Economics

The law of supply states that, other things equal, as the price of a good goes

What would happen to a graph (market being computers) when there is cheaper memory chips, (which is an input for making computers) put on the computer market?

What would happen to the graph (market being corn) when there is a poor corn harvest?

Which of the following explains the increase in demand for a college education in the U.S.?

More colleges have been established
The cost of text books has increased dramatically.
Income in the US has risen
The price of a college education has increased

Compared to last year, fewer oranges are being purchased and the selling price has decreased. This could have been caused by

When applied to labor markets the law of supply suggests that

an increase in the wages earned by nurses will cause the quantity of nurses:
supplied to increase
demand to increase
a decrease in the wages earned by nurses will cause the quantity of nurses
supplied to increase
demand to increase

Which of the following would likely result in an increase in the demand of beef?
A decrease in the supply of beef
an increase in family incomes, assuming beef is a normal good
an increase in the price of feed grains
a decrease in the price of pork

In 2004 wall street journal headline stated, "carbs and fats and trends in snacking all conspire against oreo and others." Which of the following best describes the likely effect of this trend on the oreo market

The explanation for the law of demand involves

which of the following is not held constant as you move along the demand curve

the price of that good
the price of other goods
the incomes of consumers
the preferences of consumers for the good

the supply of leather jackets would be expected to ncrease as a result of

Given that diesel cars get much better gas mileage than the typical car, an increase in the price of gasoline would be expected to

If you observe a market where quantity demanded doesnt equal quantity supplied a logical conclusion is that

if the price of chicken rises and the price of beef does not rise consumers will respond by

if both buyers and sellers expect the price of a commodity to rise in the future, it is likely that equilibrium

when the wage rate paid to labor is above equilibrium the

if supply and demand both shift to the right equilibrium quantity

Honey and jam are subsitute products. If the price of honey increases the demand for

Which of the following would best explain a decrease in the supply of squash?

an increase in the price of other vegetables
an increase in the price of squash
a decrease in the price of sqaush
a decrease in the cost of growing squash

there are many more subsitutes for good a than for good b.

What happens to the demand curve?

The current recession has resulted in a large number of individuals who have quit looking for work and are classified as discouraged workers. These people

Given the current unemployment rate of 9.5 percent, what is the economy's potential output?

In 1969, the US CPI was 37 and in 2006 it was 201.6. By what percent did prices increase in the US between 1969 and 2006?

Keeping total employment and the number in the population constant, an increase in the number of people available and looking for work will do what to labor force participation?

People who work part-time, or have a full-time job that doesn't use all their skills are included in:

Use the following info to calculate the unemployment rate. Civilian population, 300 million; people incapable of working, 25 million; people not looking for work, 75 million; and unemployed workers 8 million

With respect to the unemployment problem, classical economists generally take the position that:

If an economist says that real wages have fallen in the past year, what has most likely happened?

Which of the following is a statement keynesians would likely make?

All unemployment is frictional unemployment
If a person isn't working thats his or her choice
Structural and cyclical unemployment are more common than frictional unemployment
The unemployment rate overstates actual unemployment

Policies that affect work, capital accumulation, and technological change are primarily relevant to:

If nominal output is 4.4 tril and the GDP deflator is 110 then real output is

The lowest sustainable rate of unemployment that policy makers believe is achievable under existing conditions is:

A price index in its base year:

John has received a 3% pay increase but the rate of inclation is 6%. Economists would tell John that his real wge has:

Which of the following would not be called unemployed?

Construction worker laid off because of a slowdown in house building
Young mother on welfare because her husband left and she stays home
Recent high school graduate who quit job and is looking for better
A recent college graduate who has not found job

Under pure capitalism the main deterrent of unemployment is:

Which of the followin statement is what a classical economist would say:

Most unemployemnt is frictional
Frictional unemployment is only a small part of total unemployment
Unemployment rate underestimates true extent of unemployment
Society owes a person a job commensurate with his or her training

Long-run growth framework focuses on factors affecting

Clark, middle-aged bachelor, quit his job to look for a better job. The Bureau of Labor Stats counts clark as:

Target rate of unemployment can be affected by all of the following except the

Level of output
Populations age structure
social and institutional structure
relationship between inflation and unempolyment

Real GDP is desinged to measure

Does national income accounting have a category capturing the effects of depreciation

Aggregate income includes all except
employee compensation
interest
rent
transfer payments

If an economy produces 100 pencils valued at 25 cents a piece and 500 sheets of ruled paper at 1 cent a piece, using GDP as measure of output

the distinction between consumption and investment is

Using following info what is economy's net domestic product?
consumption 4.2 tril; investment 1.3 tril; government purchases 1.5 tril; depreciation 0.4 tril and GDP is 6.6 tril?

Which is not part of US GDP?

Payments for insurance policy on old BMW sold by US
Value of BMW imported from Germany
Value of BMW produced in US
Commissions earned by BMW in US

If real GDP has increased by 3% and nominal GDP has increase by 5%, then

Net domestic product equals:

Which of the following is an example of an intermediate product:

pari of skis sold by sporting goods retailer to skier
share of IBM stock
Lumber produced by Cascade and sold to builder
antique car sold to highest bidder

GDP is 7 tril. If consumption is 3.5 tril, investment is 1.4 tril and govern purchases are 2.1 tril then:

In 1996, Boskin Commission report found that past estimates of inflation overstated actual infaltion by about 1.1 percent. Assuming that the findings of commission are accurate:

In 2004, US net exports were more than -600 bil, a record low. Assuming all other components remained the same as a consequence:

If a firm's cost of materials is 100$ and its sales are $500 its VALUE ADDED is

In what category is the purchase of a computer by a business in national income accounting?

If you decide not to spend 1000$ you earned at your summer job but to buy shares in microsoft, in economics this action would be classified as

The difference between GDP and GNP is GDP

Calculate GDP using this info:

Consumption 5100
INvestment 1100
Transfer Payments 1050
Government puchases 1400
Exports 850
mports 950
Net foreign factor income 20

If US imports of goods and services exceed exports US

To calculate GDP

Land would have constrained per capita growth in the 1800 if

According to convergence hypothesis

unlike classical growth theory, new growth theory emphasizes the importance of

At the end of WWII when Korea was split into 2, NOrth and South had similar per cpaita incomes. In the years since their per capita incomes have diverged. How can this divergence be best explained in reference to convergence hypothesis?

Economic growth thru the market has

If increaseing returns to scale exist, then an increase in output of exactly 3% is most likely to be produced by increase in all inputs of less than 3%

If technological agglomeration increases in poor countries, we might expect that convergence in per captia income levels across rich and poor countries will

In early 20th century US South was poor relative to North. During the century the gap in percapita income narrowed, Why

Over last three decades, the Chinese govern. has adopted a series of market oriented reforms that have shifted control of many parts of chinese economy from gov. officials to market forces. These reforms have most likely stimulated chinas growth for which reason?

What tends to inhibit growth?

Production is characterized by

Investment relates to capital in the following way

A concern about long-term economic growth was important in economnics

What effect would we expect in market for loanable funds if some people discover a new buisn. opportunity that requires investment

Economic growth causes

which of the following is least likely to increase potential output?

Steven has suggested that Scrooge, was not really so bad. What is he saying would happen in the market for loanable funds if all misers sold their assets and gave away money?

Economic growth

Economists are confident that the marginal product of labor is higher in the US than it is in China

Study of economic growth focuses on factors that cause an