Econ 202 General

Front 1

on graph, if questions states Long-run, anticipated or rational expectations...the point will be:

Back 1

somewhere on LRAS line

Front 2

On a graph, when question states Sort-run, not anticipated or not rational expectation...the point will be:

Back 2

To the left or right and off LRAS line.

Front 3

3 criticisms of Keynesian

Back 3

crowding out, effect on supply, new classical

Front 4

Transfer $1000 from savings to checkings, m1 and m2 will be affected how?

Back 4

M1 increases
M2 unchanged

Front 5

If nominal gdp rises from one year to the next then either____ or___or___ must be rising.

Back 5

output,general level of prices, or both

Front 6

What do economists mean when they say that a good is scarce?

Back 6

The amount of the good that ppl would like exceeds the supply freely availablefrom nature.

Front 7

Individuals make decisions at the____

Back 7

margin

Front 8

The opportunity cost of an action is_____

Back 8

the value of the best oppurtunity that must be sacrificed in order to take action.

Front 9

The economic way of thinking stresses that_____

Back 9

as the cost of an object increases, ppl will less likey to choose it

Front 10

The three major categories of resources are:

Back 10

physical resources, human resources, natural resources

Front 11

Criteria for rationing goods and resources must be established bc of:

Back 11

scarcity imposed by nature

Front 12

If an economy is operating at a point inside the ppf curve:

Back 12

its resources are being used inefficiently

Front 13

Does voluntary exchange create wealth?

Back 13

Yes, trade generally permits the trading partners to gain more of what they value.

Front 14

Property Value rights involve:

Back 14

the right to exclusive use, legal protection against those who wish to abuse, the right to transfer, sell ,exchange, or mortgage

Front 15

Which is most likely to shift the ppf curve outward?

Back 15

development of an improved technological method of production

Front 16

GDP is equal to

Back 16

c+i+g+(x-m)

Front 17

Which would be included in this years GDP:

a. the value of used car,at its sale price
b. the value of a new domestic car, at its sale price.
c.a sale of microsoft stock from one person to the next.

Back 17

b.the value of a new domestic car, at its sale price.

Front 18

If a used car dealer purchases a used car for $6,000, refurbishes it, and sells it for $8,000, the dealer____ and consequently___

Back 18

contributes value added = $2000, $2000 is added to GDP

Front 19

If a used car dealer purchases a used car for $6,000, refurbishes it, and sells it for $8,000, the dealer____ and consequently___

Back 19

contributes value added = $2000, $2000 is added to GDP

Front 20

Which would increase GDP of the US
a. a CA man buys a case of wine from a winery in France.
b. A frenchman buys a case of wine from a winery in CA
c.A californian spends $ on atrip in French Alps.

Back 20

b. A frenchman buys a case of wine from a winery in CA

Front 21

The primary value of real GDP is its ability to measure year to year changes in:

Back 21

real output

Front 22

New residential housing is counted in GDP as;

Back 22

investment good

Front 23

Greg, a US citizen, works only in Canada. The value that his labor contributes to US output is:

Back 23

included in US GNP, but not in Us GDP

Front 24

In GDP, government purchases include spending on goods and services by:

Back 24

local, state and federal gov't

Front 25

Suppose GDP deflator was 100 in 2004 and 102 in 2005, inflation for 2005 was:

Back 25

2%

Front 26

The definition of the unemployment rate is:

Back 26

the % of ppl in the civilian labor force who are not employed

Front 27

The period of growth in the real GDP between the trough of the business cycle and the peak is called
a. contractionary phase.
b.boom
c.expansionary phase
d.stationary phase

Back 27

a. contractionary phase.

Front 28

If US net exports are positive, then US consumers are spending___than___

Back 28

more on foreign goods; foriegn consumers are spending on US goods

Front 29

Which is a postive economic statement:
a. an increase in miniimun wage will reduce employment.
b.the minimum wage should be increased
c.thoughtful ppl oppose an increase in minimum wage

Back 29

a. an increase in miniimun wage will reduce employment.

Front 30

The real interest rate is equal to the _____minus_______.

Back 30

money interest rate, the inflationary premium

Front 31

The 4 key markets that coordinate the circular flow of income are:

Back 31

goods and services, resources, loanable funds, and foriegn exchange

Front 32

The exchange rate is

Back 32

the price of one currency in terms of another country

Front 33

The Keynesian analysis of fiscal policy implies that:

Back 33

the federal budget should be used to maintain AD at a level consistent with full employment

Front 34

Crowding-out refers to the situation in which

Back 34

borrowing by the federal gov't causes state and local gov't to lower thier taxes.

Front 35

countercyclical fiscal policy

Back 35

fiscal policy designed to increase AD during economic downturns & decrease AD during economic booms

Front 36

The Keynesian analysis of fiscal policy implies that

Back 36

the federal budget should be used to maintain AD at a level consistent w/ full employment