ECON 2303 EXAM 2 Latest Update 100% Verified
Which of the following statements about economic growth is accurate?
The world's sustained economic growth has only been occurring over the last 300 to
400 years
When economists talk about the "standard of living," they are generally referring
to:
the level of overall well-being enjoyed by an economy.
Which of the following expenditures examples "consumer durable good?
Arti buys a new refrigerator from Sears
Henry and his girlfriend ate dinner at the new thai restaurant that recently opened
in his neighborhood?
This expenditure would be included in
services
The equation for net investment is written
Net Investment=Gross Investment-Depreciation
Which of the following statements correctly explains exports versus net exports?
exports are goods, services, or resources produced domestically and sold abroad, while
net exports are equal to exports minus imports.
Which of the following correctly describes nominal GDP using the income
approach?
GDP=National Income + Indirect Business Taxes + Depreciation + Net Foreign Factor
Income
The major difference between nominal GDP and real GDP is:
nominal GDP measures the value of output in current-year prices, while real GDP
measure output using constant prices.
Suppose that Italy can produce either goods or services with its resources, and
that its PPF is shown on the graph as PPF1.
Using the graph, for each of the following situations, determine whether the PPF
curve shifts.
a. Suppose that Italy increases its spending on education, which increases the
amount of human capital in Italy.
b. A recession causes Italy's unemployment rate to increase above the natural
rate of unemployment.
c. Italy experiences an influx of immigrants from surrounding countries, which
causes the population of Italy to increase.
A. Italy's PPF curve would increase and move to PPF3
B. Italy's PPF curve would remain the same at PPF1
, C. Italy's PPF curve would increase and move to PPF3
Suppose that Scotland can only produce kilts and bagpipes with its resources,
and that its PPF is shown on the graph as PPF1.
Using the graph, for each of the following situations, determine whether the PPF
curve shifts.
a. Scotland's economy moves out of a recession and its unemployment rate falls
to the natural rate of unemployment.
Scotland's PPF curve would
b. Scotland invents a new sewing machine, which increases the production of
kilts.
Scotland's PPF curve would
c. Scotland experiences an increase in investment, which increases the level of
capital for both kilts and bagpipes.
Scotland's PPF curve would
A. remain the same at PPF1
B. increase and move to PPF2
C. increase and move to PPF3
The table below shows real GDP per capita for the United States between the
years 1950 - 2013.
Year Real GDP per
Capita(dollars)
1950 $13,819
1975 24,601
2000 43,935
2013 49,179
A. What is the growth rate in the standard of living from 1950 to 1975?
B. What is the growth rate in the standard of living from 1975 to 2000?
Determine whether each of the following examples would be included in Gross
Domestic Product (GDP).
a. When Judy went to the grocery store yesterday, she bought three pounds of
potatoes.
Judy's purchase of potatoes
Which of the following statements about economic growth is accurate?
The world's sustained economic growth has only been occurring over the last 300 to
400 years
When economists talk about the "standard of living," they are generally referring
to:
the level of overall well-being enjoyed by an economy.
Which of the following expenditures examples "consumer durable good?
Arti buys a new refrigerator from Sears
Henry and his girlfriend ate dinner at the new thai restaurant that recently opened
in his neighborhood?
This expenditure would be included in
services
The equation for net investment is written
Net Investment=Gross Investment-Depreciation
Which of the following statements correctly explains exports versus net exports?
exports are goods, services, or resources produced domestically and sold abroad, while
net exports are equal to exports minus imports.
Which of the following correctly describes nominal GDP using the income
approach?
GDP=National Income + Indirect Business Taxes + Depreciation + Net Foreign Factor
Income
The major difference between nominal GDP and real GDP is:
nominal GDP measures the value of output in current-year prices, while real GDP
measure output using constant prices.
Suppose that Italy can produce either goods or services with its resources, and
that its PPF is shown on the graph as PPF1.
Using the graph, for each of the following situations, determine whether the PPF
curve shifts.
a. Suppose that Italy increases its spending on education, which increases the
amount of human capital in Italy.
b. A recession causes Italy's unemployment rate to increase above the natural
rate of unemployment.
c. Italy experiences an influx of immigrants from surrounding countries, which
causes the population of Italy to increase.
A. Italy's PPF curve would increase and move to PPF3
B. Italy's PPF curve would remain the same at PPF1
, C. Italy's PPF curve would increase and move to PPF3
Suppose that Scotland can only produce kilts and bagpipes with its resources,
and that its PPF is shown on the graph as PPF1.
Using the graph, for each of the following situations, determine whether the PPF
curve shifts.
a. Scotland's economy moves out of a recession and its unemployment rate falls
to the natural rate of unemployment.
Scotland's PPF curve would
b. Scotland invents a new sewing machine, which increases the production of
kilts.
Scotland's PPF curve would
c. Scotland experiences an increase in investment, which increases the level of
capital for both kilts and bagpipes.
Scotland's PPF curve would
A. remain the same at PPF1
B. increase and move to PPF2
C. increase and move to PPF3
The table below shows real GDP per capita for the United States between the
years 1950 - 2013.
Year Real GDP per
Capita(dollars)
1950 $13,819
1975 24,601
2000 43,935
2013 49,179
A. What is the growth rate in the standard of living from 1950 to 1975?
B. What is the growth rate in the standard of living from 1975 to 2000?
Determine whether each of the following examples would be included in Gross
Domestic Product (GDP).
a. When Judy went to the grocery store yesterday, she bought three pounds of
potatoes.
Judy's purchase of potatoes
