Straighterline Econ Midterm Exam
The inflation rate can be calculated as the percentage change in
the CPI
An increase in both the equilibrium price and the equilibrium quantity of DVD players is best explained by
an increase in the demand for DVD players
An economic naturalist is someone who
applies economic insights to understand everyday life.
Which of the following is a real quantity?
The number of tons of steel produced in 2019
Government regulations that increase the cost to the employer of hiring workers will
decrease the demand for labor
Among economists today, the most widely accepted cause of the Great Depression is
poor economic policymaking.
Who from among the following would be classified as out of the labor force?
A person who is willing to work but has not looked for a job in two months
Bank C promises to pay a compound annual interest rate of 6 percent, while Bank S pays an 8 percent simple annual interest rate on deposits. If you deposit $1,000 in each bank, after 10 years, your deposit in Bank C equals _____, while your deposit in Bank S equals ______. Select one:
$1,791; $1,800
Ushi owns an apple farm and plans to spend 4 hours today picking apples. The number of apples he can pick per hour depends on the total number of hours he spends working in either the east orchard or the west orchard in the manner shown in the accompanying table below.
24 apples
Which of the following is true regarding President Trump and NAFTA?
He opposed NAFTA and led renegotiations
What might cause a decrease in current supply of a product?
New information that leads sellers to believe that the product's price will rise in the future
_______ analysis addresses the question of whether a policy should be used, while ______ analysis addresses the economic consequences of a particular policy.
Normative; positive
Which of the following would not be studied by macroeconomists?
The worldwide operations of General Motors
A decrease in both the equilibrium price and the equilibrium quantity of rice is best explained by
a decrease in the demand for rice.
Despite some problems with equating GDP with economic well-being, higher real GDP per person does imply greater economic well-being because it tends to be positively associated with
better education, health, and life expectancy.
A nation's central bank
controls the nation's monetary policy.
A trade deficit occurs when
exports are less than imports.
Government purchases include spending by federal, state, and local governments on
final goods and services
If an increase in the price of good X leads to a decrease in the demand for good Y, then Select one:
good X and good Y are complements.
Economic growth can result from a(n)
increase in the amount of productive resources.
In Econland population increased from 1 million to 1.1 million, the number of employed workers increased from 500,000 to 600,000, but average labor productivity decreased from $20,000 per worker per year to $18,000 per worker per year. Total output in Econland _____ and the average standard of living _____.
increased; decreased
The benefits of specialization can be used to explain why
individuals and nations benefit from trade.
The rate at which prices in general are increasing is called the
inflation rate.
Output per person must be _____ output per worker.
less than or equal to
Suppose manufacturers introduce a new model car to replace a car currently included in the CPI basket. The price of the new car is 10 percent higher than the discontinued model, but the new car has additional safety features and amenities. In this situation the CPI will tend to ______ inflation as a result of ______ bias.
overstate; quality adjustment
Unemployment typically _____ during a recession.
rises
A decision to join a free trade association, such as NAFTA, is an example of _____ policy.
structural
According to the Cost-Benefit Principle, you should go see the latest Fast and Furious movie with your friends this weekend if
the extra benefits of seeing the movie are greater than the extra costs of seeing the movie.
An example of monetary policy is
the provision of additional cash to the banking system.
A trade imbalance occurs when
the quantity of a country's exports differs significantly from the quantity of imports.
If Country A and Country B have the same population size, then the standard of living in these two countries can still be different depending on
the relative sizes of total output.
Janie must choose to either mow the lawn or wash clothes. If she mows the lawn, she will earn $30, and if she washes clothes, she will earn $45. She dislikes both tasks equally and they both take the same amount of time. Janie will therefore choose ______ because ______._____
to wash clothes; it generates a bigger economic surplus
The number of unemployed divided by the labor force equals the
unemployment rate
The Great Depression
was a period of low production and high unemployment.
