Home Economics Macro exam 2 example #46443
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Macro exam 2 example #46443

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Nov 17th, 2023
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20 test answers
question
Economists use the term inflation to describe a situation in which
answer
the economy's overall price level is rising.
question
True or False:The consumer price index is used to measure the quantity of goods and servicesthat the economy is producing.
answer
false
question
True or False: The CPI is better than the GDP deflator at reflecting the goods and services boughtby consumers.
answer
True
question
If 2002 is the base year, then the inflation rate in 2005 equals
answer
CPI 2005 - CPI 2004/ CPI 2004 x 100
question
True or False: Countries that have had higher output growth per person have typically done so withouthigher productivity growth.
answer
False
question
True or False: Malthus argued that charity and government aid was an effective way to reduce poverty.
answer
False
question
Each day Sonja works 8 hours and produces 8 units of goods and services. Emma works10 hours each day and produces 9 units of goods and services. It follows that
answer
Sonja's productivity is higher than Emma's.
question
Other things the same, if a country raises its saving rate, when is productivity growthhigher?
answer
as the economy moves toward the long run, but not in the long run.
question
A rapid increase in the number of workers, other things the same, is likely in the short termto
answer
raise real GDP, but decrease real GDP per person.
question
The traditional view of the production process is that capital is subject to
answer
diminishing returns, so that other things the same, real GDP in poor countries should growat a faster rate than in rich countries.
question
The catch-up effect refers to the idea that
answer
it is easier for a country to grow fast and so catch-up if it starts out relatively poor
question
Two countries are the same, except one is poorer. Assuming the traditional assumptionabout the production function is made there are
answer
diminishing returns to capital so the poor country grows faster.
question
Institutions that help to match one person's saving with another person'sinvestment are collectively called the
answer
financial system.
question
In a closed economy, what remains after paying for consumption and governmentpurchases is
answer
national saving
question
Two of the economy's most important financial intermediaries are
answer
banks and mutual funds
question
Which of the following expressions must be equal to national saving for a closedeconomy?
answer
Y-C-G
question
Which of the following is a way to compute GDP?
answer
add up the market values of all final goods and services
question
General Motors built $500 million worth of cars in 2015, but consumers only bought $470 million of them. How much did this increase to the 2015 GDP?
answer
$500 Million
question
Buyers and sellers who have no influence on market price are referred to as
answer
price takers
question
Social Security payments are
answer
excluded from GDP because they do not reflect the economy's production.
1 of 20
question
Economists use the term inflation to describe a situation in which
answer
the economy's overall price level is rising.
question
True or False:The consumer price index is used to measure the quantity of goods and servicesthat the economy is producing.
answer
false
question
True or False: The CPI is better than the GDP deflator at reflecting the goods and services boughtby consumers.
answer
True
question
If 2002 is the base year, then the inflation rate in 2005 equals
answer
CPI 2005 - CPI 2004/ CPI 2004 x 100
question
True or False: Countries that have had higher output growth per person have typically done so withouthigher productivity growth.
answer
False
question
True or False: Malthus argued that charity and government aid was an effective way to reduce poverty.
answer
False
question
Each day Sonja works 8 hours and produces 8 units of goods and services. Emma works10 hours each day and produces 9 units of goods and services. It follows that
answer
Sonja's productivity is higher than Emma's.
question
Other things the same, if a country raises its saving rate, when is productivity growthhigher?
answer
as the economy moves toward the long run, but not in the long run.
question
A rapid increase in the number of workers, other things the same, is likely in the short termto
answer
raise real GDP, but decrease real GDP per person.
question
The traditional view of the production process is that capital is subject to
answer
diminishing returns, so that other things the same, real GDP in poor countries should growat a faster rate than in rich countries.
question
The catch-up effect refers to the idea that
answer
it is easier for a country to grow fast and so catch-up if it starts out relatively poor
question
Two countries are the same, except one is poorer. Assuming the traditional assumptionabout the production function is made there are
answer
diminishing returns to capital so the poor country grows faster.
question
Institutions that help to match one person's saving with another person'sinvestment are collectively called the
answer
financial system.
question
In a closed economy, what remains after paying for consumption and governmentpurchases is
answer
national saving
question
Two of the economy's most important financial intermediaries are
answer
banks and mutual funds
question
Which of the following expressions must be equal to national saving for a closedeconomy?
answer
Y-C-G
question
Which of the following is a way to compute GDP?
answer
add up the market values of all final goods and services
question
General Motors built $500 million worth of cars in 2015, but consumers only bought $470 million of them. How much did this increase to the 2015 GDP?
answer
$500 Million
question
Buyers and sellers who have no influence on market price are referred to as
answer
price takers
question
Social Security payments are
answer
excluded from GDP because they do not reflect the economy's production.