MACRO Final
DEll and apple are competitors in the computer market. Which graph illustrates the effect of a rise in the price of dell computers on the demand for apple computers
graph d
The US department of education sponsors the i3 program, which provides grants to educational institutions and schools that have proven track record o high student achievement. This is an example of a government program designed to build
human capital
the principle that your best choice depends on your other choices, the choices other make, developments in other markets, and expectations about the future is known as the ___ principle
interdependence
enforceable property rights encourage economic growth by encouraging
investment
the person who has an absolute advantage in a task
is one who is best at the task
diminishing marginal benefit
is when buying an additional item yields a smaller marginal benefit than the previous item
what is social insurnace
it is government-provided financial funding to households to compensate for bad outcomes such as unemployment, illness, disability, or outliving their savings
what is quantity supplied
it is the amount of an item that a seller is willing to sell at a particular price
shifts in demand
lead to a price and quantity to move in the same direction
which graph shows what will happen in the market for luxury vehicles if a recession is imminent
graph a
use the watermelon market graph to answer the question
$12.50
consider the data shown in the table. assume that the economy produces only textbooks. what is the real GDP for this year
$275,625
use the graph of a demand curve for jars of laundry detergent to answer the question
$350
the table provides data on how long it takes Joachim and zane to clean the bathrooms and wash the windows at home
.4 of the windows washed; .5 of the windows washed
in may 2019, there were approximately 68,980,000 people in japan's labor force. About 1,650,000 people were unemployed what was the unemployment rate
2.4%
you just brought two used textbooks for $25 each. How much does GDP change because of your purchase
GDP does not change
the table provides data on how long it takes zaio and Gabriella each to learn to play a particular new song on the piano and to complete a given person's tax return. use the data to answer the question
Gabriela because she gives up fewer completed tax returns when she learns a new cons
which of the following people can be classified as unemployed
Laura, who has been seeking employment for two months
Barlow and Russia own a nail salon. a manicure takes Barlow 60 minutes to complete and takes Russia 45 minutes to complete. completing the pedicure takes Barlow 45 minutes and takes Russia 30 minutes. who has a comparative advantage in pedicures?
Russia because she has a lower opportunity cost
the aggregate production function is represented
Y=f(L,H,K)
in the graph, the movement from point E to point F represents
a decrease in quantity supplied
a production function is
a method through which inputs can be turned into outputs, given the available resources
when quantity demanded exceeds quantity supplied, __ exists
a shortage
in a market graph, consumer surplus is the area
above the price and below the demand curve
on a market graph, producer surplus is the area that is
above the supply curve and below the price
which of the following is a source of comparative advantage
abundant inputs
the working age population includes people who are
age 16 or older who are not in the military or institutionalized
a trade cost is
an extra cost incurred as a result of buying or selling a good abroad rather than domestically
the movement from point m to point n represents
an increase in quantity demanded
sunk costs are costs that
are incurred in the passed and cannot be reversed
The cost-benefit principle sates that a decision should be pursued only if the
benefits are greater than the costs
the "market value" of a good or service refers to the
current dollar value of that good or service
when a manager uses comparative advantage to assign tasks in a workplace
each task is assigned to the worker with the lowest opportunity cost of performing the task
the concept of equity focuses on
fairness
a "final" good or service is one that is
finished and ready for final user
to maximize production, people should
focus not the task in which they have a comparative advantage
If companies frequently start using drones to deliver products, which graph shows the effect this will have on the market for drones
graph A
menu costs are the
marginal costs of adjusting prices.
The ___ suggests, decisions about qualities are best made incrementally
marginal principle
GDP is defined as the
market value of all final goods and service produced within a country in a given year
the table provides data on how long it takes marla and Jason to cook lasagna or chicken curry
marla because she has a lower opportunity cost than Jason
holding all else constant, if people eat out more at expensive restaurants when they earn more, then expensive restraint meals are
normal goods
analysis based on value judgements is called
normative analysis
the labor force participation rate is the
percentage of the working age population that is either employed or unemployed
the producer price index is an index that tracks the
price that businesses pay over time for the inputs used in the production process
an equilibrium price is a price where the
quantity supplied equals the quantity demanded
if the price of jet fuel rises, the
quantity supplied of jet fuel increases
a market is a
setting that brings together potential buyers and sellers
government-provided financial funding to households to compensate for bad outcomes such as unemployment, illness, disability or outliving your savings is known as a
social insurance system
which of the following is a social insurance program in the us
social security
comparative advantage explains why people
specialize and trade
a government can promote the development of human capital
subsidizing secondary school education
due to decline in demand and popularity, ford motor company is planning to phase out traditional sedans such as fusion and taurus to focus on SUVs and trucks. Ford's sedans and trucks/SUVs are
substitutes in production
suppose that a CPI basket includes avocados, pineapples and oranges. Avocados become very expensive, and consumers substitute away from avocados and buy hummus instead. If the CPI basket does not change to reflect to move away from avocados, the result is
substitution bias
a tariff is a
tax on imported products
intergenerational mobility is the extent to which the economic status of children is independent of the economic status of their parents
the economic status of children is independent of the economic status of their parents
the law of demand refers to
the inverse relationship between price and quantity demanded
which principle tells you that the true cost of something is the next best alternative you have to give up to get it?
the opportunity cot principle
the law of supply refers to
the positive relationship between price and quantity supplied
the law of demising return states that
when one input is held constant, while other inputs are increased, eventually output will increase by smaller and smaller amounts