question
When the price of widges is 13, the quantity demanded of widgets is 372 and the quantity supplied of widges is 66. What is the shortage on this market?
answer
306
question
Which of the following will cause a decrease in market equilibrium price and an increase in equilibrium quantity?
A. A decrease in supply
B. An increase in supply
C. An increase in demand
D. A decrease in demand
A. A decrease in supply
B. An increase in supply
C. An increase in demand
D. A decrease in demand
answer
B. An increase in supply
question
A leftward shift of a product supply curve might be caused by:
A. an increase in consumer income.
B. some firms leaving the industry.
C. an improvement in the relevant technique of production.
D. a decline in the prices of needed inputs.
A. an increase in consumer income.
B. some firms leaving the industry.
C. an improvement in the relevant technique of production.
D. a decline in the prices of needed inputs.
answer
B. Some firms leaving the industry
question
An increase in consumer income will:
A.
increase equilibrium price and quantity if the product is a normal good.
B.
have no effect on equilibrium price and quantity.
C.
decrease equilibrium price and quantity if the product is a normal good.
D.
reduce quantity demanded, but not shift the demand curve.
A.
increase equilibrium price and quantity if the product is a normal good.
B.
have no effect on equilibrium price and quantity.
C.
decrease equilibrium price and quantity if the product is a normal good.
D.
reduce quantity demanded, but not shift the demand curve.
answer
A. increase equilibrium price and quantity of the product is a normal good
question
The law of demand states that as price falls,
A.
quantity demanded decreases.
B.
demand increases.
C.
demand decreases.
D.
quantity demanded increases.
A.
quantity demanded decreases.
B.
demand increases.
C.
demand decreases.
D.
quantity demanded increases.
answer
D. quantity demanded increases
question
Because every transaction has a buyer and a seller,
a.
GDP is more closely associated with an economy's income than it is with an economy's expenditure.
b.
the number of firms must be equal to the number of households in a simple circular-flow diagram.
c.
every transaction contributes equally to an economy's income and to its expenditure.
d.
firms' profits are necessarily zero in a simple circular-flow diagram
a.
GDP is more closely associated with an economy's income than it is with an economy's expenditure.
b.
the number of firms must be equal to the number of households in a simple circular-flow diagram.
c.
every transaction contributes equally to an economy's income and to its expenditure.
d.
firms' profits are necessarily zero in a simple circular-flow diagram
answer
c. every transaction contributes equally to an economy's income and to its expenditure.
question
Real GDP can be criticized as a measure of economic welfare because it
A.
does not include the value of products produced in the household.
B.
does not take account of the degradation of environmental quality.
C.
does not include leisure time available to a society.
D.
All of these answers are correct.
A.
does not include the value of products produced in the household.
B.
does not take account of the degradation of environmental quality.
C.
does not include leisure time available to a society.
D.
All of these answers are correct.
answer
D. all of these answers are correct
question
GDP counts only final goods and services because this
A.
method avoids double counting of goods going through several stages of production.
B.
method avoids including any goods that are produced this year and sold next year.
C.
method avoids understating the value of GDP produced during a given year.
D.
amount can be more easily determined in the marketplace.
A.
method avoids double counting of goods going through several stages of production.
B.
method avoids including any goods that are produced this year and sold next year.
C.
method avoids understating the value of GDP produced during a given year.
D.
amount can be more easily determined in the marketplace.
answer
A. method avoids double counting of goods going through several stages of production.
question
Which of the following is NOT included in real GDP?
A.
production of goods that do not last more than one year, such as gasoline
B.
production of goods that last more than one year, such as television sets
C.
production in the home
D.
production of services, such as the services of doctors
A.
production of goods that do not last more than one year, such as gasoline
B.
production of goods that last more than one year, such as television sets
C.
production in the home
D.
production of services, such as the services of doctors
answer
C. Production in the home
question
Which of the following is NOT included in real GDP?
A.
production that takes place in the underground economy
B.
production of services, such as the services of hair dressers
C.
production of goods that last less than a year, such as production of hot dogs
D.
production of goods that last more than a year, such as a pair of roller blades
A.
production that takes place in the underground economy
B.
production of services, such as the services of hair dressers
C.
production of goods that last less than a year, such as production of hot dogs
D.
production of goods that last more than a year, such as a pair of roller blades
answer
A. Production that takes place in the underground economy
question
Gross domestic product can be calculated
A.
either by valuing the nation's output of goods and services or by valuing the income generated in the production process.
B.
by adding up the value of all intermediate goods used in the economy.
C.
by adding up the income tax returns of all members of the society.
D.
by adding up the personal consumption of all members of the society.
A.
either by valuing the nation's output of goods and services or by valuing the income generated in the production process.
B.
by adding up the value of all intermediate goods used in the economy.
C.
by adding up the income tax returns of all members of the society.
D.
by adding up the personal consumption of all members of the society.
answer
A. either by valuing the nation's output of goods and services or by valuing the income generated in the production process.
question
Double counting (counting the same thing twice) in GDP accounting is avoided by not including
A.
depreciation.
