Macroeconomics Basics. How should we produce goods and services? D) gross national product of Canada and the gross national product of the United States. C) 1.5% A. Which of the following is an example of government failure? B) increase; less The term "market" in economics refers to ______________. Go to Memorandum. A) the opportunity cost to firms from producing the equilibrium quantity in a competitive market. Which of the following is an example of spending on factors of production in the circular flow model? Question 1: Multiple Choice Which of the following does macroeconomics endeavor to answer? To Liza, D. There is too much production of lowcost, highquality goods and services. D) building an online job database that helps workers find jobs. Chapter 6, P R O B L E M S E T 3 . . a. C. normative economics. A. d. To learn how to make lots of money, Explain whether each of the following is an example of a macro or micro concern B. net benefit D. topics such as unemployment, inflation, and economic growth. b. An economic ________ is a simplified version of some aspect of economic life used to analyze an economic issue. C) there has been a downward movement along a demand curve. The number of work visas should not be limited by the government. Based on this evidence, Tecumseh has experienced The use of market signals and government directives to select economic outcomes. D) lawn care services are deliberately charging low prices because they want to discourage people from maintaining their own lawns. D) The minimum wage in Europe is lower than it is in the United States. A: Economics is the study of production, distribution, and consumption when the resources are scarce in. D. All of the choices are correct. C. Market success. A) a decrease in supply. \text{Grooming}&\text{\underline{\hspace{15pt}80,000}}\hspace{10pt}&\text{Grooming direct labor hours}&\text{\hspace{10pt}4,000}\\ Unemployment is too high. All of the following events would have this effect except Suppose real GDP is $12.6 trillion and potential GDP is $12.4 trillion. b. B) a natural disaster like a hurricane or bad earthquake. Which of the following is not a basic decision that all nations must confront? A) a reduction in unemployment. d. The cost of the food that you consume while attending college, T/F The price is increasing as quantity increases, the slope of the line representing different prices and their corresponding quantities will be positive, The study of economics D. None of these choices are correct. B) the sum of consumer and producer surplus. D) there is a decrease in the expected rate of inflation. B) Individual income taxes; social insurance taxes b. Which of the following explains why the unemployment rate could be misleading? B) Persons who collect unemployment benefits report themselves to be searching for a job. C) Their value is counted separately, but is not included as part of the value of the final good for which they are an input. The conclusion of this statement: of mental institutions) and ___________ (movement D) Lily purchases a new massage table for use in her therapy center. A) the price of sailboats increased and the demand for sailboats decreased." B) a competitive equilibrium is achieved Therefore, exercising daily causes people to eat kale. C. Should the government prevent the merger of two large firms? d. National output, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, Alexander Holmes, Barbara Illowsky, Susan Dean. If the economy is falling below potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? C) any level of the two products that the economy produces is currently possible. A) the cost of additional education is always higher during recession. The difference between microeconomics and macroeconomics is that microeconomics analyzes the decisions made by _________, while macroeconomics deals primarily with _____________. C) NAFTA. D. workers deciding to produce only what the boss says must be produced. BOOK Market Leader intermediate 3rd edition. Which of the following is a macroeconomics question? . Refer to the above diagram. D) Japan has abundant supplies of natural resources needed to produce automobiles. A. B) Trade-offs do not apply when the consumers purchase a product for which there is excess supply, such as a stock clearance sale. B) frictional unemployment equals zero. D) The purchasing power of your salary increased between 2007 and 2016. bi tp eco question points): given the following annual information about hypothetical country, answer the following questions (expenditure approach to gdp) Skip to document. C) There will be a decrease in the quantity of labor supplied by households. of disabled individuals to a less restrictive facility) also B) automobile Preparation and presentation of Union Budget 2. A) change; overestimates What kind of unemployment is Sarah experiencing? B. Combinations of goods and services an economy is actually producing. B) those that lend money lose. C) opportunity You'll get a detailed solution from a subject matter expert that helps you learn core concepts. (b). C) The federal government pays out an unemployment insurance claim. A) Anytime you have to decide which action to take you are facing an economic trade-off. This problem has been solved! Marco goes to the pet store to buy a dozen Koi fish for his new Koi pond. How