If market signals result in pollution beyond the optimal level, then B) government purchases. B. Undiscovered natural resources. Assume that the price for lawn care has fallen and sales of lawn care services have also fallen. If your nominal wage rises faster than the price level, we can say your real wage has ________ and the purchasing power of your income has ________ Keynesian economics says that: (a) workers are paid for their ability to work, not for the value of what their labor creates. 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 ________. Rearranging, we get: B) discretionary fiscal policy; automatic stabilizers A) attainable Expansionary fiscal policy involves Compared to their pre-trade positions, trade makes both countries better off because in each country BOOK Market Leader intermediate 3rd edition. When graphing two variables, the point at which the graph intersects the horizontal axis is called the, T/F Opportunity costs are another name for marginal costs. C) the demand curve shifted to the right resulting in an increase in the equilibrium price. Government agencies. A tax is imposed on employers and workers that are used to fund Social Security and Medicare. C) Toby buys a new lawn mower to use in his lawn care business. B. C) looking for work is your only option. B) far less difficult than with monetary policy. A mixed economy Question 20. How do you go about allocating your time in a given day among competing alternatives? B) adds 1,000 new cars to inventories. Commits the fallacy of composition A) increase the measured unemployment rate. A) climate and natural resources. The New York City Police recommended steps the bank could take to deter robberies, including the installation of plastic barriers called "bandit barriers." D. Average combinations of goods and services an economy can produce given its available resources and technology. Cutting taxes _______ Select the phrase that correctly completes the following statement. It allows researchers to isolate the effect of one event on another without the influence of outside variables A) Technological change occurs at a faster rate in Europe, so structural unemployment is higher in Europe. Government intervention may achieve a more optimal outcome than the market mechanism when addressing C) No, the recession will most likely be short-lived and I can get a job after it is over. What were the macroeconomic principles or models that influenced your decision making?] A) the supply curve shifted to the left resulting in an increase in the equilibrium price. C. What will be the prices of goods and services; how will these goods and services beproduced; and who will receive them? D) the unemployment rate consists of only frictional and structural unemployment. The correct answer is C. Explanation: Macroeconomics tries to know and measure an economy goes, how well it is performing. A) stayed roughly the same. [Identify the impact of your changes to the income and corporate tax rates. Technological advancements have led to lower prices and an increase in the sale of color laser printers. C) an increase in taxes D. Scarcity. Explain how these higher income taxes will affect the aggregate demand curve. d. It allows researcher to analyze the effect of all potential influences on a particular event, Which of the following is not listed in the book as a reason to study economics? The company allocates indirect costs based on the following activities: EstimatedEstimatedQuantityActivityCostAllocationBaseofAllocationBaseAdmission$60,000Numberofadmissions20,000Cleaning240,000Cleaningdirectlaborhours100,000Grooming80,000Groomingdirectlaborhours4,000Totalindirectcosts$380,000\begin{array}{lclc} Posted on March 1st, 2023 Last modified on March 1st, 2023 Comments. A. producing more of one good means less of another good can be produced. Factors of production and price signals. MACROECONOMICS FREE-RESPONSE QUESTIONS MACROECONOMICS Section II Total Time1 hour . Please don't take his comments (a) personal, (b) personally. Micro Economic 100% (2) 176. Which of the following is an example of spending on factors of production in the circular flow model? C. when something will be produced; why something will be produced Which field of economics deals primarily with the problems faced by low-income countries? Question 01. b. The use of market prices and sales to signal desired output. d. B and C only, T/F On a time series graph, time is measured along the vertical scale, People who eat kale on a regular basis are more likely to exercise every day than people who do not eat kale. D) movement along the demand curve due to a change in purchasing power brought about by the price change. D) an increase in the labor force. D) allocatively efficient. What goods and services to producehow will these goods and services be produced; and who receives them? Holding everything else constant, how would this affect the market for video game consoles (a complement to LCD televisions)? d. Is concerned with proving that capitalism is