What is a trade surplus?

exports are greater than value of its imports

What is cyclical unemployment?

Unemployment caused by a downturn in the economy

what does a unit of account mean?

money offers a standard measure of financial value.

What is long-run self adjustment?

shifts of SRAS due to adjustement of wages and prices

What is Fiscal Policy?

How a government adjusts its spending levels and tax rates

Where the resources needed to make a good or service are sold.

Order/decree. “Lender tender” has value b/c gov't has decreed that it does.

What is economic contraction "AKA" a recession

A time when Real GDP is decreasing

What is the nominal income?

population's income can be receive in the form of money in a certain period

a purchase of new capital, such as new factories or equipment

What is nominal interest rate?

The interest without inflation.

The free-rider problem is

someone enjoy a good without paying

How do you calculate the inflation rate?

(price in year 2-price level in year 1)/price in year 1

What is short-run aggregate supply?

B) The total production of goods and services when prices are sticky

When there are no fixed factors

The government offers Flooper's a per-unit subsidy of 50 cents per floop. How do Flooper's P & Q produced change?

c. Price unchanged. Quantity increases.

What does money as a "store of value" mean?

Money holds its value over time

Model that shows the flow of goods and services in an economy

What is the inflation rate?

annual percentage increase in the price level.

What is the fractional reserve banking system?

banks hold a fraction of their deposits as reserves and lend out the rest

What is the income effect?

Change in price alters consumers' real income

Marginal Private Cost

Is smaller than the Marginal Social Cost

What is absolute advantage

A person is able to produce more of a good than another

What does a Lorenze Curve illustrate?

Distribution of wealth and income

Marginal Private Cost is....

with negative externality paid by supplier cost borne by producer

What is a budget surplus?

When revenue exceeds expenditure

What is the business cycle?

fluctuations in a country’s economic activity over time

A limit on the amount of a good that can be imported or exported.

What is a medium of exchange

An item that buyers give to sellers when they purchase goods and services

The Gini coefficient is used below. The Gini coefficient represents...

