ECON 2303 EXAM 2

Which of the following statements about economic growth is accurate?

When economists talk about the "standard of living," they are generally referring to:

Which of the following expenditures examples "consumer durable good?

Henry and his girlfriend ate dinner at the new thai restaurant that recently opened in his neighborhood? This expenditure would be included in

The equation for net investment is written

Which of the following statements correctly explains exports versus net exports?

Which of the following correctly describes nominal GDP using the income approach?

The major difference between nominal GDP and real GDP is:

Suppose that Italy can produce either goods or services with its resources, and that its PPF is shown on the graph as PPF1. Using the graph, for each of the following situations, determine whether the PPF curve shifts. a. Suppose that Italy increases its spending on education, which increases the amount of human capital in Italy. b. A recession causes Italy's unemployment rate to increase above the natural rate of unemployment. c. Italy experiences an influx of immigrants from surrounding countries, which causes the population of Italy to increase.

Suppose that Scotland can only produce kilts and bagpipes with its resources, and that its PPF is shown on the graph as PPF1. Using the graph, for each of the following situations, determine whether the PPF curve shifts. a. Scotland's economy moves out of a recession and its unemployment rate falls to the natural rate of unemployment. Scotland's PPF curve would b. Scotland invents a new sewing machine, which increases the production of kilts. Scotland's PPF curve would c. Scotland experiences an increase in investment, which increases the level of capital for both kilts and bagpipes. Scotland's PPF curve would

The table below shows real GDP per capita for the United States between the years 1950 - 2013. Year Real GDP per Capita(dollars) 1950 $13,819 1975 24,601 2000 43,935 2013 49,179

Determine whether each of the following examples would be included in Gross Domestic Product (GDP). a. When Judy went to the grocery store yesterday, she bought three pounds of potatoes. Judy's purchase of potatoes b. Ford Motor Company buys four tires to put on a new Ford Mustang. The purchase of the tires c. The U.S. Air Force purchases two new fighter jets from Boeing. The purchase of the two fighter jets d. When Joey had his birthday last week, his grandmother sent him a $100 bill that he could spend. Joey's birthday gift of $100

For each of the following examples, indicate whether the transaction would be included in the gross investment component of GDP, and if so, indicate which category it would be included. a. When Leandro pays a general contractor to build a new house, it would b. The purchase of a new building by Whole Foods would c. When Sarah buys a new computer for her kids, it would

The following table shows yearly real GDP data for France from 2006 to 2014, measured in billions of U.S. dollars. a. For each year, identify which stage of the business cycle the real GDP data represent for France. Year Real GDP Stage 2006 2,136.6 2007 2,255.7 Expansion 2008 2,582.4 Expansion 2009 2,831.8 Expansion 2010 2,619.7 Recession 2011 2,565.0 Recession 2012 2,782.2 Expansion 2013 2,611.2 Recession 2014 2,735.0 Expansion b. Using the table, what years represent a peak in France's business cycle? c. Using the table, what years represent a trough in France's business cycle?

a. Eduardo has recently moved to a new city with his wife who was offered a great job there. He is trying to find a position in the same industry he worked in before relocating. b. Derek worked for a large telecommunications firm that went bankrupt last year due to a recent recession. He has since tried to find work with one of the firm's competitors, but good jobs are currently hard to come by. c. Drew lost his job at a car manufacturer last year. He spent 6 months applying for every job possible before giving up 2 months ago. He now spends his day playing Xbox. d. Paula has 20 years of experience in manufacturing. Her employer, and many other manufacturing firms, recently closed their U.S. plants. She would like to find a similar job but is unable to find anything that utilizes her skills. e. Katherine works part-time at a small retail store. She would like to work full-time, but her employer is currently unable to extend her hours. f. Tyrell just graduated from college with a business degree. His is currently looking for a job in banking in the major city he just moved to. g. Mike is a contractor who has been unable to find work, since most businesses are delaying or canceling their construction plans due to economic uncertainty in the coming year. h. Meg used to own and run her own bookstore. Her sales declined due to competition from online retailers. She has not been able to find any work related to her skills in the diminishing retail industry for books.

Suppose that real GDP per capita in the United States is $49,000. If the long-term growth rate of real GDP per capita is 1.6% per year, how many years will it take for real GDP per capita to reach $98,000?

The table below shows real GDP per capita for the United States between the years 1950 - 2013. Year Real GDP per Capita 1950 $13,819 1975 24,601 2000 43,935 2013 49,179