Macroeconomics, writing homework help

26

Consumer surplus is

	the total difference between the total amount that consumers actually pay for an item and the total amount that they would have been willing to pay.
	the total difference between the total costs firms incur in producing an item and the utility that consumers derive from purchasing the item.
	the total difference between the total amount that consumers would have been willing to pay for an item and the total amount that they actually pay.
	the total difference between the utility consumers derives from purchasing an item and the total costs that firms incur in producing the item.

Question

27

Producer surplus is

	the total difference between the total amount that producers actually receive for an item and the total amount that they would have been willing to accept.
	the total difference between the total costs that firms incur in producing an item and the utility consumers derive from purchasing the item.
	the total difference between the total amount that consumers are willing to pay for an item and the total amount that producers would like to receive.
	the total difference between the utility that consumers derive from purchasing an item and the total costs firms incur in producing the item.

Question

28

The term unemployment is best described as the total number of

	people not working.
	people who have been laid off and have stopped looking for work.
	adults who work fewer hours than they wish to work.
	adults who are looking for work but have not found a job.

Question

29

The rate of unemployment is calculated as the number of

	unemployed workers divided by the number of employed workers.
	people in the civilian labor force divided by the number of unemployed.
	unemployed divided by the number of people in the civilian labor force.
	employed workers divided by the number of unemployed workers.

Question

30

One major reason that economists are concerned about unemployment is that

	unemployment always leads to frictional unemployment.
	unemployment reduces the size of the labor force.
	unemployment shifts the production possibilities curve outward.
	the economy is producing less output than if there were full employment.

Question

31

If a person loses her job because her abilities and skills are a poor match with current requirements of employers, this person is considered

	structurally unemployed.
	frictionally unemployed.
	a discouraged worker.
	seasonally unemployed.

Question

32

Cyclical unemployment occurs when

	individuals enter the labor market and make the rounds of potential employers.
	individuals with skills that are no longer valued in the domestic labor market cannot find employment.
	individuals give up the search for employment.
	a downturn in economic activity decreases employment.

Question

33

Currently, economists estimate that the natural rate of unemployment in the United States is about

	10%.
	2%.
	5%.
	0%.

Question

34

By definition, the purchasing power of money always drops when

	inflation occurs.
	deflation occurs.
	the economy experiences full employment.
	there is a presidential election year.

Question

35

The peak phase of the business cycle represents

	a temporary maximum output level of gross domestic product (GDP).
	an increase in foreign investment.
	a labor surplus.
	falling prices.

Question

36

Which of the following statements is correct?

	The depth and the length of all business cycles are identical.
	The depth and the length of all business cycles are different.
	Business cycles are caused by seasonal unemployment changes.
	Business cycles are caused by unanticipated inflation.

Question

37

The circular flow of income shows

	the dollar value of output is less than the total income.
	the dollar value of output is more than the total income due to the existence of profits.
	the dollar value of output is exactly equal to the total income.
	the dollar value of output is more or less than the total income, depending on whether profits are positive or negative.

Question

38

Goods and services are sold

	in the product markets.
	in the factor markets.
	by households.
	only as intermediate goods.

Question

39

Which of the following best describes a nation’s gross domestic product?

	The market value of all goods and services that are produced in the economy, including intermediate goods
	The total market value of all final goods and services that are produced in the economy during a year
	The constant dollar value of all goods that are produced in the economy during a year period
	The market value of all goods and services less depreciation

Question

40

Wheat that is used for producing bread is

	a final good.
	not going to generate any employment.
	an intermediate good.
	a durable good.

Question

41

GDP is a

	stock because it measures income for the entire country.
	stock because it measures wealth at a distinct point in time.
	flow because dollar values are used.
	flow because it measures income over a period of time.

Question

42

The two principle methods of measuring gross domestic product are the

	flow approach and the stock approach.
	expenditures approach and the income approach.
	intermediate approach and the value-added approach.
	domestic approach and the international approach.

Question

43

When economists refer to investment expenditures, they refer to the

	purchase of consumer nondurable goods.
	purchase of stocks or bonds.
	use of today’s resources to expand tomorrow’s production or consumption.
	production of intermediate goods.

Question

44

Transfer payments are included in

	gross domestic product.
	net domestic product.
	national income.
	personal income.

Question

45

The difference between nominal and real values is that real values take into account

	depreciation.
	changes in the composition of output.
	changes in prices between years.
	the presence of durable goods.

Question

46

Per capita real gross domestic product (GDP) is

	real GDP divided by the population.
	real GDP divided by a price index.
	real GDP minus depreciation.
	population divided by real GDP.

Question

47

There are a number of benefits that usually accompany economic growth. All of the following are such benefits except

	an increase in literacy.
	an increase in expected life-spans.
	political stability.
	urban congestion.

Question

48

An outward shift of the production possibilities curve demonstrates

	a recession.
	an increased rate of inflation.
	economic growth.
	a cyclical shock.

Question

49 of 50

Labor productivity can be increased with

	education and training of the workforce.
	an increase in capital goods used.
	improvements in management.
	All of the above

Question

50

In order for a nation to be able to consume more in the future, it needs to

	consume less today in aggregate and save the difference between consumption and income.
	consume more today in aggregate and borrow the difference between consumption and income.
	produce more today in aggregate and save the difference between consumption and production.
	produce less today in aggregate and save the difference between consumption and income.26 of 50

 

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