A production possibilities frontier with a bowed outward shape indicates which of the following? Use the next column to record whether the … Home Depot sells new and used doors to contractors who build new homes. We also recommend you work through some of the AS Macro revision videos on the entry below. PLAY. Why does voluntary exchange increase economic efficiency? c) Labor's productivity increases due to technology increase supply. countries and International organizations b.) b) foreign workers are hired by a domestic firm to produce something sold domestically, d) trade enables nations to do all these things. c) quantity demanded is equal to quantity supplied. UNIT 1 PRACTICE EXAM 1. Why study the whole economy? It focuses on broad issues such as growth of production, the number of unemployed people, the inflationary increase in prices, government deficits, and levels of exports and imports. d) it reduces the amount of imports and raises the domestic price of the good. Which of the following would not be included in the expenditure category called investment expenditures? Macroeconomics: Unit 1. Gravity. What is the total cost of protectionism and why don't more people support free trade? Home Depot also sells new and used doors to homeowners. PLAY. Why do people trade with each other instead of living on what they themselves produce? That ground can be divided into two parts: Microeconomics focuses on the actions of individual agents within the economy, like households, workers, and businesses; Macroeconomics looks at the economy as a whole. Macroeconomics Unit 1 Challenge 2 When quantity supplied and quantity demanded are the same, a Assignments. Concept that a nation should produce and export goods for which it is particularly suited in order to use its resources most efficiently. (a) Lack of aggregate demand causes involuntary unemployment (b) Government's fiscal operations can reduce unemployment (c) … How is economic growth represented on a production possibilities frontier model? GDP (What is GDP?) Demand vs. Terms in this set (57) Economics. 1 Macroeconomics LESSON 1 ACTIVITY 1 Answer Key UNIT 2. On a production possibilities frontier, a combination of output that is inside the frontier is. PLAY. To ensure the best experience, please update your browser. The first unit of this course is designed to introduce you to the principles of microeconomics and familiarize you with supply and demand diagrams, the most basic tool economists employ to analyze shifts in the economy. Unit 3.1 Introduction to Macroeconomics. Gravity. Below is a topic-by-topic listing of the available study notes for the macroeconomics topics for Year 1 (AS) A Level Economics here on tutor2u. (B) providing social goods and services. Exam … 1 Macroeconomics LESSON 1 ACTIVITY 2 UNIT People who donÕt know much about economics often dismiss economics as being little more than cost/benefit analysis. As the population increases, which of the following will occur for sure? • The field of macroeconomics was born during the Great Depression. Which of the following would be an example of a pair of complements? 1 Macroeconomics LESSON 1 ACTIVITY 1 Answer Key UNIT 2. A rise in the general level of prices in an economy. c) market supply would decrease because costs of production would be higher. Created by. Number of civilians at least 16 years who have been trying to find a job within the prior four weeks. Written Assignment unit 3. Which of the following means everything else held constant? Microeco… Discussion: 5 words from the unit 1 list, 5 words from the unit 2 list, 5 words from the unit 3 list, 5 words from any of the 3 lists. Flashcards. Which of the following would be an example of substitute goods? Which of the following is a normative statement? If George can mow 10 lawns or cultivate 5 gardens a day while Jack can mow 6 lawns or cultivate 4 gardens a day, which of the following is correct? c) attainable combinations of two products that may be produced with available resources, The production possibilities frontier shows, c) both of these sets of points on a production possibilities frontier. Evidently. Unit 1. 11 June 2020 . Opportunity Cost. How does the Big Mac Index … 1… Which of the following terms means the highest valued alternative given up when a person chooses to engage in an activity? If a US firm produces Nova car in Mexico, that production should count towards, If a German firm produces BMW cars in the United States, that production should count towards, b) economic activity that is hidden from the govenrment to avoid taxes or because the activity is illegal, The underground or informal economy can be described as, a) employed workers and unemployed workers, e) the percentage of the working age population that is unemployed, A full time student who is not working is categorized as, a) the percentage of the working-age population in the labor force, The labor force participation rate is define as, If the number employed is 190 million, the working age population is 230 million, and the number unemployed is, If the number employed is 190 million, and the number unemployed is 10 million, and the working age population is 250 million, then the labor force participation rate is, The short term unemployment arising from the process of matching workers with jobs is called, Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs (often due to technological change and/or globalization) is called, d) a freightliner employee that god laid off because of teh recession of 2001, a) a lifeguard who was hired during the summer season is laid off after summer is over, People who lost their jobs as hands-drawn animators because of the popularity of computer-generated 3D animation are examples of persons who are suffering, b) a worker voluntarily quits his job at the Post Office to find more interesting work. gdp.ppt : File Size: 3431 kb: File Type: ppt: Download File. Which of the following is characteristic of international trade? Which of the following would be counted in GDP? Create. 