Econ exam 2
According to the bureau of labor statistics, the actual unemployment rate was 8.3% in feb 2012 and the natural rate of unemployment was 5.2%. The ___ unemployment rate was
cyclical; 3.1%
look at the figure the Labor Markeet. What is the undemployment rate at an efficiency wage of $16
27%
look at the table labor force distribution. The unemployment rate is
3.85%
technological change
raises total factor productivity
intermediate goods are not counted in GDP because why
this would result in double counting
look at the table peanut butter and jelly. Suppose a market basket consists of 20 jars of peanut butter and 10 jars of jelly. What is the market basket in 2013?
$44.50
look at the table pizza economy III. Considering 2010 was the base year, nominal gdp in 2011 was:
$47,000
look at the figure technological progress and productivity growth. if there is an increase in physical capital per worker it is best indicated by a move from:
A to B ( movement along the curve)
look at the figure technological progress and productivity growth. which of the following changes in real GDP is most likely to have resulted from an increase in domestic savings?
A to B (movement along the curve)
to acquire human capital a person would
learn to use a printing press
look at the figure the market for loanable funds II. A decrease in government borrowing will shift the demand for loanable funds to the ___ and ___ the interest rate
left; decrease
suppose that jim just got a 20 thousand loan from his credit union to buy a new car. the loan is a ___ for jim and a ___ for the credit union
liability; financial asset
Which of the following might produce a new equilibrium interest rate of 4% and a new equilibrium quantity of loanable funds of 75 billion?
profit expectations for business investments become less optimistic
look at the figure the effect of a minimum wage. suppose the labor market is in equilibrium at E when the government imposes a minimum wage of Wf. Structural unemployment will equal
qs-qd
the total value of all final goods and services produced in a given year, calculated using the prices of a selected base year is
real GDP
look at the figure the market for loanable funds II. An increase in government borrowing will shift the demand for loanable funds to the ___ and ___ the interest rate
right; increase
All other things unchanged, a general increase in government borrowing will typically
shift the loanable funds demand curve to the right and increase interest rates
look at the figure the labor market. What is the size of the labor force at an efficiency wage of $16?
$110,000
look at the table pizza economy III. Using 2010 as the base year, realy GDP in 2010 was:
$114,000
consider an economy that produces on dvds and dvd players. last year, 10 dvds were sold at $20 each and 5 dvd players were sold at $100 each, while this year 15 dvds were sold at $10 each and 10 DVD players were sold at $50 each. Real GDP this year using last year as the year is
$1300
if during 2011, the republic of sildavia recorded a GDP of $65 billion, interest payments of $15 billion, imports of $13 billion, profits of $7 billion, exports of $15 billion, and rent of $7 billion, wages during 2011 in Sildavia were:
$36 billion
look at the scenario the aggregate production function. if k/l = 81 then real gdp per worker is
$4,050
Assume that the real GDP of the US is 12 trillion and the population of the US is 300 million what is the GDP per capita
$40,000
Look at the table pizza economy III. considering 2010 as the base year, given that total population was 1140 in 2010 and 1380 in 2011, real GDP per capita between 2010 and 2011 grew at a rate of:
-50%
if 99 million people are working and 1 million are unemployed but actively seeking work, then the unemployment rate is
1%
look at the table investment spending, private spending, and capital inflows. what is the budget balance as a percentage of GDP in Northlandia?
10%
look at the scenario Market basket. What is the value of the price index in 2010?
100
look at the table unemployment and employment data. the labor force in this economy is
100 million
look at the table peanut butter and jelly. Suppose a market basket consists of 20 jars of peanut butter and 10 jars of jelly. If 2012 is the base year, what is the rate of inflation between 2012 and 2013?
11.25%
according to the rule of 70, if a country's real GDP per capita grows at an annual rate of 2% instead of 3% it will take ___ additional years for that country to double its level of real GDP per capita
11.67 years
look at the scenario market basket. What is the value of the price index in 2011?
111
suppose there are 70 million people in the labor force, of whom 60 million are employed. The unemployment rate is
14.28%
If a country has a working age population of 200 million, 135 million people with jobs and 15 million people unemployed and seeking employment then the labor force is
150 million
look at the table peanut butter and jelly economy. How much of the increase in nominal GDP between 2010 and 2011 was due to inflation?
18.75%
suppose there is no trade and no government in a small economy. GDP is 25 trillion and consumption spending is 18 trillion this year. consumption is 8 trillion and gov. spending is 2 trillion. taxes are .5 trillion. how much is national savings?