were consumption and investment affected . D. There is no conflict between the two goals. A) he tax cut would increase consumption spending less than would a permanent tax cut. E) Discouraged workers are counted as unemployed. D) the same whether the tax is collected from the buyer or the seller. Which of the following transactions would be recorded in the French current account of its balance of payments statistics? A) The supply of video game consoles would increase and the equilibrium price of video game consoles would decrease. C. Relies on the use of central planning by private firms rather than the government. Economists reason that the optimal decision is to continue any activity up to the point where the. Grossprofit.Sellingexpenses..Administrativeexpenses.TotaloperatingexpensesIncomefromoperations.Otherincome..Incomebeforeincometax..Incometaxexpense..Netincome.20Y1$1,500,000510,000$990,000$270,000180,000$450,000$540,00060,000$600,000450,000$150,000$1,250,000475,000$775,000$200,000156,250$356,250$418,75050,000$468,750375,000$93,750. A) attainable A. b. select the best possible solution. The key factors of microeconomics are as follows: Demand, supply, and equilibrium Production theory Costs of production Labour economics Examples: Individual demand, and price of a product. C) an increase in the quantity supplied. A. Its objective is to understand which kind of forces drive it, and with the information collected try to project how performance can improve. the same weight of goods has been imported as were exported. The marginal propensity to consume (MPC . B) the federal income tax. See Answer 14 15 Show transcribed image text Expert Answer Answer no (14). D) decrease the number of persons in the working-age population. C) a full-time employee at a pizza parlor who makes more than the minimum wage B) $60. C) an autonomous; an induced You know that average prices have risen steadily since 1961. b. unit contribution margin. The equilibrium aggregate price level and level of aggregate output occur when. C. Eliminates market failures by government. C) Firms in European countries offer employees higher wages and higher benefits than do firms in the United States. C) clothing Given this information, we know for certain that ________ A) marginal A formal statement of theory, usually a mathematical statement of a presumed relationship between two or more variables, is called ______. B) the consumer surplus received from purchasing a given quantity of a product. a. the government B) taxes; the money supply e. None of the above. More teenagers enter the labor force. 60 seconds. B) total consumption of goods is greater. a. margin of safety. It is an example of the coincidental fallacy D) an increase in the labor force. E) too low. C-Nomative C. do have an economic problem but are solving it. Compared to their pre-trade positions, trade makes both countries better off because in each country d. D. Who gets jobs; what wages do workers earn; and who owns what property? The tuition you pay Is not a very efficient means of communicating consumer demand to the producers of goods and services. O a. C) GDP rises by $125. The production possibilities curve between tanks and automobiles will shift outward. C) Apple computer buys computer processors from Intel. The three fundamental questions that any economy must address are He hasn't looked for a job in the last three months, but he's just started looking for work again. d. Dollar cost, T/F The process of analyzing the additional costs or benefits which arise from a decision is known as marginalism, You own the video game Grand Theft Auto V. The opportunity cost of playing this game for the second time A. producing more of one good means less of another good can be produced. A grocery store sells a bag of potatoes at a fixed price of $2.30. C) How does Fiat decide on the price of the 500 Pop model? A graph that contains two variables with a negative relationship is _________, while a graph that contains two variables with a positive relationship is _________. (a). B. C) 6.67%. The economy experiences government failure. B. President Obama has discussed raising income taxes for individuals earning over $250,000 in income. a. D) real GDP in 2016 was greater than real GDP in the base year. A) less difficult than with monetary policy. Electric car enthusiasts want to buy more electric cars at a lower price. Use the supply schedule below to answer the following question: Price $10 $20 Quantity Supplied 100 This problem has been solved! C) the interest rate determined by the supply and demand in the money market. Inefficient bureaucracy. Question 01. The market mechanism. Show more. In the first six months of 2003, branches of Commerce Bank in New York City were robbed 14 times. A. B. Consumption of cigarettes. Explain the pitfall of this statement. C. The market mechanism has failed to achieve social efficiency. C) discretionary monetary policy. C) not change GDP. B) the economy produces only two products. 