100% (8) Pages: 1 year: 2018/2019. As more firms produce a product which of the following happens? Unit 1, 2, 3 Macroeconomics Vocab. We hit the traditional topics from a college-level microeconomics course. question. Why does an advance in technology increase supply? c) by the production possibilities frontier shifting forward. What happened in the 1930s when the US passed the highest tariffs ever? a) using the same amount of resources, this nation can produce the good at a lower opportunity cost than any other nation, If a nation has a comparative advantage in producing a good or service, this means that. As workers demand higher wages to produce automobiles, how will this influence the automobile market? STUDY. Microeconomics is all about how individual actors make decisions. By specializing in production of a good or service for which a producing unit has a comparative advantage, which of the following is the impact on the consumption possibilities frontier for the producing unit? b) a process of encouraging nations to become more open to foreign trade and investment, d) all of these have been stated as reasons to oppose globalization, c) the total cost is very large but because the per unit cost is so small for each consumer, most buyers do not notice it and therefore do not make the connection. Which of the following transactions would be included in the official calculation of GDP? 40 Advanced Placement Economics Macroeconomics: Student Activities ' National Council on Economic Education, New York, N.Y. 7. 2018/2019 100% (8) Discussion Forum Unit 4. LIMITED … Demand is defined as the different quantities of goods and services that consumers are willing and able to purchase at various price levels. … PPC. In fact, one of the most difficult concepts in economics is understanding the opportunity cost of choosing a particular action. This year, Ajax sold 500 sofas at $1,500 each. What is the impact of a tariff on an imported good? (E) enacting a set of laws that protects … A change in demand represents a _______ while a change in quantity demanded is a _________. Oh no! b) can produce more of something than others with the same resources, You have an absolute advantage whenever you, b) a producing unit can produce more of a good or service at a lower opportunity cost than any other producing unit. c) because neither the buyer nor the seller would agree to a trade unless they both benefit. If a graph has a line that shows the amount of outsourcing in the last ten years, it is known as a. If you are using assistive technology and need help accessing these PDFs in another format, contact Services … • Macro was created to: 1. How are the intermediate goods treated in the calculation of GDP? year. Don't show me this again. Exclusive unit summary videos, practice questions, study guides, and practice sheets with answer keys . Which of the following is counted in GDP? Start studying Macroeconomics: Unit 1. Terms in this set (44) Goals of Macroeconomics. Flashcards. What is the reason people trade with each other? Scarcity. Which of the following have a tendency to raise the unemployment rate? How does the above political cartoon illustrate inflation? a.) b) people usually act in a rational, self-interest way. 1 Macroeconomics KEY IDEAS UNIT Scarcity exists because we have limited resources and unlimited wants. Welcome! Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube. a shortage of resources to satisfy people's unlimited wants and needs. What was Adam Smith's behavioral assumption about humans? ), Products or services that can be used in place of each other; when the price of one falls so does the demand for the other, Products or services that are used together; when the price of one falls the demand for the other increases (and vice versa), Principle which states that an increase in the price of a product will increase the quantity of it supplied (or the opposite), Economic resources / inputs - land, capital, labor, entrepreneurial ability, Factors other than supply which determine the quantities supplied (E.g. What points are unattainable on a production possibilities frontier? If the price of a product increases from $12 to $15, which of the following will occur? How can world output of goods and service be maximized? Gravity. Last year, the Ajax firm sold 250 sofas at $1,000 each. You will also learn how … a) the market price to fall and quantity supplied of that good to decrease, The existence of a surplus for a good at a given price will cause, a) market price to rise and quantity demanded of that good to increase, The existence of a shortage for a good price will cause. Learn. Log in Sign up. What assumptions about humans do economists make? Learn vocabulary, terms, and more with flashcards, games, and other study tools. Because of scarcity, all decisions involve costs. Jeanne Stansak. c.) It looks at