econ quiz review 2

The optimal amount (Quantity) of production in an efficient market, where all costs and benefits are included in the supply and demand curves, is:
Click the card to flip 👆
1 / 35
Terms in this set (35)
The optimal amount (Quantity) of production in an efficient market, where all costs and benefits are included in the supply and demand curves, is:
N
If production were to occur at output level M, then the area GHE is referred to as:
Dead-weight losses to society due to under-production
If the equilibrium market price falls:
Consumer surplus increases while producer surplus decreases
Suppose two goods, Jeff's Jumpers and Madison's Munchies, are economically desirable in that there is some positive output at which total benefits exceed total costs. If Jeff's Jumpers (J.J.) are characterized by nonrivalry and nonexcludability but good Madison's Munchies (M.M) are characterized by both rivalry and excludability, then:
M.M can be efficiently provided by private firms but J.J must be financed through government taxes.
After your car broke down on a hot day, you walked more than a mile to the nearest store and paid $1 for a bottle of water. Considering your thirst, you would willingly have paid $3. Your consumer surplus is:
2$
With the supply curve showing MC and the demand curve showing MB the equilibrium price gives us economic efficiency. These types of efficiencies are called:
Productive and allocative
Productive and allocative
All monies earned by Americans living in the USA and abroad
"The market value of all final goods and services produced within a nation in a given year." This best describes:
Gross domestic product
In a given year, a country's exports total $25 billion and its imports are $27 billion. Its net exports are:
2 billion
Last year domestic firms spent $115 billion on plant and equipment, of which $15 billion replaced equipment that had worn out during the year. In addition, they added $10 billion to inventories. In calculating GDP, national income accountants would add gross investment of:a) $95 billion
$125 billion
Suppose nominal GDP in the base year was $380 billion. Five years later, nominal GDP was $480 and the GDP price index was 120. Over those five years, real GDP:increased by $20 billionGDP includes;government purchases at all levels, not including transfer paymentsAccording to the I.M.F., the U.S. 2014 projected nominal GDP is approximatel22.1 trillionIf an economy's production possibilities curve has shifted out, we can unambiguously conclude (we can say for sure) that:potential GDP increasedIf a nation's real GDP is growing at 10% per year, its real output will double in approximately:7 yearsIf Hong Kong's real GDP doubled in 14 years, then it's rate of growth of real GDP is:5%If real GDP was $5,000 billion in year 1 and $5,200 billion in year 2, the approximate rate of economic growth from year 1 to year 2 is:4%Which of the following sources of economic growth is a demand-side factor?Higher spending on rising outputThe vast differences in worldwide living standards owes primarily to:different starting dates for modern economic growth, ie. Industrial revolutionAmong the institutional structures that promote economic growth, most economists would include:free trade, and strong property rights, wide-spread educationAn increase in labor productivity will result in:an increase in the standard of livingSuppose an economy moves from a point inside of its production possibilities curve to a point on the curve. The most likely source of this economic growth is:demand and efficiency factorsGDP measures leisure time, improved quality of products and impacts of growth on the environment.FalseIn comparing follower countries standard of living to leader countries, catching up is possible.TrueThe war in Iraq sent oil prices spiraling upwards, resulting in an increase in the overall price level. This is an example of which type of inflation?Cost -pushYour aunt just found out that due to the economic decline, she no longer has a job. She is:Cyclically unemployedYour best friend's company just relocated to Idaho. He didn't move with them and hasn't found another job. Your best friend is:Structurally unemployedOrder from greatest to least the impact of a recession on the different business sectors.Durables, non-durables, servicesDuring an expansion both the output and employment are falling.falseIn 2012, Scott's nominal income was unchanged while the price level rose by 1%. Consequently, Scott's real income:fell by approximately 1%Suppose the total population is 200 million workers, 100 million of whom are in the labor force. 80 million people are employed full time and another 16 million are employed part time; 5 million people are "discouraged workers." The unemployment rate is:4%If the natural rate of unemployment is 5.5% and the actual unemployment rate is 6.5%, then, according to Okun's law the GDP gap is:-2%The "full employment rate of unemployment" is:around 4% - 5% because of frictional and structural unemploymentThe CPI is currently 126; a year ago it was 120. The rate of inflation over the past year was:5%Inflation always:reduces the purchasing power of the dollar but may have no impact on real income