ap econ unit 2

Yang has just graduated from college and is not interviewing for jobs. Yang would be described as

frictionally unemployed

as a measure of economic welfare, gdp underestimates a country's production of goods and services when there is an increase in

household production

The consumer price index does not measure the cost of inflation because

improvements in the quality of goods are not fully reflective

assuming year what is the base year what is the nominal and real gross domestic product for year two

nominal GDP $280 the real GDP $200

how did Sabrina's nominal income and row income change in 2018 compared to 2017

nominal income increased and real income increased

according to the business cycle represented in the diagram above the actual rate of employment equals the natural rate of employment when the economy is

on the potential line

an increase in the number of which of the following will leave to an increase in the unemployment rate

persons quitting part-time jobs to look for full-time ones

if an economy is at the peak of the business cycle than which of the following is true about the state of the economy

there is an inflationary gap

suppose the maximum production of melons in Ecuador decreases how old is a fact Ecuador's opportunity cost of producing fish explain

they would now produce more fish since their resources for the high opportunity cost melons are depleted so they will recall those towards fish production

The table above gives population and labor market data for an economy. The unemployment rate in this economy is

10%

assume that in economy produces just 2 goods X and Y as shown in the table above if year one is the base year of the consumer price index for your two in this economy is

175

if the consumer price index increases from 200 to 240 in a one year. And the inflation rate is

20 percent

The economy of Galactica is expanding and the actual unemployment rate exceeds the natural rate of unemployment for which year in the above diagram?

2002

if an automobile was manufactured in 2006 and sold to a customer in 2007, what was the effect on the gross domestic product in 2006 and 2007

2006 increase 2007 no change

according to the data above in which year was the real gross domestic product the largest?

2010

calculate the unemployment rate in Patti land

25-2 = 5 5/25×100 = 20 20% is the unemployment rate

assume chilies civilian working age population is 40 million the labor force participation rate in Chile is 50% and the unemployment rate is 10% calculate the number of unemployed people in Chile show your work

40×1/2 equals 20 20×.1 = 2 20-2 = 18 therefore 18 million people in Chile are employed

which of the following is an example of frictional unemployment

A college graduate interviewing for two available positions

which of the following is most likely included in gross domestic product

Ali buys a new bicycle.

which of the following will happen if the actual inflation rate is greater than the expected inflation rate

Borrowers of fixed interest rate loans will be better off.

which country has the comparative advantage in the production of fish explain using numbers

Chile has the comparative advantage because they produce 10 fish but it cost me only one melon so it cost them less to produce the same amount of fish as Ecuador

Alice who has left her job in New York, is moving to Atlanta and looking for a job, in terms of employment status, Alice can most accurately be described as

Frictionally unemployed

What can you conclude about the use of resources in Ecuador

Ecuador has a 3:1 ratio

No assume each country specialize in the production of all the good and richard? has a comparative advantage and the terms of trade or 12 units a fish in one unit of melons will Ecuador game for a trade explain

Ecuador would gain because previously they would've produced 10 fish for one melon but now they get two more fish for the same amount of melon

The nominal gross domestic product of China in 2010 is a measure of the total value in which of the following in 2010

Final goods and services produced within the borders of China

which of the following is true about the real GDP

It measures aggregate output using constant prices.

if a nation's actual real GDP is less than the potential real GDP which of the following must be true

The actual rate of unemployment exceeds the natural rate of unemployment

which of the following will be counted as unemployed by the United States bureau of labor statistics

Persons who were fired from their previous jobs and are actively applying for work

which of the following best explains why transfer payments are not included in the calculation of gross domestic product

Recipients of transfer payments have not produced or supplied goods and services in exchange for these payments.

as a measure of economic performance, GDP accounts for which of the following

Souvenir gifts purchased by tourists domestically

if 2012 is the base year which of the following is true

The CPI in your 2013 is 120

which of the following situations would benefit lenders of fixed interest rate loans

The actual inflation rate is less than the expected inflation rate

which of the following transactions will be included in the calculation of countries X gross domestic product GDP in 2020

The purchase of new construction equipment

Gross domestic product is equal to which of the following

The sum of income paid to all the factors of production

The circular flow model illustrates the equality of which of the following

Total expenditure; Total income

which of the following is correct according to the circular flow model of an economy

Total spending equals total income

Debbie as a citizen of the country of Wayland an ounce of computer software firm in Patty land is the output produced by Debbie's computer software firm included in Patty land a nominal GDP calculated and part A explain

Yes since her firms actual production is in Patti land

which of the following employed individuals represent frictional unemployment

an accounting graduate who is interviewing with a number of accounting firms

which of the following types of unemployment is caused by a recession

cyclical

public policy that generates an unexpected increase in consumer prices will inflict short run cost on all of the following except

borrowers

which of the following allows an individual to gain unexpected inflation

borrowing money at a fixed interest rate

An increase in the number of discouraged workers causes the unemployment rate to

decrease along with the labor-force participation rate

people have given up looking for jobs are classified as

discouraged workers

The measured unemployment rate is often criticized for understanding a level of joblessness because

discouraged workers are not counted in the labor force

which of the following typically occurs during a expansionary phase of the business cycle

employment increases

which of the following will most likely result from deflation

increase the real value of fixed incomes

A continuous increase in the consumer price index is

inflation

an increase in investors will increase which component of the gross domestic product

investment expenditures

A nations employment rate is the ratio of the number of unemployed seeking employment to the nations

labor force

which of the following would most likely benefit from unexpected deflation

lenders

which of the following can be considered a leakage from the circular flow of a economy activity

saving

suppose that a countries nominal gross domestic product was $1000 and your one and $2000 in U2 if year one is the base year and real GDP in year two was $1000 which of the following is true

sera goods and services were produced in the year two than year one

GDP does not account for which of the following

the depletion of natural resources

the term "value added" for a firm is best defined as which of the following

the firm's sales minus the cost of inputs purchased from other firms