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What is this statement associated with?Inflation and national unemployment rates in the 1970's.
Macroeconomics
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An office workers computer is an example of what?
Economic capital
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In the simple circular flow model:
Households are suppliers in resource market and demanders in the product markets
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"If you stand up at a soccer game, you may get a better view of the game. So if everyone stands up at the game, everyone will get a better view." This illustrates:
Fallacy of composition
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The study of economics is primarily concerned with:
choices which are made in seeking to use scarce resources efficiently.
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Holly says that "the imposition of a tax on beer will raise it's price." Ben argues that "taxes should be imposed on beer because college students drink too much." We can conclude that:
Ben's statement is normative, but Holly's is positive.
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The opportunity cost for using lumber to make billboards is:
The value of the lumber in its next best alternative use
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What is not an essential element of a capitalist (market) economy?
Government determines what is produced
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Production possibilities frontiers (curves):
illustrate the limits to what can be produced from current resources and technology
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What would cause a rightward shift in the production possibilities curve?
Increase in resources, technology and cheaper materials
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A point under the production possibilities curve is considered:
an inefficent use of the economies resources
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The major macroeconomic policy goals of most industrialized nations are:
full employment, price stability, and economic growth
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Going from an inefficient use of resources to an efficient use of resources would be illustrated by:
moving from a point inside the PPF to a point in the PPF
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Opportunity cost
The item lost when you gain another on the PPF
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On a liner PPF curve what does it reflect?
The resources are not equally well suited in the production of consumer goods and capital goods
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An increase in the price of Spalding tennis balls, a substitute for Wilson will cause an increase or decrease in demand for Wilson tennis balls?
Increase
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Ceteris paribius, an increase in the price of coffee causes:
a decrease in quantity demanded of coffee
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Law of Supply
Price and quantity supplied are positively related (CP)
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A decrease in the cost of manufacturing cell phones will increase or decrease the supply?
Decrease
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If drought conditions in the farm belt result in a decrease in the supply of wheat, what will happen to the equilibrium price and quantity of wheat (CP)?
Price increases and quantity decreases
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How does a price adjustment eliminates a surplus?
Price falls, quantity demand increases, quantity supplied decreases
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Assume CDs represent a normal good. If consumer income decreases and there is a decrease in the number of CD sellers, we would expect:
Equilibrium quantity decreases but equilibrium price is indeterminate
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When the economy is operating with full employment then:
There is no cynical unemployment
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Assuming the total population is 100 million, the labor force is 50 million, and 45 million workers are employed, the unemployment rate is:
10%
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Official unemployment statistics are more likely to understate the true unemployment problem when:
underemployed workers are counting among the employed ad there are discouraged workers
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Suppose Bob Smith is a new collage graduate wiht a degree in engineering. Bob has had several job offers, but has chosen to remain unemployed while he continues to search for the 'ideal' job. Bob Smith is:
Fictionally unemployed
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Sluggo Johnson, a painter on the General Motors assembly line who was recently replaced by a robot. What kind of unemployment is this?
Structurally
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Inflation
an increase in the average level of prices of goods and services over time
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Suppose at the start of the year you receive an income increase of 3% from your employer. If the price of goods and services you typically purchase increase 6% during the year, you would find for the year you have experienced:
higher nominal income but lower real income
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The consumer price index was 122.0 in 1988 and 135.7 in 1989. The inflation rate for 1989 was an approximation of:
11.2%
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As the price level falls the value of the dollar ___, and a _____ amount of money is required to purchase the same amount of output.
increases; smaller
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Gross Domestic Product (GDP) measures the:
total market value of all final goods and services produced within the US
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Purchases by Mexico of the U.S. produced cars would be in the U.S. GDP?
Yes
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The concept of value added refers to:
the increase in the value of the product that occurs at each stage of production
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What is the best way to track economic growth?
the percent change in real GDP
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