Macroeconomics

If a county's initial real GDP is $600,000 and its yearly growth rate of GDP is 5 percent, use the Rule of 70 to determine approximately how many years it would take for the economy to double the GDP A. 14 years B. 20 years C. 70 years D. 12 years

14 years

How many points of the overall final grade does one single discussion form is worth, according to the course syllabus and course calendar? 0.1 1 1.5 2

2

How many points of the overall final grade does the final exam is worth, according to the course syllabus? 10 15 20 30

30

The rule of 70 indicates that if the growth rate of a variable is X percent per year, the variable will double in A. 70 + X years B. 70 - X years C. 70 x X years D. 70 / X years

70 / X years

In the year 2000, the world's average per capita GDP was $9,133. What percent of the world's population lived in a country with per capita GDP that was below $9,133? A. 80 percent B. 65 percent C. 40 percent D. 50 percent

80 percent

A free market achieves an equilibrium price and quantity due to: A. the actions of buyers and sellers. B. buyers' ability to affect market outcomes. C. government regulations placed on market participants. D. increased competition among sellers.

A) The actions of buyers and sellers.

what does the law of supply state? A. There is a positive relationship between price and quantity supplied B. There is a negative relationship between price and quantity supplied, C. When prices rise, buyers buy less of the product. D. When prices rise, suppliers sell more.

A) There is a positive relationship between price and quantity supplied

Which of the following choices contains only factors that cause the supply curve to shift to the right? A. a rise in technology, a fall in the costs of production, a fall in taxes on output B. a decrease in taxes on production, a fall in subsidies on production, a rise in costs of production C. a fall in production costs, a rise in technology, an increase in taxes on output D. a fall in tastes and preferences for the product, economic growth, and a rise in technology

A) a rise in technology, a fall in the cost of production, a fall in taxes on output.

In free markets, surpluses lead to: A. lower prices B. surpluses C. unexploited gains from trade D. higher rices

A) lower prices

The quantity supplied of oil is the amount that: A. producers plan to sell during a given time period at a given price. B. is actually bought during a given time period at a given price. C. people are willing to buy during a given time period at a given price. D. producers wish they could sell at a higher price.

A) producers plan to sell during a given time period at a given price.

If the overall final grade of a student is 89.75, what is the letter grade such student has earned, according to the course syllabus? A B C D

B

At a free market equilibrium: A. quantity demanded equals quantity supplied. B. consumer surplus and producer surplus are maximized C. there are no unexploited gains from trade D. All of the answers are correct.

B) consumer surplus and producer surplus are maximized

In free markets, shortages lead to: A. surpluses B. higher prices C. lower prices D. unexploited gains from trade

B) higher prices

If Romaine lettuce and iceberg lettuce are substitute product, an increase in the price of Romaine lettuce will______ the demand for iceberg lettuce. A. not shift B. increase C. reduce D. decrease

B) increase

In a market, the equillibrium condition is given by the following: A. quantity demanded x quantity supplied B. quantity demanded = quantity supplied C. price x quantity demanded = quantity supplied D. quantity demanded / quantity supplied

B) quantity demanded = quantity supplied

Quantity demanded is: A. the amount of a good or service that a seller is able and willing to sell at a given price. B. the amount of a good or service that a buyer is able and willing to purchase at a given price. C. the amount of a good or service that a buyer is able and willing to purchase at various given prices. D. the amount of a good or service that a buyer is able and willing to sell at a given price.

B) the amount of a good or service that a buyer is able and willing to purchase at a given price.

Nigeria receives $53 of producer surplus from each barrel of oil sold at $60. At that level of production, Nigeria's cost to produce a barrel of oil is: A. $1.13. B. $113. C. $7. D. $53.

C) $7

How many quizzes will be given in this course, according to the course calendar? A. 8 B. 9 C.10 D. 11

C) 10

The September 11 terrorist attacks turned many people away from flying. The demand and supply model would predict which of the following events in the airline travel market? A. The supply of airline travel would decrease, resulting in a higher equilibrium price and lower equilibrium quantity. B. The supply of airline travel would increase, resulting in a lower equilibrium price and higher equilibrium quantity. C. The demand for airline travel would decrease, resulting in a lower equilibrium price and lower equilibrium quantity. D. The supply and demand for airline travel would decrease, resulting in a higher equilibrium price and higher equilibrium quantity.

C) The demand for airline travel would decrease, resulting in a lower equilibrium price and lower equilibrium quantity.