Income distribution, to demonstrate economic inequality

What is a commercial bank

A bank that offers financial services to the public and to businesses

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Answers

1
What business cycle phase has business failures?
Recession
Recovery
Prosperity
Depression
2
What is a trade surplus?
imports are greater than exports
exports are greater than value of its imports
trade deficit occurs
positive balance of payments
3
What is national debt?
not enough trade
debt owed by a state
tax on property
debt owed by the country
4
What is cyclical unemployment?
Unemployment resulting from seasonal work
Unemployment caused by workers leaving the workforce
Unemployment due to technological advancements
Unemployment caused by a downturn in the economy
5
what does a unit of account mean?
money is used to store financial value for future use
money offers a standard measure of financial value.
money enables people to make payments.
Borrow money to buy goods that can't be afforded currently.
6
What are "sticky wages"?
Wages for jobs that make you sticky
Wages that are slow to fall
Wages that are slow to increase
Wages given in form of contracts
7
What is long-run self adjustment?
Shifts of AD caused by policy makers
movement along the AD curve
shifts of SRAS due to adjustement of wages and prices
shifts of LRAS due to adjustement of wages and prices
8
What is Fiscal Policy?
How a government adjusts its spending levels and tax rates
How a country controls the supply of money
When a government regulates businesses
9
Circular flow model
all the above
The businesses give people paychecks
The gov. gives money to the businesses
The people pay taxes to the gov. and taxes on goods to businesses
10
MSC = MPC + externality. True or false?
True
False
11
Resource Market
Where final goods are sold.
Where the resources needed to make a good or service are sold.
None of the above
The market were transfer payments are made.
12
What are net exports?
exports minus imports
imports minus exports
imports plus exports
exports plus imports
13
Fiat Money
Order/decree. “Lender tender” has value b/c gov't has decreed that it does.
Anything used as money; today we use coins and paper bills as money.
Make use ofobjects ofvalue b/c the holder can trade it for ST else of value
Deposits that a bank keeps readily available as opposed to lending them out
14
What is economic contraction "AKA" a recession
A time when GDP increases
A time when Real GDP increases
A time when GDP is decreasing
A time when Real GDP is decreasing
15
Where marginal social benefit = marginal social cost
Private optimum consumption
Marginal social cost
Marginal social benefit
Social optimum consumption
16
What is the nominal income?
population's income can be receive in the form of money in a certain period
products are taken at the expense of labor and are produced in the house
The remaining part of nominal income after deduction of taxes
The purchasing power of income at the disposal of a person
17
What is Investment?
a purchase of new capital, such as new factories or equipment
consumer purchases of big-ticket items
purchase of stocks and bonds
putting away funds for the future
18
What is nominal interest rate?
The interest rate adjusted for inflation.
The interest rate decided by banks.
The interest without inflation.
The interest rate that is also nominal.
19
Public goods include
computer repair services
fire and police services
banking and other financial services
child-care services
20
The free-rider problem is
someone pays without enjoying the good
someone consumes too much of a good
someone enjoy a good without paying
consumption that does not leave anything left to others
21
What does the Lorenze Curve illustrate?
interest rates
inflation
income distribution
unemployment
22
How do you calculate the inflation rate?
(price in year 1-price in year 2)/price in year 2
None of these are correct
(price in year 2-price level in year 1)/price in year 1
price in year 2/price in year 1
23
A government subsidy per unit of output increases supply.
True
False
24
What is short-run aggregate supply?
C) The total production of goods and services when wages are fixed
B) The total production of goods and services when prices are sticky
D) The total production of goods and services at full employment
A) The total production of goods and services when prices are flexible
25
When there is a contractionary gap, effective fiscal policy might be to
Increase money supply
Reduce market prices
Increase government purchases
Reduce interest rates
26
Demand deposits = $200,000; reserve requirement = 10%. What's the value of required reserves?
$20,000
$180,000
$2,000
$200,000
27
What is long run?
When there are no fixed factors
Longer than one year
Longer than five years
When all factors are fixed
28
The government offers Flooper's a per-unit subsidy of 50 cents per floop. How do Flooper's P & Q produced change?
a. Price unchanged. Quantity unchanged.
