Economic Indicators
More Indicators
AS/AD
AS/AD
Miscellaneous
Health
100
What is missing from the GDP equation?
GDP = C+G+(X-M)
I (Investment)
100
Which of the following would count in the US GDP?
A) A Japanese car built and sold in the US
B) A US car built and sold in Mexico
C) An accountant that does her parent's taxes
D) Lumber sold from Lowe's and is used to build furniture
A
100
Which of the following would affect AS?
A) increase in government spending
B) Change in the value of the US Dollar
C) Increased regulation
D) Change in the interest rates on credit cards
C) Changes in regulation will affect AS, everything else influences AD
100
A keynsian would believe that the AS curve is ____.
A) non-existant
B) Flat
C) Upward sloping
D) Vertical
B) Keynesians believe it is flat, Classicalists believe it is vertical.
100
Which of the following loans is considered "traditional" for a mortgage?
A) Pay only interest for first 5 years, then make large payment of principle.
B) Put 0% down and then make fixed payments each month.
C) Put 20% down and then make fixed payments each month with verified income statements.
D) Put 20% down and then make fixed payments each month but no income verifications.
C)
100
Which of the following is NOT one of the 4 key issues that health economists are worried about?
A) Price of health care
B) Number of uninsured
C) Excessive profits earned by insurance companies
D) Health Indicators
C) Profits earned by insurance companies
200
What phase of a business cycle follows a trough?
Recovery (and then hopefully an expansion)
200
Which of the following will count towards the US unemployment rate?
A) A Macomb business owner
B) Someone not working, but not actively seeking
C) A 15 year old that wants to work and is trying but can't find work
D) An economist for the U.S. Air Force
A) Unemployment rate includes the unemployed divided by the total labor force. Therefore the number of working people counts towards the unemployment rate.
200
If interest rates increase then which of the following will occur?
A) AD will increase
B) AD will decrease
C) AS will increase
D) Nothing, interest doesn't affect AD or AS?
B) Higher interest will lead to lower C and lower I, therefore AD should fall.
200
If the government increases spending, then assuming the upward sloping AS curve, GDP will likely ___ and price level will ___.
A) increase; increase
B) increase; decrease
C) decrease; decrease
D) Decrease; increase
A) Increasing G means that AD shifts to the right, therefore higher price-level and higher GDP.
200
Which of the following is NOT an example of fiscal policy?
A) decreasing interest rates
B) Increasing Government spending
C) decreasing tax rates
D) increasing tax rebates
A) Interest rate manipulation is a type of monetary policy.
200
A fixed payment due at every doctor's appointment is known as...
A) Deductible
B) Copayment
C) coinsurance
D) Max out of pocket
B) Copayment
300
If the inflation rate in 2015 was 1.3% and in 2016 it was 0.8% then which of the following is true?
a) prices rose in 2016
b) prices fell in 2016
c) we experienced deflation
d) we experienced hyperinflation
A: We experienced disinflation, but prices were still rising.
300
True or False: Unemployment is a leading indicator for GDP.
False
300
If there's a sudden increase in the size of working age population then which of the following will most likely occur?
A) AD will increase
B) AD will decrease
C) AS will increase
D) AS will decrease
C) AS will increase because we now have more resources.
300
A recession or depression is most likely caused by ____.
A) decrease in AS
B) decrease in AD
C) increase in AS
D) increase in AD
B) depressions usually have deflation and falling GDP, that combination usually only comes from drops in AD
300
Funding for the post-office is done through which of the following...
A) discretionary spending
B) mandatory spending
C) off-budget spending
D) non-discretionary spending
C) Post office and other revenue generating offices are managed through "off budgets".
300
Which of the following is NOT an example of cherry picking by insurance companies?
A) Excluding customer's with pre-existing conditions
B) Denying coverage to individuals over age 50
C) Limiting coverage to only $1 million per year
D) Charging high premiums to customers
D) Charging high premiums to customers
400
If the US dollar appreciates then we expect that ____ will increase and GDP will therefore ____.
A) Exports; increase
B) Exports; decrease
C) Imports; decrease
D) Imports; increase
C) Appreciation means US stuff looks more expensive. Therefore we export less and import more, both of which will decrease GDP.
400
Which of the following is NOT a sign of a depression?
A) Hyperinflation
B) Financial panic
C) Large drops in GDP
D) Large increases in Unemployment
A) Depressions usually include deflation, not hyperinflation.
400
If we expect consumer confidence to fall then we expect GDP to ___ and price-level to ___.
A) increase; increase
B) Increase; decrease
C) Decrease; increase
D) Decrease; decrease
D)
400
If the US dollar depreciates then we expect the GDP will ____ and the price-level will ____.
A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase
A) causes AD to increase because Exports increase and imports decrease, therefore higher GDP and higher p-levels.
400
___ has the absolute advantage in Physics and ___ has the absolute advantage in chemistry
Jack; Jack
400
Looking at these two plans, both people think they have the flu and want to see the same primary care doctor. It's their first medical appointment since insurance started. If the doctor's appointment is typically $120 (without insurance) then Person A will pay ____ and Person B will pay _____. 
Person A will pay $120 since they haven't met the deductible yet. Person B will pay $40.
500
If the CPI in 2014 is 100 and in 2015 it is 103, then what was the inflation rate during 2014?
Inflation = (103 - 100)/100 *100 = 3%
500
If total GDP is $4 billion and we know consumption is $2 billion, Investment is $1.5 billion, Government spending is $1 billion, and exports are $0.5 billion, then how big must imports be?
4 = 2+1.5+1+(0.5-Imports)
4=5-Imports
Imports = $1 billion
500
If we observe that the price level has risen and GDP has fallen, then which of the following might have occurred?
A) Government increased taxes
B) Interest rates fell
C) An oil shock (spike in price of oil) occurred that affected all businesses
D) The government relaxed various regulations
C) This only occurs if AS decreased. The only way to change AS is to change our PPF and if we now have more expensive oil, then our overall production abilities are lower.
500
If we observe that the price level has fallen and the GDP has fallen then which of the following could've occurred?
A) Government increased regulation
B) Interest rates fell
C) We discovered new oil fields
D) Consumer confidence decreased
D) for this response, AD must have fallen, only D would cause AD to drop.
500
___ has the comparative advantage in Physics and ___ has the comparative advantage in chemistry
Jack; John
OCP-Jack = 1 point on Chemistry*
OCP-John = 1.7 points on Chemistry (85/50)
OCC-Jack = 1 point on Physics
OCC-John = 0.59 points on Physics (50/85)*
500
Person A needs a $20,000 surgery and that is their only medical expense for the year. How much will this surgery cost?
4000 (deductible)
0.5 * 16000 = 8,000
total = 12,000 BUT Max out of pocket is $6850 so they will pay $6850 total.