Five new sellers enter a market (that previously had seven) and begin producing a good. Which of the following choices explains what happens to the equilibrium Q and P? A. The demand curve will shift to the right, and the equilibrium P and Q will both rise. B. The supply curve will shift to the left, the equilibrium P will fall, and the equilibrium Q will rise. C. The supply curve will shift to the right, the equilibrium P will fall, and the equilibrium Q will rise. D. The supply curve will shift to the right, the equilibrium P will rise, and the equilibrium Q will fall.

C) The supply curve will shift to the right, the equilibrium P will fall, and the equilibrium Q will rise.

When you move along a demand curve: A. only price is held constant. B. all determinants of quantity demanded are held constant. C. all non-price determinants of demand are held constant. D. income and the price of the good are held constant.

C) all non-price determinants of demand are held constant.

Which of the following would increase the demand for beef? A. lower pork prices B. an increase in the price of beef C. higher consumer income D. higher prices of feed grains use to feed beef cattle

C) higher consumer income

The law of demand states that: A. the demand curve is upward sloping. B. the higher the price, the higher the quantity demanded. C. the lower the price, the greater the quantity demanded. D. an increase in income increases the quantity demanded.

C) the lower the price, the greater the quantity demanded.

If Maria is willing to pay $50 for a sweatshirt, how much consumer surplus does she obtain if the market price for sweatshirts is $27.50 each, and she purchases one sweatshirt? A. $77.50 B. $27.50 C. $50.00 D. $22.50

D) $22.50

Economic growth in China has led to more Chinese people owning cars, which: A. decreased demand for oil, causing oil prices to rise. B. increased demand and supply of oil, causing oil prices to increase rapidly. C. increased demand for oil but decreased supply, causing oil prices to increase rapidly. D. increased demand for oil, causing oil prices to rise.

D) increased demand for oil, causing oil prices to rise.

Which of the following are factors that shift the demand curve? A. income, population, tastes, and input prices B. costs of production, price of the product, and subsidies C. expectations, opportunity costs, price of the product D. price of substitutes, tastes, price of complements

D) price of substitutes, tastes, price of complements

In the oil market, an increase in the wage of oil workers will: A. shift the supply curve of oil to the right B. shift the demand curve for oil to the right C. shift the demand curve for oil to the left D. shift the supply curve of oil to the left

D) shift the supply curve of oil to the left

Economic models are A. Unrealistically simple and, thus, useless B. Created to replicate reality C. Built to explain an observed economic phenomenon D. Made of wood

POSS: C) Built to explain an observed economic phenomenon

Economics is the study of A. How individual can make money B. How society manages its unlimited resources C. How to fully meet our unlimited needs and wants D. How society manages its scarce resources

POSS: How society manages its scarce resources

Which of the following statements is a positive statement? A. Bonuses given to CEOs should be taxed. B. The eurozone ought to allow member countries in difficulty to stop using the euro and use currencies of their own instead C. In the US, financial services is one of the largest industries D. The Us government ought to split up some of the largest US banks to promote more competition in the banking industry

POSS: In the US, financial services is one of the largest industries

Which of the following statements about factors of production is false? A. The term 'factors of production' is another term for resources B. The factor of production termed labor means human resources C. The factor of production termed land means natural resources D. The factor of production termed capital means the money which the owners of firms need in order to set their firms up

POSS: The factor of production termed capital means the money which the owners of firms need in order to set their firms up

Which of the following statements is true? A. Microeconomics is concerned chiefly with the economy as a whole B. Macroeconomics is concerned chiefly with individual markets C. Governments have no influence over market prices D. We have to make choices because of scarcity

POSS: We have to make choices because of scarcity

One measure of student output is number of completed math problems produced. Using pen and paper only, a student can complete 50 math problems in 2 hours. Using pen, paper, and a calculator, the same student can complete 100 math problems in 2 hours. (The student is already familiar with, and knows how to use, the calculator.) This scenario illustrates the use of which factor of production? A. physical capital B. human capital C. technological knowledge D. both human capital and technological knowledge

Physical capital

At a price ceiling of $6 per sheet of drywall, quantity demanded is 100 and quantity supplied is 75. What will happen in the drywall market if there is an increased demand for drywall in the construction industry? A. The shortage of drywall will increase above 25 units B. Equilibrium will be restored C. The shortage of drywall will fall below 25 units D. The surplus of drywall will increase above 25 units