b. Price increases. Quantity unchanged.
c. Price unchanged. Quantity increases.
d. Price increases. Quantity increases.
29
What does money as a "store of value" mean?
Money can be created on demand
Money is universally accepted
Money holds its value over time
Money decreases in value quickly
30
What is a recessionary gap?
High inflation
Output above potential GDP
Output below potential GDP
Full employment
31
Circular flow model
Rivalry between firms in the marketplace
Model that shows the flow of goods and services in an economy
caused by a mismatch between skills of workers and the requirements of jobs
Maximum price set by the government for a product or service
32
What is the inflation rate?
annual percentage changes the unemployment
annual percentage increase in total unemployment
annual percentage increase in the price level.
annual percentage increase in real GDP
33
What is the fractional reserve banking system?
A system where banks only lend money backed by physical commodities
A system where banks hold all deposits as reserves and do not lend money
A system where banks borrow money from other banks to maintain reserves
banks hold a fraction of their deposits as reserves and lend out the rest
34
Which of the following goods is a club good?
Tornado sirens
Skincare products
Clean air
Spotify Premium
35
What is the income effect?
Change in price alters consumers' real income
Change that is shown as a hop,skip,and a jump on the graph
Change because of the change in the relative price
36
Marginal Private Cost
Does not exist
Is equal to the Marginal Social Cost
Is greater than the Marginal Social Cost
Is smaller than the Marginal Social Cost
37
discouraged workers
counted in UR
not counted in UR
38
What is absolute advantage
A person is able to produce more of a good than another
A person has lower opportunity cost to produce than another
A person has higher opportunity cost to produce than another
A person is able to produce less of a good than another
39
What does a Lorenze Curve illustrate?
Production possiblities
Distribution of wealth and income
Price of goods
40
Standard of Living
Market Economy
Quality of life
Scarcity
Gross Domestic Product (GDP)
41
What is long run aggregate supply?
Total amount of production in the economy as a whole
Levels that are possible
Levels of production
None of the above
42
Marginal Private Cost is....
with negative externality paid by supplier cost borne by producer
with positive externality paid by supplier cost borne by consumer
with negative externality paid by supplier cost borne by consumer
paid by consumer
43
What is a budget surplus?
When expenditure exceeds revenue
When no money is borrowed
When revenue equals expenditure
When revenue exceeds expenditure
44
What is the business cycle?
the tendency of a new business to get larger each year
the exchange of goods between different nations
fluctuations in a country’s economic activity over time
the flow of money between households and businesses
45
Name that Econ System: Inequality of opportunity
Planned
Barter
Free Market
Command
46
What are quotas?
A limit on the amount of a good that can be imported or exported.
Roads to nowhere
Things people buy at a market
Something people say in books
47
What is austerity?
A rise in consumer spending
A rise in government spending
A cut in government spending
A fall in tax revenue
48
What is a medium of exchange
An item that buyers give to sellers when they purchase goods and services
An item used to measure value
An item that holds value over time
An item used for investment purposes
49
The Gini coefficient is used below. The Gini coefficient represents...
Income distribution, to demonstrate where rich people are
The income of an city/the income its peripheral cities
GDP/GII
Income distribution, to demonstrate economic inequality
50
What is a commercial bank
A bank that offers financial services to other banks
A bank that offers financial services to the government organisations
A bank that offers financial services to the public and to businesses
A bank that creates commercials
51
What is a budget deficit?
expenses exceed income
the budget drops
the budget increase
income exceeds expenses
52
What is the fractional reserve banking system?
The FED can audit a bank at any time.
A bank can not lend out all its deposits.
A bank can not lend out its excess reserves.
Banks have to have fraction of the GDP available at all times.
53
What open market operation (Limited Reserves system) could return this economy to long run equilibrium?
decrease taxes
increase taxes
sell bonds
buy bonds
54
Marginal Social Benefit
MPB + MEB
MEB + MEC
MEB - MEC
MPB - MEB
55
What is long run aggregate supply?
Goods and services that an economy can produce with half employment
Goods and services that an economy can produce with full employment
Goods and services that an economy can’t produce with full employment
Goods and services that an economy can produce with no employment
56
