All American Economy Flashcards

GDP is defined as

Deflation means that:

The inflation rate is the

GDP does not reflect

The consumer price index was 181.1 in 2002 and184.0 in 2003. Therefore, the rate of inflation in 2003 was about: 

When the consumer price index rises, the typical family

The federal funds rate is the interest rate that

If the price level increased from 120 to 129, then what was theinflation rate?

The Bureau of Labor Statistics defines the unemployment rate as thepercentage of

Graphically, demand-pull inflation is shown as a:

Assume that Richard, a factory worker at a steel mill, quits his job because he   hears that other steel mills will pay him more money for the same amount of   work.  This week Richard is considered as:

Dr. Homer Simpson, a typewriter technician, is laid off becausepersonal computers are a new technology that is now available to the masses. Thatyear, Professor Simpson would be officially counted as

Which of the following is true about the U.S. labor force participation rate since1964?

A recession has traditionally been defined as a period during which

Which of the following statements concerning the relative distribution of income is correct?

Supply-side economics can be described in termsof the aggregate demand and aggregate supply model as an attempt to shift:

In his statement before the  National Commission on Fiscal Responsibility and Reform, Chris Edwards states   that there are four types of reform that should be pursued in cutting the   budget. Which of the following is NOT one of those types of reform?

In their statement   before the National Commission on Fiscal Responsibility and Reform, Robert   Greenstein and Jim Horney state their belief that stabilizing the ratio of   debt held by the public to GDP is the right goal, and could be achieved by   limiting annual deficits to ___ percent  of GDP.

In his essay arguing that the   income distribution has become more unequal, James Cypher states that to get   on the bottom rung of the income ladder of the top 10 percent of households   in 2000 required an adjusted gross income of ____ per year, and to get on the   bottom rung of the income ladder of the top one percent of households in 2000   required an adjusted gross income of ____ per year

The unemployment rate understates the true problem of unemployment because of

When referring to GDP over time, we want to use

Which of the following is a tool of (expansionary) supply-side policy?

Which of the following is a tenet of supply-sideeconomics?

Which of the following is true about theunemployment rate?

The effects of stagflation include

An   economy previously had 1,000 people in the labor force.  Of those 1,000   people in the labor force 100 were unemployed.  As the economy starts to   pick up 200 previously discouraged workers decide to join the labor   force.  Of the 200 individuals, 150 of them are able to get a job.    What is true about the unemployment rate:

An   economy previously had 1,000 people in the labor force.  Of those 1,000   people in the labor force 100 were unemployed.  As the economy starts to   struggle 100 workers in the labor force decide to retire.  Of these 100   individuals, 20 of them were unemployed at the time they decided to leave the   labor force.  What is true about the unemployment rate:

Which of the following is correct? A regressive tax

What is one of the lessons that we have learned from talking about hyperinflation?

Which causes greater expansion of the economy?

Statistical discrimination

Among the effects of discrimination are

Which of the following is not a reason as to whythe aggregate demand curve is downward sloping?

Census data comparing earnings by gender and race

When we graph the aggregate economy in classwhat does the horizontal axis most likely represent?

What effect will the elimination ofenvironmental regulations most likely have on the aggregate economy:

Which of the following do you think is most likely the goal is of supply side economics:

If you wanted to measure growth in the US economy from one year  to the next what is true about calculating this growth using real GDP in lieu  of nominal GDP?

Which of the following was not a major factor during the most recent financial crisis?

Price supports:

The misallocation of resources associated with price supports:

Equilibrium price and quantity will be:

If the government supports the price of wheat at $5 (price floor), therewill be a:

The twin problems of the U.S. health care industry are:

The largest share of government payments to farmers have gone to: 

Because there has been extensive technological change in agriculture:

When we say that price supports interfere with the rationing function of price, we mean that:

Target prices differ from price supports in that:

Which of the following is not a major contributorto world hunger?

In general, which of the following is not a liberal suggestion for agricultural policy reform?

What do physicians’ sovereignty and third-party payment have in common?

Among the problems associated with U.S. health care is that:

What factor below encourages an over-allocation of resources to health care?

Defensive medicine:

Which of the following have frequently been suggested as ways to slow down increases in U.S. health care costs?

What portion of U.S. total health spending ispaid for by private and public insurance? 

The U.S. beer industry is a good example of:

Compared to competitive markets, monopolies charge:

When economists say that health care services are overconsumed, they mean that: 

Given the availability of the Medicaid program, why are so many poor peopleuninsured? 

Which of the following best describes the market of a commodity such as wheat?

With supply restriction programs, the supply curve of agriculture continued to increase.  Which   of the following reasons would you give to explain this result:

Price discrimination is:

Economies of scale over a wide range of output:

The essence of market power is:

When we say that the competitive firm is a price taker, we mean that:

Which of the following is true about target prices with deficiency payments:

A major difference between social insurance and public assistance programs is that:

The long-run problem of Social Security is that:

Atax takes $2,000 from Joe whose total income is $20,000. The tax takes $3,000 fromJames whose income is  $40,000. The tax is:

What is the four firm concentration ratio for the beer industry if there are 5 firms in the industry and the percentage of output produced by the firms is 8%, 12%, 25%, 33% and 22%?

When do natural monopolies exist?

In the Taking Sides essay,   “Is Obamacare a Disaster for the Economy,” the authors discuss the history of   health care legislation, and mention that Medicare and Medicaid became law   under who’s administration.

