure 2 illustrates ________. A. an increase in the price of a substitute in production; an increase in the number of firms in the market B. an increase in the expected future price of the product; a decrease in the number of firms in the market C. a decrease in the price of an input; an increase in the price of a substitute in production D. an increase in productivity; a decrease in the price of an inpu
a decrease in the price of an input; an increase in the price of a substitute in production
Which of the following is an example of a worker experiencing cyclical unemployment? Question content area bottom Part 1 A. an assembly line worker who loses his job because of automation B. a lifeguard who was hired during the summer season is laid off after summer is over C. a freightliner employee that got laid off because of the recession of 2007−2009 D. a worker who changes jobs to move closer to her family
a freightliner employee that got laid off because of the recession of 2007−2009
Which of the following is the definition of the new growth theory? A. the economic growth model that was first developed in the 1950s by Robert Solow, an economist at MIT and winner of the Nobel Prize in Economics B. a model of long-run economic growth that emphasizes that technological change is influenced by economic incentives C. a growth model that focuses on growth in the ratio of capital to labor as the key factor in explaining long-run growth in real GDP per capita D. a model of long-run economic growth that emphasizes that increases in technology are difficult to explain When are additions to knowledge capital subject to diminishing returns? A. when those additions don't involve advances in basic science B. when we look only at their effect on an individual firm C. when the additions are due to improved education for workers D. when we look at their effect on the economy as a whole Which of the following is not a government policy that will increase the accumulation of knowledge capital? A. protecting intellectual property with patents and copyrights B. encouraging the growth of labor unions C. subsidizing education D. subsidizing research and development
a model of long-run economic growth that emphasizes that technological change is influenced by economic incentives when we look only at their effect on an individual firm encouraging the growth of labor unions
Structural unemployment is the result of Part 2 A. a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. B. the ups and downs in inflation. C. the search process of matching workers with jobs. D. a slowdown in the economy.
a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs.
Structural unemployment is the result of Part 2 A. the search process of matching workers with jobs. B. the ups and downs in inflation. C. a slowdown in the economy. D. a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs.
a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs.
We say that the economy as a whole is in macroeconomic equilibrium if Part 2 A. aggregate expenditure equals GDP. B. total spending equals total production. C. total spending equals GDP. D. aggregate expenditure equals total production. E. all of the above.
all of the above.
Imagine that the curves shown in the accompanying figure represent two demand curves for traditional wings (basket of six) at Buffalo Wild Wings. Further assume that wings are a normal good. The movement from point A to B on D1is caused by Indicate which of the following could cause a movement from point A to C. (Check all that apply.)
an increase in the price of baskets of traditional wings. A fall in buyer incomes. Your answer is correct. A rise in vegetarianism
From the list below, select the variable that will cause the demand curve to shift:
consumer income
Which of the following would be the best measure of the cost of living? Part 2 A. consumer price index B. GDP deflator C. real GDP per person D. real GDP
consumer price index
Aggregate expenditure, or the total amount of spending in the economy, equals A. household spending on durable goods plus household spending on nondurable goods. B. total spending by households plus total spending by businesses. C. consumption spending plus planned investment spending plus government purchases plus net exports. D. household spending on durable goods plus business investment spending.
consumption spending plus planned investment spending plus government purchases plus net exports.
The diagram shows the relationship betwen consumption and income for the years 1970 through 2020. Which of the following statements is true? The line that represents the relationship between consumption and disposable income is called the __________. The slope of the this line is the __________. Part 2 A. disposable income function; marginal propensity to save B. consumption function; marginal propensity to consume C. disposable income function; marginal propensity to consume D. consumption function; marginal propensity to save
consumption function; marginal propensity to consume
The most important determinant of consumption is A. the interest rate. B. the price level. C. current disposable income. D. household wealth. Which of the following causes saving to increase? A. an increase in unemployment B. an increase in the price level C. an increase in the interest rate D. an increase in consumption
current disposable income. an increase in the interest rate
Complete the following table to indicate what effect an increase in each of the consumption components will have on consumption. Part 2 An increase in... will (increase/decrease) consumption. the price level ▼ decrease increase consumption. household wealth ▼ decrease increase consumption. expected future income ▼ increase decrease consumption. current disposable income ▼ increase decrease consumption. the interest rate ▼ decrease increase consumption.
