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Macro Econ Exam 1
Macro Econ Exam 1
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Macroeconomics 2105 Exam 1 (Chp 1-3,6)
Flashcards
20 cards
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Questions
20
Answers
1
According to the law of demand, the relationship between price and quantity demanded is ___?
Direct
Inverse
No Relationship
It Depends
2
Which of the following is NOT a variable that shifts the demand curve?
Price Expectations
Price of Goods
Price of Related Goods
Number of Buyers
3
A storm destroys an orange grove in Florida. What happens to the Orange Juice market?
Demand Will Increase
Supply will Increase
Demand Will Decrease
Supply Will Decrease
4
Sheila goes to a party instead of studying. This is an example of ___?
Marginal Thinking
Opportunity Costs
Trade-offs
Negative Incentives
5
Which of the following is a capital good?
Rice Cooker
Industrial Brick Pizza Oven
Toaster
Household Stand Mixer
6
You own a public pool and decide to lower the cost of admission for the month of July. What will happen?
The Quantity Demanded of Admission Will Increase
The Quantity Demanded of Admission Will Decrease
The Demand of Admission Will Increase
The Demand of Admission Will Decrease
7
Which of the following is NOT counted in the calculation of GDP?
Buying a New Toaster
Government Spending on Welfare
Paying for Gas on a Cross Country Road Trip
Paying for a Cleaning Service to Clean Your House
8
Which of the following is NOT a variable that shifts the supply curve?
Technology
Price of Goods
Taxes/Subsidies
Cost of Inputs
9
Import spending ___ GDP and export spending ___ GDP.
Increases; Decreases
Decreases; Increases
10
Which line represents the short run?
Line A
Line B
11
Which component of GDP includes inventory changes?
Inventory Changes Aren't Included in GDP
Investment
Consumption
Government Spending
12
GDP is the total market value of ___?
Intermediate Goods and Services Produced Annually Within a Country
All Goods and Services Produced Annually Within a Country
Final Goods and Services Produced by that Country, Regardless of Location
Final Goods and Services Produced Annually Within a Country
13
What must happen to the market price in order to eliminate a shortage?
It Depends
Price Must Fall
Price Must Rise
Price Must Stay the Same
14
Which data would you use to compare economic well-being over time and across countries?
Inflation
Per Capita GDP
Real GDP
Real Per Capita GDP
15
Why are PPF's curved?
Because it's More Fun to Draw
Because Marginal Thinking is Increasing
Because Opportunity Costs are Increasing
Because Trade is Unequal
16
Which of the following are NOT shortcomings of GDP?
The Underground Economy
Leisure
Annual Production
Household Production
17
Which explains the PPF?
New Technology Was Made for 1 Good
New Technology Was Made for Both Goods
18
The basis of trade is ___?
Absolute Advantage
Neither Comparative or Absolute
Both Comparative and Absolute
Comparative Advantage
19
Which explains the PPF?
More Resources are Available for 1 Good
More Resources are Available for Both Goods
20
People often buy DVD rentals and Popcorn together. If DVD rental price increases ___?
Overall Demand for Popcorn Will Increase
Overall Demand for Popcorn Will Decrease
Quantity Demand for Popcorn Will Increase
Quantity Demand for Popcorn Will Decrease