Common Access Resources
are under-consumed
create positive externalities
require subsidies
get depleted without intervention
57
Define “economic specialization”
producing everything for a country with no trade
producing what a country can make best
directly swapping goods without money
not investing in industry & technology because of expense
58
What is excluded from the labor force?
A 17 year old working full time
A retired grandma who works at target for some extra cash
A person who is not working but has looked for a job last week
A man who has been kidnapped and locked in a basement for a year
59
A trade deficit is
when a country only exports
when a country only imports
when a country imports more than it exports
when a country exports more than in imports
60
What is the base year
The average amount of goods and services produced in a year
A year that serves as a basis of comparison for other years
The average inflation percentage over several years
61
Common access resources
Are likely to depletion.
Can be overused or over-consumed.
All of them are correct.
Are nonexcludable.
62
ECONOMIC SUSTAINABILITY
Manage resources
Helps to manage resources and generate profitability irresponsible
Generates ineequitavle wealth
63
All of the following are negative externalities EXCEPT
police violence against citizens
traffic around a large mall
oil spill in Alaska
crime near a casino
64
Economic sustainability:
Companies gaining profits without thinking about environment impacts
Makeing a profit while at the same time consider the environment and people
Making sure you have more than your neighbour
Using resources selfishly and not thinking about future generations
65
What is non-discretionary fiscal policy?
bank's use of changes on interest rate to stabilize the economy
used to find spending multiplier
used when there is inflationary gap
Government policies that are built to stabilize the economy
66
What is money?
A medium of exchange
A verbal agreement
67
GDP per capita measures GDP per
input
country
person
product
68
What is Underemployment
Working a job without necessary qualifications
Being employed “under the table”
Being overqualified and therefore underpaid
Working a job without enough people
69
What is consumption?
What people create
What people buy
What people make
What people imagine
70
What is the Business Cycle?
more work of time
moving while going up
The alternating periods of expansion
moving on to the next
71
What is one monetary policy to close a contractionary gap?
Creating a government spending program
Decreasing taxes
Increasing taxes
Buying bonds
72
Inventories are Unsold Goods
False
True
73
Specialization in economics means....
being a very special contributor to economics
to have a special set of workers
to concentrate on and become an expert in a particular skill
to focus all energy on being a special worker
74
What is short run aggregate supply?
None of the above
Levels of production
Total amount of production in the economy
Levels that are possible
75
What is the product market?
households purchase goods and services from firms
market in which firms purchase the resources households
the market in which income is received for selling resources
76
What is the National Debt?
Total sum of all money US citizens' debt
Money the US gov. has borrowed + interest
77
What is consumer confidence?
Decreases spending
Increases spending
No change in spending
Spending fluctuates
78
Government provision will:
Decrease the combined private and public contributions of the public good
Result in no change to the overall level of public good
Increase the combined private and public contributions of the public good
79
What is a balanced budget?
When expenditure is greater than revenue
When revenue equals expenditure
When there is no government revenue
When revenue is greater than expenditure
80
What is the M1 money supply?
Short term money deposits
Only paper money
Long term money deposits
Coins and notes that are in circulation and other money
81
private goods are
Excludable and rivalrous
Non rivalrous and non excludable
Excludable and non rivalrous
Non excludable and rivalrous
82
Total welfare is
the sum of consumer surplus and producer shortage
The sum of consumer surplus and producer surplus.
83
What is “crowding out”?
B. A fall in private spending due to government borrowing
C. Overuse of public goods
A. Increased demand for housing
D. High unemployment in crowded cities
84
What is depreciation?
Under-consumption
The decrease in value
The increase in value
Over-consumption
85
Deadweight losses
are a result of underproduction where MC exceeds MB.
occur as a result of either overproduction or underproduction.
are a result of overproduction where MB exceeds MC.
are a result in which maximum willingness to pay = minimum acceptable price
86
What is discretionary fiscal policy?
normal fiscal policy, but in secret
government spending in reaction to nothing in particular
the gov't changes policy to react to an economic situation
