Econ.2
The Business Cycle Dating Committee uses _________ GDP growth rates as the primary indicator of economic activity.
Quarterly
The U.S. Bureau of Economic Analysis measures _________.
GDP
What are Production Possibility Frontiers (PPFs)?
Graphs
GDP stands for __________.
Gross Domestic Product
One fallacy is to think an economic goal is a _________% unemployment rate.
0
During 2011, unemployment data reported by the BLS for average weeks unemployed was ________ weeks.
37
Who was Milton Friedman?
An American economist
The direct relationship between the price of a good and the quantity supplied of a good is represented by ____________.
An upward sloping supply curve.
What is the Law of Demand based on?
Based on the entire market for a product.
What does scarcity mean?
Choices need to be made.
An example of scarcity is ______________.
Choosing to produce more of one good means choosing to produce less of another.
Real GDP can measure _______.
Economic growth
Which is not one of the three main macroeconomic goals society tries to achieve as it deals with scarcity?
Employment decline
Economic growth is measured with ___________.
Increases in Real GDP
What was Friedman's opinion of Capitalism?
It allows for individual freedom.
Utility is synonymous with the word happiness or satisfaction. The greatest happiness principle dates back to British philospher
Jeremy Bentham
Price level stability is ___________.
Keeping prices from rising too quickly, or dropping too quickly.
The most efficient use of our scarce resources is to make a decision where
MB=MC
Generally speaking, as the price of a good falls, the overall market demand for the good ________.
Rises
The Law of Demand states ____________.
That there is an inverse relationship between the price of a good and the quantity demanded of it.
A concept that Adam Smith is well-known for is _____________.
The Invisible Hand Theory
In order for there to be a market,
There must be demand for and supply of goods.
Each time we make a choice or a decision to engage in an action, we incur an opportunity cost. What does this mean?
We give up or forfeit something each time we make a decision to do something else.
The Law of Supply is based on _____________.
What is best for the producer/seller of the good.
Full employment is ___________.
When the unemployment rate is equal to the natural unemployment rate.
Unemployment is usually reported or described as a _____________
a percentage or a rate
Prof. Mario Villarreal-Diaz discusses opportunity cost. Which of the following does he relate to opportunity cost?
all of these ( how people make trade-offs, limited resources,all different wants)
Macroeconomics is the branch of economics that focuses on "big picture" economic issues. A few examples are
all of these (inflation, unemployment, economic growth)
Typical periods of unemployment are less than 6 months, but right before and during a recession that time period can ______________.
increase
Full employment is when the unemployment rate is equal to the natural unemployment rate (usually measured somewhere around 4.5-5%), which is the lowest unemployment rate that can be sustained without causing increasing ________.
inflation
Real GDP adjusts for ______________, so it's usually a smaller number than GDP.
inflation
Wage income or income from being employed makes up a substantial part of income for ________ households.
most
The unemployment rate can be expressed as the percentage of ___________________.
percentage of adults who are in the labor force and thus seeking jobs, but do not have jobs.
The basic economic problem is _________.
scarcity
What is GDP?
the total market value of all final goods and services produced annually within a country's borders.
Data is collected, updated and available from the US Department of Labor Bureau of Labor Statistics in order to help us better understand, estimate and predict the health of our economy, which of the following does the BLS track?
unemployment rates