better than socialism, An efficient market is a market which C. marginal revenue a) A French resident buys a Volkswagen car produced in Wolfsburg, Germany. It considers discouraged workers, and hence it is overstated. A shift outward of the production possibilities curve. C) those that hold paper money lose. Market failure. D) less than 5 times as much as your grandfather in terms of nominal income. C) gross domestic product of the United States. A) no Macroeconomics is a branch of economics that deals with the structure, performance and behaviour of the overall economy. The production possibilities curve illustrates which two of the following essential principles? Zero because you knew when you registered for the class that studying would be required. D) seasonal unemployment, Structural unemployment is the result of ____________ A) higher; higher \text{Cleaning}&\text{{\hspace{10pt}240,000}}\hspace{10pt}&\text{Cleaning direct labor hours}&\text{100,000}\\ Microeconomics answers - Micro Summary exam 1 questions and answers microeconomics exam which of the following is macroeconomics question a:how much would math. E. consumers and firms choosing which goods and services to buy or produce. If the economy is falling below potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? A) an increase in the number of people in the labor force There is full employment. B. marginal benefit equals the marginal cost. If inflation is positive and is perfectly anticipated ____________ D) a contractionary; an expansionary. [Questions] Mains Marathon I Daily Answer Writing I Feb 28th, 2023. How should we produce goods and services? Your grandfather tells you that he earned $7,000/year in his first job in 1961. B) below the market wage, causing labor demand to be less than labor supply. Advertisement Advertisement E. consumers and firms choosing which goods and services to buy or produce. How does the increasing use of digital cameras affect the market for traditional camera film? _____a. Nonetheless, you continue along your career path looking for a new job because _____________ More teenagers enter the labor force. P = $80 In perfect competition, P = AR = ; D. what will be produced; how something will be produced. A) change; overestimates Should Congress and the president take action to reduce global warming? C) oil prices. Maximum combinations of goods and services an economy can produce given its available resources and technology. A)Government must maintain the current level of defense spending to keep the nation safe B)The minimum wage should be increased to give people a decent wage C)Americans should buy American products in order to boost the national economy Refer to the above diagram. The invisible hand at work. C) 1.5% A grocery store sells a bag of potatoes at a fixed price of $2.30. D) GNP plus depreciation. It focuses on areas like inflation, economic growth rate, price levels of various goods and services, gross domestic product (GDP), national income and the unemployment rate in a particular country. During a business cycle expansion, total production ________ and total employment ________. B) the value of all cars produced by Ford in Mexico Microeconomics studies individuals and business decisions, while macroeconomics analyzes the decisions made by countries and governments. D) changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives. They always call for opposite outcomes. A. The money-creating potential in the banking system is simply the amount of new money that can be created using the excess reserves of the bank. It does not consider discouraged workers, and hence it is understated. A) he tax cut would increase consumption spending less than would a permanent tax cut. How many airlines will be late in one month? D. People begin to retire at earlier ages. The use of fixed costs to extract higher percentage changes in profits as sales activity changes involves. How do you go about weighing the alternatives? A) the value of output in 2015 was around $17.3 trillion. is a corporation unresponsive to the demands of its customers? b. A. achieve full employment. The police were surprised the bank did not take their advice. B. the possibility of inefficient production. d. Everyone always gets what they want, T/F Macroeconomics deal with the function of individual industries and the behavior of firms and households, All of the following are examples of topics examined in macroeconomics except B. Which one of the following is not a key people behind macroeconomics? This would The result is a shift in the aggregate demand curve to the left. B. Factors of production and price signals. b. C) will lower disposable income and raise spending. d. Eliminating the trade embargo with Cuba would increase the number of Cuban cigars available in the United States D) unemployed persons falsely report themselves to be actively looking for a job. Let n=3n2n1\alpha_n=\frac{3-n}{2 n-1}n=2n13n and n=n2+2n13n22,n=1,2,\beta_n=\frac{n^2+2 n-1}{3 n^2-2}, n=1,2, \ldotsn=3n22n2+2n1,n=1,2,. C) there has been a downward movement along a demand curve. The automobile industry was experiencing the effects of _______ (b) 81,54,36,81,54,36, \ldots81,54,36,. B) fallen; risen A) increase. C) there are not enough jobs for everyone who wants one. B) the labor force participation rate decreased. B) Canada's GDP. C) The tax cut would increase consumption spending by the same amount as would a permanent tax cut. C) interest rates; money supply B) higher; lower B. 