Final Exam Flashcards
You are looking at the market for Diet Coke. Consider these two things happening separately (not at the same time.)
- The price of Diet Pepsi decreases
- The incomes of buyers of Diet Coke increase, and Diet Coke is a normal good.
a. neither 1 nor 2 would cause the demand curve for Diet Coke to shift left
b. both 1 and 2 would cause the demand curve for Diet Coke to shift left
c. only 1 would cause the demand curve for Diet Coke to shift left
d. only 2 would cause the demand curve for Diet Coke to shift left
c
If the value of the GDP deflator in 2015 is exactly 110.7, and the value of nominal GDP in 2015 is 19.7T, which of the following comes closest to the value of real GDP in 2015?
a. 16.2 T
b. 16.9 T
c. 17.8 T
d. 18.4 T
c
Consider the following purchases:
- A new Toyota Prius is built and sold in Alabama in 2016 (Toyota is Japanese)
- A ne Ford Figo is built and sold in India in 2016 (Ford is American)
a. Both 1 and 2 would be included in the calc of US GDP for 2016
b. Neither 1 nor 2 would be included in the calc of US GDP for 2016
c. only 1 would be included in the calc of US GDP for 2016
d. only 2 would be included in the calc of US GDP for 2016
c
You are looking at the market for smartphones. Consider these 2 things happening at the same time:
1. The tech used to produce smart[hones improves significantly
2. The incomes of buyers of smartphones increases, and smartphones are a normal good.
What will we see in the market after all curves have shifted?
a. A higher equilibrium price, and we cannot say about equilibrium quantity
b. A higher equilibrium quantity, and we cannot say about price
c. A lower equilibrium price and lower equilibrium quantity
d. none of the above
b
What is the term, discussed in your textbook, for government payments such as unemployment checks and social security payments for which the government receives no goods or services in return?
transfer payments
What is the actual current value of the GDP deflator?
112.2 or 12.2%
Consider these statements:
- The current level of Federal debt is approximately $20T
- The current level of Federal debt is too high
- The current level of federal debt should be lowered through a government austerity program
a. 1 and 3 are positive statements; 2 is a normative statement
b. 2 and 3 are positive statements; 1 is a normative statement
c. 1 and 2 are positive statements; 3 is a normative statement
d. none of the above
d
Consider the following statements:
- The value of leisure is not included in GDP
- The purchase of financial assets, such as stocks and bonds, is not included in GDP
a. Both 1 and 2 were listed in the textbook as shortcomings of GDP as a measure of wellbeing
b. neither 1 nor 2 was listed in the textbook as shortcomings of GDP as a measure of wellbeing
c. only 1 was listed in the textbook as shortcomings of GDP as a measure of wellbeing
d. only 2 was listed in the textbook as shortcomings of GDP as a measure of wellbeing
c
You are looking at the market for apple pies. You see that the price of apples (an input to apple pies) has increased significantly. In the market for apple pies we will see…
a. Supply shift right, producing a lower equilibrium quantity and a lower equilibrium price
b. Supply shift left, producing a lower equilibrium quantity and a lower equilibrium price
c. Supply shift right, producing a higher equilibrium quantity and a higher equilibrium price
d. Supply shift left, producing a lower equilibrium quantity and a higher equilibrium price
d
Which of the following is not a component of “I” in GDP?
a. Business structures
b. Durable goods
c. Residential investment
d. All of the above
b
Consider these three purchases that take place in 2016:
- A house sold in KS that was originally built and sold in 1992
- The highway patrol for the state of KS purchases 100 brand new cars for its officers
- A newlywed couple in KS purchases a new, custom-built bed from Unruh Furniture (a local company)
a. All there would be included in 2016 GDP and all three would be part of durable goods
b. only 1 and 2 would be included in 2016 GDP and both would be part of durable goods
c. only 2 and 3 would be included in 2016 GDP but only 3 would be part of durable goods
d. only 1 and 3 would be included in 2016 GDP and both would be part of durable goods
c
Products A and B are complements on the demand side. If the price for product A decreases what will we see in the market for product B?
a. demand shifting left which is a decrease in demand
b. demand shifting right which is an increase in demand
c. demand shifting left which is a decrease in quantity demanded
d. demand shifting right which is and increase in quantity demanded
b
What is the current value of Real GDP for the US right now and what is the rate at which the US economy is currently growing?
$16.8 T; 1.9%
Economists estimate the size of the US underground economy to be…
a. At most, 3% of GDP
b. At most, 5% of GDP
c. At most, 10% of GDP
d. At most, 20% of GDP
c
You are looking at the market for tortilla chips. Two things happen at the same time: the price of corn, an input to tortilla chips, decreases. And also the price of salsa, a complement to tortilla chips, decreases. In the market for tortilla chips we will see:
a. Demand shift left, supply shift left, a higher equilibrium price and we cannot say about equilibrium quantity
b. Demand shift left, supply shift right, a higher equilibrium quantity and we cannot say about equilibrium price
c. Demand shift right, supply shift right, a higher equilibrium quantity and we cannot say about equilibrium price
d. Demand shift left, supply shift left, a lower equilibrium price and we cannot say about equilibrium quantity
c
GDP (gross domestic product) is the market value of all goods and services produced in a country during a given period of time (usually a year).
Is this accurate? If not, what is wrong with it?
No; it should say “final” goods and services
If buyers of jet skis expect the price to decrease in the future we will see _________ today, and if sellers of jet skis also expect the price to decrease in the future we will see _________ today.
a. Demand shift right; supply shift left
b. Demand shift right; supply also shift right
c. Demand shift left; supply shift right
d. Demand shift left; supply also shift left
c
What is the name (not initials) of the organization that calculates GDP and what is the year that is currently used as the base year when calculating real GDP and the GDP deflator?
Bureau of Economic Analysis; 2009
Which of the following will not result in a lower equilibrium price in the market you’re looking at?
a. You’re looking at the market for butter and the price of margarine decreases
b. You’re looking at the market for motorcycle helmets and the price of motorcycles decreases
c. You’re looking at the market for electric cars, and the technology used to make the electric cars improves
d. Actually all three of the above will result in a lower equilibrium price in the market we’re looking at
b
Which of the following is correct?
a. U3 in Brianlandia is significantly higher than current value of U3 in the US
b. U3 in Brianlandia is significantly lower than current value of U3 in the US
c. U3 in Brianlandia is nearly identical to the current value of U3 in the US
d. none of the above
c
In the country of Brianlandia there are 78 million people currently working; this includes people working both full and part time. There are 4M people who aren’t working but have looked in the past 4 weeks, aren’t in the hospital, not in prison, not in the military. If Brianlandia calculated U3 exactly as the BLS does for the US which of the following comes closest to the value of U3?
a. 6.2%
b. 5.6%
c. 5.1%
d. 4.9%
d
what is the current annual measure of inflation?
2.5%
If nominal interest rate on a mortgage is 4.2% and inflation is the current annual measure of inflation as reported in the CPI, what is the real interest rate?
1.7%
If unemployment is caused by the existence of a minimum wage it must be that…
a. the min wage is below the market wage
b. the min wage is above the market wage
c. the min wage is equal to the market wage
d none of the above
b