1 #7. B. D) an increase in oil prices. B. the government B) -3.5% B) The Federal Reserve cuts interest rates to stimulate the economy. A) welfare benefits Which of the following transactions represents the purchase of a final good? D) efficient central planning. It is an example of the post hoc fallacy C) Every individual, no matter how rich or poor, is faced with making trade-offs. It allows researchers to isolate the effect of one event on another without the influence of outside variables Macroeconomics is a branch of economics that depicts a substantial picture. What factors determine the price of carrots? d. The "richest man in the world" does not face scarcity because he has more money than others, Indicate whether the following statements are examples of positive economic analysis or normative economic analysis D. Jenny's wage rate rose, and in response, she decided to work more hours. B) higher; lower B) protect the environment. It is the field of economics that studies the behavior of the entire economy. (c). A) the price level in 2016 was greater than the price level in the base year. A) There will be an increase in unemployment. D) decrease tax rates. D) the Western Trade Union. C) lower; higher Please don't take his comments (a) personal, (b) personally. Profitability b. Capital, as economists use the term, refers to. Despite the Obama administration's support of the Trans-Pacific Partnership (TPP), the AFL-CIO labor union has argued that the TPP will not This tax is sometimes referred to as B) falls; Marla's work becomes less valuable once she's married A) The demand curve for inkjet printers shifts to the right. For each transaction, (1) analyze the transaction using the accounting equation, (2) record the transaction in journal entry form, and (3) post the entry using T-accounts to represent ledger accounts. A) deadweight loss is maximized This means D) GDP is adjusted for increases in drug addiction. In the market for lettuce, Explain how these higher income taxes will affect the aggregate demand curve. D) the working-age population increased. A) updates the market basket every two years, rather than every 10 years. Cutting taxes _______ a. The "guns versus butter" dilemma that all nations confront is that \end{array} A. how households and firms make choices. C. marginal revenue given up when we make a decision is called ____ of that decision Suppose that nominal GDP in 2016 was less than real GDP in 2016. Examples of comparative advantage show how trade between two countries can make each better off. A. why something will be producedwhat will be produced A) during a deep recession. b. Which of the following statements uses the concept of equity to argue against the legalization of casino gambling? A) an induced; an autonomous The economy has gone into a recession. B) increases; decreases A) an increase in demand. d. It allows researcher to analyze the effect of all potential influences on a particular event, Which of the following is not listed in the book as a reason to study economics? An oligopolistic industry consists of only two firms, Angel& D) decreases; decreases. D. What factors determine the price of electronic cigarettes? C) interest rates; money supply c. Industrial organization The production possibilities curve between tanks and automobiles will appear as a straight line. B. B) continually risen. C. Optimal marginalism Assume that the price for lawn care has fallen and sales of lawn care services have also fallen. C. Levels of production that will cause both unemployment and inflation. B) movement along the demand curve due to a change in relative prices. The opportunity cost of studying for an economics test is Is way of analyzing decision-making processes caused by scarcity Which of the following would be included in the gross domestic product for 2016? D) the decline in the value of the stock market, net of dividends. A. Macroeconomics is a branch of economics that deals with the structure, performance and behaviour of the overall economy. A. B. B) The demand curve for inkjet printers shifts to the left. A) those that borrow money lose. To find the parametric solutions for the predicted GDP (Y) and the predicted investment (I), we can substitute the second equation into the first equation: Y = a + b (Y - T0) + e + kY + G0. B) more than 5 times as much as your grandfather in terms of real income. Should we have economic growth? B) GDP minus depreciation. C) The tax cut would increase consumption spending by the same amount as would a permanent tax cut. c. functional costs. You borrow $10,000 from a bank for one year at a nominal interest rate of 5%. C) No, the recession will most likely be short-lived and I can get a job after it is over. There are no problems and everyone, including consumers, is satisfied. Automatic stabilizers refer to d. Is concerned with proving that capitalism is better than socialism, An efficient market is a market which A) increase; more Writing Period 50 minutes . A) The demand curve for traditional camera film shifts to the right. A. The president has proposed increasing the marginal tax rate for people whose annual earnings exceed $275,000 and lowering the marginal tax rate for those who earn less than $275,000 Rearranging, we get: D) only change GDP if the development occurs within the borders of the United States. A) decreased government regulations on businesses. The doctrine of lassiez faire is based on the belief that National income is equal to If the ________ cost of production for two goods is different between two countries then mutually beneficial trade is possible. A) the knowledge and enjoyment you receive from taking the class. d. Ceteris paribus, Which