Test 1 in Econ

Because of the productivity slowdown in the United States from the mid-1970's through the mid-1990's

real GDP per capita grew more slowly

In periods when prices are falling, on average,

real GDP will grow faster than nominal GDP

A critical function of the government in facilitating the operation of a market economy is

setting up and enforcing private property rights

The supply curve for umbrellas

shows the relationship between the price of umbrellas and the quantity of umbrellas supplied

Increasing opportunity cost along a bowed out production possibilities frontier occurs because

some factors of production are not equally suited to producing both goods and services.

An increase in_____ shifts the production function _____, and makes it possible to produce a higher level of GDP with ____ capital per hour worked.

technology; up; the same amount of

Which of the following is evidence of a shortage of chocolate

the quantity of chocolate demanded is greater than the quantity supplied.

In a small economy, consumption spending in 2015 is 6,000, government spending is 1,200, gross investment is 1,500, exports are 2,000, and imports are 1,000. what is gross domestic product in 2015

9700

When lumber from Brazilian forests is used by a U.S.-owned company to produce furniture in Canada, the value of the furniture produced will be counted as a final good in?

Canada's GDP

Which of the following is correct about the economic decisions consumers, firms, and the government have to make?

Each faces the problem of scarcity which necessities trade-offs in making economic decisions.

consumption spending is 4.5 billion, gross private domestic investment is 3 billion, and government expenditures are 2 billion. If GDP is 14 billion, which of the following could be true

Exports are 15 billion, and imports are 10.5 billion

Because worker in the United States work fewer hours per week, on average, than they did over 100 years ago

GDP is lower than it would be if U.S. workers worked the same workweek they had 100 years ago.

Which of the following is true statement abut real and nominal GDP

If real GDP increases from one year to the next, we know that production of goods and services has risen.

Some economists argue that the productivity slowdown of the mid-1970's and to the mid-1990's was due to changes in oil prices that

Increased production costs, causing firms to reorganize production to conserve energy, which reduced output per worker.

Which of the following transactions would take place in the "underground economy"?

John makes chain-ling belts and necklaces and sells them at a local flea market for cash to avoid paying taxes.

If a country's real GDP is rising by 3% per year while its population is rising at 5% per year, which of the following is true?

The country's standard of living is falling

Prices of commercial airline tickets(assume this is a normal good) have fallen in recent months. Over this same period, the price of jet fuel has risen and consumer incomes have fallen. Which of the following best explains the falling prices of airline tickets?

The demand curve for airline tickets has shifted to the left more than the supply curve has shifted to the left.

Several studies have shown promising links between green tea consumption and cancer protection. How does this affect the market for green tea?

The green tea demand curve shifts to the right because of a change in tastes in favor of green tea.

Without technological advancement, how can a nation achieve economic growth?

Through an increase in supplies of factors of production.

Because of diminishing returns to capital, further increases in the quantity of capital in China would be represented as____ the Chinese production function

a movement up along

The recession of 2007-2009 would most likely be represented in a production possibilities frontier graph by

a point inside the frontier

Lack of investment in strong education and health care systems

causes a deterioration in human capital and a decline in labor productivity

Specialization in the production of a good or service in which one has a comparative advantage enables a country to do which of the following?

consume a combination of goods that lies outside its own production possibilities frontier.

A ____ demand curve for shampoo would be caused by a change in the price of shampoo

movement along the

In the united States and in most European countries, aging populations and declining birthrates threaten public finances. As the population ages, there are fewer workers paying takes relative to the number of retired people receiving government benefits. Which of the following government policies would help revved the pressure on public finances?

offer financial incentives to increase the birthrate.