In her essay, “Top 10   Disasters of Obamacare,” Kathryn Nix does not include which one of the following in her top 10 list?

What is the goal of a monopoly?

Which of the following are true about Social Security:

If Judy makes $50,000 a year and Ron makes $200,000 and they have to pay a tax through FICA to fund Social   Security.  Which of the following would you say is most likely the case given how the current tax works:

Which of the following best explains a way in which Social Security, in general, is regressive:

Price and quantity supplied are _____ related, and price and quantity demanded are _____ related.

The next question refers to the following production possibilities curve for medical care and education.If the economy is at point G, it represents:

The next question refers to the following production possibilities curve for medical care and education.Point E represents:

The next question refers to the following production possibilities curve for medical care and education.If the economy is at point C, the opportunity cost of 40 additional units of medical care will be:

When the demand curve shifts to the left, we say that:

When we say “all other things equal” with regard to demand and supply,we mean that:

A neighborhood group initiates a “neighborhood watch” program. Elladoesn’t take part in the program, but she enjoys the greater security theprogram provides. Ella is a:

The best way of evaluating crime prevention programs from an economicperspective is to look at their:

We generally assume that legalization of drugs would ________ the supplyof drugs in the market.

Suppose that people find out that eating morebeef negatively impacts their health, leading them to decrease their demand for beef. As a result, the equilibrium price of beef ____ and the equilibrium quantity______.

If the government were to tax legalized drugs, it would:

"Because of unseasonably cold weather, thesupply of lemons has substantially decreased." Thisstatement indicates that:

An economic argument for the legalization of drugsis:

If Maurice has a comparative advantage in theproduction of good X overKristen, then

The Long Island Railroad once asked the New YorkCommerce Commission for a 20% increase in its commuter rates. They argued thatdeclining revenues made this rate increase necessary. Opponents of the rateincrease contended that the railroad's revenues would fall because of the ratehike. It can be concluded that:

Assumethat the local government puts a rental ceiling of $400 on the housing marketbelow (click link for graph). What would be the effect?

If  your demand for Coca-cola is elastic and the price falls, which of the following is most likely to occur?

A situation whereby one country can produce a good with lower opportunity costthan another country defines:

If looking at the market for belts, if thepopulation decreases at the same time that belt producers pay higher wages totheir factory workers even though their productivity hasn’t increased, then theequilibrium price _______ and the equilibrium quantity ________.  Assumeperfectly competitive markets.

Producersof U.S. exported products may suffer when the United States imposes traderestrictions on imports because:

U.S.trade restrictions on imports result in:

At $30 a case, consumers demand 200 cases ofbeer at the distributor.  When the price increases to $40 a case,consumers demand 170 cases of beer.  What is the price elasticity ofdemand (hint: use the formula given during recitation)?

“ Asituation where the prices of a country’s exports decline relative to theprices of its imports” is the definition for:

At $30 a case, consumers demand 200 cases ofbeer at the distributor.  When the price increases to $40 a case,consumers demand 170 cases of beer.  Demand for beer would be (hint: usethe formula given during recitation)?

In a two-country world consisting of the U.S. and Canada, a decrease in the value of the U.S. dollar means:

Which of the following would most likely be astatement given by Jeannette Wicks-Lim with respect to the minimum wage?

Which of the following statements most closelyrepresents the ripple effect as stated by Wicks-Lim?

Whatdoes Joseph Stiglitz believe to be the primary reason for the lack of progressin the Doha Development Round?

JackShilling argues that due to China’s intervention into the currency exchangemarket, the renminbi is undervalued relative the U.S. dollar by about

Crusoe can collect 10 coconuts per day if he only collects coconuts, or 5 crabs perday if he only collects crabs.  Friday can collect 5 coconuts per day if he only collects coconuts, or 5 crabs per day if he only collects crabs. What is Crusoe’s opportunity cost for collecting an additional crab and what isFriday’s opportunity cost for collecting an additional coconut, respectively?

When drawing a market diagram for the labormarket, it is important to keep in mind what the supply and demand curvesrepresent.  With this said which of the following is correct?

Harryproduces 2 balloon rides and 4 boat rides an hour. Harry could produce moreballoon rides but to do so he must produce fewer boat rides. Harry is ________his production possibilities frontier.

In the markets for Coca-Cola and Pepsi, assumethat the supply for Coca-Cola increases, the equilibrium price of Pepsi will______ and equilibrium quantity of  Pepsi will ______, ceteris paribus(hint: use two market diagrams, one for Coca-Cola and one for Pepsi)?

If there is an effective minimum wage pricefloor in effect, then which of the following answers best explains the marketdiagram:

Whichof the following is more likely to encourage research into new technologies andlower cost methods of meeting environmental quality?

Two reasons that the environmental movement developed in modern, industrializedcountries are that:

Which of the following answers most likely explains why a sugar tariff would be placed on foreign countries trying toexport their sugar into the US:

Crusoe can collect 10 coconuts per day if heonly collects coconuts, or 5 crabs per day if he only collects crabs. Friday can collect 5 coconuts per day if he only collects coconuts, or 5 crabsper day if he only collects crabs.  Does Friday have an absolute advantagein collecting either good?

Crusoe can collect 10 coconuts per day if heonly collects coconuts, or 5 crabs per day if he only collects crabs. Friday can collect 5 coconuts per day if he only collects coconuts, or 5 crabsper day if he only collects crabs.  Does Friday have a comparativeadvantage in collecting either good.  And if so, in which one?