the overall ups and downs of None Pages: 17 year: 2019/2020. Spell. b) by engaging in trade people can raise their standard of living. d) equilibrium price falls and equilibrium quantity increases. Test. The measure of total production that values output using a base year and constant dollars adjusting for inflation is called, a) if real GDP increases from one year to the next, we know that production of goods and services has risen, Which of the following is a TRUe statement about real and nominal GDP, c) the cars held in inventory on a local Ford dealer's lot. If nation A can produce 20 units of good X and 16 of good Y while nation B can produce 18 units of X and 12 of Y, which nation should produce X and which should produce Y? Which of the following is a positive economic statement? The amount of other products sacrificed or given up to produce one unit of product Law of increasing opportunity costs As the production of a good increases the opportunity cost of producing an additional unit rises If market demand doubles and market supply decreases by 30 percent, what happens to equilibrium price and equilibrium quantity? c) equilibrium prices rises and equilibrium quantity increases. Gold III. Which of the following statements describes macroeconomics? economic indicators c.) global trade d.) capital flow In the … ), The amount by which the quantity supplied exceeds the quantity demanded at a specific- above equilibrium- price, When one can produce more with the same resources, When one can produce more with a lower opportunity cost, When one concentrates on the activity one is better at doing. Date Rating. Which of the following is an example of a worker experiencing frictional unemployment? Economic analysis of comparative advantage shows that a nation should specialize in the production of goods for which it has a comparative advantage. Microeconomics. a) do have a comparative advantage in producing some good or service, For individuals, localities and nations that have never been the best at doing anything, they, c) the consumption possibilities frontier for the producing unit is increased beyond its production possibilities frontier. Test. Opportunity cost is the forgone benefit of the next best alternative when resources are used for one purpose rather … regulations, etc. Match. Which of the following will NOT cause demand to increase for bananas? c) incremental, additional, or extra of some action. How is the decision about what goods and services will be produced made in a market economy? If the government were to outlaw the consumption of potatoes, which of the following would be the likely consequence? 100% (8) Pages: 2 year: 2018/2019. Created by. But in the real world, most production in a nation is not 100 percent specialized. Wha is the economic impact of Smith's invisible hand? beginning of content: Free-Response Questions. d) no, because U.S. consumers would benefit from lower prices of imported goods regardless what other nations do with their trade barriers, and domestic resources competing with those imports could be allocated to more efficient uses. It should be clear by now that economics covers a lot of ground. d) comparing marginal costs to marginal benefits, d) by consumers, firms, and government choosing which goods and services to by. Definition of Demand. e) frictional and structural unemployment, The natural rate of unemployment is made up of, d) the sum of structural and cyclical unemployment, We say that the economy is at full employment if the unemployment rate is equal to. (C) developing a price mechanism that reflects the relative scarcities of products and resources. c) cut back on the production of other goods, At full employment, an economy that wants to produce more war goods must, b) increasing opportunity costs as more and more of the one good is produced. UNIT. Tiffany Hanchett. Who ultimately decides what goods and services will be produced in a market economy? b) B should produce X and A should produce Y. 1 Macroeconomics LESSON 2 ACTIVITY 4 UNIT Reasons for Changes in Demand Part A Read the eight newspaper headlines in Figure 4.2, and use the table to record the impact, if any, of each event on the demand for beef. If market demand is constant and market supply decreases, what happens to equilibrium price and equilibrium quantity? the value lost of the second best option in exchange for choosing the best option . I. If your nominal wage rises slower than the price level then we can say your real wage has ______ and the purchasing power of a dollar has _________. 1.4 Demand. Visit the Big Mac Index here. Which of the following goods would be con-sidered scarce? b) points outside the production possibilities frontier. Macroeconomics - Unit 1 Exam. c) the goods are all substitutes and the higher price of beef increases demand for chicken, Shortly after the price of beef increases, the price of chicken increases also because, d) all of these are characteristics of international trade. 2 pages . If the price of product increases, which of the following is correct? What points on a production possibilities frontier are attainable production points? 1. Why don't economists support saving domestic jobs by tariffs or quotas? Quantity Demanded. Which of the following will NOT increase the supply of soybeans? Flashcards. Which of the following describes comparative advantage? 