economics 676-750 Flashcards
Labor productivity is defined as
output per unit of labor input
When input increases but output stays constant
productivity decreases
What is the term for higher wages paid to workers unpleasant jobs?
compensating wage differentials
The length of life and the consumption of food, clothing, and housing are measurements used to gauge a person’s _____ ______ _______
standard of living
Investment is spending on which factor of production?
capital
What term refer to the extent to which capital has been used up or lost its value
depreciation
what is the difference between a depression and a recession?
in a recession output is diminishing for at least two quarters . a depression is a rapid fall in output over a longer period of time, but there is no cutoff point between the two.
true or false a change in foreign income shifts aggregate demand
TRUE
aggregate demand demonstrates (a direct/ an inverse) relationship between price level and total spending in the economy.
an inverse- people spend more at lower price levels
consumption represents about ….% of GDP in the united states
60
how much was u.s. nominal GDP in 1998
over $8.51 trillion
what is a final good?
a good that is sold in an economy and will not be sold later as any part if another good, nor used to produce another good for sale
consumer debt relatice to income is a (leading/concurrernt/lagging) economic indicator
lagging
is homemaking included in gdp measurement
no
sales are a (leading/concurrent/lagging) economic indicator
concurrent
are servers tips included in gdp measurement
reported tips are included in gdp measurement. tips that are unclaimed, however. are not included in gdp even though they are a part of a servers income
is homemaking included in GDP measurement?
no
changed in inventories are a (leading/concurrent/lagging) economic indictator.
leading
what is the index of consumer confidence
based on datat obtained by the conference board, the index of consumer confidence is a measure of consumers expectations for their economic futures
what is the nomial gross domestic product
GDP expressed in current dollar values
what was the us real median income of households in 1999?
40,816
in a free market system how is the for whom question of economics resolved?
goods and services go to the people who are willing to pay the market price for them
the choice between hand made production and production by machine is an example of which basic economic question?
how to produce
production output is a(leading/concurrent/lagging) economic indicator
concurrent
if your neighbor mows your parents lawn for 20 each week, and reports that income to the IRS, is it included in GDP
yes
stock prices are a (leading/concurrent/lagging) economic indicator
leading
in which range is the aggregate supply Curve nearly horizontal
keynesian
the median household income of this racial group in the us was 30,735 in 1999
hispanics
what are the two sectors in the circular flow model
the househol sector and the business sector
name three ranges of the aggregate supply Curve
keynesian, intermediate, classical
are transfer paymens included in GDP measurement
no
how do we determine per capita gross domestic product
dividing GDP by total population
when a person’s income goes up, he buys fewer cans of generic tomato juice. generic tomato juice is therefore what kind of good?
inferior
price of hot dogs increases. what happens to demand for hot dog buns?
decreases, because hot dog buns are a complementary good
price of salsa decreases. What happens to the demand for tortilla chips?
increases
when summer comes, what happens to the demand for lemonade?
increases
T or F- a change in the quantity supplied of a good changes demand that good
FALSE
T or F- change in the season can change demand
TRUE
the price of cottage cheese goes up. what happens to the demand for its substitute, yogurt?
demand for yogurt increases
movement of the demand curve represents a change in (demand/quantity demanded)
demand
T or F- a change in the price of a good changes demand for that good
FALSE
T or F- change in the price of complementary goods changes demand for a good
TRUE
define exchange rate
the price of a nation’s currency, expressed in terms of the value of another
the law of supply states that quantity supplied is (directly/inversely) related to price.
directly
the slope of the supply curve is usually _________
positive
what is X-inefficiency?
inefficiency that results when a monoply stops searching for ways to keep costs down; services, efficiency, and productivity, may not improve because there is no incentive.
who regulates monopolies in the US?
federal trade commission
what is the structure of the markets for breakfast cereal
oligopoly
natural monopoly occurs in markets where the demand curve intersects the average cost curve at a quantity where average costs are (rising/falling)
falling
in a perfectly competitive market, should a firm advertise
no, the product is completely homogeneous
in monopolistic competitive market, there are (few/many) barriers to entry
few
what markets in the real world are the closest to perfect competition
the markets for commodities such as wheat
welfare loss due to monopoly is also known as________ loss
dead weight
price, marginal revenue and marginal cost are equal for a profit-maximizing firm in which market structure
perfect competition
T or F- a monopoly experiences a downward sloping demand curve
TRUE
what is the term for a market controlled by just a few firms?
oligopoly
monopolies occur in markets where production involves economics of ________
scale
which organization replaced GATT in 1995?
the world trade organization
most of the governing rules used by the world trade organization come from which round of gatt negotiations
the uruguay round
economics analysis of tariffs shows that the gain in tax revenue and the increase in profits by domestic producers is (more/less) than the economic loss to consumers
less
what is a trade sanction
a trade penalty imposed by one nation or another
how does a country pay for a trade deficit
it must either run down its assets or owe money
by conention, the president of the world bank is always
european
when was gatt founded
1947
if a developing country seeks support for building a hydroelectric dam, it is more likely to turn to the.. for a loan of funds
world bank
in what year was the uruguay round of gatt talks completed
1993
what free trade organization is headquartered in geneva, switzerland
world trade organization
by convention, managing director of the imf is always
european
what was the goal of gatt
for member countries to meet regularly to discuss trade and reduce barriers to trade
the united states emerged from world war 1 as a new _ nation
creditor
the united states emerged from world war 1 as a new _ nation
creditor
the united states emerged from world war 1 as a new _ nation
creditor
the united states emerged from world war 1 as a new _ nation
creditor
the united states emerged from world war 1 as a new _ nation
creditor
an attorney who is also the fastest typist in town might still hire a typist instead of typing her own notes. why would this be to her advantage
they typist might have a comparative advantage in typing. even though the attorney is a better typist, she gains more by spending her time on legal work and hiring someone else to type