government spending
87
What is the Financial Account?
Records all transactions between a country and the rest of the world
Transactions related to financial assets and liabilities
Transactions that involve the acquisition of non-financial assets
Transactions related to the trade of goods and services
88
Public goods are non-excludable and non-rivalrous, so everyone can use them without reducing the availability to others.
False
True
89
Evidence of economic inequity in the U.S. could be.
Household wealth differences based on race
Terrain map differences based on race location
Weather report differences based on racial population
90
What are injections in the circular flow of income?
Investments, government expenditure, exports
Getting a needle!
Investments, taxation, imports
Savings, taxation, imports
91
What is supply-side economic theory?
The idea that decreasing tax rates will increase revenue thru more spending
The idea that if more demand is increased, so will supply
The idea that increasing the tax rate on the wealthy increases revenue
An idea that only benefits the wealthy at the expense of the poor
92
The official unemployment rate:
involves people over 16 yrs old who are not currently seeking employement
is the ratio of unemployed to employed workers
is the percentage of the labor force that is unemployed
is the percentage of the total population that is not working
93
Federal funds rate
cookadoodledo
interest which a depositary institute lends available funds to a depository
George Washington
money rates
94
What are the leakages from the circular flow?
Savings + ( Imports- exports)
Savings + Tax + Exports
Savings + Tax + Imports
Tax + Imports + Exports
95
A formula that measures economic inequality within a country.
Gini Index
Per capita GDP
HDI
GDP
96
What is the interest-rate effect?
Higher interest rates lower investment spending
Higher interest rates increase government spending
Lower interest rates increase aggregate supply
Lower interest rates lower investment spending
97
What is an Expansionary Policy?
Stopping the flow of money completely
Letting the money supply fly out of control
Inrceasing the money supply
Decreasing the money supply
98
The discount rate is the rate
mortgage bankers will pay to the secondary market
at which borrows will be charged one point
mortgage brokers will pay to the secondary market
charged to member banks borrowing from the Federal Reserve Bank
99
How is Economic Growth measured?
Gross Domestic Price
Gross Domestic Product
Grand Domestic Product
Grand Domestic Price
100
Gross Domestic Product
is last week's dirty socks
are the products made in other countries
is measured using quality-of-life factors.
is the value of all goods and services produced in a year.
101
What is inflation?
Price of goods go up
Extreme and rapid price increase
Currency loses its value
102
Gross Domestic Product formula =
C + I - G + (X - M)
C + I + G + (M - X)
C - I + G - (X + M)
C + I + G + (X - M)
103
What is a central bank?
Investment bank
Retail bank
Credit union
Government bank
104
What are bonds?
checks and balances
notes that give money to the homeless
notes that promise repayment of money in the future.
chains for bondage
105
What is Nominal GDP?
GDP measured at current market prices
GDP measured at current market prices
GDP adjusted for inflation
GDP including foreign income
106
Study the diagram, how much does this subsidy cost the government per unit?
C-P
C-P1
P-P1
L-B
107
What is free trade?
When goods are free.
When producers are paid a fair price.
Selling public assets and services to private companies.
The removal of tariffs, quotas and subsidies.
108
Which would be an example of a positive externality?
someone playing loud music everyone likes
a thriving stock market
a new law requiring strict air pollution controls
increased police presence
109
What phase of the business cycle is point 4?
Expansion
Trough
Peak
Contraction
110
What are Intermediate goods?
sushi restaurants
goods of mediocre quality
goods used in making other final goods
goods on their way from one place to another
111
What are imports?
taxed products
products coming into a country
products leaving a country
ruined products
112
6. In balance of payments, when total credits (inflows) equal total debits (outflows) across all accounts, BOP is in?
Deficit
Surplus
Flux
Equilibrium
113
A Market Failure..
is a failure in the market
appears where demand does not equal supply
leads to either under- or over-allocation of resources
is a common tragedy
114
open market operations
selling certificates of deposit
buying or selling bonds
distributing money
buying stocks
115
Full employment output (Y*) is:
GDP when our economy is at “full potential”
all of these
our "target" for GDP
Maximum potential usage of capital and labor resources
116
What is long-run self adjustment?
movement along the curve
LRAS
shifts of SRAS due to adjustement of wages and prices
shifts of LRAS due to adjustement of wages and prices