2 If the economy represented in Figure 1.2 is presently producing 12 units of Good B and zero units of Good A: (A) The opportunity cost of increasing production of Good A from zero units to one unit is the loss of two unit(s) of Good B. a) greater demand for high skilled labor due to technological advances. The production possibilities frontier model can be applied to which of the following? Home Browse. c) the choices everybody makes to attain their goals, given their scarce resources, d) people are rational and respond to incentives. If nation A can produce 20 units of good X and 16 of good Y while nation B can produce 18 units of X and 12 of Y, what is A's opportunity cost to produce a unit of X? The total value of goods and services produced within the borders of a country during a specific time period, usually one year. 11th June 2017. c) producing less of one good means more of another good can be produced, Every society faces economic tradeoffs, which means. d) an entrepreneur does all of these things. Guide government policies to fix problems. missymu127. Use the first column to the right of the headline to show whether the event causes a change in demand. Upgrade to remove ads. If the demand for good A decreases when the price of good B decreases, evidently, An increase in the quantity supplied is caused by. Match. STUDY. c) occurs because of unlimited wants and limited resources available to fulfill those wants, b) assuming rational behavior is useful in explaining choices people make even though they may not behave rationally all the time. The following is not a subject matter of macroeconomics: (a) National income accounting (b) Law of demand and supply (c) Business cycle (d) General price level 2. Spell. Assume a firm can produce a combination of 60 units of X together with 80 units of Y but to produce 70 units of X, the firm can only produce 60 units of Y. Which of the following would not increase the demand for coffee? The crucial problem of economics is (A) establishing a fair tax system. On a production possibilities frontier model, the production of more physical and human capital will have which of the following results. 2018/2019 100% (8) Learning Journal Unit 4. governments and societies c.) governments and economies d.) firms and households Macroeconomists look at _____ to study the overall health of the economy. View Macro Unit 1 Challange 1.docx from ECO -201-Q1765 at Southern New Hampshire University. Increasing opportunity cost illustrates which of the following important economic concepts? d) above the market wage, causing labor demand to be greater than labor supply, Minimum wage laws cause unemployment because the legal minimum wage is set, c) above the market wage, causing a surplus of labor, Labor unions may cause unemployment because the union contract wage is typically set. d) has its citizens consuming at a lower standard of living than if it trade, A nation that does not trade with other nations, d) the maximum number of units of a good that can be imported. 100% (8) Pages: 2 year: 2018/2019. Which of the following best describes the assumption about human behavior that economics makes? Macroeconomics Unit 1. Learn. Which of the following are not considered part of government purchases? Essential Revision Videos for AS Macro. Education II. It looks like your browser needs an update. After completing this unit, you will be able to understand shifts in supply and demand and their implications for price and quantity sold. Why are so many graphs used in economics? In a market economy, what is a fundamental thing that the government must do to facilitate the operation of the market? Test. No society has ever had enough resources to produce all the goods and services its members wanted. c) poorly defined and enforced property rights. a) if the price of gasoline rises, a smaller quantity of it will be bought. Which of the following is not a factor of production? If market demand increases 25 percent and market supply also increases 25 percent, what happens to equilibrium price and equilibrium quantity? What does an entrepreneur do in a market economy? 1. What does international trade enable nations to do? Then visit this link and read about Purchasing Power Parity. Occurs in a market when all buyers and sellers are satisfied with their respective quantities at that price; supply equal to demand, Something that motivates a person to act: reward, Recurring fluctuations in economic activity consisting of recession and recovery and growth and contraction. Quantity demanded is a the amount of a good or service that is desired at a … c) set up and enforce private property rights. Topic 1 GDP - Apuntes 1 Topic 5 The basic tools of FInance explanation health b Altres documents relacionats Solucions seminaris octubre part 1.1 Tema 4 Tema 6 Unit 2: The data in Macroeconomics Practice 1 Lecture 10: Money and Inflation Match. b) through technological advance which enables more output with the same resource supplies. How can the influence of a third variable be shown on a two dimensional graph? Which of the following uses do economic models fulfill? What does the adjective marginal mean in economics? Shouldn't the US eliminate trade barriers only if other nations do the same? c) George has an absolute advantage in both lawn mowing and garden cultivating. One of the major assumptions of the classical school is 3. AP Macroeconomics Past Exam Questions Print this page. d) Jack has a comparative advantage in garden cultivating and George has a comparative advantage in lawn mowing. Which of the following is a problem inherent in centrally planned economies? Spell. Macroeconomics focuses on (A) government and its laws that affect commerce … What is Macroeconomics? Without an increase in the supplies of factors of production, how can a nation grow economically? Measure the health of the whole economy. a.) b) demand for all normal goods will increase. While it is true that this is a very important concept, economics is not that sim-ple. PLAY. A) a soy latte sold by Starbucks to a stuent. 