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Unit 4 (FCHS) Flashcards | StudBud
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Unit 4 (FCHS)
Unit 4 (FCHS)
27 terms
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StudBud Administration
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Macroeconomics
Flashcards
27 cards
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Practice quiz
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Questions
27
Answers
1
When Coca-Cola buys a shipment their secret ingredient it is considered to be
a final sale.
a nonmarket transaction.
a secondhand item.
an intermediate product.
2
A person who cleans their own house takes part in
the underground economy
nonmarket transaction
reducing GDP
stimulating GDP
3
Economists like to convert statistical series to real terms (i.e. real GDP) b/c the adjustment
removes the distortions caused by inflation.
makes the statistical series seem to grow faster.
is easy to do.
removes the problem of unemployment.
4
GNP does not include…..
US products made in the US
Foreign goods made in the US
US products sold in another country
5
Employment figures understate the extent of unemployment because they include
homemakers without income.
retirees on pensions.
students in secondary schools.
part-time jobs at minimum wage.
6
The market value of all final goods & services produced in a country in a given period of time.
Gross Dollar Prices
Gross Production Ratio
Gross National Product
Gross Domestic Product
7
During periods of unexpected inflation, people who previously borrowed:
lose-they repay loans after higher prices erode real income.
lose to lenders, who become more eager to make loans.
gain because they repay loans with cheaper dollars.
should repay loans as quickly as possible.
8
All of the following are effects of the federal debt EXCEPT
income distribution is altered.
incentives to work, save, and invest are decreased.
purchasing power is transferred.
interest rates are lowered.
9
Retail profits fell leading to the termination of a part-time cashier. Cashier is _ unemployed.
Not Counted as Unemployed
Frictionally (frictional)
Structurally (structural)
Cyclically (cyclical)
10
C + I + G + (X-M) - which letter represents the largest sector of the macroeconomy
C
I
X
G
11
Inflation that occurs because the price of essential raw materials or wages has incr. is called
cost-push inflation
demand-pull inflation
price drop inflation
deflation
12
Index of avg level of prices for approx. 90,000 goods and services in the economy is the ___
implicit GDP price deflator.
current GDP.
consumer price index.
producer price index.
13
An effect of inflation
people on fixed incomes have decreased purchasing power
cost of a raw material, such as oil, unexpectedly increases
people speculate heavily to take advantage of rising prices
consumers, bus. & govts buy more goods than can produce
14
To be counted in the civilian labor force, a person must be
female and a member of the military
already employed and between the ages of 16 and 65.
male and more than 18 years old.
employed or looking for work, and age 16 and over.
15
Which component of GDP can be a negative number?
net exports
investment spending
consumer spending
net migration
16
A business fires 75% of their employees in '08 b/c of recession. Employees are ___ unemployed.
Not Counted as Unemployed
Structurally (structural)
Cyclically (cyclical)
Frictionally (frictional)
17
The total amount of money borrowed over time by the government.
Balanced budget amendment
National debt
Federal budget
Budget deficit
18
There are always workers who are in the process of changing jobs, so there is always some ____
frictional unemployment
cyclical unemployment
structural unemployment
technological unemployment
19
Which of the following would be counted in this year's GDP?
the sale of a new house
buying stocks
fixing my own car
the purchase of a used car
20
You graduated from COLLEGE and are currently looking for your 1st job. You are ___ unemployed.
Cyclically (cyclical)
Structurally (structural)
Not Counted as Unemployed
Frictionally (frictional)
21
If intermediate goods and services were included in GDP:
GDP would be overstated.
GDP would be understated.
GDP would have to be deflated for changes in price level.
nominal GDP would exceed real GDP.
22
A government budget deficit occurs when:
The Federal Reserve lends more than it borrows.
gov't spends more than it will collect in revenues
The Federal Reserve borrows more than it lends.
gov't collects more in revenues than it spends
23
Which phase of the business cycle would the economy experience its lowest rate of unemployment?
trough
recession
depression
peak
24
Choose the correct letter on the graph that represents a recession.
W
X
Y
Z
25
GDP expressed in constant—or unadjusted for inflation—prices could also be referred to as
Real GDP
Aggregate Supply
Aggregate Demand
Nominal GDP
26
Toll-booth cashier becomes unemployed when a machine does his job better. He is ___ unemployed.
Not Counted as Unemployed
Frictionally (frictional)
Cyclically (cyclical)
Structurally (structural)
27
When calculating GDP, the purchase of a new business office is counted as
investment
net export
goverment
consumption
