Macroeconomics test 2

Term
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This month compared to last month Popeye's income decrease by 30%. Popeye bought more spinach. There for spinach is _______.
a. luxurious good
b. normal good
c. comparative good
d. inferior good
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Terms in this set (35)
This month compared to last month Popeye's income decrease by 30%. Popeye bought more spinach. There for spinach is _______.
a. luxurious good
b. normal good
c. comparative good
d. inferior good
d. inferior good
When income increases you bought more music. The music downloaded is _______.
a. normal good
b. inferior good
c. comparative good
d. luxurious good
a. normal good
Suppose roses are currently selling for $20 per dozen but the equilibrium price of the roses is $30 per dozen. We would expect a ________.
a. shortage and market price of roses increases
b. shortage and the market price of roses decreases
c. surplus and the market price of roses increases
d. surplus and the market price of roses decreases
a. shortage and the market prices of roses increases
If a shortage in the market happens, then we will know that the current market price is ________.
a. above P*
b. below the Q*
c. below the P*
d. above the Q*
c. below the P*
Hurricane damaged a large portion of oil refueling and pipeline capacity in the gulf coast states. How will it affect the market for gasoline?
a. the supply curve shifts to the left
b. the supply curve shifts the the right
c. a movement up and to the right along a stationary supply curve
d. movement downward and to the left along a stationary supply curve
a. the supply curve shifts to the left
Pens are normally a normal good. What will happen to the P* of pens if price of pens increase, income increases, population increases, printing ink becomes trendy, fewer firms manufacture, and wage of pens increase?
a. price will rise
b. price will fall
c. the demand curve will decrease
d. the supply curve will increase
a. price will rise
Studies have shown that smoking cigarettes can cause heart disease. Favorable whether has increased tobacco production. In the market for cigarettes. These two events would______.
a. D decrease, S decreases, P decreases, Q increases
b. D increases, S increases, P ?, Q decreases
c. D decreases, S increases, P decreases, Q ?
d. D decreases, S increases, P increases, Q increases
c. D decreases, S increases, P decreases, Q ?
If consumers often purchase muffins to eat while they drink their lattés at local coffee shops, What would happen to the equilibrium price and quantity of lattés if the price of muffins rises?
P decreases and Q decreases
Which of the following events would cause both price and quality of #2 potatoes to rise of the #2 large potates are an inferior good?
a. increase in income
b. decrease in income
c. increases in government restrictions on average of chemicals
d. decease in government restrictions on average of chemicals
b. decrease in income
A country's real GDP rose from $500 to $550 while its nominal GDP rise from $600 to $770. What is the inflation rate?
(140-120/120 x100) =16.67%
Which of the following statements about real GDP and nominal GDP is true? a. nominal GDP is a better economic view than real GDP b. real GDP is a better economic view than nominal GDP c. real GDP will decrease d. nominal GDP will increaseb. real GDP is a better economic view than the nominal GDPIf the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the same, which would rise?The nominal GDP would increase and the real GDP stays the sameConsumption spending is $3,000, gross private domestic investment is $4,400, and government expenditures are $1000, and the exports are $200.If GDP is $8000 what is the imports of the economy? a. $600 b. $700 c. $200 d. $800a. $600A steel company sells some steel to a bicycle company for $150. The bicycle company uses the steel to produce a bicycle, which it sells for $250. Taken together, these two transactions contribute a. $150 b. $250 c. $300 d. $500b. $250In 2009 2 cars are produced. In 2009 Shawn bought Car A for $24,000. Later that year he decided to sell Car A to Katie fir $19,000. Car B is unsold for $30,000. What is the contribution to GDP? a. 24,000 b. 30,000 c. 54,000 d. 8,000a. $24,000A country club usually only allows members to buy tickets but two new nonmembers can buy tickets also. If both are allowed to buy tickets what is the equal price?$25Honda produced automobiles, all the automobiles in the US plant. In 2008, Honda produced $25 million worth of cars and sold $12 million in the US and $13 million in Mexico. In addition it sold $2 million from the previous years inventory in the US. What's the contribution to the US GDP?