The shortage of drywall will increase above 25 units

A price floor is A. able to produce an efficient outcome B. a maximum price allowed by law C. a tool used to increase government revenues D. a minimum price allowed by law

a minimum price allowed by law

Which of the following is NOT an institution that leads to sustained long-term economic growth? A. a dependable legal system B. a stable political system C. an honest government D. an equitable income redistribution system

an equitable income redistribution system

Wealthier nations tend to have A. better educational opportunities B. lower infant survival rates C. lower life expectancy rates D. None of the answers is correct

better educational opportunities

Corruption is like a "tax" on firms because A. firms usually pay bribes to avoid paying corporate taxes B. firms can file for a refund for the money paid as bribes C. firms have to pay certain in percentages of their profits at the end of the fiscal year as bribes D. bribes add to a firm's production costs

bribes add to a firm's production costs

Someone who consumes a resource without working or contributing to the resource's upkeep is called a(n) A. free rider B. outlaw C. double rider D. easy rider

free rider

technological knowledge is the A. productive knowledge and skills that workers acquire through education, training, and experience. B. knowledge about how the world works that is used to produce goods and services C. organizational skills of business owners D. stock of tools including machines, structures, and equipment

knowledge about how the world works that is used to produce goods and services

A price ceiling is a(n) A. legally established minimum price that can be charged for a good B. illegally established maximum price that can be charged for a good C. illegally established minimum price that can be charged for a good D. legally established maximum price that can be charged for a good

legally established maximum price that can be charged for a good

A deadweight loss is the total of A. consumer and producer surplus when all mutually profitable gains from trade are not exploited B. lost consumer and producer surplus when all mutually profitable gains from trade are not exploited C. consumer and producer surplus when all mutually profitable gains from trade are exploited D. lost consumer and producer surplus when all mutually profitable gains from trade are exploited

lost consumer and producer surplus when all mutually profitable gains from trade are not exploited

Price controls cause resources to be _____ not just geographical, but also across different _____ of those resources. A. overutilized; types B. cheaper; uses C. misallocated; uses D. property allocated; demands

misallocated; uses

Throughout human history we know that: A. all countries were able to establish periods of high levels of real GDP per capita. B. most countries were only able to establish a few decades of high levels of real GDP per capita. C. not until the early 19th century were a few countries able to establish sustained long-run economic growth. D. all countries will eventually return to very low levels of real GDP per capita.

not until the early 19th century were a few countries able to established sustained long-run economic growth

Rent controls are A. quality freezes on rental housing B. quantity freezes on rental housing C. price floors on rental housing D. price ceilings on rental housing

price ceilings on rental housing

The minimum wage is an example of a(n): A. efficient policy B. wage subsidy C. price ceiling D. price floor.

price floor

Human capital is the A. productive knowledge and skill that works acquire through education, training, and experience B. organization skills of business owners C. knowledge about how the world works that is used to produce goods and services D. stock of tools including machines, structures, and equipment

productive knowledge and skills that workers acquire through education, training, and experience

Institutions A. are unimportant in market economies B. provide structure for economic incentives C. matter only when backed by law D. each of these answers is correct

provide structure for economic incentives

the text defines economic growth as an increase in A. per capita GDP B. real GDP C. real per capita GDP D. GDP

real per capita GDP

A price ceiling creates a _____ when it is set _____ A. shortage; above the equilibrium price B. shortage; below the equilibrium price. C. surplus; below the equilibrium price D. surplus; above the equilibrium price

shortage; below the equilibrium price

price ceilings create five important effects: a. shortages, reductions in product quality, wasteful lineups, a loss from gains to trade, and a misallocation of resources. b. shortages, reduced time costs, low vacancy rates, blat, and deadweight loss. c. excess demand, long lines, poor service, efficiency, and arbitrage. d. surpluses, increases in product quality, search costs, gains from trade, and resource attrition.

shortages, reductions in product quality, wasteful lineups, a loss from gains to trade, and a misallocation of resources

Physical capital is the A. organizational skill sbusiness owners B. stock of tools including machines, structures, and equipment C. productive knowledge and skills that workers acquire through education, training, and experience D. knowledge about how the world works that is used to produce goods and services

stock of tools including machines, structures, and equipment

Institutions and incentives are _____ causes and factors of productions are _____ causes of wealth of nations A. proximate; direct B. ultimate; indirect C. proximate; ultimate D. ultimate; proximate

ultimate; proximate

Price floors would create all of the following effects EXCEPT A. wasteful decreases in product quality B. misallocation of reasources C. deadweight loss D. surpluses

wasteful decreases in product quality