A. B) There is much less disagreement among economists over normative economic analysis than over positive economic analysis. (b) 81,54,36,81,54,36, \ldots81,54,36,. Households and firms; the economy as a whole, T/F Resources are limited in both wealthy and poor societies, All of the following are criteria frequently applied in judging economic outcomes except, Economics is best defined as the study of, The most common method for graphing the relationship between two variables is by drawing two __________ lines, where the __________ is a horizontal line and the __________ is a vertical line. C) above the market wage, causing labor demand to be greater than labor supply. Total the statement columns, compute net income (loss), and complete work sheet. D) decreases; decreases. Answer: (D) The economy as a whole. c. Will a new type of electronic reader or tablet increase the number of buyers? Explanation: Macroeconomics deals with the economy as a whole. Microeconomics is the study of a single unit or a single firm whereas the macroeconomics is.. (a). A) decrease the measured unemployment rate. E. consumers and firms choosing which goods and services to buy or produce. You will then have 50 minutes to answer all three of the following questions. The economy has gone into a recession. A) below the market wage, causing labor demand to be greater than labor supply. C. Relies on the use of central planning by private firms rather than the government. C) an increase in unemployment insurance payments A) falls; Marla's work takes place in the underground economy once she's married B) add to GDP. Commits the fallacy of composition If the economy is slipping into a recession, which of the following would be an appropriate fiscal policy? Which of the following is an example of spending on goods and services in the circular flow model? A. FortheYearsEndedDecember31,20Y2and20Y1. A) U.S. GDP. D) incorporates substitutions by consumers when prices of specific products fall rapidly. there is a current account surplus. C) goods and services. Macroeconomics Multiple Choice Questions 1. C) 6.67%. All of the following events would have this effect except Simple economies can be described in terms of three major economic flows. answer choices. ________ increases economic efficiency because it forces firms to produce and sell goods and services as long as the additional benefit to consumers is greater than the additional cost of production. D. None of these choices are correct. B) automobile Suppose in 2016, you purchase a house built in 2003. C) discretionary monetary policy. B. B) continually risen. B) government purchases. Is zero Should we have economic growth? B) some people do not want a job. b. ________ is defined as a market outcome in which the marginal benefit to consumers of the last unit produced is equal to the marginal cost of production, and in which the sum of consumer surplus and producer surplus is at a maximum. B. BOOK Market Leader intermediate 3rd edition. D) The "Lucky Ducky" casino buys a new crabs table for the casino floor. As a result, _____________ B) the supply curve shifted to the left resulting in a decrease in the equilibrium price. 60 seconds. D) technology. B) total income in 2015 was around $17.3 trillion. A. c. It considers part-timers as employed, and hence it is understated. Economics involves allocating resources to meet peoples' needs and desires for goods and services. A. Timer Bonus. In a market economy, who decides what goods and services will be produced? B) teachers' salaries paid by a local government A) at prices that violate government price regulations. Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, Alexander Holmes, Barbara Illowsky, Susan Dean, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams. How does a market system prevent people from getting as many goods and services as they wish? C. The market mechanism has failed to achieve social efficiency. Which of the following is an example of a "how much" decision? What goods and services to producehow will these goods and services be produced; and who receives them? D. Economic growth and market failure. You earn _________ C) wages paid to employees by Dell. B) The purchasing power of your salary fell between 2007 and 2016. The study of regional economy as whole. D) the same whether the tax is collected from the buyer or the seller. C) $140. Which of the following is a macroeconomic question? B) an increase in quantity demanded. 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. c. Opportunity costs are zero Unemployment is too high. A. D. D) efficient central planning. D) depreciation. c. degree of operating leverage. 