decrease, increase, increase, increase, decrease
According to an article in the Wall Street Journal, the demand for orange juice is declining in the United States "as newer entrants in the beverage aisle, including more-exotic fruit juices, such as pomegranate, energy drinks and ready-to-drink coffee, have grabbed a greater share of the market." At the same time, orange juice production has been declining as bacterial infections reduce the quantity of fruit that orange trees can produce. The article notes that despite the decline in the demand for orange juice, the price of orange juice might increase. Source: Alexandra Wexler, "U.S. Orange-Juice Sales Fall to Record Low," Wall Street Journal, August 18, 2014. Part 2 On the graph to the right, assuming that the initial point is 'A', move the cursor to illustrate how the price of orange juice might also increase as a result of these events. Part 3 Given the scenario described in the article, the price of orange juice could increase if
demand decreased less than the supply decreased. Plot D
State whether each of the following events will result in a movement along the demand curve for McDonald's Big Mac hamburgers or whether it will cause the curve to shift. The price of Burger King's Whopper hamburger increases. This will cause A. demand for McDonald's Big Mac hamburgers to decrease. B. demand for McDonald's Big Mac hamburgers to increase. C. a movement along the demand curve for McDonald's Big Mac hamburgers
demand for McDonald's Big Mac hamburgers to increase.
Consider the per-worker production function. Equal increases in the quantity of capital per hour worked lead to ▼ constant increasing diminishing increases in output per hour worked.
diminishing
If the government raises the amount of taxes, holding everything else constant, then A. government purchases will have to decrease. B. disposable income will increase. C. disposable income will decrease. D. disposable income will remain unchanged.
disposable income will decrease.
Efficiency wages cause unemployment because Part 2 A. firms pay wages that are above the market wage, causing the quantity of labor demanded to be greater than the quantity of labor supplied. B. firms pay wages that are below the market wage, causing the quantity of labor demanded to be greater than the quantity of labor supplied. C. firms pay wages that are below the market wage, causing the quantity of labor demanded to be less than the quantity of labor supplied. D. firms pay wages that are above the market wage, causing the quantity of labor demanded to be less than the quantity of labor supplied.
firms pay wages that are above the market wage, causing the quantity of labor demanded to be less than the quantity of labor supplied.
The new growth theory states that Part 2 A. firms will add to an economy's stock of physical capital leading to increases in real GDP but at a increasing rate. B. firms will add to an economy's stock of knowledge capital by engaging in research and development or by contributing to technological change. C. knowledge capital is subject to decreasing returns at the level of the whole economy but increasing returns at the firm level. D. growth in labor productivity is a significant factor in bringing about long-run growth in real GDP per capita. The new growth theory differs from the growth theory developed by Robert Solow, since A. the new growth theory says that physical capital is nonrival and nonexcludable and the Solow growth theory states that knowledge capital is nonrival and nonexcludable and is a key determinant of economic growth. B. the Solow growth theory focuses on technological change and the quantity of capital available to workers whereas the new growth theory states that accumulation of knowledge capital is a key determinant of economic growth. C. the new growth theory focuses on technological change and the quantity of capital available to workers whereas the Solow growth theory states that accumulation of knowledge capital is a key determinant of economic growth. D. the Solow growth theory says that the rate of technological change is influenced by how individuals and firms respond to economic incentives, whereas the new growth theory leaves technological change unexplained.
firms will add to an economy's stock of knowledge capital by engaging in research and development or by contributing to technological change. the Solow growth theory focuses on technological change and the quantity of capital available to workers whereas the new growth theory states that accumulation of knowledge capital is a key determinant of economic growth.
A student who just graduated from college but has not found a job would most likely be Part 2 A. seasonally unemployed. B. structurally unemployed. C. frictionally unemployed. D. cyclically unemployed.
frictionally unemployed.
