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Macro Economics final

Terms in this set (42)

If India's GDP is growing at a rate of 5% per year, then, according to the rule of 70, India's GDP should double in size in ______ years.
14
A bond is a financial tool used by ______ to take pay off debt
governments
A downturn in the economy is considered a recession if it lasts at least ___________.
Two Quarters (6 months)
When compared to the great Depression (1929-33), the length of the great Recession was ________ and the unemployment rates were ________.
Shorter; Lower
Which of the following is not seen during periods of expansion:
Interest Rates Decrease
Developing nations often see slow or no growth due to:
Lack of Property Rights Laws, War, Poor Education/ Health. All of the above
The US typically sees ________ (% inflation) from year to year
Mild inflation ( inflation rate between 0 and %5)
If the CPI bundle contains hamburger and more residents are turning towards vegetarian diets then the CPI is inaccurate due to the __________.
Substitution bias
According to the Fischer Equation, if the stated rate on a loan is 4% and inflation is 3% then the real rate of borrowing is _______.
1%
The National Unemployment Rate, as of September 2016, is about __________.
5%
The LAbor force participation rate for men has _______ since the 1950's and the labor force participation rate for women has ______ since the 1950s
decreased; increased
If Mr. Colsch decides to quit teaching to become a male model, he would be considered ________ unemployed.
Frictionally
The unemployment rate in the US is ________.
Highest for Black Americans
Labor Force participation Stuff
Look at the test 2
If half the retirees decide to take part-time positions as Wal-Mart greeters, then the labor force would _______ and the unemployment rate would _______.
increase; decrease
US GDP in 2015, the latest year of available data, was approximately _________ dollars.
18 trillion
Apple is an American company that has its ipads assembled in China. The ipads would count towards:
US GNP
Suppose Mr. colsch makes hamburgers in the US with Kobe beef from Japan. The hamburgers belong to:
US GDP and US GNP
Which of the following is the smallest component of US GDP
Net Exports
Suppose Mr. Colsch decides to build a house after getting a "real: job. The house would most likely be classified as
Residential investment
Calculating Real GDP and Nominal GDP
Look at Test 2
Suppose Russia and Canada have similar land areas, but Russia has six times the population of Canada. If food is land intensive and clothing is labor intensive, then Russia should produce and export ______ to Canada in exchange for ________.
Clothing; food
Moving from Autarky to free trade will improve total surplus when
The world Price is lower than the home price and the world price is higher than the home price?
If a home country puts a tarriff on imports, price levels in the home country ________.
Increase?
If a country imposes a quota on imports, then _______ increases.
Producer Surplus
The World Trade organization replaced the general agreement on tariffs and trade in ________.
1995
Which of the following countries was considered an "Asian Tiger" economy in the 1980's and 1990's:
Singapore
A price ceiling law, like rent-controlled apartments in New York, improves the welfare of:
Consumers with high willingness to pay ????
Supply and demand equations
look at test 1
An example of a per-unit tax is the ________
Gas Tax
A typical consumer's total utility curve ______ with consumption
Increases at a decreasing rate
Which of the following will cause consumer demand for ice cream to increase:
An increase in income????
If the price of gasoline, an input in most industries, increases, we would expect output to ________ and prices of products to _______.
Decrease; increase
If the government raises the federal minimum wage to $10/hour, then labor costs increase and income levels increase. We would expect prices to _________ and output to _________.
Increase; change ambiguosly
Absolute and comparative advantage
look at test 1
In the business cycle diagram's input market, households exchange _______ to firms in exchange for_______.
Land, labor, and capital; wages and rent
Suppose an island economy produces fish and coconuts. if the island faces a drought that kills a third of the coconut trees, we would see the island's PPF curve ________.
Pivot inward
Mr. Colsch is deciding between watching K-State play football or working. Tickets to the game cost $30 and he can $10/hour working. If a game is 4 hours long, he must value the game at at least ______ to buy the tickets and watch the game in person.
$70
Which of the following is Not a question economists seek to answer?
What price will we charge for our goods and services?
Which of the following is an example of a positive statement:
"the economy grew by just .2 percent last month"
Mr. Colsch paid a $3 fee to withdraw $40 from his bank account effectively paying $43 for $40. Mr. Colschs violated which assumption economists make about consumers:
Consumers are rational
Which of the following countries operate using a pure free market economy?
None of the above
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