Maco Eco Chapter 2 – Flashcards
Unlock all answers in this set
Unlock answersquestion
The term externalities refers to
answer
The negative costs and positive benefits of a market activity borne by a third party.
question
The measure of final goods and services produced in the United States is the
answer
GDP of the United States.
question
Goods that have spillover costs affect our collective well-being and therefore can be overproduced because
answer
Most businesses are more concerned about profits than how the environment is affected.
question
Human capital is defined as the
answer
Knowledge and skills workers possess.
question
The result of government intervention in the market is that
answer
Society could be made better or worse off.
question
Which of the following statements is true about the U.S. economy?
answer
The United States produces nearly one-fifth of the world's production.
question
According to the World View chart in the text, from highest to lowest real GDP per capita, which is correct?
answer
United States, Canada, Japan, France, South Korea.
question
Per capita GDP is
answer
The dollar value of GDP divided by total population.
question
On average, since 1900 U.S. output has grown roughly ____ times faster than population growth.
answer
3
question
As of 2010, to be in the bottom quintile for income distribution in the United States, a family needed in income no more than
answer
$21,000.00
question
In the United States today, nearly _________ of the population has attained a college degree.
answer
30 percent
question
Those who are interested in assessing the relative standard of living of different countries over a given time period are most likely to look at
answer
Per capita GDP.
question
In terms of an economy's production possibilities curve, a decrease in the level of human capital, ceteris paribus, will cause
answer
An inward shift of the curve.
question
When unregulated monopolies exist,
answer
Prices tend to be higher than with a competitive market.
question
The theory of how to grow GDP is
answer
An efficiency concept while the theory of how to divide GDP is an equity concept.
question
The current U.S. economy is based primarily on the production of
answer
Services.
question
Which component(s) of U.S. real GDP increased in size relative to total U.S. real GDP from 1950 to 2000?
answer
Only services.
question
Differences in size of real GDP across countries are best explained by
answer
Human capital.
question
The United States has roughly how much of the world's population?
answer
5 percent.
question
When workers move from one industry to another in response to demand changes, this is an example of
answer
Factor mobility.
question
In providing a legal framework, the government
answer
"Protects patents to encourage entrepreneurship., Protects the ownership of private property to encourage ,Protects copyrights to encourage textbook protection.the private sector.
question
Factor mobility aids in economic development when
answer
(all)A region suffers a natural disaster such as an earthquake or tornado.,A technological advance causes some firms to go out of business, There is an increase in both outsourcing and insourcing.
