eocn hw #8
Which of the following would be considered an example of structural policy? A decision by a developing country to reduce government control of the economy and to become more market-oriented. A reduction in income tax rates. Provision of additional cash to the banking system. An attempt to reduce the government budget deficit by reducing spending.
A decision by a developing country to reduce government control of the economy and to become more market-oriented.
Which of the following would increase the investment component of U.S. GDP? You purchase a new clothes washing machine produced in the U.S. You purchase a new clothes washing machine produced in France. A laundry in Seattle purchases a new clothes-washing machine produced in the U.S. A laundry in Mexico purchases a new clothes-washing machine produced in the U.S.
A laundry in Seattle purchases a new clothes-washing machine produced in the U.S.
Which of the following is an example of a capital good?
A metal-stamping machine used to produce cars sold to an automaker
All of the following are examples of positive statements EXCEPT:
Economic output should not be allowed to increase too fast.
If tax revenues equal 25 percent of total output and government expenditures equal 20 percent of total output, then there is a:
government budget surplus.
The market value of final goods and services produced within a country during a period of time is called:
gross domestic product.
Macroeconomics first developed as a new subfield of economics:
in response to the severe economic hardships of the Great Depression.
If business inventories equal $40 billion at the beginning of the year and $55 billion at the end of the year, then, assuming no other changes, GDP must have:
increased by $15 billion.
In Econland population increased from 1 million to 1. 1 million, the number of employed workers increased from 500,000 to 600,000, but average labor productivity decreased from $20,000 per worker per year to $18,000 per worker per year. Total output in Econland _____ and the average standard of living _____.
increased; decreased
Deregulation of the airline, trucking, telephone, and electric utility industries are examples of _______ policy.
structural
In the United States decisions to increase interest rates are made by the _____ and decisions to increase taxes are made by ____.
the Federal Reserve; Congress
Monetary policy refers to:
the determination of the nation's money supply.
Macroeconomic policies are government policies designed to affect:
the performance of the economy as a whole.
A trade imbalance occurs when:
the quantity of a country's exports differs significantly from the quantity of imports.
Goods and services that are consumed by the ultimate user are called ______ goods and services.
final
A trade deficit occurs when:
exports are less than imports.
After increasing at more than 2 percent per year between 1950 and 1973, the growth rate of average labor productivity _____ between 1973 and 1995, and ____ between 1996 to 2007.
slowed; picked up
Which of the following expenditures would increase the investment component of U.S. GDP?
You purchase a new house.
In Econland total output is $8 billion, population equals 500,000 people, and, of these, 400,000 are employed workers. Output per person in Econland equals _______ and average labor productivity equals ______.
$16,000; $20,000
If the Citrus Growers Association grows $1 million worth of oranges, sells $500,000 worth of oranges to consumers, uses the rest to make orange juice that is sold to consumers for $3 million, Citrus Grower's contribution to GDP is:
$3,500,000.
The country of Northland produced $1,000 billion of output in one year. The population of Northland was 50 million, of whom 30 million were employed. What was average labor productivity in Northland?
$33,333
In 2015, Janice Quinn sells a five-year-old car to Used Car, Inc. for $6,000. In the same year, Used Car, Inc. resells the car to Hilda Goner for $6,500. What is the contribution of these transactions to GDP in the year 2015?
$500
Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process: Name of Company Revenues Cost of Purchased inputsCitrus Growers Inc.$0.750Florida Jam Company$2.00$.75The Corner Store$2.50$2.00 What is the value added of Florida Jam Company?
1.25
Compared to 1929, total output in the U.S. today is approximately ____ times larger.
15
The unemployment rate in the United States at the peak of the Great Depression was _____ percent.
25
Which of the following statements is normative?
Large budget deficits should be avoided.
The value of output was $100 billion in Northland and $200 billion in Southland. The population of Northland was 50 million and the population of Southland was 30 million. There were 30 million employed workers in Northland and 20 million employed workers in Southland.
Southland; higher in Southland
Major macroeconomic questions include all of the following EXCEPT:
What causes differences in wages between men and women?
Macroeconomists are more likely than microeconomists to deal with:
aggregation
To aggregate 300 tons of steel, 5,000 bushels of wheat, and 1 million barrels of crude oil, economists add together the _____ of the three products
dollar value
Summing the value added of all firms yields the value of final goods and services produced because both measures:
exclude the value of intermediate goods and services.
If total output increases from $100 billion to $200 billion as population increases from 100 million to 150 million, then output per person:
increases, but by less than 100 percent.
The value of unpaid childcare services provided by a stay-at-home dad ______ included in GDP; the value of daycare services purchased from a licensed childcare provider ______ included in GDP.
is not; is
The determination of the nation's money supply is called:
monetary policy.
A drawback of using market values to aggregate the quantities of goods and services produced in an economy is that:
not all economically valuable goods and services are bought and sold in markets.
The standard of living in an economy is best measured by:
output per person.
"If Congress cuts income taxes, demand for output is likely to increase" is a _______ statement about ______ policy.
positive; fiscal
"The plan to create private accounts in Social Security will reduce benefits for some workers," is an example of a _____ statement, while "Social Security will be better if the private accounts are allowed" is an example of a _____ statement.
positive; normative
Total spending on final goods and services in an economy must equal total:
production value.
If total output is calculated by adding up the market value of goods and services produced, then more expensive items:
receive a greater weight than cheaper items.
The value added by any firm equals the firm's ______ from selling the product minus _______.
revenue; the cost of inputs purchased from other firms
In a debate on the state of the economy Senator A pointed out that the price of clothing, fruits, and computers had decreased slightly over the last year, while Senator B stated that the inflation rate had increased over the last year. In this example, aggregate data is being used by:
senator B
Consumption expenditures include spending by households on:
services.
Intermediate goods and services are ______ production and ______ counted in GDP.
used up in the process of; are not
Suppose that the total production of an economy consists of 4 oranges and 10 candy bars, each orange sells for $0.25, and each candy bar sells for $0.50. What is the market value of production in this economy?
$6.00
If a pizza maker pays $1 for tomatoes, $1 for cheese, $2 for sausage, and sells the pizza made with these ingredients for $7, then each pizza sold contributes how much to GDP?
$7
In which of the following situations would GDP not change?
As domestic consumers buy fewer tobacco products, tobacco manufacturers instead sell their products, at the same price, to foreign buyers.