of the following is not an opportunity cost of attending college? Question 02. A) Japanese firms excelled in process technology. A) increase in demand; decrease in demand c. Will a new type of electronic reader or tablet increase the number of buyers? How does this affect the market for traditional inkjet printers? True 3Government fixes the floor and ceiling . C) Consumer surplus measures the net benefit from participating in a market. Government failure. ECO111 Quizz 01 FALL 2021. B. According to the text, economists consider full employment to occur when D) the payroll tax. A) -3%. Thus we can say that it is that part of economic theory which studies the economy in its totality or as a whole. Factors of production and price signals. a. A) The federal government passes tax cuts to encourage firms to reduce air pollution. B) higher; lower A) at prices that violate government price regulations. A) the money supply and a decrease in interest rates. answer choices. Which of the following statements is false? It is also the case that reported burglaries increase during the same period. d. sensitivity analysis. 9 Questions. C. Opportunity cost. A tax is imposed on employers and workers that are used to fund Social Security and Medicare. Second, they are generally less able than are the better off to protect the real value of their incomes and assets from inflation. 1) Economic models do all of the following except A) answer economic questions. B) Consumer efficiency Which of the following is a positive economic statement? c. Post hoc, ergo propter hoc B) the value of the house in 2003 A. D) total welfare is greater. Voluntary exchange c. It confuses correlation and causation Equity B. D. all of the above Answer: D.all of the above 2. Answer: (D) The economy as a whole. C. Maximum combinations of goods and services an economy can produce given unlimited resources. D) a demand curve has shifted to the right. C) The quantity of inkjet printers demanded increases. C) 3% D) a student who borrows $10,000 at a nominal interest rate of 5% to finance educational expenses. B) explicit Advertisement Advertisement C. A movement from inside the production possibilities curve to a point on the production possibilities curve. Scott is a woodworker and charges $125 an hour for his time manufacturing custom-made wood products. The size of the underground economy would tend to increase if the government of a country ________________ C. the highest valued alternative that must be given up to engage in an activity. A. C) real GDP in 2016 was less than real GDP in the base year. What is the impact of competition on the profits of a business? C) builds another assembly plant in the United States. D. All of the choices are correct. C) Yvette pays $50 to join a softball league. C) shift of the demand curve due to a change in purchasing power brought about by the price change. D) a decrease in oil prices, The aggregate demand curve will shift to the left ________ the initial decrease in government purchases. Need the goods and services the most. Profit opportunities are eliminated almost instantaneously The Bureau of Labor Statistics would categorize a person as ________ if they were temporarily away from their job because they were ill D. marginal costs Both discretionary fiscal policy and monetary policy are instruments that governments employ to control the economy. D) The government imposes taxes on those who earn beyond a certain amount of income. A) a law making it illegal to work more than 35 hours per week D) below; shortage. D) simplify some aspect of economic life. D. Which of the following is a macroeconomic question? C) cyclical unemployment How does a market system prevent people from getting as many goods and services as they wish? B) discouraged workers A. b. Each of us only has 24 hours in a day, and we must allocate our time in a given day among competing alternatives. If the United States decides to convert automobile factories to tank production, as it did during World War II, but finds that some auto manufacturing facilities are not well suited to tank production, then C) make economic ideas explicit and concrete for use by decision makers. C) will lower disposable income and raise spending. D. Markets result in an unfair distribution of income. b. To learn a way of thinking C) GDP is adjusted for changes in crime rates. b. C) looking for work is your only option. How consumers make purchasing decisions c. Inflation, unemployment, and economic growth d. Final decision making A c. Labor economics a) A French resident buys a Volkswagen car produced in Wolfsburg, Germany. b. All of these O b. Economics promotes which of the following as the way to make the best decision? B) Trade Without Borders. C) consumer surplus is minimized It converts normative analysis into positive C) gross domestic product of the United States. We can conclude, therefore, that increased ice cream sales cause an increase in burglaries." B) an increase in the number of manufacturers of electric cars. Bill Gates does not face scarcity because he is a billionaire C. There is often a tradeoff between the two. A. During a business cycle expansion, total production ________ and total employment ________. D) All of the above will occur. Classify the following topics as relating to microeconomics or macroeconomics. B) an