Econ Final
Which of the following is a *macroeconomics* question?
What determines the minimum wage?
Economics is the study of the _____ people make to attain their goals, given their ____ resources
choices, scarce
Diamonds are an example of
commodity money
Gold is an example of
commodity money
Platinum is an example of a
commodity money
Which of the above statements demonstrates that economic agents *respond to incentives*
soda drinkers purchase more soda from a grocery store that sells soda at a lower price than other rival grocery stores in the area
A farm worker gets paid today in money, but plans to spend the money next week. This illustrates which function of money?
store of value
Which aggregate supply curve has a positive slope?
short run only
lower personal income taxes
increase aggregate demand
The Federal Reserve's four monetary policy goals are
price stability, high employment, economic growth, stability of financial markets and institutions
Home Depot sells new and used doors to contractors who build new homes. Home Depot also sells new and used doors to homeowners. Which of the following would be *counted* in GDP?
the sale of a new door to a homeowner
Which of the following is a *normative* economic statement?
Global warming should be at the top of every economic agenda.
Consider: which of the above statements demonstrates that economic agents respond to incentives?
Homeowners take steps to increase security b/c they believe its *more costly* to allow burglaries than to *install* monitoring equipment manufacturers produce *more* of a particular cell phone when its selling price *rises*
Which of the following is likely to *increase* measured GDP?
Marijuana becomes legal to grow and sell.
Which of the following is a *positive* economic statement?
The minimum wage law causes unemployment
The "International trade effect" states
an increase in the price level will lower net exports
If you have trouble finding a job because of a slow down in the overall economy, we would say that you are
cyclically unemployed
higher personal income taxes
decrease aggregate demand
The five most important variables that determine the level of consumption are
disposable income, wealth, expected future income, price level, and interest rate.
A student who just graduated from college but has not found a new job would most likely be
frictionally unemployed
In a centrally-planned economy, who decides what goods and services will be produced?
the government
