ECON 131 - Assignment Essays

question

The production possibility is the boundary in between the:

answer

attainable and unattainable combinations of goods and services

question

Moving between two points on a PPF, a country gains 8 desktop computers and forgoes 4 laptop computers. The opportunity cost of 1 desktop computer is

answer

1/2 laptop

question

What is the opportunity cost of economic growth?

answer

foregone current period consumption goods

question

Because each country has a comparative advantage it can

answer

benefit from trade

question

EBay

answer

is a market because buyers and sellers are brought together to buy and sell

question

Pizza and tacos are substitutes, and the price of a pizza increases. Which of the following correctly indicates what happens?

answer

The quantity of pizza demanded decreases and the demand for tacos increases

question

The law of supply states that, other things remaining the same,

answer

if the price of a good increases, the quantity supplied increases

question

Market equilibrium occurs when

answer

the quantity demanded equals the quantity supplied

question

Technological advance in the production of pizza shifts what curve?

answer

Supply curve shifts down

question

Gross Domestic Product is the market value of all ______ produced within a country in a given period of time.

answer

final goods and services

question

Consumption expenditure includes spending

answer

by households

question

The value of used goods _____ counted as part of GDP ______.

answer

are not; because they were counted during the period when they were counted as new goods

question

The expenditure approach to measuring GDP is done by using data on only

answer

consumption expenditure, investment, government expenditure on goods and services, and net exports of goods and services.

question

Because of the circular flows of expenditure and income in the economy, total ______ equals total ______ equals total ______.

answer

expenditure; income; value of production

question

The unemployment rate measures the percentage of

answer

people in labour force who can't find job

question

The number of part-time workers for economic reasons ______ during recessions and the number of part-time workers for noneconomic reasons ______

answer

Increases; does not change

question

Which type of unemployment arises when changes in technology or international competition change the skills needed to perform jobs or change the location of jobs?

answer

Structural

question

The Consumer Price Index (CPI) measures the changes of the

answer

prices paid by consumers for a fixed market basket of consumer goods and services

question

The difference between nominal and real is

answer

nominal is measured in current dollars and real is measured in dollars of a given year

question

The use of Federal budget to achieve macroeconomic objectives of full employment and sustainable economic growth is

answer

called fiscal policy

question

When government outlays exceed tax revenues, the situation is called a budget

answer

Deficit

question

Fiscal policies that move the economy toward potential GDP without a change in policy are called

answer

Automatic stabilizers

question

An income tax cut _____ aggregate demand and _____ aggregate supply

answer

Increases, increases

question

The level of real GDP the economy produces at full employment is called

answer

potential GDP

question

Diminishing returns means that

answer

each additional unit of labor produces successively less real GDP

question

The lower the real wage rate, the

answer

more workers firms can profitably hire

question

The natural unemployment rate is higher if

answer

unemployment benefits become more generous

question

The figure above shows the market for fast food restaurant employees. There is no minimum wage in this community. If Taco Bell pays its workers $12 an hour, this might be

answer

Because this is an efficiency wage aimed at reducing employee turnover.

question

Growth in standard of living is measured by the increase in

answer

Real GDP per person

question

The growth rate of real GDP equals

answer

{(Real GDP in current year - real GDP in previous year)/ real GDP in previous year} X 100

question

The widespread adoption of computers in the workplace has likely led to

answer

an increase in labour productivity because computers are a capital good

question

The law of diminishing marginal returns states that

answer

output increases at a decreasing rate as more capital is added

question

A key element of the Classical growth theory is that

answer

An increase in population leads to an increase in labour supply and decline in real GDP per person.

1 of 33

question

The production possibility is the boundary in between the:

answer

attainable and unattainable combinations of goods and services

question

Moving between two points on a PPF, a country gains 8 desktop computers and forgoes 4 laptop computers. The opportunity cost of 1 desktop computer is

answer

1/2 laptop

question

What is the opportunity cost of economic growth?

answer

foregone current period consumption goods

question

Because each country has a comparative advantage it can

answer

benefit from trade

question

EBay

answer

is a market because buyers and sellers are brought together to buy and sell

question

Pizza and tacos are substitutes, and the price of a pizza increases. Which of the following correctly indicates what happens?

answer

The quantity of pizza demanded decreases and the demand for tacos increases

question

The law of supply states that, other things remaining the same,

answer

if the price of a good increases, the quantity supplied increases

question

Market equilibrium occurs when

answer

the quantity demanded equals the quantity supplied

question

Technological advance in the production of pizza shifts what curve?

answer

Supply curve shifts down

question

Gross Domestic Product is the market value of all ______ produced within a country in a given period of time.

answer

final goods and services

question

Consumption expenditure includes spending

answer

by households

question

The value of used goods _____ counted as part of GDP ______.

answer

are not; because they were counted during the period when they were counted as new goods

question

The expenditure approach to measuring GDP is done by using data on only

answer

consumption expenditure, investment, government expenditure on goods and services, and net exports of goods and services.

question

Because of the circular flows of expenditure and income in the economy, total ______ equals total ______ equals total ______.

answer

expenditure; income; value of production

question

The unemployment rate measures the percentage of

answer

people in labour force who can't find job

question

The number of part-time workers for economic reasons ______ during recessions and the number of part-time workers for noneconomic reasons ______

answer

Increases; does not change

question

Which type of unemployment arises when changes in technology or international competition change the skills needed to perform jobs or change the location of jobs?

answer

Structural

question

The Consumer Price Index (CPI) measures the changes of the

answer

prices paid by consumers for a fixed market basket of consumer goods and services

question

The difference between nominal and real is

answer

nominal is measured in current dollars and real is measured in dollars of a given year

question

The use of Federal budget to achieve macroeconomic objectives of full employment and sustainable economic growth is

answer

called fiscal policy

question

When government outlays exceed tax revenues, the situation is called a budget

answer

Deficit

question

Fiscal policies that move the economy toward potential GDP without a change in policy are called

answer

Automatic stabilizers

question

An income tax cut _____ aggregate demand and _____ aggregate supply

answer

Increases, increases

question

The level of real GDP the economy produces at full employment is called

answer

potential GDP

question

Diminishing returns means that

answer

each additional unit of labor produces successively less real GDP

question

The lower the real wage rate, the

answer

more workers firms can profitably hire

question

The natural unemployment rate is higher if

answer

unemployment benefits become more generous

question

The figure above shows the market for fast food restaurant employees. There is no minimum wage in this community. If Taco Bell pays its workers $12 an hour, this might be

answer

Because this is an efficiency wage aimed at reducing employee turnover.

question

Growth in standard of living is measured by the increase in

answer

Real GDP per person

question

The growth rate of real GDP equals

answer

{(Real GDP in current year - real GDP in previous year)/ real GDP in previous year} X 100

question

The widespread adoption of computers in the workplace has likely led to

answer

an increase in labour productivity because computers are a capital good

question

The law of diminishing marginal returns states that

answer

output increases at a decreasing rate as more capital is added

question

A key element of the Classical growth theory is that

answer

An increase in population leads to an increase in labour supply and decline in real GDP per person.

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