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Econ Final exam

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Last updated almost 2 years ago
130 questions
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Question 1
1.

What is the total output (GDP) demanded at different price levels by different groups

Question 2
2.

Why might the aggregate demand curve slopes down because higher prices

Question 3
3.

What are the AD curve shift factors or 'shocks'

Question 4
4.

What is monetary policy?

Question 5
5.

What is fiscal policy?

Question 6
6.

What is the total output produced at different price levels by different groups?

Question 7
7.

Aggregate supply slopes upwards (short run)

Question 8
8.

Aggregate supply slopes vertical (long run)

Question 9
9.

What can shock the LRAS curve?

Question 10
10.

Economics is the study of how society allocates its plentiful resources

Question 11
11.

Economic growth causes a production possibilities frontier to shift upwards or outward to the right

Question 12
12.

If a country can make more of a product per hour than another, then they cannot gain from trading with the other country.

Question 13
13.

Consumer surplus measures the benefit to buyers from participating in a market

Question 14
14.

A legal minimum on the price of a good is a price ceiling

Question 15
15.

Prices controls are inefficient because they result in lost gains from trade

Question 16
16.

What is the limited nature of society's resources?

Question 17
17.

What is incentive?

Question 18
18.

What is opportunity cost?

Question 19
19.

What is efficiency?

Question 20
20.
Draggable itemarrow_right_altCorresponding Item
What is a visual model of the economy that shows how dollars flow through markets among households and firms?
arrow_right_alt
Circular-flow diagram
What is a graph that shows the combinations of output that the economy can possibly produce given the available resources and technology?
arrow_right_alt
Production possibilities frontier (PPI)
Question 21
21.

What does the PPI illustrate?

Question 22
22.

What is the ability to produce a good using fewer inputs than another producer does

Question 23
23.

What is the ability to produce a good at a lower opportunity cost than another producer

Question 24
24.

Gains from trade are based on comparative advantage or absolute?

Question 25
25.

What is the principle of comparative advantage?

Question 26
26.

What is a market in which there are so many buyers and so many sellers that each has a negligible impact on the market

Question 27
27.

A graph that shows how the quantity of a good demanded depends on the price is the demand curve

Question 28
28.

The amount of good that buyers are willing and able to purchase is called the quantity demanded

Question 29
29.

Other things equal, as the price of the good falls the quantity demanded rises and vice versa (curve slopes downward) is the Law of demand

Question 30
30.

Which way does a demand curve increase on a graph?

Question 31
31.

Which way does a demand curve decrease on a graph

Question 32
32.

What are the determinants of demand?

Question 33
33.

The supply curve shows how the quantity of a good supplied depends on the price.

Question 34
34.

The amount of a good that producers are willing and able to sell is the quantity supplied

Question 35
35.

As the price of a good falls, the quantity supplied falls and vice versa. (curve slopes upwards) is known as?

Question 36
36.

What are the determinants of supply?

Question 37
37.

What is the intersection of supply and demand curves called?

Question 38
38.

When the market price is above the equilibrium price is?

Question 39
39.

When the market price is below the equilibrium price is know as?

Question 40
40.

What three steps are used to analyze how any event influences a market

Question 41
41.

The maximum amount that a buyer will pay for a good is known as? (Consumer)

Question 42
42.

What equals buyers willingness to pay for a good minus the amount they actually pay? (Consumer)

Question 43
43.

How can consumer surplus be computed?

Question 44
44.

The minimum amount that a seller will accept for their goods (producer)

Question 45
45.

What equals the amount sellers receive for their goods minus their willingness to accept

Question 46
46.

How can producer surplus be computed?

Question 47
47.

What is the allocation of resources that maximizes a total surplus (sum of consumer and producer)

Question 48
48.

A legal maximum on the price at which a good can be sold is?

Question 49
49.

If the price ceiling is below the equilibrium price is it binding?

Question 50
50.

A legal minimum on the price at which a good can be sold is?

Question 51
51.

If the price floor is above the equilibrium price is the price floor binding?

Question 52
52.

Price controls on goods reduce the welfare of buyers and sellers of the goods

Question 53
53.

Price controls have deadweight losses because they decrease the quantity traded and shrink the size of the market below the level that maximizes total surplus

Question 54
54.

The market value of all final goods/ services produced within a country in a given period of time

Question 55
55.

Market value of all final goods/ services produced by U.S residents no matter where they live

Question 56
56.

What does GDP per capita measure?

Question 57
57.

GDP growth measures the direction of an economy

Question 58
58.

GDP is a perfect measurement of the average persons standard of living

Question 59
59.

What is nominal GDP

Question 60
60.

What is real GDP

Question 61
61.

What does GDP deflator measure?

Question 62
62.

How can an economys inflation rate be measured?

Question 63
63.

A country's standard of living depends on its ability to produce good and services

Question 64
64.

What are the determinants of productivity?

Question 65
65.

What public policies encourage economic growth?

Question 66
66.

a economy's rate of productivity growth is closely linked to the growth rate of GDP per capita

Question 67
67.

inflation is the avg change in prices or in the price level (some prices go up while others go down)

Question 68
68.

What are the different price indexes used to measure inflation?

Question 69
69.

