econ unit 4

The state of Texas buys 20 billion tons of concrete for a new permanent toll road. The concrete is a(n) ___ good.

• final

• intermediate

• circular

• normal

Businesses send _________ to the resource market.

• expenditures

• goods and services

• taxes

• revenue

The Phillips Curve highlights the relationship between ___.

• the wage rate and real GDP

• the inflation and unemployment rates

• the real wage rate and the price of natural resources

• the inflation rate and net exports

• the unemployment rate and real GDP

Calculate the GDP in millions.

Formula for Computing GDP: Y= C + I + G + NX

• $5,086.1

• $4,459.5

• $4,465.7

• $4,453.3

• $4,006.3

The product market sends __________ to businesses.

• land, labor, and capital

• goods and servicesincome: wages, rent, etc.

• revenue

• taxes

The government sends ________ to households.

• expenditures

• goods and services

• resources

• revenue

Which of the following would probably NOT be the subject of a “sin tax”?

• fast food

• cherries

• candy

• cigarettes

• alcohol

Which of these is the likely result of deflation?

• Both unemployment and supply will increase.

• Unemployment will increase as decreasing prices encourage consumers to delay purchases.

• More income and wages will reach households.

• The federal budget will begin to run a surplus.

• The economy will realize full employment and reach potential GDP.

IBM, due to recent economic recession, fired 3,000 people nationwide.

• cyclical unemployment

• structural unemployment

• seasonal unemployment

• frictional unemployment

In the early 2000s, a car mechanic is let go because of his lack of computer knowledge.

• cyclical unemployment

• structural unemployment

• seasonal unemployment

• frictional unemployment