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. C. normative economics. A decrease in input costs in the production of LCD televisions caused the price of LCD televisions to decrease. Is the value of the alternative use of the time you spend of playing this game Dear Friends, We are posting prelims marathon MCQs for today. Macroeconomics is focused on the movement and trends in the economy as a whole. D) equal 20%. C. Lassiez faire price policies. D. The government is allocating resources inefficiently. D) decreases; decreases. Maximum combinations of goods and services an economy can produce given its available resources and technology. Assume that a hypothetical economy is at long-run macroeconomic equilibrium with full employment and stable prices. In the first half of 2011, automobile sales in the United States were lower than they were in the first half of 2010. What determines the growth rate of gross domestic product? D) lower taxes by $200 billion. Please don't take his comments (a) personal, (b) personally. b. The use of market prices and sales to signal desired output. B. B) Why hasn't the federal government raised the minimum wage? B) There is much less disagreement among economists over normative economic analysis than over positive economic analysis. The automobile industry was experiencing the effects of _______ C) people employed in the underground economy c. Is it sensible for a government to subsidize tobacco production? D) Excise and other taxes; individual income taxes. B) a competitive equilibrium is achieved A. how households and firms make choices. A. answer choices. C) those that hold paper money lose. D) all of the above. B. a. the government Which of the following is a problem inherent in centrally planned economies? B. A. it allows countries to exploit their comparative advantage, more fully. The data is listed per quarter, and the real GDP data was calculated using 2009 as the base year. A) 2% B) lower government purchases by $200 billion. C) NAFTA. The Federal Reserve lowered interest rates at its last meeting. Explain. A production possibilities frontier with a bowed-outward shape indicates A. increasing opportunity costs as more and more of one good is produced. a. Ockham's razor B) Delta buys a new European-made jetliner. A) an increase in demand. meaning severe emotional or thought disturbances D) below; shortage. Electric car enthusiasts want to buy more electric cars at a lower price. Economics is the study of the ________ people make to attain their goals, given their________ resources. It is an example of the post hoc fallacy Simple economies can be described in terms of three major economic flows. Option a: This option is incorrect because unit of measure is a function of money as money can be used to measure the value of goods and services. C) continually declined. D. Scarcity. B) vertical. Economics teaches how to limit our wants. A) no The minimum wage law causes unemployment. B) when real GDP is above but close to potential GDP. B. A. A) the money supply and a decrease in interest rates. E. it is easier to book holidays in member countries. C) There is much more disagreement among economists over positive economic analysis than over normative economic analysis. C.. Examples of comparative advantage show how trade between two countries can make each better off. Macroeconomics Basics. A. A) take away from GDP. D) The quantity of inkjet printers demanded decreases, Last month, the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit. Combinations of goods and services an economy is actually producing. C) decrease; more c. The price of gasoline Microeconomics answers - Micro Summary exam 1 questions and answers microeconomics exam which of the following is macroeconomics question a:how much would math. C) a change in the amounts of one good desired. Production possibilities curve will shift outward. B) below the market wage, causing labor demand to be less than labor supply. C) an autonomous; an induced C) falls; Marla's architectural design services are no longer bought by Chuck once they're married The invisible hand refers to This means ______. An undesirable combination of goods and services. What are the differences and similarities between behaviorism, psychodynamic, and humanistic perspectives? D) real GDP in 2016 was greater than real GDP in the base year. A) Their value is not counted separately, but included as part of the value of the final good for which they are an input. Scarce resources and opportunity cost. As more and more time is spent on one activity, the opportunity cost of the activity in terms of other activities rises 60 seconds. They always call for opposite outcomes. b. consumers D) above the market wage, causing labor demand to be less than labor supply. Suppose real GDP is $12.6 trillion and potential GDP is $12.4 trillion. A) Economic efficiency How do you go about allocating your time in a given day among competing alternatives? Choices made by people faced with scarcity b. A) some cyclical unemployment always exists. A) welfare benefits A) a law making it illegal to work more than 35 hours per week It is the field of economics that studies the behavior of the entire economy. Find the following limits: (a) limnn\lim _{n \rightarrow \infty} \alpha_nlimnn, (b) limnn\lim _{n \rightarrow \infty} \beta_nlimnn, (c) limn(3n+4n)\lim _{n \rightarrow \infty}\left(3 \alpha_n+4 \beta_n\right)limn(3n+4n), (d) limnnn\lim _{n \rightarrow \infty} \alpha_n \beta_nlimnnn, (e) limnn/n\lim _{n \rightarrow \infty} \alpha_n / \beta_nlimnn/n, (f) limnnn\lim _{n \rightarrow \infty} \sqrt{\beta_n-\alpha_n}limnnn. A) The supply of video game consoles would increase and the equilibrium price of video game consoles would decrease. Which of the following would increase the unemployment rate? D) risen; fallen. A. D) They are included only if they are imported, Which of the following are not considered part of government purchases? Which of the following explains why many European countries have unemployment rates that are higher than in the United States? a. Which of the following transactions would be recorded in the French current account of its balance of payments statistics? D) unemployed persons falsely report themselves to be actively looking for a job. D) Unlike positive economic analysis, normative economic analysis can be tested. C) disposable personal income plus depreciation plus personal taxes. B) by more than A) there is a sustained increase in the price level. Which of the following is a microeconomics question? C) ensure safe imports. Which of the following transactions represents the purchase of a final good? c. Focuses on how a business should function D. Economic growth and market failure. MACROECONOMICS FREE-RESPONSE QUESTIONS MACROECONOMICS Section II Total Time1 hour . The term "market" in economics refers to ______________. C) Their value is counted separately, but is not included as part of the value of the final good for which they are an input. A lassiez faire approach will reduce the level of pollution. ________ and ________ are the largest sources of revenue collected by the federal government To Liza, D. Is one that allows trade with other countries. D. The person who has the responsibility to coordinate all the markets in a market economy. D. Government intervention. B. producers deciding what society wants most. Compose a sentence using the following word. E) Discouraged workers are counted as unemployed. Suppose that when the price of ice cream increases, Liza decreases her purchase of hot fudge. MULTIPLE CHOICE QUESTIONS TESTBANK - CHAPTER 3. D) lower; lower, Contractionary fiscal policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be ________ and real GDP to be ________. D) 5%. Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to understate the true extent of joblessness? B. Use the supply schedule below to answer the following question: Price $10 $20 Quantity Supplied 100 This problem has been solved! d. Comparative economic systems, Determine whether the following is covered by microeconomics or macroeconomics A) the supply curve shifted to the left resulting in an increase in the equilibrium price. d. Why do some countries grow faster than others? C) What factors determine the price of Oreo cookies? C) The federal government pays out an unemployment insurance claim. A) Many full time workers really want to be part time workers. FortheYearsEndedDecember31,20Y2and20Y1. D) the value of all cars produced by Nissan in Japan and the United States. B) European countries offer higher unemployment benefits than the United States. A) decreased government regulations on businesses. If the United States lifts the embargo on Cuban products, what will happen in the U.S. market for Cuban cigars? B. Which of the following would be included in the gross domestic product for 2016? Microeconomics studies individuals and business decisions, while macroeconomics analyzes the decisions made by countries and governments. Which one of the following is a macroeconomic issue? A. The decision about what goods and services will be produced in a market economy is made by A) an increase in the number of people in the labor force Given this information, we know for certain that ________ D. A movement from the production possibilities curve to a point inside the production possibilities curve. Which of the following is not a macroeconomic statement? d. Public economics. E-Normative, One of the scarce resources that constrain our behavior is time. A) a reduction in unemployment. A. b. Determine the following steps in preparing a work sheet in their proper order by writing numbers 1-5 in the blank spaces provided. Profit opportunities are eliminated almost instantaneously E) States increase taxes to fund education. Historically, there have been three basic types of economic system: traditional, command, and market. D) consumer price index. c. Labor economics Your grandfather tells you that he earned $7,000/year in his first job in 1961. E. consumers and firms choosing which goods and services to buy or produce. A) climate and natural resources. A) at prices that violate government price regulations. Which of the following is a government expenditure, but is not a government purchase? B. Economists reason that the optimal decision is to continue any activity up to the point where the. Total the statement columns, compute net income (loss), and complete work sheet. . C) Every individual, no matter how rich or poor, is faced with making trade-offs. known as ___________ Mental illness is a(n)___________ concept, typically Writing Period 50 minutes . b. The market mechanism at work. D) sometimes by more than and other times by less than, A change in consumption spending caused by income changes is ________ change in spending, and a change in government spending that occurs to improve roads and bridges is ________ change in spending BOOK Market Leader intermediate 3rd edition. A) higher; higher He is willing to pay $200 for the dozen fish, but buys them for a total of $140. Macroeconomics is a branch of economics that deals with the structure, performance and behaviour of the overall economy.