What can be calculated by fixing the basket, finding the prices, compute the baskets cost, and choose a base year and compute the index?

Question 70
70.

Substitution bias, introduction of new goods, and unmeasured quality change, are some of the problems with CPI

Question 71
71.

What is included in CPI but excluded from GDP Deflator?

Question 72
72.

What is included in GDP deflator but excluded from CPI

Question 73
73.

CPI uses fixed basket while GDP Deflator uses basket of currently produced goods and services

Question 74
74.

real interest rate is corrected for inflation but nominal is not

Question 75
75.

What is the unemployment rate of a labor force?

Question 76
76.

the % of the adult non institutionalized civilian population either working or looking for work is?

Question 77
77.

the unemployment rate measures the 'hidden unemployment (underemployment, part-time, discouraged workers)

Question 78
78.

What are the three types of unemployment?

Question 79
79.

A student who just graduated from college but hasn't found a job yet is considered to be

Question 80
80.

a freightliner employee that got laid off because of the recession of 2007-2009 is considered

Question 81
81.

People who lost their jobs as hand-drawn animators because of the popularity of computer generated 3D animation are considered

Question 82
82.

What is the normal rate of unemployment around which the actually unemployment rate fluctuates

Question 83
83.

What are three public policies to address unemployment

Question 84
84.

Aggregate supply slopes which way in the long run?

Question 85
85.

What does LRAS stand for?

Question 86
86.

What does SRAS stand for?

Question 87
87.

countries specialize based on absolute advantage

Question 88
88.

economic growth means that a country can produce more of all the goods

Question 89
89.

as income goes up people buy more of an inferior good, therefore increasing its demand

Question 90
90.

a binding price floor causes a surplus and is inefficient

Question 91
91.

What can cause shifts in the AD, SRAS, and LRAS

Draggable itemarrow_right_altCorresponding Item
Productivity/ input prices
arrow_right_alt
AD
Consumption/ investment
arrow_right_alt
AD
Changes in natural resources
arrow_right_alt
SRAS
Gov't spending/ net exports
arrow_right_alt
SRAS
Expectations about prices or inflation
arrow_right_alt
SRAS
Capital/ labor/ technological changes
arrow_right_alt
LRAS
Nominal wages
arrow_right_alt
LRAS
Question 92
92.

What is any asset that people are generally willing to accept in exchange for goods and services

Question 93
93.

the existence of money makes trading much easier and allows specialization

Question 94
94.

without money you would have to barter

Question 95
95.

Money is acceptable to a wide variety of parties as a form of payment for goods and services

Question 96
96.

Money is the yardstick people use to post prices and record debts

Question 97
97.

Money allows people to defer consumption till a later date by storing value

Question 98
98.

The two different types of money are; Commodity and fiat money

Question 99
99.

The form of a commodity with intrinsic value. Ex; gold coins, cigarettes in POW camps

Question 100
100.

Money without intrinsic value, used a money because of gov't decree

Question 101
101.

the quantity of money available in the economy is called the money supply

Question 102
102.

Paper bills and coins in the hands of the public is known as

Question 103
103.

Balances in bank accounts that depositors can access on demand is

Question 104
104.

What are the three categories of money supply in the US?

Question 105
105.

Currency and reserves at the central bank (federal reserve) is?

Question 106
106.

Banks are only required to hold only a portion of the money deposited with them as reserves is?

Question 107
107.

What is the reserve ratio

Question 108
108.

What is money multiplier?

Question 109
109.

What is the difference between M1 and M2

Draggable itemarrow_right_altCorresponding Item
MB + checking and savings accounts
arrow_right_alt
M1
M1 + other savings deposits
arrow_right_alt
M2
Question 110
110.

when banks gain reserves, they make new loans, and the money supply expands

Question 111
111.

An institution that oversees the banking system and regulates the money supply

Question 112
112.

The central bank of the US is known as?

Question 113
113.

The setting of the money supply by policymakers in the central bank.

Question 114
114.

What does the central bank of the US include?

Question 115
115.

the Fed maintains the bank account of the US treasury and manages govt borrowing

Question 116
116.

Large private banks do not keep accounts at the Fed, nor can they borrow from the Fed

Question 117
117.

The Fed controls the money supply, keeps inflation/ unemployment low and stable, and encourages growth

Question 118
118.

What policy tool can the Fed use to change the money supply?

Question 119
119.

The amount that banks must hold when they receive a deposit is reserve requirements

Question 120
120.

Higher tax rates for higher incomes

Question 121
121.

Constant tax rate

Question 122
122.

Lower tax rates on higher incomes

Question 123
123.

the additional shifts in AD that result when fiscal policy increases income and thereby increases consumer spending

Question 124
124.

Fiscal policy has another effect on AD that works in the opposite direction

Question 125
125.

The setting of the level of government spending and taxation by policymakers

Question 126
126.

An increase in G and/or decrease in T, shifts AD right

Question 127
127.

An decrease in G and/or increase in T, shifts AD left

Question 128
128.

changes in fiscal policy that stimulate aggregate demand when economy goes into recession, without policymakers having to take any deliberate action

Question 129
129.

In recession, taxes fall automatically, which stimulates aggregate demand

Question 130
130.

In recession, less people apply for public assistance (welfare, unemployment insurance)