ECO 372 Complete Class Flashcards
ECO 372 Complete Class
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ECO 372 Final Exam Guide
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- the largest source of household income is in the U.S. is obtained
a. stock dividends
b. wages and salaries
c. interest earnings
d. rental income
2 the market where business sell goods and services to households and the government is called
a. goods market
b. factor market
c. capital market
d. money market
- real gross domestic product is best defined as
a. the market value of intermediate goods and services produced in an economy including exports
b. all goods and services produced in an economy, stated in prices in a given year and multiplied by quantity
c. the market value of all final goods and services produced in an economy stated in the prices of a given year
d. the market value of goods and services produced in an economy stated in current year prices - underemployment includes
a. who work off the books to avoid paying taxes
b. who are working part time or not using all their skills at a fulltime job
c. who are tired of looking for a job soo they quit looking but still want one
d. whose skills are not in demand anymore - the bureau of economic analysis is responsible for whicj of the following
a. setting interest rates
b. managing the money supply
c. calculating the US gross domestic product
d. paying unemployment benefits - the federal reserve provides which of the following data
a. federal funds rate
b. stock price of GE
c. bond yields of corporation
d. debt to GDP of Ireland - Consider if the government instituted a 10% income tax surcharge. In terms of the AS/AD model this change should have
a. shifted the AD curve to the left
b. shifted the AD curve to the right
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ECO 372 Week 1 DQ 1
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Using the Bureau of Labor Statistics, the Federal Reserve Bank of St. Louis, or other reputable source, select a key economic indicator that has not been discussed by another student. Discuss how the indicator was created and its current value. What does this key indicator say about the current economic condition?
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CO 372 Week 1 DQ 2
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What is the difference between real and nominal GDP? Does GDP accurately reflect the nation’s welfare? Why or why not? How can data on a country’s GDP be used to make a political argument? In your opinion, how much does this happen in the public arena? Please explain your answer.
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ECO 372 Week 1 DQ 3
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Identify economic factors that affect the real GDP, the unemployment rate, the inflation rate, and a key interest rate. How do you predict the economy will perform in the next two years given the current state of two of the economic factors you identified? How might your organization be affected by these changes?
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ECO 372 Week 1 DQ 4
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What are the different types of unemployment? How do they affect the economy in terms of growth, labor force, and price of labor?
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ECO 372 Week 1 DQ 5
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a) The circular-flow model is a model of the macro-economy. What three sectors are represented in the circular-flow model of a domestic economy? Provide real-world examples of specific entities that belong to each of these sectors and how you are related to those entities.
b) Which two markets are shown in the circular-flow model?
c) The circular-flow model includes two circles made-up of arrows. These circles flow in opposite directions. What do these circles represent?
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ECO 372 Week 1 Summary
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ECO 372 Week 2 DQ 1
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Explain the viewpoints of classical and Keynesian economists. How did the economy that existed at the time of these theories influence them? Which theory is more appropriate for the economy today? Why?
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ECO 372 Week 2 DQ 2
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What is the economy’s current stage in the business cycle? Support your answer with an article written within the last week from the popular press or blog. In light of the text readings, evaluate the article and the source of the article. Based on the information, determine where the economy fits in the business cycle.
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ECO 372 Week 2 DQ 3
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Recessions seem to show up every so often and create economic hardship. One might think that macroeconomic policymakers could tame the business cycle and implement policies that would end recessions. Are recessions a necessary fact of macroeconomic life? If not, what would it take to eliminate them? If they are unavoidable, what types of business can benefit from them? How would a recession affect your firm?
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ECO 372 Week 2 Individual Fundamentals of Macroeconomics Paper
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Resource: Figure 3-1 in Ch. 3 of Macroeconomics.
Part 1
Describe the following terms in your word.
· Gross domestic product (GDP)
· Real GDP
· Nominal GDP
· Unemployment rate
· Inflation rate
· Interest rate
Part 2
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ECO 372 Week 2 Learning Team Weekly Reflection - Economic Forecasting Paper
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Develop a list of resources you might use to gather historical economic data as well as economic forecast data.
Explain how and why each source is valuable and useful.
Identify any quantitative or qualitative forecasting factors contained in the sources.
Discuss this week’s objectives with your team. Your discussion should include the topics you feel comfortable with, any topics you struggled with, and how the weekly topics relate to application in your field.
Write a 350- to 1,050-word paper that details your team’s findings.
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ECO 372 Week 2 Summary
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ECO 372 Week 3 DQ 1
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What happens to the money supply, interest rates, and the economy if the Federal Reserve is a net seller of government bonds? What happens to the money supply, interest rates, and the economy if the Federal Reserve is a net buyer of government bonds. Why would the government implement a stimulus program into the economy?
