Econ Exam 1

1. Because of their relatively small national economies, which of the following is most likely considered to be the most important factor for Belgium, Korea, and Canada to take full advantage of specialization?

2. In a discussion of economics, which of the following would exert the most influence on an individual firm's decision to hire workers?

3. If macroeconomics looks at the economy as a whole, it focuses on which of the following?

In the ____________, households work and receive payment from firms.

5. In the ______________, households receive goods and services and pay firms for them.

6. Which of the following best describes a monetary policy tool?

7. Which of the following best describes a fiscal policy tool?

8. When nations desire a healthy macroeconomy, they typically focus on three goals, one of these being:

9. The basic difference between macroeconomics and microeconomics is:

10. Which of the following is most likely a topic of discussion in macroeconomics?

11. Which of the following statements most likely lies within the realm of microeconomics?

12. Macroeconomic topics do not usually include:

13. Macroeconomics primarily examines:

14. Specialization:

15. Which of the following statements most likely lies within the realm of macroeconomics?

16. Which of the following lies primarily within the realm of macroeconomics?

17. Macroeconomics:

18. The basic difference between macroeconomics and microeconomics is that:

19. In the circular flow diagram model:

20. Regardless of whether you are looking through the microeconomics microscope or the macroeconomics telescope, the fundamental subject material of the interconnected __________ doesn't change.

C. Economies of scale

23. As depicted in _________________________________, it is necessary to give up some of one good to gain more of the other good.

27. The slope of the _________________ is determined by the relative price of the two goods, which is calculated by taking the price of one good and dividing it by the price of the other good.

28. The marginal benefit of a slice of pizza is the:

29. The general pattern that consumption of the first few units of any good tends to bring a higher level of _______ to a person than consumption of later units is a common pattern.

33. As a person receives more of a good, the _______________ from each additional unit of the good declines.

34. Which of the following would most likely shift the production possibilities curve inward?

35. The lesson of __________ is to forget about the money that's irretrievably gone and instead to focus on the marginal costs and benefits of future options.

36. Most real-world choices aren't about getting all of one thing or another, instead, most choices involve _________________, which involves comparing the benefits and costs of choosing a little more or a little less of a good.

37. GDP is:

38. Final goods or services used to compute GDP refer to:

39. Consumption in the United States is about ____________ of GDP, and it moves relatively little over time.

40. The demand measure of GDP accounting adds together:

41. Which of the following are most likely classified by economists as consumer durable goods?

42. Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals $200 billion, and government spending equals $260 billion, then:

43. The value of what businesses provide to other businesses is captured in the final products at the end of the __________ chain.

Inventories

45. In order to avoid double counting, statisticians just count the

46. Which of the following is included in the calculated Gross Domestic Product?

B. Services

48. To compare the GDP of two different countries with different currencies, it is necessary to use

Consumption

GDP does not directly include:

51. GDP in the United States in 2012 was about

52. Investment (I) includes:

53. Middle-income countries, which include much of Latin America, Eastern Europe, and some countries in East Asia, have per capita GDP in the range of

54. A business cycle reflects changes in economic activity, particularly real GDP. The stages of a business cycle are:

T/F The expansions and contractions of real world business cycles last varying lengths of time and often differ in magnitude.

56. For most high-income countries of the world, GDP _________________ over time.

If imports exceed exports, as in recent years, then __________ exists.

58. The gap between exports and imports in a nation's economy is called the

T/F GDP includes spending on recreation and travel, but it does not cover leisure time.

60. The difference between nominal GDP and real GDP is:

61. The nominal value of any economic statistic refers to the number that is actually announced at that time, while the ________________ refers to the statistic after it has been adjusted for inflation.

The Industrial Revolution

63. To achieve a high standard of living, a nation should:

64. In the long run, the most important source of increase in a nation's standard of living is a:

65. In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________.

66. The value of what is produced per worker, or per hour worked, is called ____________.

67. When society has a higher level of capital per person, it is called ______________.

68. A nation can achieve higher economic growth if:

Productivity

70. Assuming a country's economy maintains an 8% rate of growth, young adults starting at age 20 would see the average standard of living in their country more than double by the time they had reached age __________.

71. When discussing economic growth, it is often useful to focus on ____________, to avoid studying changes in the size of GDP that represent only having more people in the economy, and focus on those increases in GDP which represent an actual rise in the standard of living on a per person basis.

T/F Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.

Investment in human capital:

Economists typically measure economic growth by tracking:

Which of the following is most likely to contribute to economic growth as measured by GDP per capita?

In the long run, the most important source of increase in a nation's standard of living is a:

T/F Increased investment alone will guarantee economic growth.

A nation can achieve higher economic growth if:

Which of the following best describes the relationship between economic growth and literacy?

Which of the following is unlikely to affect the rate of economic growth?

Which of the following did not result in economic growth?

Which of the following factors contribute to economic growth?

Since the late 1950s, economists have performed "growth accounting" studies in the United States. These have determined that ________________ is typically the most important contributor to U.S. economic growth.

Which of the following factors contribute to economic growth?

Some prominent members of the slow-economic growth country club include a high-income country like _________.

A nation's prosperity is sometimes measured in terms of ___________.

89. An economy's rate of productivity growth is closely linked to the growth rate of its ______________, although the two aren't identical.