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Econ 211 – Flashcard

Amber Moore

19 October 2020

question

Human capital refers to the

answer

Education, training, and skills of workers

question

In 2011, what percent of adults in the U.S. were college graduates or higher?

answer

30%

question

If the production possibilities curve of an economy shifts from AB to CD, it is most likely the result of what factor affecting economic growth? (AB is a curve and CD is a curve outside of it)

answer

A supply factor

question

If 40,000 worker-hours produced a total output of $600,000 in an economy, then the labor productivity is:

answer

$15/worker-hour

question

The shift of labor out of agriculture to industry in the United States has tended to:

answer

Increase labor productivity

question

Which country is ranked highest in the World Economic Forum's Global Competitiveness Ranking in 2012-13?

answer

Switzerland

question

Supply factors in economic growth include the following, except:

answer

Increases in purchases of output

question

Which of the following does not correctly characterize modern economic growth?

answer

It has not affected the average lifespan of human beings

question

From 1960 to today, women's labor-force participation rate in the U.S.:

answer

Increased from about 40% to 60%

question

Which of the following factors is projected to be the dominant source of economic growth in the U.S. from now until 2020?

answer

Increase in labor productivity

question

Labor productivity can only increase if:

answer

Capital increases faster than labor

question

A nation's average annual real GDP growth rate is 2.5%. Based on the "rule of 70", the approximate number of years that it would take for this nation's real GDP to double is:

answer

28 years

question

Search and wait unemployment is another way to describe:

answer

Frictional unemployment

question

General sources of shocks that can cause business cycles include the following, except:

answer

Unemployment jumps and production drops

question

Which of the following is the correct way to calculate the unemployment rate?

answer

[(unemployed)/(labor force)] × 100

question

When oil and energy prices rise, the economy tends to experience:

answer

cost-push inflation

question

If the Consumer Price Index was 125 in one year and 120 in the following year, then the rate of inflation is approximately:

answer

-4.0 percent

question

The CPI compiled by the Bureau of Labor Statistics is used in the computations for:

answer

The inflation rate

question

Demand-pull inflation will continue so long as

answer

there is excess total spending in the economy

question

If the natural rate of unemployment was 6 percent, the current unemployment rate was 10 percent, and the potential GDP was $4,000 billion, then according to Okun's law the economy would have sacrificed:

answer

$320 billion in output not produced

question

The best example of a "frictionally unemployed" worker is one who:

answer

Is in the process of voluntarily switching jobs

question

Which of the following countries experienced deflation for several years in the period 2002-2012?

answer

Japan

question

A recession is a decline in:

answer

Real GDP that lasts six months or longer

question

Inflation rates in the U.S. from 2000 to 2012 were within the range of:

answer

0% - 4%

question

Marginal propensity to consume

answer

on a graph??

question

A lower real interest rate typically induces consumers to:

answer

Purchase more goods that are bought using credit

question

With an MPS of 0.3, the MPC will be

answer

1 - 0.3

question

A firm invests in a new machine that costs $2,000 a year but which is expected to produce an increase in total revenue of $2,200 a year. The current real rate of interest is 8 percent. The firm should:

answer

Undertake the investment because the expected rate of return of 10 percent is greater than the real rate of interest

question

An MPC value of less than 1.0 indicates that as income increases:

answer

Consumption also increases, though not as much as income

question

Which of the following factors would decrease investment demand?

answer

An increase in the cost of acquiring capital goods

question

If disposable income increases from $912 to $927 billion and MPC = 0.6, then consumption will increase by:

answer

$9 billion

question

Assume that an increase in a household's disposable income from $40,000 to $48,000 leads to an increase in consumption from $35,000 to $41,000, then the:

answer

Slope of the consumption schedule is .75

question

An increase in disposable income:

answer

Increases consumption by moving upward along a given consumption schedule

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question

Human capital refers to the

answer

Education, training, and skills of workers

question

In 2011, what percent of adults in the U.S. were college graduates or higher?

answer

30%

question

If the production possibilities curve of an economy shifts from AB to CD, it is most likely the result of what factor affecting economic growth? (AB is a curve and CD is a curve outside of it)

answer

A supply factor

question

If 40,000 worker-hours produced a total output of $600,000 in an economy, then the labor productivity is:

answer

$15/worker-hour

question

The shift of labor out of agriculture to industry in the United States has tended to:

answer

Increase labor productivity

question

Which country is ranked highest in the World Economic Forum's Global Competitiveness Ranking in 2012-13?

answer

Switzerland

question

Supply factors in economic growth include the following, except:

answer

Increases in purchases of output

question

Which of the following does not correctly characterize modern economic growth?

answer

It has not affected the average lifespan of human beings

question

From 1960 to today, women's labor-force participation rate in the U.S.:

answer

Increased from about 40% to 60%

question

Which of the following factors is projected to be the dominant source of economic growth in the U.S. from now until 2020?

answer

Increase in labor productivity

question

Labor productivity can only increase if:

answer

Capital increases faster than labor

question

A nation's average annual real GDP growth rate is 2.5%. Based on the "rule of 70", the approximate number of years that it would take for this nation's real GDP to double is:

answer

28 years

question

Search and wait unemployment is another way to describe:

answer

Frictional unemployment

question

General sources of shocks that can cause business cycles include the following, except:

answer

Unemployment jumps and production drops

question

Which of the following is the correct way to calculate the unemployment rate?

answer

[(unemployed)/(labor force)] × 100

question

When oil and energy prices rise, the economy tends to experience:

answer

cost-push inflation

question

If the Consumer Price Index was 125 in one year and 120 in the following year, then the rate of inflation is approximately:

answer

-4.0 percent

question

The CPI compiled by the Bureau of Labor Statistics is used in the computations for:

answer

The inflation rate

question

Demand-pull inflation will continue so long as

answer

there is excess total spending in the economy

question

answer

$320 billion in output not produced

question

The best example of a "frictionally unemployed" worker is one who:

answer

Is in the process of voluntarily switching jobs

question

Which of the following countries experienced deflation for several years in the period 2002-2012?

answer

Japan

question

A recession is a decline in:

answer

Real GDP that lasts six months or longer

question

Inflation rates in the U.S. from 2000 to 2012 were within the range of:

answer

0% - 4%

question

Marginal propensity to consume

answer

on a graph??

question

A lower real interest rate typically induces consumers to:

answer

Purchase more goods that are bought using credit

question

With an MPS of 0.3, the MPC will be

answer

1 - 0.3

question

answer

Undertake the investment because the expected rate of return of 10 percent is greater than the real rate of interest

question

An MPC value of less than 1.0 indicates that as income increases:

answer

Consumption also increases, though not as much as income

question

Which of the following factors would decrease investment demand?

answer

An increase in the cost of acquiring capital goods

question

If disposable income increases from $912 to $927 billion and MPC = 0.6, then consumption will increase by:

answer

$9 billion

question

Assume that an increase in a household's disposable income from $40,000 to $48,000 leads to an increase in consumption from $35,000 to $41,000, then the:

answer

Slope of the consumption schedule is .75

question

An increase in disposable income:

answer

Increases consumption by moving upward along a given consumption schedule

Econ 211 – Flashcard

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