econ HMW questions
B
If the average level of nominal income in a nation is $44,000 and the Consumer Price Index is 175, the average real income would be about A. $18,857. B. $25,143. C. $44,000. D. $77,000.
A
If the price of Pepsi decreases, all else held constant, then we'd expect to see a consequent shift of the demand curve for A. Coke to the left. B. Coke to the right. C. Pepsi to the left. D. Pepsi to the right.
B
In an economy, the total expenditures for a market basket of goods in year 1 (the base year) was $5,000 billion. In year 2, the total expenditure for the same market basket of goods was $5,500 billion. What was the Consumer Price Index for the economy in year 2? A. 100 B. 110 C. 115 D. 120
A
In calculating GDP, governmental transfer payments, such as Social Security or unemployment compensation, are A.not counted. B. counted as investment spending. C. counted as government spending. D. counted as consumption spending.
A
In the circular flow model, households earn their incomes in the A. resource markets. B. product markets. C. capitalist markets. D. money markets.
A
Joe sold gold coins for $1,000 that he bought a year ago for $1,000. He says, "At least I didn't lose any money on my financial investment." His economist friend points out that in effect he did lose money because he could have received a 3% percent return on the $1,000 if he had bought a bank certificate of deposit instead of the coins. The economist's analysis in this case incorporates the idea of A. opportunity costs. B. marginal benefits that exceed marginal costs. C. imperfect information. D.normative economics.
D
GDP excludes most nonmarket transactions. Therefore, GDP tends to A. underestimate the rate of inflation in the economy. B. overestimate the rate of inflation in the economy. C. overestimate the amount of production of the economy. D. underestimate the amount of production in the economy.
C
Getting a college degree is an example of investing in A. physical capital. B. technology. C. human capital. D. research and development.
B
Which of the following would shift the demand for noodles from D1 to D2 (to the right)? A. a decrease in the number of buyers of noodles. B. an increase in the number of buyers of noodles. C. People hear that eating noodles can have negative health effects. D. a decrease in the price of noodles
B
Which question is an example of a microeconomic question? a. What should the federal government do to reduce the trade deficit with Japan? b. Will the merger of two airlines likely lead to higher cost of air travel in the economy? c. What factors are contributing to the steep rise in the federal government's total debt? d. Will the inflation rate remain relatively stable this year?