economics 676-750 Flashcards Preview

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Flashcards in economics 676-750 Deck (75):
1

Labor productivity is defined as

output per unit of labor input

2

When input increases but output stays constant

productivity decreases

3

What is the term for higher wages paid to workers unpleasant jobs?

compensating wage differentials

4

The length of life and the consumption of food, clothing, and housing are measurements used to gauge a person's _____ ______ _______

standard of living

5

Investment is spending on which factor of production?

capital

6

What term refer to the extent to which capital has been used up or lost its value

depreciation

7

what is the difference between a depression and a recession?

in a recession output is diminishing for at least two quarters . a depression is a rapid fall in output over a longer period of time, but there is no cutoff point between the two.

8

true or false a change in foreign income shifts aggregate demand

TRUE

9

aggregate demand demonstrates (a direct/ an inverse) relationship between price level and total spending in the economy.

an inverse- people spend more at lower price levels

10

consumption represents about ....% of GDP in the united states

60

11

how much was u.s. nominal GDP in 1998

over $8.51 trillion

12

what is a final good?

a good that is sold in an economy and will not be sold later as any part if another good, nor used to produce another good for sale

13

consumer debt relatice to income is a (leading/concurrernt/lagging) economic indicator

lagging

14

is homemaking included in gdp measurement

no

15

sales are a (leading/concurrent/lagging) economic indicator

concurrent

16

are servers tips included in gdp measurement

reported tips are included in gdp measurement. tips that are unclaimed, however. are not included in gdp even though they are a part of a servers income

17

is homemaking included in GDP measurement?

no

18

changed in inventories are a (leading/concurrent/lagging) economic indictator.

leading

19

what is the index of consumer confidence

based on datat obtained by the conference board, the index of consumer confidence is a measure of consumers expectations for their economic futures

20

what is the nomial gross domestic product

GDP expressed in current dollar values

21

what was the us real median income of households in 1999?

40,816

22

in a free market system how is the for whom question of economics resolved?

goods and services go to the people who are willing to pay the market price for them

23

the choice between hand made production and production by machine is an example of which basic economic question?

how to produce

24

production output is a(leading/concurrent/lagging) economic indicator

concurrent

25

if your neighbor mows your parents lawn for 20 each week, and reports that income to the IRS, is it included in GDP

yes

26

stock prices are a (leading/concurrent/lagging) economic indicator

leading

27

in which range is the aggregate supply Curve nearly horizontal

keynesian

28

the median household income of this racial group in the us was 30,735 in 1999

hispanics

29

what are the two sectors in the circular flow model

the househol sector and the business sector

30

name three ranges of the aggregate supply Curve

keynesian, intermediate, classical

31

are transfer paymens included in GDP measurement

no

32

how do we determine per capita gross domestic product

dividing GDP by total population

33

when a person's income goes up, he buys fewer cans of generic tomato juice. generic tomato juice is therefore what kind of good?

inferior

34

price of hot dogs increases. what happens to demand for hot dog buns?

decreases, because hot dog buns are a complementary good

35

price of salsa decreases. What happens to the demand for tortilla chips?

increases

36

when summer comes, what happens to the demand for lemonade?

increases

37

T or F- a change in the quantity supplied of a good changes demand that good

FALSE

38

T or F- change in the season can change demand

TRUE

39

the price of cottage cheese goes up. what happens to the demand for its substitute, yogurt?

demand for yogurt increases

40

movement of the demand curve represents a change in (demand/quantity demanded)

demand

41

T or F- a change in the price of a good changes demand for that good

FALSE

42

T or F- change in the price of complementary goods changes demand for a good

TRUE

43

define exchange rate

the price of a nation's currency, expressed in terms of the value of another

44

the law of supply states that quantity supplied is (directly/inversely) related to price.

directly

45

the slope of the supply curve is usually _________

positive

46

what is X-inefficiency?

inefficiency that results when a monoply stops searching for ways to keep costs down; services, efficiency, and productivity, may not improve because there is no incentive.

47

who regulates monopolies in the US?

federal trade commission

48

what is the structure of the markets for breakfast cereal

oligopoly

49

natural monopoly occurs in markets where the demand curve intersects the average cost curve at a quantity where average costs are (rising/falling)

falling

50

in a perfectly competitive market, should a firm advertise

no, the product is completely homogeneous

51

in monopolistic competitive market, there are (few/many) barriers to entry

few

52

what markets in the real world are the closest to perfect competition

the markets for commodities such as wheat

53

welfare loss due to monopoly is also known as________ loss

dead weight

54

price, marginal revenue and marginal cost are equal for a profit-maximizing firm in which market structure

perfect competition

55

T or F- a monopoly experiences a downward sloping demand curve

TRUE

56

what is the term for a market controlled by just a few firms?

oligopoly

57

monopolies occur in markets where production involves economics of ________

scale

58

which organization replaced GATT in 1995?

the world trade organization

59

most of the governing rules used by the world trade organization come from which round of gatt negotiations

the uruguay round

60

economics analysis of tariffs shows that the gain in tax revenue and the increase in profits by domestic producers is (more/less) than the economic loss to consumers

less

61

what is a trade sanction

a trade penalty imposed by one nation or another

62

how does a country pay for a trade deficit

it must either run down its assets or owe money

63

by conention, the president of the world bank is always

european

64

when was gatt founded

1947

65

if a developing country seeks support for building a hydroelectric dam, it is more likely to turn to the.. for a loan of funds

world bank

66

in what year was the uruguay round of gatt talks completed

1993

67

what free trade organization is headquartered in geneva, switzerland

world trade organization

68

by convention, managing director of the imf is always

european

69

what was the goal of gatt

for member countries to meet regularly to discuss trade and reduce barriers to trade

70

the united states emerged from world war 1 as a new _ nation

creditor

71

the united states emerged from world war 1 as a new _ nation

creditor

72

the united states emerged from world war 1 as a new _ nation

creditor

73

the united states emerged from world war 1 as a new _ nation

creditor

74

the united states emerged from world war 1 as a new _ nation

creditor

75

an attorney who is also the fastest typist in town might still hire a typist instead of typing her own notes. why would this be to her advantage

they typist might have a comparative advantage in typing. even though the attorney is a better typist, she gains more by spending her time on legal work and hiring someone else to type