expansionary; a contractionary B) Canada's GDP. The importance of the ceteris paribus assumption when using models is that: B) portray reality in all its minute details. D. constant opportunity costs as more and more of one good is produced. A) inflation. A) U.S. GNP. B) consumption; investment B. microeconomics. This month, the company supplied the same quantity of binders at $4 per unit. You have majored in computer science and, because of the recession, have difficulty in finding a job. For schedule, refer to the archive link given below. D) taxes. Every society faces economic trade-offs. D) producer surplus is minimized. C) total spending in 2015 was around $17.3 trillion. Increasing the federal tax on gasoline would cause shipping costs in the United States to increase The demand for bottled water by individuals. B) discretionary fiscal policy; automatic stabilizers It considers discouraged workers, and hence it is overstated. The economic term for the costs associated with negotiating and enforcing a contract is a. opportunity costs. A) real GDP MACROECONOMICS FREE-RESPONSE QUESTIONS MACROECONOMICS Section II Total Time1 hour . Maximum combinations of goods and services an economy can produce given its available resources and technology. a. Is the economy experiencing a decline in the rate of inflation? d. B and C only, T/F On a time series graph, time is measured along the vertical scale, People who eat kale on a regular basis are more likely to exercise every day than people who do not eat kale. C) a decrease in the price of lithium, which is used in the electric car batteries. You are investigating the punctuality of the airlines in Asia. According to a deputy commissioner of police, "Commerce does very little of what we recommend. C) lower; higher Which one of the following is the objective of fiscal policy? This means. C. Market mechanisms and lassiez faire. A) the nominal interest rate plus the inflation rate. Microeconomics questions and answers Refer to the following graphs to answer the question below. D. Competition, Consider the following economic agents: B) productive efficiency C. society's output cannot be made available to all. Let n=3n2n1\alpha_n=\frac{3-n}{2 n-1}n=2n13n and n=n2+2n13n22,n=1,2,\beta_n=\frac{n^2+2 n-1}{3 n^2-2}, n=1,2, \ldotsn=3n22n2+2n1,n=1,2,. Expected inflation is 2.3% and actual inflation may be greater by 0.4%, calculate the impact on the S&P500 projected return ( How would the projected return change) Create a portfolio invested in Boaz Allan (BAH) and Five9 (FIVN) with the . A) labor, capital, land and natural resources are fixed in quantity. Determine the following. C. consumers C.. . Production possibilities curve will shift inward. D. What goods and services should we produce? What are some of the causes of desertification? These are: A. income, spending and saving. All points on the curve. &\textbf{Estimated}\hspace{10pt}&&\textbf{Estimated Quantity}\\ D) incorporates substitutions by consumers when prices of specific products fall rapidly. D) a slowdown in the economy. d. All of the above The following macroeconomic projected return models =. D) increase in quantity demanded; increase in demand. Which of the following is a macroeconomics question? The first stage in the five-step decision process described in the text is to a. define the problem. A. Technological advancements have led to lower prices and an increase in the sale of color laser printers. Compose a sentence using the following word. The Government will decrease spending by $20 million and increase taxes by $15 million. If the nominal rate of interest is 6.5% and the inflation rate is 3.0%, what is the real rate of interest? The market mechanism. D) the price of sailboats increased. C) goods and services. A) there is a sustained increase in the price level. D) 5%. a. a. A. supply and demand. A) the supply curve shifted to the left resulting in an increase in the equilibrium price. Answering these four questions is essential for an economy to function properly. d. The unemployment rate, Does the "richest man in the world" face scarcity, or does scarcity only affect those with more limited incomes and lower net worth? Zero because you knew when you registered for the class that studying would be required. A mixed economy C) implementing an unemployment insurance policy B. B) The supply curve will shift to the right. a. D) Excise and other taxes; individual income taxes. A) below the market wage, causing labor demand to be greater than labor supply. A. it allows countries to exploit their comparative advantage, more fully. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. C. Decreasing opportunity costs will occur with greater automobile production. e. As a public safety measure, the state of Texas should not pass legislation that allows people with concealed handgun permits to carry concealed weapons on college campuses, A-Positive E) raise taxes by an amount more than $200 billion. He faces scarcity because his resources are unlimited Step-by-step explanation. Upon your graduation from college, you find that the economy is in recession and the unemployment rate is relatively high. Suppose that homemakers are included as employed in the labor force statistics, rather than being counted as out of the labor force.
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