Econ Ch 9&10 Study Guide

which of the following are included in investment? (i) military spending (ii) the purchase of an aircraft by a domestic airline (iii) the purchase of $45,000 worth of bonds (iv) the purchase of $32,000 worth of stock (v) social security payments (vi) the construction of a highway by the federal government

(ii) only - the purchase of an aircraft by a domestic airline.

Based on the following statistics, how much are net exports?

-$0.575 trillion

the government passes a new investment tax credit initiative. which input in the production function changes, and what is the effect on economic growth in the country?

the capital stock increases, and economic growth is positivtely affected

In 2010, Canada's GDP was approximately $1,357 billion, and its population was about 34.12 million. What was Canada's approximate GDP per person in 2010?

$39,770

refer to the table below, which shows data for the united arab emiates (UAE). based only on the data in this table, in which years did the UAE experience an increase in the standard of living?

2011 and 2012

what is the difference between microeconomics and macroeconomics?

microeconomics is the study of individual decisions in specific markets, whereas macroeconomics is the study of the economy as a whole

a constant returns to scale production function means that if all inputs are increased by 75%, this should lead to output

rising by 75%

in 2017, the total population of Africa was estimated to be about 1,250,000,000 people.

1.25

the aggregate production function is represented as:

Y=f(L,H,K)

Which of the following is a scaled number?

government budget deficit as a percentage of GDP

the aggregate production function Y= f(L,H,K) shows that economic growth can occur if:

human capital increases

Which of the following is an example of transfer payments?

unemployment benefits

Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the real GDP for last year using this year as the base year?

185,000

Which of the following is an example of a durable good?

your new car

which of the following would lead to a slowdown in economic growth?

a reduction in the birth rate coupled with an increase in the retirement rate of a population

the moral of the story of the Solow growth model is that:

capital accumulation alone cannot lead to sustainable economic growth

which of the following encourages the development of new ideas and inventions?

patents

the table below shows data for central african republic (CAR). what was this country real GDP per person in 2010?

$487.95

refer to the table below that shows data for panama. what was panama's real GDP per person in the year 2002?

$5,435.17

refer to the table, which shows data for Irerland. based only on the data in this table, in which years did Ireland experience a fall in the standard of living?

2008 and 2009

a decreasing returns to scale production function is one where increasing all inputs by a certain proportion leads to output rising by:

a smaller proportion

which of the following would lead to a slowdown in economic growth?

an increase in the dependency ratio

what is the difference between spending from a microeconomic standpoint versus spending from a macroeconomic standpoint?

in microeconomics, spending refers to spending by you, or your family or your company, whereas in macroeconomics, spending refers to the spending by all consumers, all businesses, and the government in the economy.

the aggregate production function Y=f(L,H,K) shows that economic growth can occur if: (i) more labor is employed (ii) human capital is reduced (iii) the dependency ratio rises (iv) the capital stock stays constant

more labor is employed

refer to the diagram of the circular flow of income. based on the diagram, the arrow going FROM box 2 to box 1 must be:

output bought by households

Consider the data shown in the table. Assume the economy produces only textbooks. What is the growth rate of real GDP between the two years using last year as the base year?

5%

Consider the data shown in the table. Assume that the economy produces only barrels of oil. What is the real GDP for year using last year as the base year?

$4,980,000

Based on the following statistics, how much is consumption?

$6.49 trillion

refer to the diagram of the circular flow of income. they key lessons from this diagram are that: (i) all flows of resources are matched by flows of money. (ii) the market value of total output must be equal to total spending. (iii) total spending must equal total income. (iv) all inputs are provide by businesses.

(i),(ii),and (iii)

refer to the table below, which shows data for the united arab emirates (UAE). What was the economic growth rate in UAE in 2010?

-5.91%

if a bakery buys a second oven, hires a second baker, buys double the number of ingrediants and then produces double the number of cakes, then the bakery is experiencing:

constant returns to scale

below is U.S economic data for 2018. What was total spending?

$20.58 trillion

Consider the data shown in the table. Assume that the economy produces only textbooks. What is the nominal GDP for last year?

$250,000

you purchase a new car (produced this year) for $38,000. after six months, you sell the car for $31,500. how much does GDP rise because of these two transactions?

GDP rises by $38,000

property rights refer to

control over a tangible or intangible resource

which of the following countries enjoyed significant catch-up economic growth in the second half of the twentieth century?

south korea

along the same aggregate production function, the level of ____ is the same

technology

technological advancement is NOT represented by which of the following?

the adoption of an existing technology by new firms

Southeast Asian countries experience high temperatures and high humidity during the monsoon seasons. This makes working conditions difficult. Because air conditioners are expensive and consume a lot of electricity, an alternative air cooler called Eco-cooler was invented....

a technological innovation that can increase labor productivity and thus increase economic growth

Consider the following graphs, which are discussed in the textbook. Focus on the graph that looks at the relationship between GDP per person and infant deaths per 1,000 live births. What can explain this relationship?

As real GDP per person rises, maternal and fetal health increase due to better health care, education, sanitation, and nutrition

Dale is a stay-at-home-parent whose typical day consists of getting the kids ready for school, doing the laundry, cooking three meals, and cleaning the house. How are Dale's home activities counted in GDP?

They are not counted.