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ECO 372 Week 3 DQ 2
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What new measures and tools has the Federal Reserve employed in the past several years that have not been employed in the past 2 decades? How do you evaluate the change in the approach? Is this sustainable and appropriate in the medium term?
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ECO 372 Week 3 DQ 3
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What is the difference between contractionary and expansionary monetary policy? What is the intention of each policy under a depression, recession, or robust economy? Which type of monetary policy is more appropriate today and why?
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ECO 372 Week 3 DQ 4
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What are the uses of money? How do commercial banks and Federal banks create money? Is monetary policy conducted independently in the United States? Explain your answer. Is it important for monetary policy to remain independent from all parties? Why or why not?
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ECO 372 Week 3 Learning Team Aggregate Demand and Supply Models
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For this assignment, you will choose from the following options:
· Option 1: Economic Advisement Paper
· Option 2: Economic Critique
Read the Aggregate Demand and Supply Models located on the student website and select one option to complete the assignment.
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ECO 372 Week 3 Learning Team Weekly Reflection
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Discuss this week’s objectives with your team. Your discussion should include the topics you feel comfortable with, any topics you struggled with, and how the weekly topics relate to application in your field.
Write a 350- to 1,050- word paper detailing the findings of your discussion.
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ECO 372 Week 3 Summary
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ECO 372 Week 4 DQ 1
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What are the positive and negative aspects of budget deficits and surpluses? What policy is best for today’s economy? Explain your answer.
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ECO 372 Week 4 DQ 2
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How does a government budget surplus affect the U.S. economy? Identify two periods in recent history in which the United States has run budget surpluses. What were the reasons for the surpluses during those time periods?
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ECO 372 Week 4 DQ 3
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How does a government budget deficit affect the economy? Identify two periods in recent history in which the United States has run budget deficits. What were the reasons for the deficits during those time periods?
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ECO 372 Week 4 Individual Federal Reserve Presentation
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Your boss has chosen you to give a presentation to a number of foreign officials regarding the United States Federal Reserve System. These officials are very interested in doing business in the United States, but they would like to learn more about the Federal Reserve and how it operates.
Develop a 10- to 15-slide Microsoft® PowerPoint® presentation.
Address the following questions and include a notes page which contains the write-up portion to each question:
· What are the factors that would influence the Federal Reserve in adjusting the discount rate?
· How does the discount rate affect the decisions of banks in setting their specific interest rates?
· How does monetary policy aim to avoid inflation?
· How does monetary policy control the money supply?
· How does a stimulus program (through the money multiplier) affect the money supply?
Currently, what indictors are evident that there is too much or too little money within the economy? How is monetary policy aiming to adjust this?
Information
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ECO 372 Week 4 Learning Team Weekly Reflection
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Discuss this week’s objectives with your team. Your discussion should include the topics you feel comfortable with, any topics you struggled with, and how the weekly topics relate to application in your field.
Prepare a 350- to 1,050- word paper detailing the findings of your discussion.
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ECO 372 Week 4 Summary
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ECO 372 Week 5 DQ 1
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Why are trade agreements important for the various countries involved? How is international trade related to the U.S. standard of living as opposed to the standard of living of a small industrial nation or a developing nation? How does international trade affect a country’s standard of living? What impact does it have on the way Americans live life, spend, consume, and so on?
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ECO 372 Week 5 DQ 2
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Who benefits from a tariff or quota? Who loses? Why would domestic markets benefit from protectionist trade policies? How do protectionist trade policies affect a government’s wealth and fiscal policy?
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ECO 372 Week 5 Individual International Trade and Finance Speech
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Assume that you have been appointed as the Speaker of the House. You must deliver a speech about the current state of the U.S. macroeconomy to a number of amateur reporters who are unfamiliar with economics.
Prepare a 750- to 1,050-word speech in simple terms and concepts that focus on international trade and foreign exchange rates.
Integrate a summary of your answers to the following questions and cite external research to further justify your facts:
· What happens when there is a surplus of imports brought into the U.S.? Cite a specific example of a product with an import surplus, and the impact that has on the U.S. businesses and consumers involved.
· What are the effects of international trade to GDP, domestic markets and university students?
· How do government choices in regards to tariffs and quotas affect international relations and trade?
· What are foreign exchange rates? How are they determined?
· Why doesn’t the U.S. simply restrict all goods coming in from China? Why can’t the U.S. just minimize the amount of imports coming in from all other countries?
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ECO 372 Week 5 Learning Team Fiscal Policy Paper
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Discuss within your Learning Team how and why the U.S.’s deficit, surplus and debt have an effect on the following:
· Tax payers
· Future Social Security and Medicare users
· Unemployed individuals
· University of Phoenix student
· The United State’s financial reputation on an international level
· A domestic automotive manufacturing (exporter)
· An Italian clothing company (importer)
· GDP
Write a 750- to 1,050-word paper summarizing the results.
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ECO 372 Week 5 Summary
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