B.
net exports.
C.
illegal activities.
D.
intermediate goods.
A.
depreciation.
B.
net exports.
C.
illegal activities.
D.
intermediate goods.
answer
D. intermediate goods
question
In an economy, the GDP is $23,223, households consume $9,880, the firms invest $5,063, there are no exports and $1,670 worth of imports. What is government spending?
answer
Y = C + I + G + (exports - imports)
23,223 = 9,880 + 5,063 + G + (0 - 1,670)
G = 9,950
23,223 = 9,880 + 5,063 + G + (0 - 1,670)
G = 9,950
question
The real GDP in a hypothetical economy is $27,563 and the GDP deflator is 100. Calculate the nominal GDP. Round your answer to 2 decimal places if necessary.
answer
(Nominal GDP / Real GDP) * 100 = GDP Deflator
(Nominal GDP / 27,563) * 100 = 100
Nominal GDP = 27,563
(Nominal GDP / 27,563) * 100 = 100
Nominal GDP = 27,563
question
Compared to the previous year, an economy produces $2,927 more worth of goods that are consumed by households and imports $508 more worth of goods that are purchased by the government. By how much does GDP increase?
answer
pay attention to the question being asked***
the GDP only increased by 2,927
the GDP only increased by 2,927
question
Discouraged workers are included in
a.
the number of unemployed.
b.
frictional unemployment.
c.
the labor force.
d.
None of the above is correct.
a.
the number of unemployed.
b.
frictional unemployment.
c.
the labor force.
d.
None of the above is correct.
answer
D. None of the above in correct
question
Suppose that the Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to
a.
structural unemployment created by efficiency wages.
b.
structural unemployment created by sectoral shifts.
c.
frictional unemployment created by efficiency wages.
d.
frictional unemployment created by sectoral shifts.
a.
structural unemployment created by efficiency wages.
b.
structural unemployment created by sectoral shifts.
c.
frictional unemployment created by efficiency wages.
d.
frictional unemployment created by sectoral shifts.
answer
D. frictional unemployment created by sectoral shifts
question
Efficiency wages contribute to
a.
structural unemployment but not the natural rate of unemployment.
b.
structural unemployment and the natural rate of unemployment.
c.
frictional unemployment but not the natural rate of unemployment.
d.
frictional unemployment and the natural rate of unemployment.
a.
structural unemployment but not the natural rate of unemployment.
b.
structural unemployment and the natural rate of unemployment.
c.
frictional unemployment but not the natural rate of unemployment.
d.
frictional unemployment and the natural rate of unemployment.
answer
B. structural unemployment and the natural rate of unemployment
question
Which of the following is a source of frictional unemployment?
a.
changes in the composition of demand among industries or regions
b.
minimum wages
c.
labor unions
d.
None of the above is correct.
a.
changes in the composition of demand among industries or regions
b.
minimum wages
c.
labor unions
d.
None of the above is correct.
answer
A.changes in the composition of demand among industries or regions
question
Efficiency-wage theory suggests that paying
a.
low wages might be profitable because they raise the efficiency of a firm's workers.
b.
high wages might be profitable because they raise the efficiency of a firm's workers.
c.
low wages might be profitable because they lower the efficiency of a firm's workers.
d.
high wages might be profitable because they lower the efficiency of a firm's workers.
a.
low wages might be profitable because they raise the efficiency of a firm's workers.
b.
high wages might be profitable because they raise the efficiency of a firm's workers.
c.
low wages might be profitable because they lower the efficiency of a firm's workers.
d.
high wages might be profitable because they lower the efficiency of a firm's workers.
answer
B. high wages might be profitable because they raise the efficiency of a firm's workers.
question
Unemployment insurance
a.
may improve the ability of the economy to match workers with appropriate jobs.
b.
reduces the job search efforts of the unemployed.
c.
increases the amount of frictional unemployment in the economy.
d.
All of the above are correct
a.
may improve the ability of the economy to match workers with appropriate jobs.
b.
reduces the job search efforts of the unemployed.
c.
increases the amount of frictional unemployment in the economy.
d.
All of the above are correct
answer
D. All of the above are correct
question
Wages in excess of their equilibrium level help explain
a.
structural but not frictional unemployment.
b.
frictional but not structural unemployment.
c.
neither frictional nor structural unemployment.
d.
both frictional and structural unemployment.
a.
structural but not frictional unemployment.
b.
frictional but not structural unemployment.
c.
neither frictional nor structural unemployment.
d.
both frictional and structural unemployment.
answer
A. structural but not frictional unemployment
question
Suppose that a country has an adult population of 50 million, a labor force participation of 64 percent, and an unemployment rate of 2 percent. How many people are employed (in millions)? Round up your answer to 2 decimals if necessary.
answer
Unemployment Rate = ( # of unemployed / labor force) * 100
Labor force % = (labor force / working age) * 100
64% = (labor force / 50 million) * 100
labor force = 32 million
2% = (# of unemployed / 32 million) * 100
# on UNemployed = 31.36
Labor force % = (labor force / working age) * 100
64% = (labor force / 50 million) * 100
labor force = 32 million
2% = (# of unemployed / 32 million) * 100
# on UNemployed = 31.36
question
Suppose that a country has an adult population of 80 million, a labor force participation of 61 percent, and an unemployment rate of 13 percent. How many people are unemployed (in millions)? Round up the answer to 2 decimals if necessary.
answer
Another way to solve: 61% of 80 million is 48.8 million.