$25 millionIf a US citizen buys a TV set made in Korea by firms then _______.US Net export decreases and GDP stays the sameIn 2011, find the GDP deflator? 2011. /. 2010 P. $10. $20 Q. 100. 100172.5Calculate the inflation rate from 2010 to 201134.1%American Company opened a new Burger King in France. Whose GDP increased?France GDP increased and the US GDP increasedBonus Question 1: Last week the pizza was $10 I had 5 pizza. This week price developed tp $5 so I bought 10 pizza. This is an example of __________.Law of demandBonus question 2: In 2015, #of births is temporarily high. How does the baby boom effect the price of babysitting services in 2020 and 2030? ( draw graph)2020 graph shows increase of price of babysitting 2030 graph shows decrease price of babysittingBonus Question 3: Find P* and Q*? with the equations Y= 1600-300p Y= 1400+700pP* =0.2 Q*= 1540Bonus question 4: What soda did the actor in the Freezer? a. coke b. sprite c. dr.pepper d. fantab. spriteBonus Question 5: Which is not a catch fraze?We the best musicAssume the market of tennis balls is perfectly competitive. When one tennis ball producer exists the market, a. the price of tennis balls increases b. the price of tennis balls decreases c. the price of the tennis balls doesn't change d. there is no longer a market for tennis ballsc. the price of the tennis balls doesn't changeLaw of demand states that, other things equal, an increase in a. price causes quantity demanded to increase b. price causes quantity demanded to decrease c. quantity demanded causes price to increase d. quantity demanded causes price to decreaseb. price causes quantity demanded to decreaseWhich of the following changes would not shift the demand curve for a good or service ? a. a change in income b. a change in the price of the good or service c. a change in expectation about the future price of good or service d. a change in the price of a related good or serviceb. a change in the price of the good or serviceAn improvement in production technology will: a. increase a firm's costs and increase its supply b. increase a firm's costs and decrease its supply c. decrease a firm's cost and increase its supply d. decrease a firm's cost and decrease its supplyc. decrease a firm's cost and increase its supplyAshely bakes bread that she sells at the local farmer's market. If she purchases a new convection oven that reduces the costs of baking bread, the a. supply curve for Ashely's bread will increase b. supply curve for Ashley's bread will decrease c. demand curve for Ashley's bread will increase d. demand curve for Ashley's bread will decreasea.supply curve for Ashley's bread will increaseIf a decrease in income leads to an increases the demand, then the good is a _______. a. substitute good b. complementary good c. normal good d. inferior goodd. inferior goodIf a surplus exists in a market, then we know that the actual price is_____. a. above the equilibrium price, and quantity supplied is greater than quantity demanded b. above the equilibrium price, and quantity demanded is greater than quantity supplied c. below the equilibrium price, and quantity demanded is greater than quantity supplied d. below equilibrium price, and quantity supplied is greater than quantity demandeda. above the equilibrium price, and quantity supplied is greater than quantity demandedIf a shortage exists in a market, then we know that the actual price is_____. a. above the equilibrium price, and quantity supplied is greater than quantity demanded b. above the equilibrium price, and quantity demanded is greater than quantity supplied c. below the equilibrium price, and quantity demanded is greater than quantity supplied d. below equilibrium price, and quantity supplied is greater than quantity demandedc. below the equilibrium price, and quantity demanded is greater than quantity suppliedHow are intermediate goods treated in the calculation of GDP? a. Their value is not counted separately, but included as part of the value of the final good for which they are an input. b. Their value is counted separately, and their value is also included as part of the value of the final good for which they are an input. c. Their value is counted separately, but included as part of the value of the final good for which they are an input. d. They are included only if they are imported.a. Their value is not counted separately, but included as part of the value of the final good for which they are an input.