Macro Questions For Oa-Wgu

Front 1

What question is a basic question economics need to answer?

Back 1

For whom are goods and services produced?

Front 2

Match each core idea of economic thinking to its definition:

Back 2

-What must be given up to get something:

Opportunity Cost

-What is gained when a person gets something: Benefit

-A decision that uses the available resources to best achieve the objective: Rational Choice

-A reward that encourages action:

Incentives

Front 3

What is true regarding human capital?

Back 3

Human Capital affects the quality and productivity of labor

Front 4

A company has the production possibilities of bicycle and helmets in a month?

Back 4

600 bicycles;400 helmets

Front 5

Which situation increases current demand of a good?

Back 5

the expectation of a higher future price.

Front 6

If the demand for used cars decreases after the price of new cars falls, what is true about the used and new cars?

Back 6

They are both substitute goods

Front 7

How is the quantity of demand affected when there is an increase in demand, assuming supply is constant?

Back 7

The price will increase ans the quantity will decrease.

Front 8

Which two situations increase the supply of a perishable product?

Back 8

-An increase in the expected future price of the product.

-Lower prices for the resources used to produce the product.

Front 9

Which situation increases the supply of gasoline?

Back 9

A decrease in the price of a resource used to produce gasoline, such as a crude oil.

Front 10

What can cause an increase in the quantities supplied of ballpoint point pens?

Back 10

When there is an increase in demand

Front 11

Which item would be excluded fro Canada's GDP measure?

Back 11

Gasoline purchased in the US by a tour bus operator in Quebec.

Front 12

A sugar cane farm was affected by a devastating hurricane that decreased the supply of sugar by 30 percent. Because if the reduced supply of sugar, the chocolate cake factory in Country A was only able to produce half of the number of last year's cakes.

-What effect will the decrease of sugar supply have on the chocolate cake's market equilivrium?

Back 12

The price of chocolate cake must increase in order to maintain market equilibrium.

Front 13

Classify the descriptions as a feature of real or nominal GDP.

Back 13

-A better measure of a standard of living-Real GDP

-Expressed in terms of prices of the current year-Nominal GDP

-Expressed in terms of the prices of a base year-Real GDP

-Allows output to be compared across time-Real GDP

Front 14

Which purchase is included when calculating a country's GDP per capita?

Back 14

A new automobile

Front 15

Which event is likely to cause inflation?

Back 15

An increase in crude oil prices.

Front 16

How frequently does the Bureau of labor statistics conduct its survey of the CPI market basket to determine CPI?

Back 16

Monthly

Front 17

Which condition must exist for full employment to occur?

Back 17

the absence of cyclical emploiyment

Front 18

How will the GDP be affected when unemployment is higher than the natural unemployment rate?

Back 18

-The real GDP minus the potential GDP will be negative

-The real GDP will be below potential GDP

Front 19

What do sustained increase in the standard of living depend on?

Back 19

Increases in labor productivity

Front 20

Economic growth in Cuba has been slow.

What can best explain the slow growth?

Back 20

Lack of incentive mechanisms and economic freedom

Front 21

What would be a reason for an increase in labor productivity growth?

Back 21

An increase in people's human capital

Front 22

Which term characterizes the situation where the current unemployment rate is equal to the natural unemployment rate?

Back 22

Full employment

Front 23

What is the function of money when there is a price tag?

Back 23

A unit of account

Front 24

What is the goal of a commercial bank?

Back 24

To maximize its stockholders' wealth

Front 25

Cisco is considering opening a financial institution that accepts savings deposits from only its employees and makes loans to only employees. What is the best description of the financial institution?

Back 25

Credit union

Front 26

What is an open market operation?

Back 26

One of the tools of the monetary policy that the federal reserve uses to influence money supply.

Front 27

Who regulated the quantity of money circulating in the economy?

Back 27

The Federal Reserve

Front 28

What can the Federal Reserve System immediately adjust in order to influence the interest rate?

Back 28

Reserves of the banking system

Front 29

What are open market operations?

Back 29

Purchase or sale of engorgement securities by the Federal Reserve

Front 30

Which cost would be labeled as uncertainty costs?

Back 30

Cost associated with predicating long-term inflation

Front 31

What is the result of an increase in price level, other things remaining the same?

Back 31

Increase in the quantity of real GDP supplied

Front 32

Moving along the aggregate supply curve, what is the result when the price level increases?

Back 32

The real wage rate falls and there is an increase in the quantity of real GDP supplied

Front 33

Classify each scenario with how it impacts aggregate demand.

Back 33

-U.S currency exchange rate appreciates-Decrease AD

-Interest rates rise-Decrease AD

-Quantity of money increases-Increase AD

-U.S net exports increase-Increase AD

Front 34

What happens in the business cycle when aggregate demand increases?

Back 34

The economy expands ans inflation may occur

Front 35

Why do money wage rates rise when an economy has demand-pull inflation?

Back 35

A decrease in aggregate demand creates a labor shortage

Front 36

What are the policy targets of the Philips curve?

Back 36

Inflation rate and unemployment rate

Front 37

Which graph demonstrates the generally accepted view of inflation on the long-run Philips curve?

Back 37

Choose the graph with the vertical line

Front 38

Which parties decide the federal budget?

Back 38

President of the U.S and U.S Congress

Front 39

The above table gives the government outlays and tax revenue from 2008 through 2012 for country A-What was the state of Country A's budget in 2011?

Back 39

Balanced Budget

Front 40

Classify each action with the effect on the aggregate supply side:

Check

Back 40

Decrease in productivity-Decrease in AS

Increase in income taxes-Decreases in AS

Increase of infrastructure projects-Increase in AS

Decrease in unemployment-Increase in AS

Front 41

What would happen to AD if the gov expenditure on goods and services increase by 20 billion?

Back 41

AD would increase by more than 20 million

Front 42

Which factor is a key part of achieving maximum employment?

Back 42

Attaining the highest sustainable growth rate of potential GDP

Front 43

What is the best indication that the Federal Reserve is achieving its goal of price level stability?

Back 43

A yearly core inflation rate that is closer to 1 to 2 percent than 9 to 10 percent

Front 44

What is one strategy the FOMC uses to fight inflation?

Back 44

Taking actions that will increase real GDP?

Front 45

What would happen to AD expenditures if the Federal reserve raised the federal funds target rate?

Back 45

Consumption expenditures would likely decrease

Front 46

What happens after a nation starts importing a good from overseas?

Back 46

the domestic price of the good falls

Front 47

What consumer gain results from a tariff imposes on a good?

Back 47

Products of increased quality

Front 48

If supporters of restrictions on imports argue that protection is needed to preserve a strategic industry, which argument is being used?

Back 48

Save domestic jobs argument