ECON 2305 EXAM 2 STUDY
ECON 2305 EXAM 2 STUDY ECON 2305
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This 4 page Study Guide was uploaded by JenJen Notetaker on Saturday February 6, 2016. The Study Guide belongs to ECON 2305 at University of Texas at Arlington taught by Jane Himarios in Winter 2016. Since its upload, it has received 491 views. For similar materials see Principles of Macroeconoomics in Economcs at University of Texas at Arlington.
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Date Created: 02/06/16
In the national income and product accounts system the two main approaches to measuring the size of the economy are CorrectA income and expenditures B production and consumption C imports and exports D government and private unemployment is caused by changes in consumer demands or technology A Seasonal B Cyclical CorrectC Structural D Frictional Net exports equal A all of the goods and services produced plus imports B all of the goods and services produced minus those exported CorrectC exports minus imports D exports plus imports Jason purchased a new printer for 150 although he was willing to pay 175 The minimum price acceptable by the seller Jasmine was 145 The results of this transaction are a consumer surplus of A 150 and a producer surplus of 150 CorrectB 25 and a producer surplus of 5 C 325 and a producer surplus of 295 D 175 and a producer surplus of 145 People are considered employed if they are A unpaid family workers B on strike C on vacation CorrectD All of those listed are considered employed A price ceiling is a legally mandated A minimum price above which goods or services cannot be sold B minimum price below which goods or services cannot be sold CorrectC maximum price above which goods or services cannot be sold D maximum price below which goods or services cannot be sold Frictional unemployment occurs when job openings A exist but people are not willing to take them so it makes no sense to bring the two together B do not exist although people are willing to work so it makes no sense to try to bring the two together C exist and people are willing to take them but the applicants do not have the necessary skill set CorrectD exist and people are willing to take them but it takes some time to bring the two together Which of the following could keep a market from ending up in equilibrium A Sellers have adequate information about products B Sellers have accurate expectations about market behavior C Buyers have realistic expectations about market prices CorrectD Buyers have inadequate information about products Which is NOT a main use of the national income and product accounts A to gauge the economy39s position in the business cycle B to track the success of macroeconomic policy CorrectC to support the macroeconomic theory of the political party in power D to compare US economic performance with that of other countries Suppose Robert has a wage contract subject to an escalator clause He earned 22 an hour last year in that same year the consumer price index rose from 1200 to 1260 What should his new wage be A 2440 an hour B 24 an hour C 2250 an hour CorrectD 2310 an hour Suppose that a customer39s willingness to pay for a product is 1480 and the seller39s willingness to sell is 1210 If the negotiated price is 1479 how much is producer surplus A 210 B 0 C 1 CorrectD 269 Unemployment caused by changes in consumer demographics and automation technology is known as unemployment CorrectA structural Bcycha C frictional Dseasona Suppose that a customer39s willingness to pay for a product is 5 and the seller39s willingness to sell is 2 If the negotiated price is 3 how much is producer surplus A 8 CorrectB 1 C 2 D 5 The lets economists judge our nation39s economic performance compare US income and output to that of other nations and track the economy39s condition over the course of the business cycle A National Bureau of Economic Research CorrectB national income and product accounts C National Activity Index D Census Bureau Farm price supports A can decrease food supply B reduce food prices C can lead to food shortages CorrectD can lead to excess supply of supported farm products Which of the following assumptions is NOT a problem in using the consumer price index CPI to accurately state the rate of in ation A The CPI does not account for quality changes B The CPI assumes that people do not substitute goods C The CPI does not include new products CorrectD The CPI does not deal with producer prices The household survey provides a detailed demographic picture of and the payroll survey provides detailed information A the labor market about business spending CorrectB the labor market by industry and region C consumer spending about business spending D consumer spending by industry and region Figure Determining Surplus 4 In the graph how much is consumer surplus CorrectA 40 B 25 C 80 D 160 When a scarce good or resource is consumed by the person who does not value it most economists refer to the situation as A the allocation of resources B equity C efficiency CorrectD a misallocation of resources Which statement about the Weekly Jobs Report is NOT true A It is used as a way to estimate trends in layoffs B It is released by the Department of Labor CorrectC It contains an estimate of the total number of people receiving unemployment bene ts D It is used as a way to estimate trends in hiring Figure Determining Surplus In the graph what is the formula for producer surplus CorrectA 05 x i j x k i B 05 x h j x k i C i j x k i D h i x k i An effective price ceiling results in A quantity supplied exceeding quantity demanded CorrectB a shortage C equilibrium in the market D a surplus unemployment includes workers who voluntarily quit their jobs to search for better positions A Structural CorrectB Frictional C Cyclical DSeasonal A price ceiling is if it is set the market price A efficient below B efficient above C effective above CorrectD effective below The difference between what the market would be willing to pay and the market price is A producer surplus B competition CorrectC consumer surplus D an externality
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