117
What is natural rate of unemployment?
unexpected unemployment levels
higher level of GDP
normal amount of unemployment
zero percent employment
118
Calculate Total Welfare
$100
$240
$80
$120
119
What are trade barriers?
Trade that is done secretly
Quotas, tariffs, or embargoes
Blockages for trade ships
Restrictions to free trade
120
Ample Reserves
Banks hold high levels of excess reserves so supply doesn't impact interest
The federal reserve setting an explicit target for the inflation rate
A situation where the short term interest rate has been lowered to zero
A bank’s reserves over and above its required reserves
121
What is consumer price index?
product value of final goods and services, adjusted for inflation
goods and services inputs used up in production
market value of the final goods and services produced in an economy
uses as the basket of goods the typical purchases of households
122
What are leakages in the circular flow model?
Money being injected into the economy
Money leaving the economy through savings, taxes, and imports
Increases in government spending
Increases in wages
123
Economic growth would most likely result from —
increased productivity
decreased trade
decreased sales of stock
increased employment
124
Public goods generally have
A neutral externality
A negative externality
A positive externality
Negative externality
125
Calculate Total Welfare
180
None of the above
45
40
126
What are sticky wages
When wages don't fall with a decrease in demand
Wages that can change in the short run
When wages fall with a decrease in demand
Wages that adjust quickly with price level
127
Get income, wages, salaries from resource market
Households
Firms
128
What is the labor force?
Stay at Home Parents
Unemployed and Discouraged Workers
Employed and Unemployed
Employed and Discouraged Workers
129
What is the labor force?
total people aged 15 and over
employed + unemployed people
unemployed people
employed people
130
What is a recessionary gap?
Economy produces too little.
Economy produces too much.
Unemployment is low
Prices increase
131
Which economic system has the least inequality?
I've got a blank space, baby, and I'll write your name
mixed
planned
market
132
Commodity-Backed Money
paper money that can be exchanged for gold and silver
gold and silver that can be exchanged for paper money
133
What are free-trade agreements?
Contracts that allow you to sell whatever you like
Contracts that exclude countries from trading with others
Contracts that remove barriers to trade eg. taxes
Contacts that make certain products free to trade
134
What is appreciation?
increase in foreign investment
increase in overall price of goods
decrease in the dollar's value relative to another currency
Increase in the dollar's value relative to another currency
135
What is the GDP deflator?
[Market Basket / Base Market Basket] X 100
[Year 2-Year 1 / Year 1] X 100
IDK
[Nominal GDP / Real GDP] X 100
136
Standard of living is...
A measure of personal happiness
A measure of economic wellbeing
A way of describing how 'alive' someone is
A way of measuring someone's quality of life
137
Where marginal private benefit = marginal private cost
Private optimum consumption
Marginal social cost
Social optimum consumption
Marginal social benefit
138
What is frictional unemployment?
willing and able to work but cannot find a job
persistent long-term unemployment
short-term unemployment caused from not matching employee to employer.
unemployment correlated with the ups and downs of the business cycle
139
Marginal Social Benefit=
Willingness to pay
Net Benefit
Marginal Social Cost
Quasi-Public Goods
140
Direct government provision
Production by public and more than one nonprofit/private agencies
Public goods and services delivered by government-employed workforce
Government assigns part of a function to private or nonprofit sector
Public partners with private sector to provide goods and services
141
Marginal Social Cost
private cost plus external cost to society.
A cost or benefit from production or consumption affecting others.
An externality from production or consumption that creates an external cost
142
What is the base year
2010 for everything
Can be any year every 5 years
Has to be 10 years ago
Arbitrary year whose value as an index number is defined as 100
143
What are automatic stabilizer?
government's attempt to stabilize the economy through taxing, govt spending
The ultimate ab crunch workout
policy that does not require a new or special action to take effect
policy that would increase tax revenue and decrease spending
144
What is a peak (in economics)?
the highest point at the end of an economic expansion
a rise in stock prices
a low in stock prices
the lowest point at the end of an economic recession
145
what is structural unemployment?
unemployment resulting from industrial reorganization, typic
Unemployment occurs when people are without work and activel
the unemployment which exists in any economy due to people b