Inventories refer to Part 2 A. outstanding orders that companies have for future production. B. goods that are kept in storage to be shipped to foreign countries. C. goods that have been produced but have not yet been sold. D. goods that are a result of new inventions.
goods that have been produced but have not yet been sold. rise, fall
If the market price 'Pmkt' is above the price 'P0', then quantity supplied is ▼ ----- quantity demanded and the market is in ▼ ------
greater than, surplus
Real GDP per hour worked is determined by A. physical and human capital. B. demand, government spending, and technology. C. consumption, human capital, and government spending. D. human capital, physical capital, and technology.
human capital, physical capital, and technology.
The production possibilities frontier will shift outward
if technological advances occur
Refer to the diagram to answer the following: a. The movement from point A to point B represents b. The movement from point B to point C represents:
more capital per hour worked technological change technological change and more capital per hour worked
The Bureau of Labor Statistics would categorize a retiree who is not working as _________. Part 2 A. employed B. out of the labor force C. a discouraged worker D. unemployed
out of the labor force
A production possibilities frontier:
shows the maximum attainable combinations of two goods that may be produced with available resources.
Economic growth will Part 2 A. be faster if more capital per hour is used because of increasing returns to capital. B. slow down or stop if more capital per hour is used because of diminishing returns to capital. C. not be affected because the key to economic growth is capital accumulation whether there are diminishing returns or not. D. not be sustained if developing countries stop accumulating capital because of diminishing returns to capital. Some economies are able to maintain high growth rates despite diminishing returns to capital by using Part 4 A. better or enhanced technology, along with accumulating capital; these economies are growing because technology, unlike capital, is subject to increasing returns. B. a newer production method that, if used properly, produces increasing returns to capital. C. a labor-intensive technology because labor, unlike capital, is not subject to diminishing returns. D. a larger proportion of capital, thereby making their production capital intensive, so the sheer volume of capital protects them from diminishing returns to capital.
slow down or stop if more capital per hour is used because of diminishing returns to capital better or enhanced technology, along with accumulating capital; these economies are growing because technology, unlike capital, is subject to increasing returns.
What does the PPI measure? Question content area bottom Part 1 A. the average change in the prices paid for all goods produced in the economy over a given year B. the average of the prices received by producers of goods and services at all stages of the production process C. the difference between the prices consumers pay for goods and services and the prices producers pay for goods and services D. the level of production of goods and services generated in the economy in a given year
the average of the prices received by producers of goods and services at all stages of the production process
if cyclical unemployment is eliminated in the economy, then Part 2 A. the unemployment rate is below the natural rate of unemployment. B. the economy is considered to be at full employment. C. the economy is at less than full employment. D. the unemployment rate is above the natural rate of unemployment.
the economy is considered to be at full employment.
When the demand curve shifts to the right,
the equilibrium price and quantity will both increase.
If demand increases by more than supply
the equilibrium price rises
When the economy is at full employment, unemployment is equal to A. the natural rate of unemployment. B. normal rate of unemployment −abnormal rate of unemployment. C. cyclical unemployment −seasonal unemployment. D. zero.
the natural rate of unemployment.
The natural rate of unemployment is Part 2 A. the sum of seasonal unemployment and cyclical unemployment. B. the sum of cyclical unemployment and frictional unemployment. C. the sum of structural unemployment and frictional unemployment. D. the sum of structural unemployment and cyclical unemployment.
the sum of structural unemployment and frictional unemployment.
An article in the Wall Street Journal stated that in China, "carmakers continue to grapple with ... rising inventories." Source: Colum Murphy, "China's Automobile Sales to Slow Further in 2015," Wall Street Journal, January 12, 2015. Part 2 Carmakers in China might find that their inventories are rising unexpectedly because A. their sales are lower than expected. B. economic growth increased in the country. C. their sales are higher than expected. D. low-priced imports entered the market.
their sales are lower than expected. producing fewer cars in the future.
