Econ 211 – Flashcard
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Human capital refers to the
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Education, training, and skills of workers
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In 2011, what percent of adults in the U.S. were college graduates or higher?
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30%
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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)
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A supply factor
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If 40,000 worker-hours produced a total output of $600,000 in an economy, then the labor productivity is:
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$15/worker-hour
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The shift of labor out of agriculture to industry in the United States has tended to:
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Increase labor productivity
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Which country is ranked highest in the World Economic Forum's Global Competitiveness Ranking in 2012-13?
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Switzerland
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Supply factors in economic growth include the following, except:
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Increases in purchases of output
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Which of the following does not correctly characterize modern economic growth?
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It has not affected the average lifespan of human beings
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From 1960 to today, women's labor-force participation rate in the U.S.:
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Increased from about 40% to 60%
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Which of the following factors is projected to be the dominant source of economic growth in the U.S. from now until 2020?
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Increase in labor productivity
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Labor productivity can only increase if:
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Capital increases faster than labor
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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:
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28 years
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Search and wait unemployment is another way to describe:
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Frictional unemployment
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General sources of shocks that can cause business cycles include the following, except:
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Unemployment jumps and production drops
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Which of the following is the correct way to calculate the unemployment rate?
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[(unemployed)/(labor force)] × 100
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When oil and energy prices rise, the economy tends to experience:
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cost-push inflation
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If the Consumer Price Index was 125 in one year and 120 in the following year, then the rate of inflation is approximately:
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-4.0 percent
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The CPI compiled by the Bureau of Labor Statistics is used in the computations for:
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The inflation rate
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Demand-pull inflation will continue so long as
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there is excess total spending in the economy
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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:
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$320 billion in output not produced
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The best example of a "frictionally unemployed" worker is one who:
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Is in the process of voluntarily switching jobs
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Which of the following countries experienced deflation for several years in the period 2002-2012?
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Japan
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A recession is a decline in:
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Real GDP that lasts six months or longer
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Inflation rates in the U.S. from 2000 to 2012 were within the range of:
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0% - 4%
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Marginal propensity to consume
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on a graph??
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A lower real interest rate typically induces consumers to:
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Purchase more goods that are bought using credit
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With an MPS of 0.3, the MPC will be
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1 - 0.3
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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:
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Undertake the investment because the expected rate of return of 10 percent is greater than the real rate of interest
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An MPC value of less than 1.0 indicates that as income increases:
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Consumption also increases, though not as much as income
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Which of the following factors would decrease investment demand?
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An increase in the cost of acquiring capital goods
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If disposable income increases from $912 to $927 billion and MPC = 0.6, then consumption will increase by:
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$9 billion
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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:
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Slope of the consumption schedule is .75
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An increase in disposable income:
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Increases consumption by moving upward along a given consumption schedule