there is not enough aggregate demand in the economy to provi
146
At full employment output,
UR<Natural rate of unemployment
There is no unemployment
UR=Natural rate of unemployment
UR>Natural rate of unemployment
147
What are injections in the circular flow model?
A decrease in funds
A Money flow
A Money flow that adds funds into the economy
A real flow
148
What is Inflation
An increase of people living in an area
Increase in the level of prices for goods and services
An increase in supply
Increse in aggregate demand
149
Who are lenders in the business environment?
Employees working for donations and employment
Government regulators
Customers buying products
Banks providing loans
150
Non-Excludable & Non-Rivalrous
Public Good
Common Pool Good
Club Good
Private Good
151
what are interest rates
the rise in value of the pound
money loosing it's value
the difference between two currencies
cost of spending or reward of saving
152
15. What is the current account in economics?
A method of calculating GDP
A measure of domestic savings and investment
A component of government spending
A record of a nation’s trade in goods, services, and cross-border payments
153
What is the interest rate effect?
higher interest rates discourage spending and investment
Interest rates have no effect on aggregate demand
I'm really interested low in interest rates
Higher interest rates encourage spending and investment
154
The Gini Index (AKA: Gini Coefficient)
How far the same amount of money goes in different countries
A country's GDP, life expectancy, literacy, education, & standard of living
This measures income inequality across a given population
Total monetary or market value of all finished goods and services produced
155
What is consumer price index?
Paper bills or coins that are used by the public
Study of how people behave under certain economic situations
The measure of the overall cost of goods and services bought by a consumer.
Increase in overall prices of the economy
156
What is fiscal policy?
changes to government taxation, government spending and borrowing
the policy of increasing productive output of a country
changes to interest rates and the supply of money
designed to make markets work more efficiently
157
What is aggregate demand
The potential GDP
The amount that consumers are willing to pay for a product
The amount of money that consumers spend in an economy
The value of products and services produced
158
What phase of the business cycle is point 1
Contraction
Peak
Expansion
Trough
159
Non-market production is
Goods produced outside the borders and imported
Goods produced by low income earners
Goods produced by household members for themselves
Goods and services that are not useful to citizens
160
What is a trough in economics?
Lowest point
Highest point
Stable point
Growth point
161
What is consumer confidence?
When people feel they have enough money to buy Gucci slides
Machinery, inventory, or property for building new things
Consumer’s assessment of economic conditions
An increase in the AD line
162
What is required reserve ratio? (required reserve)
the amount of money a bank has to loan out
the portion of a deposit that a bank must keep in cash in their vault
the ratio of commercial to personal loans that a bank makes
the deposits that companies make in banks
163
What phase of the business cycle is point 2?
Expansion
Peak
Contraction
Trough
164
What are intermediate goods?
Goods that are produced outside the country
Goods that are not sold or exchanged in an economy
Goods used in the production of other goods
Goods that were sold in earlier years
165
What is real interest rates?
Interest rate including inflation
Interest rate adjusted for inflation
Inflation Rate
Interest rate without adjustment for inflation
166
What is Real GDP
Raw GDP without any adjustments
GDP adjusted for Price Changes
GDP
167
What is “crowding out”?
D. High unemployment in crowded cities
B. A fall in private spending due to government borrowing
C. Overuse of public goods
A. Increased demand for housing
168
A negative externality is a _____ that someone must deal with.
regulation
cost
tax
law
169
Externalities are effects of consumption and production on ____.
citizens
producers
third parties
consumers
170
What is the GDP deflator?
Interest rate
Price level measure
Trade balance
Unemployment rate
171
Positive externalities exist when...
MSC<MSB
MSC>MSB
MPC>MPB
MPB>MPC
172
In the context of public goods, what does "non-rivalrous" mean?
Consumption by one person reduces the amount available for others
Consumption is limited to a specific group
Consumption by one person does not affect others
Consumption by one person increases the amount available for others
173
What is commodity money?
Common money
Money that also has a use besides being money (cows)
Every kind of money
Money that can only be used as money
174
What is aggregate demand?
The total demand for goods and services in the economy