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 As a result, GDP ________ because ________. c. The overall price level in the economy The economic term for the costs associated with negotiating and enforcing a contract is a. opportunity costs. C. Optimal marginalism A) greater on the buyer when the tax is collected from the buyer. c. Bill Gates faces scarcity because resources are limited Which of the following is a macroeconomics question? You'll get a detailed solution from a subject matter expert that helps you learn core concepts. a. Que10. All of these O b. Both discretionary fiscal policy and monetary policy are instruments that governments employ to control the economy. B) productive efficiency All points on the curve. B) made over-the-counter drugs illegal. The unemployment rate for the United States rose to 5 percent in the last quarter. Explain. A graph that contains two variables with a negative relationship is _________, while a graph that contains two variables with a positive relationship is _________. Cadre Management for Indian Economic Services A production possibilities frontier with a bowed-outward shape indicates A. increasing opportunity costs as more and more of one good is produced. D. the choices people make to attain their goals, given their scarce resources. answer choices. Q. The data is listed per quarter, and the real GDP data was calculated using 2009 as the base year. A production possibilities curve indicates the (a) Economic Activities related to Unlimited Wants (b) Economic Activities related to Limited Resources (c) Both (a) and (b) (d) None of these Answer Question 4. An outward shift of a nation's production possibilities frontier can occur due to If the nominal interest rate is 6% and the inflation rate is 9%, then the real interest rate is A technological advance would best be represented by Dear Friends, We are posting prelims marathon MCQs for today. Calculate the predetermined overhead allocation rate for each activity. It is also the case that reported burglaries increase during the same period. c. Focuses on how a business should function The level of inflation in the economy. C) the unemployment rate decreased. Marla is an architect who is designing a home for Chuck. C) a decrease in taxes B) there has been an upward movement along a demand curve. The equilibrium wage in a local labor market is $10 per hour. The decision about what goods and services will be produced in a market economy is made by To Liza, D) The Federal government pays to support research on AIDS. A) The demand curve for inkjet printers shifts to the right. C) increasing the money supply and decreasing interest rates. D) No, the recession will have no impact on my ability to get a job or my future income. B) ice cream and hot fudge and substitutes. Should you go back to school and get a second major? C) by the same amount as B) increasing taxes or decreasing government purchases. D. Increasing opportunity costs will occur with greater tank production. D) producer surplus is minimized. A) the cost of additional education is always higher during recession. C) the demand for lawn care service has decreased. iii. D) Your father buys a new John Deere riding lawn mower. a. View Answer The key. D. all of the above Answer: D.all of the above 2. Minimum wage laws cause unemployment because the legal minimum wage is set C) the value of the house in 2016 minus depreciation B. The size of the underground economy would tend to decrease if the government of a country __________________ D) upward sloping. B) the number of lawn care service companies has increased. Given that, the question "According to the Bureau of Economic Analysis, what has been the average annual level of inflation (as measured by the GDP Deflator) over the past 10 years?" known as ___________ Mental illness is a(n)___________ concept, typically Which of the following is a macroeconomics question? A) The demand curve for traditional camera film shifts to the right. C) The market system allocates goods and services to those who are able to pay for those products and therefore income is a limiting factor. given up when we make a decision is called ____ of that decision Reading Period 10 minutes . Raising the income tax decreases the amount of disposable income available to those households. B) What determines the production of video game consoles? B) total income in 2015 was around $17.3 trillion. Chuck is paying Marla $150 per hour to design his new home. B) The quantity of traditional camera film demanded decreases. B) Laurence rents a car to drive to a wedding in San Diego. The best alt. An economic ________ is a simplified version of some aspect of economic life used to analyze an economic issue. 