mini midterm Flashcards
(36 cards)
The fact that real GDP per capita is significantly higher today than it was a few decades ago is due to which of the following?
A. Technological advancement
B. Capital accumulation
C. Population growth
D. Increased hours per person
A. Technological advancement
and
B. Capital accumulation
Unlike microeconomics, macroeconomics includes the study of what determines the level of…
A. Output of a specific firm
B. Employment in the whole economy
C. Employment in a specific industry
D. Output of a specific industry
B. Employment in the whole economy
Agents. From the point of view of economic production, select the two main agents that populate an economy
a. households
b. banks
c. the US treasury
d. the federal reserve
e. firms
a. households
e. firms
Agents. The equity of a balance sheet, such as a household’s net worth, is calculated by summing over all money and then subtracting all outstanding debts.
a. true
b. false
false
Markets. We use the terms supply and demand to describe quantities as a function of a particular price (e.g. D=10-P), whereas the terms quantity supplied and quantity demanded are used for specific numbers such as 5 or 27.
a. true
b. false
a. true
Markets. The law of supply asserts that as the price of a good or service increases, the supply of said good or service
a. also increases
b. is unchanged
c. either increases or decreases
d. decreases
a. also increases
Markets. Despite their name, the law of supply and the law of demand are merely theoretical propositions that may or may not hold true in a particular real-world market
a. true
b. false
a. true
Markets. Suppose a particular market, say the market for a specific pair of pants, features supply and demand functions that satisfy: S=20+2p, D=80-p. This market satisfies the law of supply, but not the law of demand.
a. true
b. false
b. false
Equilibrium. If a particular market is characterized by excess supply (i.e. supply exceeds demand at the prevailing price), then Walrasian logic dictates that the price in said market will
a. fall
b. rise
c. either rise or fall
d. stay unchanged
a. fall
Equilibrium. Walrasian equilibrium, also known as market-clearing equilibrium, is only one type of equilibrium. In particular, there also exist strategic equilibria, also known as Nash equilibria, in which the market for a particular good may not clear (i.e. supply is not equal to demand).
a. true
b. false
a. true
Gross Domestic Product. Gross domestic product is calculated by summing up
a. the total market value of goods and services in the economy
b.the total quantity of goods and services produced in the economy during a period of time
c. the total quantity of goods and services in the economy.
d. the total market value of final goods and services produced in the economy during a period of time.
d. the total market value of final goods and services produced in the economy during a period of time.
Gross Domestic Product. The nominal GDP of the U.S. in 2023 was approximately $28 trillion. This means that
a. the value of output in 2023 was around $28 trillion
b. all of these are true
c. total income in 2023 was around $28 trillion
d. total expenditures in 2023 was around $28 trillion
b. all of these are true
Gross Domestic Product. To sensibly compare output across two countries for a given year, we should to.
a. account for purchasing power across the two countries
b. account for inflation
c. translate GDP into the same unit of account
a. account for purchasing power across the two countries
c. translate GDP into the same unit of account
Gross Domestic Product. When studying a single country’s per capita output over the course of time, we should to
a. account for inflation
b. account for changing levels of the population
c. translate its GDP series into the same unit of account
a. account for inflation
b. account for changing levels of the population
c. translate its GDP series into the same unit of account
Gross domestic product. Which GDP measure, if any, do you appeal to when assessing whether workers today produce more per person relative to workers 50 years ago?
a. none of the above
b. real GDP per capita
c. real GDP
d. nominal GDP per capita
a. none of the above
Gross domestic product. Which GDP measure, if any, do you appeal to when assessing whether workers today work harder than workers 50 years ago?
a. none of the above
b. nominal GDP per capita
c. real GDP
d. reap GDP per capita
a. none of the above
Growth. To calculate a variable’s growth rate, we use the following formula: (new - old)/new
a. true
b. false
b. false
Factors of production. The factors of production include
a. capital
b. technology
c. consumption
d. labor
a. capital
b. technology
d. labor
Investment. Unlike in Finance, economists use the term investment to describe the production of goods that are used to produce other goods (or services).
a. true
b. false
a. true
Stocks vs. flows. Capital investment is a [A], output is a [B].
a. A: stock, B: stock
b. A: flow, B: stock
c. A: flow, B: flow
d. A: stock, B: flow
c. A: flow, B: flow
Gross domestic product. Consider a car that is produced in 2022, but not sold until 2023. How is the sale recorded as part of GDP in 2023? (Hint: you should be selecting two answers)
a. With a positive sign in I
b. With a negative sign in C
c. With a positive sign in
d. With a negative sign in I
c. With a positive sign in
d. With a negative sign in I
Expenditures. Investment, as defined by economists, would include the purchase of a
a. corporate bond.
b. share of stock in ExxonMobil.
c. computer by an accounting firm
d. government bond.
c. computer by an accounting firm
Net exports. Because the US has been running current account deficits (i.e. the value of its imports has exceeded the value of its exports), its trading partners have accumulated a substantial amount of US dollars which allows them to purchase US-based assets such as US government debt or US stocks.
a. true
b. false
a. true
Inflation. Inflation is measured by calculating the (monthly, quarterly, or yearly) growth rate of various price indices such as the Consumer Price Index (CPI), the Personal Consumption Expenditure Index (PCE), the Producer Price Index (PPI), and the GDP Deflator.
a. true
b. false
a. true