Consider the per-worker production function graph. If there is an increase in capital per hour worked, holding technology constant, then Part 2 A. there is a movement from D to C. B. there is a movement from B to D. C. there is a movement from A to B. D. there is a movement from A to C If there is an increase in technology, holding constant the quantity of capital per hour worked, then Part 4 A. there is a movement from D to B. B. there is a movement from A to C. C. there is a movement from A to B. D. there is a movement from C to D.
there is a movement from A to B. there is a movement from A to C.
What term describes the relationship between real GDP per hour worked and capital per hour worked, holding the level of technology constant? A. the per-worker production function B. the capital-labor function C. the production possibilities frontier D. the output growth function Along the per-worker production function, what happens to real GDP per hour worked as capital per hour worked increases? A. Real GDP per hour worked increases at an increasing rate. B. Real GDP per hour worked decreases at a decreasing rate. C. Real GDP per hour worked decreases at an increasing rate. D. Real GDP per hour worked increases at a decreasing rate.
the per-worker production function Real GDP per hour worked increases at a decreasing rate.
If the minimum wage is set above the market wage, Part 2 A. unemployment will rise. B. highly−skilled workers will have a harder time finding jobs. C. the quantity of labor supplied will be below the quantity of labor demanded. D. all of the above are correct.
unemployment will rise.
Imagine that the curves shown in the accompanying figure represent two demand curves for traditional wings (basket of six) at Buffalo Wild Wings. Further assume that wings are a normal good. The movement from point A to B on D1 is caused by A goes to lower B
- decrease in buyers ----------- -lower vegeterianism -rise in income
Is it possible for a country to have a comparative advantage in producing a good without also having an absolute advantage? A country without an absolute advantage in producing a good-
-will have a comparative advantage if it has a lower opportunity cost of producing that good.
Using the information in the table, the CPI for 2021, with 2010 as the base year, is enter your response here. (Enter your response rounded to one decimal place.)
105.0
Calculate the missing values in the table below by using the provided data collected in the household survey for February 2023. (Enter your responses as whole numbers.) Category Value Working-age population** 266081266081 Employed** 160,315 Unemployed** 59865986 Unemployment rate 3.6% Labor force** 166301166301 Labor force participation rate 62.5% ** Numbers in thousands *Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis.
266081, 5986, 166301
Complete the following table: Base Year 2014 2016 Product Quantity Price Expenditures Price Expenditures Price Expenditures Denim Jeans 1 $70 $70 $140 $140 $105 $105 Pizzas 20 14 280 20 400 18 360 Coffee Drinks 20 6 120 6 120 7 140 Total $enter your response here $enter your response here $enter your response here
470, 660, 605 140.43, 128.72 8.43
At which point is the country's future growth rate likely to be the highest? Briefly explain why. Part 9
Point B because it is where the most resources are used to produce capital goods
A columnist for Forbes argues that: "Even if China is always better than Spain at producing textiles, if the best thing that Spain could be doing is textiles then that's what Spain should be doing." Source: Tim Worstall, "Inditex's Zara and the Power of Comparative Advantage," forbes.com, July 7, 2015. Is the columnist arguing that Spain has an absolute advantage over China in producing textiles, a comparative advantage, or both?
A comparative advantage in producing textiles.
How can a country gain from specialization and trade?
A country can specialize in producing that for which it has a comparative advantage and then trade for other needed goods and services.
demand curve
A demand curve represents the relationship between the price of a good or service and the quantity demanded for a given period of time.
According to the text, economists consider full employment to occur when Part 2 A. the unemployment rate consists of only frictional and structural unemployment. B. the sum of frictional unemployment and structural unemployment equals zero. C. everyone who wants a job has a job. D. frictional unemployment equals zero.
A. the unemployment rate consists of only frictional and structural unemployment.
Total Population 20,000 Working−Age Population 15,000 Employed 1,000 Unemployed 100 Consider the data in the table above for a simple economy. The labor force participation rate for this simple economy equals Part 2 A. 1,000/15,000×100. B. 1,100/15,000×100. C. 1,000/1,100×100. D. 1,100/20,000×100
B. 1,100/15,000×100.
Total Population 20,000 Working−Age Population 15,000 Employed 1,000 Unemployed 100 Consider the data in the table above for a simple economy. The unemployment rate for this simple economy equals Part 2 A. 100/20,000×100. B. 100/1,100×100. C. 100/15,000×100. D. 100/1,000×100.