2 trillion
suppose a panel of economists predicts that a nation's real GDP per capita will double in about 20 years. According to the rule of 70, what must be the predicted annual growth rate of real GDP per capita
3.5%
look at the table peanut butter and jelly economy. Nominal GDP in 2010 was
400
suppose there is no trade and no government in a small economy. GDP is 25 trillion and consumption spending is 18 trillion this year. there is a new government, and it imposes taxes on its citizens to spend on infastructure. Taxes and government spending are both $2 trillion What is the level of private saving now?
5 trillion
look at the table unemployment and employment data. The unemployment rate for this economy is
5%
suppose there is no trade and no government in a small economy. GDP is 25 trillion and consumption spending is 18 trillion this year. What is the level of private saving?
7 trillion
look at the table unemployment and employment data. If the marginally attached workers are included in the labor force and in the unemployment rate, the unemployment rate in this economy is
7.8%
a fixed interest rate of ___ with ___ inflation will yield the highest rate of return for a lender
8%; 1%
suppose a lender expects a real interest rate of 6% and the inflation rate is expected to be 3% in this case the nominal interest rate equals
9%
look at the figure technological progress and productivity growth. Which of the following changes in real GDP is most likely to have resulted from the deterioration of the nation's infrastructure over time?
B to A (moevement along the demand curve)
look at the figure technological progress and productivity growth. Which of the following changes in real GDP is most likely to have resulted from an increase in the quality of public health measures?
B to A (movement along the curve)
look at the figure technological progress and productivity growth. if there is a significant increase in human capital per worker, it is best indicated by a move from :
B to C (shift in curve)
look at the figure the market for loanable funds II. other things being equal, if there is a decrease in the interest rate below 8%, ___ quantity of loanable funds will be demanded
a larger
a shift away from taxing asset income and toward taxing consumption would lead to
a larger supply of loanable funds, a lower interest rate, and more investment spending.
what is an example of cyclical unemployment?
a real estate agent leaves a job in Texas and searches for a similar higher-paying job in Cali
an example of physical capital
a truck company purchases for deliveries
diminishing return to physical capital suggests that
at some point, increasing the amount of physical capital per worker is not worth the cost of the additional amount of capital
look at the figure technological progress and productivity growth. if there is significant technological progress it is best indicated by a move from
b to c (shift in the curve)
look at the figure technological progress and productivity growth. Which of the following changes in real GDP is most likely to have resulted from an increase in foreign investment?
both A to B and B to C
a bond
both a promise to pay interest each years and to repay the principal on a specified date and a liquid asset, since it is a standardized product with a markt in which the owner can sell it
national savings is the sum of private savings and
budget balance
northlandia has ___ while southlandia has a ___
budget surplus; balanced budget
the idea that relatively poor nations should have higher rates of growth of real GDP per capita than relatively rich nations is known as the
convergence hypothesis
what is the most liquid
currency
if real GDP rises while nominal GDP falls, then prices on average have
fallen
what is not a cause of structural unemployment?
granting social security benefits to laid off workers
what is not a factor that drives productivity growth
growth convergence
In the product markets
households demand goods and services
unexpected inflation ___ lenders and ___ borrowers
hurts; benefits
Which causes an outflow of funds from a domestic economy
imports
look at the figure the effect of a minimum wage. Suppose that after some time with a minimum wage of wf, the government abolishes the minimum wage. Employment will:
increase to Qe
look at the figure the effect of a minimum wage. suppose the labor market is in equilibrium at E when the government imposes a minimum wage of Wf. The quantity of labor supplied may ___, resulting in structural unemployment
increase to Qs
look at the table peanut butter and jelly economy. Between 2010 and 2011, nominal GDP
increased by 31.25%
four types of financial intermediaries are
mutual funds, pension funds, life insurance companies, and banks
the convergence hypothesis says that international differences in GDP per capita tend to ___ over time
narrow
according to the text, productivity is driven by all of the following except:
natural resources
you are a college student and not knowing or looking for work. you are
not in the labor force
a mutual fund
owns a diversified portfolio
what are factors that drive productivity growth?
physical capital, techonolgical progress, human capital
if the population and GDP increase by the same percentage, then GDP per capital
stays the same
look at the figure the market for loanable funds II. other things being equal, a decrease in taxes on savings and investment income will shift ___ to the ___ and ____ the interest rate
supply; right; decrease
look at the table labor force distribution
the total population is 278 million
a households wealth is
the value of its accumulated savings
Which of the following might produce a new equlibrium interest rate of 5% and a new equilibrium quantity of loanable funds of 150 billion?
there is an increase in capital inflows from other nations
Suppose that Allison has an accounting degree, but she lost her job two months ago when her company merged with another firm. Allison hasn't been able to find another accounting job, so she has taken a part-time job as a sales clerk at a clothing store. The Bureau of Labor Statistics classifies Allison as:
underemployed