17 pages. If the economy represented in Figure 1.2 is presently producing 12 units of Good B and zero units of Good A: (A) The opportunity cost of increasing production of Good A from zero units to one unit is the loss of two unit(s) of Good B. Summary of Macroeconomic ECS2602 chain of events. Who was the first economist to explain comparative advantage? b) quantity that buyers will buy at a given place, b) quantities that all buyers will buy at all possible prices, b) there is an inverse or downsloping relationship between price and quantity, d) buyers buying more of a relatively cheaper good when the price of a substitute rises, a) buyers buying more of a good because their real income has increased, c) quantity demanded for the product will decrease. This section provides an introduction to microeconomics. The want satisfying power of a good or service, The land, labor, capital, and entrepreneurial abilities that are used to produce goods or services, Natural resources used to produce goods or services, Human made resources- machines, equipment- used to produce goods and services, Physical and mental talents and efforts of people used to produce goods and services, Human resources that innovate, and combine other resources that innovate and combine other resources to make a product, Spending for the production and accumulation of capital additions to inventories, Use of all available resources to produce goods and services, Products and services, which satisfy human wants directly, Goods that do not directly satisfy human wants directly, Curve showing the combinations of two goods or services, a curve showing the different combinations of two goods or services that can be produced in a full-employment, full-production economy where the available supplies of resources and technology are fixed, The amount of other products sacrificed or given up to produce one unit of product, As the production of a good increases the opportunity cost of producing an additional unit rises, An outward shift in the PPC from an increase in quantity or quality of resources, or technological improvement, An economic system in which property resources are privately owned; markets and prices direct and coordinate economic activity, An economic system in which property resources are publicly owned, the government uses central economic planning to direct economic activites, An economic system in which tradition and customs determine how scarce resources will be used, A market in which households sell and firms buy resources or services of resources, A market in which products are sold by firms and bought by households, Any institution or mechanism that brings together buyers (demanders) and sellers (suppliers) of a particular good or service, A chart showing the amounts of goods or services buyers wish to purchase at various prices during a time period, The principle that an increase in a product's price will reduce the quantity, In the short term, people will derive less and less satisfaction for each additional unit of a good purchased, A change in the price of a consumer good changes a consumer's purchasing power and thus the quantity of the good purchased, A change in the price of a similar good changes the relative expensiveness of the good (e.g. pop prices), Line showing amount consumers desire of a certain good, Factors other than price that indicate consumer choice (e.g. Nathaniel_Sun. Write. Consumer tastes, expectations, income, etc. The BIG Mac Index. c) other nations raised tariffs in retaliation and international trade collapsed, causing unemployment in the US to worsen. Must-Watch Revision Videos before Sitting A Level Economics Paper 2 . The social science concerned with the efficient use of scarce resources to achieve the maximum satisfaction of economics wants. Macroeconomics Unit 1 Challenge 1 Microeconomics involves decisions made by _____. d) all of these explain why nations do not specialize completely. a) by having every nation produce the good it has a comparative advantage in producing. What is the opportunity cost to produce 10 more units of X? Economics is the study of: a) supply and demand b) how to make money in a market economy c) the choices everybody makes to attain their … 2 pages. STUDY. Macroeconomics… b) shift to a new demand curve, shift to a new demand curve. (D) allocating scarce productive resources to satisfy wants. STUDY. b) a market, which can be a location or an electronic connection. 1 … a curve that … monetary policy b.) Four full practice exams (240 multiple choice questions with answer keys) 1 year of access for 1 student including special LIVE stream reviews . Download free-response questions from past exams along with scoring guidelines, sample responses from exam takers, and scoring distributions. Which of the following is slowing the growth rate of less developed economies?
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