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) implementing an unemployment insurance policy How does a market system prevent people from getting as many goods and services as they wish? Insert your responses to the following: Explain the intent of the taxation policy decisions you made of your seven-year term. B. the idea that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. Adam Smith's invisible hand is now called A) decreased government regulations on businesses. D) increased business taxes. 19 If the short-run aggregate supply curve intersects with the aggregate demand curve at a point that is greater than the long-run . C. Levels of production that will cause both unemployment and inflation. B) vertical. Economics involves allocating resources to meet peoples' needs and desires for goods and services. D) decrease the number of persons in the working-age population. If Congress passed a one-time tax cut in order to stimulate the economy in 2014, and tax rate levels returned to their pre-2014 level in 2015, how should this tax cut affect the economy? C) the interest rate determined by the supply and demand in the money market. C) Producer efficiency An oligopolistic industry consists of only two firms, Angel& d. Public economics. B. still have an economic problem. b. Que11. Greater production means factor prices rise. C) the value of all cars produced by Toyota in the United States Question 12. B. . A. D) risen and declined with different generations, Fiscal policy is defined as changes in federal ________ and ________ to achieve macroeconomic objectives such as price stability, high rates of economic growth, and high employment D) the Western Trade Union. C. The process by which the production possibilities curve shifts inward. D) refrigerator. If a minimum wage of $15 per hour is imposed, which of the following will occur? B. National income is equal to D) above the market wage, causing labor demand to be less than labor supply. B) higher; lower B. how something will be produced; when something will be produced A) marginal C) discretionary monetary policy. Assume that a hypothetical economy is at long-run macroeconomic equilibrium with full employment and stable prices. C) incorporates substitutions by consumers when prices of specific products rise rapidly. Question: Which of the following is an example of a macroeconomic question? A) will lower disposable income and lower spending. Combinations of goods and services an economy is actually producing. &\textbf{Estimated}\hspace{10pt}&&\textbf{Estimated Quantity}\\ B. The minimum wage law causes unemployment. C) people employed in the underground economy The production possibilities curve illustrates which two of the following essential principles? B) increased income tax rates. C) builds another assembly plant in the United States. Every society faces economic tradeoffs. Micro Economic 100% (3) 6. B) by more than c. Opportunity costs are zero B) unattainable They've told our detectives they have no interest in ever putting in the barriers.". D. Works because prices serve as a means of communication between consumers and producers. D) risen; fallen. C) downward sloping. A. An undesirable combination of goods and services. A) Individual income taxes; corporate income taxes A. D) a demand curve has shifted to the right. The market mechanism at work. A) What determines the minimum wage? Economics is the study of the ________ people make to attain their goals, given their________ resources. Is a normative analysis Which of the following economic activities are included in the subject-matter of Economics? a. C) The demand curve will shift to the right. 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. a. Producers are using inventory faster than it can be replaced. When the variable measured along the x-axis and the variable measured along the y-axis move in the same direction, it indicates a ________ relationship between the two variables. \textbf{\hspace{10pt}Activity}&\textbf{Cost}&\hspace{20pt}\textbf{Allocation Base}&\textbf{of Allocation Base}\\ Who, in a centrally planned economy, decides what goods and services will be produced with the scarce resources available in that economy? B) more than 5 times as much as your grandfather in terms of real income. You earn _________ D. marginal costs D) do not change; underestimates. a. the government D) The demand for video game consoles would increase and the equilibrium price of video game consoles would increase. Annes Newton - G00378073- ECON QUIZ 2. For schedule, refer to the archive link given below. C) below; surplus D. Are willing to pay the highest price. The country is experiencing a serious rise in inflation which the government wants to control through fiscal policy. C) the ups and downs in inflation. Which of the following is an example of spending on goods and services in the circular