Macroeconomics Exam 1 Answers – Flashcards
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When an economist is asked "why is unemployment higher form teenagers than for older workers" the economist
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is asked to explain the cause of an economic event
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Duties of the Council of Economic Advisers include:
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advising the president and writing the annual Economic Report of the President
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What percentage of the world's economies experience scarcity?
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100%
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Both the Wealth of Nations and the Declaration of Independence share the viewpoint that
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individuals are best left to their own devices without government guiding their actions
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A duty of an economist at the Department of Labor is to
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analyze data on workers
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U.S. president who referred to inflation as "public enemy number one"
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Gerald Ford
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T/F: If a country has a comparative advantage in producing a product, then that country must also have the absolute advantage in producing that product.
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False
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The president receives economic policy advice from economists at each of the following
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Council of Economic Advisors, Department of Treasury, and Department of Labor
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The gains from trade are
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a result of more efficient resource allocation than would be observed in the absence of trade
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What is not held constant when looking at a demand curve?
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Price
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the art of scientific thinking- whether in chemistry, economics, or biology- is
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deciding which assumptions to make
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when each person specializes in producing the good in which he or she has a comparative advantage, total production in the economy
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rises
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the Council of Economic Advisers
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was created in 1946 and consists of three members and a staff of sever dozen economists
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who said, "the whole of science is nothing more than the refinement of everyday thinking"?
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Albert Einstiein
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what does Productivity refer to?
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the quantity of goods and services produced from each unit of labor input
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Scarcity
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limited nature of society's resources
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economics
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study of how society manages its scarce resources
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