13% of 48.8 million is 6.34 million...
13% of 48.8 million is 6.34 million...
question
In an economy, there are 38 million of employed people, 14 million of unemployed people, and the population is 101 million. What is the unemployment rate? Express your answer as percentages rounded to 2 decimals if necessary (i.e. 23.567% should be written as 23.57).
answer
Unemployment Rate = ( # of unemployed / labor force) * 100
Labor force = unemployed + employed
14 million + 38 million = 52 million
Unemployment rate = (14 million / 52 million) * 100
unemployment rate = 26.92%
Labor force = unemployed + employed
14 million + 38 million = 52 million
Unemployment rate = (14 million / 52 million) * 100
unemployment rate = 26.92%
question
By far the largest category of goods and services in the CPI basket is
a.
education & communication.
b.
housing.
c.
transportation.
d.
food & beverages
a.
education & communication.
b.
housing.
c.
transportation.
d.
food & beverages
answer
B. Housing
question
An increase in the price of Irish whiskey imported into the United States will be reflected in
a.
neither the U.S. GDP deflator nor the U.S. CPI.
b.
the U.S. CPI, but not the U.S. GDP deflator.
c.
both the U.S. GDP deflator and the U.S. CPI.
d.
the U.S. GDP deflator, but not the U.S. CPI.
a.
neither the U.S. GDP deflator nor the U.S. CPI.
b.
the U.S. CPI, but not the U.S. GDP deflator.
c.
both the U.S. GDP deflator and the U.S. CPI.
d.
the U.S. GDP deflator, but not the U.S. CPI.
answer
B. the U.S. CPI, but not the U.S. GDP Deflator
question
Babe Ruth, the famous baseball player, earned $80,000 in 1931. Today, the best baseball players can earn more than 400 times as much as Babe Ruth earned in 1931. However, prices have also risen since 1931. We can conclude that
a.
one cannot make judgments about changes in the standard of living based on changes in prices and changes in incomes.
b.
one cannot determine whether baseball stars today enjoy a higher standard of living than Babe Ruth did in 1931 without additional information regarding increases in prices since 1931.
c.
because prices have also risen, the standard of living of baseball stars hasn't changed since 1931.
d.
the best baseball players today are about 400 times better off than Babe Ruth was in 1931
a.
one cannot make judgments about changes in the standard of living based on changes in prices and changes in incomes.
b.
one cannot determine whether baseball stars today enjoy a higher standard of living than Babe Ruth did in 1931 without additional information regarding increases in prices since 1931.
c.
because prices have also risen, the standard of living of baseball stars hasn't changed since 1931.
d.
the best baseball players today are about 400 times better off than Babe Ruth was in 1931
answer
B. one cannot determine whether baseball stars today enjoy a higher standard of living than Babe Ruth did in 1931 without additional information regarding increases in prices since 1931.
question
Arlo is offered a job in Des Moines, where the CPI is 60, and a job in New York, where the CPI is 125. Arlo's job offer in Des Moines is for $48,000. How much does the New York job have to pay in order for the two salaries to represent the same purchasing power?
a.
$23,040
b.
$79,200
c.
$52,000
d.
$100,000
a.
$23,040
b.
$79,200
c.
$52,000
d.
$100,000
answer
D. $100,00
question
Consternation Corporation has an agreement with its workers to index completely the wage of its employees using the CPI. Consternation Corporation currently pays its production line workers $8.00 an hour and is scheduled to index their wages today. If the CPI is currently 160 and was 128 a year ago, the firm should increase the hourly wages of its workers by
a.
$2.00.
b.
$0.25.
c.
$2.56.
d.
$1.60
a.
$2.00.
b.
$0.25.
c.
$2.56.
d.
$1.60
answer
A. $2.00
question
A worker received $5 for a daily wage in 1930, which has the equivalent value of $63.24 today. If the CPI was 17 in 1930 what is the value of the CPI today, rounded to the nearest whole number?
a.
134
b.
17
c.
1.3
d.
215
a.
134
b.
17
c.
1.3
d.
215
answer
D. 215
question
If the consumer price index was 96 in 2012, 100 in 2013, and 102 in 2014, then the base year must be
a.
2012.
b.
2013.
c.
2014.
d.
The base year cannot be determined from the given information.
a.
2012.
b.
2013.
c.
2014.
d.
The base year cannot be determined from the given information.
answer
B. 2013
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
