Unit 1
Which of the following is a factor of production?
Gold
Love
Happiness
Land
What is land
What is the monetary value of all the final goods and services produced in a given year using that year's prices, adjusted for inflation?
What is Real GDP
Which of the following is a determinant of aggregate supply?
Change in Government Spending
Change in Net Exports
Change in Resource Prices
What is Change in Resource Prices
What is the relationship between real interest rate and quantity of funds supplied?
What is direct
If an individual, business, or country can produce more of a good or service than any other producer with the same quantity of resources, what do they have?
Absolute Advantage
Comparative Advantage
More efficient machines
Better trade
What is absolute advantage.
. Who of the following is considered unemployed.
A 16 year old high school student looking for a part time job.
A 40 year old man, who got fired from his job soon after his arrest.
A recent college graduate looking for work.
A 30 year old man, who is broke, but is too lazy to apply for anything.
What is a recent college graduate looking for work.
If the MPC is 0.5, how much will an increase of $10 million in personal income taxes decrease real GDP?
What is it would decrease by $10 million.
You lend $80 with 10% interest. Prices are expected to rise 15%. What are the nominal and real interest rates?
Nominal: 15%
Real: -5%
What is the definition of economics?
What is the study of how individuals, firms, and governments make choices to efficiently use limited resources to achieve the maximum satisfaction of social needs and wants
What is the CPI when the market basket for a given year is $300, and the same basket in the base year is $100.
What is 300
If the government were to increase military spending from $700 billion to $705 billion, would aggregate demand increase by the same amount? Why or why not?
What is it wouldn’t, it would increase by more because that spending becomes income, which is also spent.
Alex buys a Macbook for $1000 instead of a Lenovo Chromebook for $75. What is the function of money in this scenario?
Medium of Exchange
Unit of Account
Store of Value
What is Store of Value
What type of economies does comparative advantage apply to?
What is all types of economies
What is the GDP deflator when the nominal GDP is $100 billion and the real GDP is $50 billion?
What is 200
What makes automatic stabilizers automatic?
What is no legislation has to be passed for them to be put into effect
What is the velocity of money?
What is the frequency at which a unit of currency is spent in an economy
What is a situation in which an individual, business, or country can produce a good or service at a lower opportunity cost than another producer
What is comparative advantage.
What is the monetary value of all the final goods and services produced in a given year using that year's prices?
What is Nominal GDP
In which economic theory are prices sticky?
What is Keynesian
What is does a nation’s balance of payments do?
What is it records the nation’s trade transactions and behavior