Microeconomics 1-5

Front

An economic model makes it easier to understand complex economic problems by doing which of the following?
- Programming all scenarios in a computer program to stimulate the economy
- Making simplifying assumptions
- Using regression analysis in conjunction with large datasets
- Looking for consistent patterns in economies

Back

Making simplifying assumptions

Front

In the last few years in the U.S., have imports been greater than or less than exports?

Back

Imports have been greater than exports, resulting in negative net exports.

Front

The smallest component as a share of GDP in the U.S. is ____

Back

net exports

Front

What is the total GDP for an economy that produces 20,000 units of good A at $4 each and 10,000 units of good B at $4 each?

Back

$120,000

Front

Inflation is best described as an increase in average prices over time. The current annual inflation rate of the U.S. measured by the CPI is about:

Back

between 2 and 3 %

Front

Inflation measure is ____, while deflation measure is ____.

Back

the increase in price of a typical bundle of goods; the decrease in price of a typical bundle of goods.

Front

In 2018, the economy experienced consumption spending of $5 trillion, investments of $3 trillion, government spending of $1 trillion, imports of $3 trillion, and exports of $4 trillion. What is the economy's GDP in 2018?

Back

10 trillion

Front

Why is a real GDP per capita a reasonable proxy for the standard of living in an economy? I. It includes all economic activity, wether on a paid basis, volunteer basis, or household basis. II. It accounts for the income distribution in an economy III. It accounts for inflation IV. It accounts for the population size of an economy

Back

It accounts for inflation and it accounts for the population size of an economy.

Front

Which of the following does not cause a change in demand? Tastes and preferences, Income, Prices of related goods - substitutes and complements, Price of the good, The number of potential buyers

Back

Price of the good

Front

A decrease in income will cause which of the following to happen to the demand for used cars? Assume used cars are inferior goods.

Back

The demand for used cars will increase.