B. 100/1,100×100.
Suppose that homemakers are included as employed in the labor force statistics, rather than being counted as out of the labor force. This would Part 2 A. increase the measured unemployment rate. B. increase the measured labor force participation rate. C. decrease the number of persons in the working-age population. D. decrease the number of persons in the labor force
B. increase the measured labor force participation rate.
Which point(s) are inefficient? Briefly explain why.
Point E because production there is not using all available resources. (inside line)
The labor force equals the number of people Part 2 A. in the working−age population. B. employed. C. employed plus unemployed. D. unemployed.
C. employed plus unemployed.
The percent increase in the CPI from one year to the next is a measure of the Part 2 A. real interest rate. B. GDP deflator. C. inflation rate. D. unemployment rate.
C. inflation rate.
What is the basis for trade?
Comparative advantage.
An unemployment insurance program has which of the following effects? Part 2 A. It decreases the amount of personal income of the unemployed. B. It increases the severity of a recession because it makes it more difficult for the unemployed to find jobs. C. It lowers the overall unemployment rate. D. It increases the amount of time spent searching for a job.
D. It increases the amount of time spent searching for a job.
If firms pay what are called "efficiency wages", they pay wages that Part 2 A. are lower than average to ensure maximum profit. B. lower the cost of production to the firm. C. will eventually lower the unemployment rate. D. motivate workers to increase their productivity.
D. motivate workers to increase their productivity.
Consider the previous figure and assume that it is the market for health-care services. When the "baby boomer" generation retires, the number of people who require health care increases by 30%, and, as a result, the number of health-care providers also increases, but by only 25%.What is the effect on the price of health-care services over time?
It increases because demand increased by more than supply.
What is comparative advantage?
The ability to produce a good or service at a lower opportunity cost than other producers.
What is absolute advantage?
The ability to produce more of a good or service than competitors using the same amount of resources.
Suppose that the inflation rate turns out to be much higher than most people expected. In that case, Part 2 A. both borrower and lender will gain from the situation. B. a borrower will gain from the situation while a lender will lose. C. both borrower and lender will lose in this situation. D. a lender will gain from the situation while a borrower will lose.
a borrower will gain from the situation while a lender will lose.
McDonald's eliminates $1.00 off coupons. This will cause
a movement along the demand curve for McDonald's Big Mac hamburgers.
demand schedule
a table that shows the quantity demanded at each price
A student writes the following: "Increased production leads to a lower price, which in turn increases demand." Part 2 This student must be referring to A. an increase in quantity demanded. B. an increase in demand.
an increase in quantity demanded.
The U.S. economy enters a period of rapid growth in incomes. This will cause
demand for McDonald's Big Mac hamburgers to shift to the left if they are inferior goods
Consider the following statement: "An increase in supply decreases the equilibrium price. The decrease in price increases demand." The statement is
false: decreases in price affect the quantity demanded, not demand.
Discuss the likely impact of the following event on the unemployment rate If most U.S. workers join labor unions, then the unemployment rate will ___________
increase
At the macro-economy level, A. knowledge capital exhibits increasing returns and physical capital exhibits decreasing returns. B. both knowledge capital and physical capital exhibit decreasing returns. C. both knowledge capital and physical capital exhibit increasing returns. D. physical capital exhibits increasing returns and knowledge capital exhibits decreasing returns.
knowledge capital exhibits increasing returns and physical capital exhibits decreasing returns.
A change in quantity demanded or quantity supplied is the result of a change in the good's own price and causes a
movement along the curve.
A change in demand or supply is the result of changes in factors other than the good's own price and causes a
shift in the entire curve
When a country devotes resources to producing capital goods, then in the future that country's production possibilities frontier will
shift out along both axes.
KFC raises the price of a bucket of fried chicken. This will
shift the demand for McDonald's Big Mac hamburgers to the right
demand increases by less than supply
the equilibrium price falls
