macro-exam 1
cakes.
According to the accompanying table, Kate has the absolute advantage in making
1/2 of a cake.
Refer to the accompanying table. Kate's opportunity cost of making a pie is
1 car.
Dent 'n' Scratch Used Cars and Trucks employs 3 salespeople. Data for their sales last month are shown in the accompanying table: Based on last month's data, Joe's opportunity cost of selling a truck is selling
the end products of; are
Final goods and services are ______ production and ______ counted in GDP.
90
Given the following data for the economy, compute the value of GDP.
30
Given the following data for the economy, compute the value of the investment component of GDP.
included in GDP at cost.
Goods and services provided by state and local governments are
final
Goods and services that are consumed by the ultimate user are called ______ goods and services.
3 apartments.
If Sasha works for 6 hours she can rent out 9 apartments, and if she works for 7 hours she can rent out 12 apartments. The marginal benefit of Sasha's 7th hour of work equals
people would still have to make trade-offs.
If all the world's resources were to magically increase one hundredfold, then
13.7 percent
In a small town of 100 people, there are 10 children under 16, 10 retired people, 60 people with full-time jobs, 3 people with part-time jobs, 3 full-time students over 16, and 4 full-time homemakers. The remaining people did not have jobs but wanted jobs. What is the unemployment rate in this town?
surplus; $0
Suppose Monique is willing to pay up to $12,000 for a used Ford pick-up truck. If she buys one for $12,000, her economic ______ would be ______.
$6.75
Suppose that the total production of an economy consists of 11 oranges and 4 candy bars, each orange sells for $0.25, and each candy bar sells for $1.00. What is the market value of production in this economy?
24 apples
Ushi owns an apple farm and plans to spend 4 hours today picking apples. The number of apples he can pick per hour depends on the total number of hours he spends working in either the east orchard or the west orchard in the manner shown in the accompanying table below. What is the marginal benefit to Ushi of the 2nd hour he spends picking in the east orchard?
New information that leads sellers to believe that the product's price will rise in the future
What might cause a decrease in current supply of a product?
An increase in the price of a substitute
What might cause a demand curve to shift to the right?
the economic motives of sellers and buyers will move the market to its equilibrium.
When a market is not in equilibrium
Jack Little, a 21-year-old new college graduate actively looking for his first job
Who from among the following would be classified as unemployed?
accept your offer because their opportunity cost of a coconut is greater than 4 fish.
You are the Minister of Trade for a small island country with the following annual PPC: You are negotiating a trade agreement with a neighboring island with the following annual PPC: If you offer to give the other island 1 coconut for every 4 fish they give you, then they will
1/3 of a bag of trash.
Refer to the accompanying figure. For Chris, the opportunity cost of planting one bulb is removing
the supply of tires will decrease.
If the price of rubber (an input to the production of tires) increases
quantity supplied is greater than quantity demanded.
If there is an excess supply of sport utility vehicles, then
1,216,000
Based on the information in the table, how big is the labor force?
$7
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?
quantity will be lower, but the direction of the price change is uncertain.
If the supply curve and the demand curve both shift to the left, then the new equilibrium
5 percent
In a country with 200 million people aged 16 years and older, 120 million are in the labor force, and 114 million are employed, what is the unemployment rate?
Jackie can't go the game and finish the paper.
Jackie wants to go to the football game this weekend, but she has a paper due on Monday. It will take her the whole weekend to write the paper. Jackie decides to stay home and work on the paper. According to the Scarcity Principle, the reason Jackie doesn't go to the game is that
to wash clothes; it generates a bigger economic surplus
Janie must choose to either mow the lawn or wash clothes. If she mows the lawn, she will earn $30, and if she washes clothes, she will earn $45. She dislikes both tasks equally and they both take the same amount of time. Janie will therefore choose ______ because ______.
$21,000
Kenan's Barber Shop cut 3,000 heads of hair in 2019 and 3,100 in 2020. The price of a haircut was $7 in 2019 and $8 in 2020. If 2019 is the base year, what was Kenan's contribution to real GDP in 2019?
$35,000.
Lauren was accepted at three different graduate schools, and she must choose one. Elite U costs $50,000 per year and did not offer Lauren any financial aid. Lauren values attending Elite U at $60,000 per year. State College costs $30,000 per year and offered Lauren an annual $10,000 scholarship. Lauren values attending State College at $40,000 per year. NoName U costs $20,000 per year and offered Lauren a full $20,000 annual scholarship. Lauren values attending NoName at $15,000 per year. Lauren's opportunity cost of attending State College is
base year; current
Real GDP is measured in ______ prices; nominal GDP is measured in ______ prices.
curve C to curve D.
Refer to the accompanying figure. An increase in demand is represented by a shift from
excess supply and downward pressure on the price.
Refer to the accompanying figure. At a price of $9, there will be
It has to give up fewer than 12.5 salads.
Refer to the accompanying figure. If this restaurant goes from producing 20 to 25 pizzas per hour, then which of the following statements is true?
the demand curve to shift to D(A) because some people will stop drinking coffee.
Refer to the accompanying figure. Suppose the solid line shows the current demand for coffee. In response to a news story explaining that coffee causes heart disease, you should expect
3
Refer to the accompanying table. According to the Cost-Benefit Principle, how many units of this activity should be carried out?
2 pizzas.
Refer to the accompanying table. Corey's opportunity cost of delivering a pizza is making
$6.
Refer to the accompanying table. The average cost of 5 units of activity is
$10.
Refer to the accompanying table. The marginal benefit of the 5th unit of activity is
her reservation price was at least $400.
Shelly purchases a leather purse for $400. One can infer that
its extra benefit is greater than or equal to its extra cost.
The Cost-Benefit Principle indicates that an action should be taken if
W, X, Y, Z, and V
The accompanying figure shows Isabella's daily production possibilities curve for dresses and skirts. Of the labeled points, only ______ are efficient.
V
The accompanying figure shows Isabella's daily production possibilities curve for dresses and skirts. The maximum number of skirts that Isabella can make in a day is represented by point
$12,426.
The accompanying table shows how total donations, average donations, total labor costs, and average labor costs vary depending on the number of employees State U hires for its fundraising activities: The marginal benefit (in terms of extra donations) of the 2nd employee is
the difference between the benefit and the cost of taking an action
The economic surplus of an action is
1.77
The following table gives the quantities and prices for 2015 and 2020 for an economy that produces just two goods: sailboats and coconuts. For this economy that produces just sailboats and coconuts, and with 2015 as the base year, real GDP was approximately ______ times larger in 2020 than it was in 2015.
extra benefit associated with an extra unit of the activity.
The marginal benefit of an activity is the
gross domestic product.
The market value of final goods and services produced within a country during a period of time is called
the price of the tea falls.
The quantity of tea demanded will increase if
is not; is
The value of unpaid work by a homemaker ______ included in GDP and the value of housekeeping services sold in a market ______ included in GDP.