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,. C. There is often a tradeoff between the two. B. spending, production and saving. b. D) the unemployment rate consists of only frictional and structural unemployment. Advertisement Advertisement To move the economy back to potential GDP, Congress should ______________ Which of the following statements is not true? The market mechanism. Sarah is a full-time student who is not looking for work. D) the demand curve shifted to the left resulting in a decrease in the equilibrium price. Question 01. What factor was most responsible for the development of Japan's comparative advantage in automobiles? An economic ________ is a simplified version of some aspect of economic life used to analyze an economic issue. D. the choices people make to attain their goals, given their scarce resources. Which of the following statements about positive economic analysis is true? When the variable measured along the x-axis and the variable measured along the y-axis move in the same direction, it indicates a ________ relationship between the two variables. A) an increase in demand. D) building an online job database that helps workers find jobs. The data is listed per quarter, and the real GDP data was calculated using 2009 as the base year. Which of the following would be the best measure of the cost of living? b. C. Eliminates market failures by government. Laws and regulations. A) increasing government purchases or decreasing taxes. B) updates the market basket every 10 years, rather than every two years. The size of the underground economy would tend to increase if the government of a country ________________ A) total employment is greater. The market mechanism may best be defined as Economic development C. economies of scal. A) a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. B. the idea that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. B) European countries offer higher unemployment benefits than the United States. 1. C) implementing an unemployment insurance policy Please don't take his comments (a) personal, (b) personally. Which of the following is a positive economic statement? An outward shift of a nation's production possibilities frontier can occur due to B) The Federal Reserve cuts interest rates to stimulate the economy. A. The use of fixed costs to extract higher percentage changes in profits as sales activity changes involves. Answer: B Use the following diagram to answer questions 36-39: 36. C) GDP deflator Question 20. B) the value of all cars produced by Ford in Mexico 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? Which of the following is a microeconomics question? He is willing to pay $200 for the dozen fish, but buys them for a total of $140. c. It eliminates the need for abstraction or simplification A) Tuan purchases a cappuccino at the student union. C) less than 5 times as much as your grandfather in terms of real income. a. Math is a way of solving problems by using numbers and equations. Choose 1 answer: Hors many smartphones should Samsung produce this quarter? The production possibilities curve between tanks and automobiles will appear as a straight line. A) the value of leisure is included in GDP. D) the legally determined maximum price that sellers may charge for a given quantity of a product. d. Cannot be calculated, T/F The phrase "there's no such thing as a free lunch" is a common way of expressing the concept of efficient markets, "Statistics tell us that ice cream sales increase during the summer months. D) the level of technology is fixed and unchanging. A sharp rise in the price of vegetables. The first stage in the five-step decision process described in the text is to a. define the problem. To learn a way of thinking a. How much will be saved; what will be produced; and how can these goods and services be fairly distributed? A. A. An economy is at equilibrium output when A. Y = C + I + G+ NX B. Y = AD + C + G + NX C. society's output cannot be made available to all. D. give more money to the government to solve its problems. Micro Economic 100% (2) 176. A graph that contains two variables with a negative relationship is _________, while a graph that contains two variables with a positive relationship is _________. The conclusion of this statement: D) the Western Trade Union. Based on this evidence, Tecumseh has experienced If the CPI rose from 82 to 202 between 2007 and 2016, which of the following is true? B. A) 2% b. select the best possible solution. C) The purchasing power of your salary remained constant between 2007 and 2016. \\\hline D) on foreign soil. C. the tendency of many economic variables to move together in a predictable way over the business cycle. A) Yes, the recession will ensure that you will never find a job as a programmer. D. All of the choices are correct. D) No, the recession will have no impact on my ability to get a job or my future income. c. Is one-half cost of the game, as this is the second time you have played it Which of the following statements is false? C) the value of all cars produced by Toyota in the United States B. still have an economic problem. (a) Unlimited Wants If a German firm produces cars in the United States, that production should count towards B. A) he lettuce that Subway purchases for its sandwiches \hline\\ Macroeconomics (ECON 202) Assignment-No.3 Short answer questions Answer the following with the use of the relevant equations which must be shown. a. The Industrial Revolution refers to the rise of the modern factory system in ________ during the late eighteenth and early nineteenth centuries. If the ________ cost of production for two goods is different between two countries then mutually beneficial trade is possible. Market failure. A) an increase in the minimum wage Given that, the question "According to the Bureau of Economic Analysis, what has been the average annual level of inflation (as measured by the GDP Deflator) over the past 10 years?" B) the price level in 2016 was less than the price level in the base year. Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy? D) an increase in the labor force. B) government spending and taxes that automatically increase or decrease along with the business cycle. A) The supply of video game consoles would increase and the equilibrium price of video game consoles would decrease. It is an example of the post hoc fallacy C) equal to the highest value of an alternative use of the time and money spent on the class. C. unlimited resources exceed limited wants. C) more difficult than with monetary policy. A ________ can change over time or across observations. D) Excise and other taxes; individual income taxes. C. Market success. D) The demand curve will shift to the left. The number of work visas should not be limited by the government. Every society faces economic trade-offs. When graphing two variables, the point at which the graph intersects the horizontal axis is called the, T/F Opportunity costs are another name for marginal costs. Scarce resources and opportunity cost. He faces scarcity because his resources are unlimited Second, they are generally less able than are the better off to protect the real value of their incomes and assets from inflation. D) above the market wage, causing labor demand to be less than labor supply. B. D) The demand for video game consoles would increase and the equilibrium price of video game consoles would increase. Explain. There is full employment. B) the nominal interest rate minus the inflation rate. \text{Admission}&\text{\$\hspace{10pt}60,000}\hspace{10pt}&\text{Number of admissions}&\text{\hspace{5pt}20,000}\\ B. D. topics such as unemployment, inflation, and economic growth. Suddenly, the stock market prices increased much more than expected, increasing investors' wealth and causing a short-term period of increased optimism about the future of the economy. Every society faces economic tradeoffs. C) any level of the two products that the economy produces is currently possible. B) an expansionary; a contractionary -3 Multiple Choice 1:10:18 Are oil companies ripping off consumers by charging exorbitantly high prices for gasoline? Answer: Demand is defined as the desire of purchasers, consumers, clients, employers, etc., for a particular commodity, service, or other item. C) a 12-inch Subway sandwich purchased by a student The production possibilities curve illustrates which two of the following essential principles? How does the increasing use of digital cameras affect the market for traditional camera film? D. People begin to retire at earlier ages. Use the supply schedule below to answer the following question: Price $10 $20 Quantity Supplied 100 This problem has been solved! 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? Economists have shown that the burden of a tax is A. c. Marginal cost A: Macroeconomics is that branch of economics in which we study the economic problem and issues at a. D) $200. Macroeconomics is focused on the movement and trends in the economy as a whole. A. A. The production possibilities frontier model assumes all of the following except____________ b. In the United States in 2013, the Bureau of Economic Analysis began counting spending by firms and individuals on developing entertainment products as investment. C) make economic ideas explicit and concrete for use by decision makers. a. It converts normative analysis into positive All of the above. A) change; overestimates The Federal Aviation Administration is considering increasing the number of takeoff and landing slots available at Ronal Reagan Washington National Airport C. Lassiez faire price policies. The following table contains nominal and real GDP data, in billions of dollars, from the U.S. Bureau of Economic Analysis for 2013 and 2014. The exports are equal to import. A) Consumer surplus measures the difference between the highest price a consumer is willing to pay for a product and the price she actually pays. B. Historically, there have been three basic types of economic system: traditional, command, and market. C) by the same amount as Raising the income tax decreases the amount of disposable income available to those households. Investment, as defined by economists, would not include which of the following? Government intervention may achieve a more optimal outcome than the market mechanism when addressing A) he tax cut would increase consumption spending less than would a permanent tax cut. The marginal propensity to consume (MPC . It is an example of the coincidental fallacy The price of steel declined by 3% last year. A. how households and firms make choices. B) $60. D. the government, consumers, and producers It focuses on areas like inflation, economic growth rate, price levels of various goods and services, gross domestic product (GDP), national income and the unemployment rate in a particular country. A) will lower disposable income and lower spending. Upon your graduation from college, you find that the economy is in recession and the unemployment rate is relatively high. A. B) productive efficiency C) raise taxes by $200 billion. C) the ups and downs in inflation. D) Sarah is not experiencing unemployment of any kind, because she is not currently part of the labor force.