flow model? D. purchases; unlimited; The branch of economics which studies the behavior of entire economies is called Which of the following is a microeconomics question? A. of mental institutions) and ___________ (movement You borrow $10,000 from a bank for one year at a nominal interest rate of 5%. In addition to selling pet food and pet products, PetSmart also offers dog grooming services including baths, nail trimming, teeth brushing, and aromatherapy to reduce everyday stress, and nail polish and stickers. B. D) The minimum wage in Europe is lower than it is in the United States. A formal statement of theory, usually a mathematical statement of a presumed relationship between two or more variables, is called ______. These are: A. income, spending and saving. 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. The allocation of resources by market forces. A) an induced; an autonomous A) decrease the measured unemployment rate. D) a bridge purchased by the state government. A) Starbucks purchases coffee beans. B) decrease government spending. C) A state government cuts taxes to help the economy of the state. The exports are equal to import. c. The alternative uses of time you spend studying C) Japanese firms benefited from external economies. b. answer choices. D) GDP falls by $1,875. Real domestic output is at its maximum level. Classify the following topics as relating to microeconomics or macroeconomics. Government directives are likely to do a better job of allocating resources than markets. ActivityAdmissionCleaningGroomingTotalindirectcostsEstimatedCost$60,000240,00080,000$380,000AllocationBaseNumberofadmissionsCleaningdirectlaborhoursGroomingdirectlaborhoursEstimatedQuantityofAllocationBase20,000100,0004,000. the same weight of goods has been imported as were exported. Profits are always very high and persistent B) increase the measured labor force participation rate. A) Their value is not counted separately, but included as part of the value of the final good for which they are an input. Which one of the following is the objective of fiscal policy? C) the value of the addition to the capital stock. The importance of the ceteris paribus assumption when using models is that: Which of the following best defines economics? Question 02. A. C) an increase in unemployment insurance payments C. unlimited resources exceed limited wants. B) European countries offer higher unemployment benefits than the United States. b. Is way of analyzing decision-making processes caused by scarcity d. D) about the same difficulty as with monetary policy. D. topics such as unemployment, inflation, and economic growth. D) no one in the economy loses. \text{Admission}&\text{\$\hspace{10pt}60,000}\hspace{10pt}&\text{Number of admissions}&\text{\hspace{5pt}20,000}\\ Is not a very efficient means of communicating consumer demand to the producers of goods and services. B. net benefit Lower disposable income decreases consumption at every price level. b. d. sensitivity analysis. A) automatic stabilizers. B) greater on the seller when the tax is collected from the seller. \end{array} D) quantity of Dell employees. C) 3% In a market economy, those who are willing and able to buy what is produced. Explore the definition and types of economics including microeconomics and macroeconomics and. D) Sarah is not experiencing unemployment of any kind, because she is not currently part of the labor force. D) decreasing the money supply and increasing interest rates. Answer: Demand is defined as the desire of purchasers, consumers, clients, employers, etc., for a particular commodity, service, or other item. A. A) Consumer surplus measures the difference between the highest price a consumer is willing to pay for a product and the price she actually pays. The market mechanism may best be defined as For each transaction, (1) analyze the transaction using the accounting equation, (2) record the transaction in journal entry form, and (3) post the entry using T-accounts to represent ledger accounts. The difference between microeconomics and macroeconomics is that microeconomics analyzes the decisions made by _________, while macroeconomics deals primarily with _____________. c. Florida should devote all revenues from its state lottery to improving public education Each point on a demand curve shows B. C) decrease; more C. The government should subsidize solar power for homeowners. D) the working-age population increased. Every society faces economic tradeoffs. Which of the following would be included in the gross domestic product for 2016? Production possibilities curve will shift outward. Deadweight loss refers to The demand for bottled water by individuals. A) nondurable goods; durable goods B. decisions; household What is the standard deviation of this random variable (i.e., the risk of being late)? B. C) a full-time employee at a pizza parlor who makes more than the minimum wage B) movement along the demand curve due to a change in relative prices. C) 6.67%. B) The supply curve will shift to the right.