The supply of raw materials in a country.
The total supply of goods and services in the economy.
The demand for consumer services.
175
What are protectionists?
Those who wish to protect their life savings at home.
People who favor as little trade barriers as possible.
Those who favor trade barriers to protect local industry.
People who aim to protect national parks.
176
The Gini Index (AKA: Gini Coefficient)
How far the same amount of money goes in different countries
Total monetary or market value of all finished goods and services produced
A country's GDP, life expectancy, literacy, education, & standard of living
This measures income inequality across a given population
177
Marginal Private Benefit
The minimum the consumer is willing to pay
The maximum the producer is wiling to pay
The maximum the cosumer is willing to pay
The minimum the producer is willing to pay
178
Discouraged workers
Are workers who are unhappy in their jobs
Do not actively seek employment.
Are counted as part of total unemployment.
Are part of the labor force
179
What are exports?
portable explosions
cupcake
Products used in a country
Products shipped outside of a country
180
What is the net export effect?
when exports go up so imports go up as well.
When net expenditure on exports rises as price level falls.
When net expenditure on exports lowers as price level falls.
when exports go sideways and imports go upside down :)
181
What are tariffs
Taxes that wealthy people placed on the poor
Taxes placed on foreign goods brought into the US
Taxes on all printed materials
Taxes placed on goods produced here
182
Private Goods
goods and services paid for by taxes that belong to the community
the value of what you give up when you make a choice
goods BROUGHT IN from other countries
goods and services provided by businesses
183
What is the product market?
income is received for supplying land, labor, or capital
firms purchase the factors of production from households
payments received for selling products on the black market
households purchase goods and services that firms produce
184
What phase of the business cycle is point 3?
Contraction
Expansion
Trough
Peak
185
Which Lorenze Curve indicate greater economic inequality?
Lorenz Curve A
Lorenz Curve B
Both Curve A and B represent perfect equality
They are the same
186
What is an expansionary policy?
The action of giving work to someone
Cost of debt for the borrower and rate of return for the lender
Grows economic activity by lowering interest rates which increases spending
Increases interest rates and limits the outstanding money supply
187
What is a free rider?
People that benefit from public goods without contributing.
A person riding illegally
Motorcycle riders on private roads
People who pay no taxes
188
The government gives a $4 per unit subsidy to producers
Supply Increase
Supply Decrease
Demand Decrease
Demand Increase
189
Economic inequity means
The unequal distribution of income and opportunities between groups
People get what they work for
Anyone can become rich if they try hard enough
The equal distribution of income and opportunities between groups
190
Interest on reserves balance(IORB)
Interest Rate the banks earn from Fed on the funds they deposit in account.
Discount rate .
Someone being interested in banks.
Interest rate taken by banks out of other banks to earn money.
191
Excess reserves are used to make loans.
True
False
192
marginal private benefit
the marginal benefit that accrues to consumers of a good
the benefit of alone time
a payment designed to encourage purchases
being quaratined
193
What is real income?
The amount employees earn after tax
When a salary figure is converted to an hourly wage
Income of individuals after considering inflation
The amount an employee earns after a bonus
194
Who are borrowers
Individuals, banks, businesses
Mr Witanowski
individuals, businesses government
Individuals, businesses, countries
195
What is Short Run?
A period of time in which one or more factors are fixed
The amount of time it takes a BF to grow
A period of time in which a BF cannot sell g&s
A period of time long enough for BF to change all FoP
196
Unsold Inventory
Owners Equity
Expense
Asset
Liability
197
What is comparative Advantage?
A person is able to produce less of a good than another
The opportunity cost to produce is higher than another's
A person is able to produce more of a good than another
A person's opportunity cost to produce is lower than another
198
What is an economic PRODUCER?
someone who buys products
someone who can't stand shopping
someone who only eats plants
someone who creates and supplies goods or services
199
Marginal opportunity cost...
represents inefficiency
is another name for specialization
shows the total opportunity cost lost
gives the cost of producing an additional unit
200
Which of the following does a Lorenze curve show?
Income Slope
Poverty Rates
Income Rates
Income Inequality

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