ECON 110 Read & Interact Schiller & Gephardt Chapter 2 solutions complete answers

ECON 110 Read & Interact Schiller & Gephardt Chapter 2 solutions complete answers 

 

Which of the following are the three critical questions that an economic system must address?

 

The economic question of '      (one word) to produce' is about decisions related to the mix (quantity and type) of goods and services to make available in a given economy.

 

Economists compare the ______ value of the total output in various years, rather than ______ units of production.

 

Gross domestic product can be described as:

 

Nominal GDP measures the value of all goods and services _____.

 

The three main decisions that must be addressed by an economic system does not include:

 

Nominal GDP is not an accurate measure of the real level of economic activity in a country because:

 

The economic question of 'WHAT to produce' is about decisions related to:

 

According to figure 2.1, which countries had GDP greater than $4 trillion in 2017?

 

We measure gross domestic product by multiplying the quantities of goods by their prices because it allows us to:

 

If GDP is $50 billion and the population is 20 million then the GDP per capita is:

 

The total value of all final goods and services produced within the borders of a given country during a given period of time is the definition of:

 

When computing GDP using current prices, it is referred to as

 

The dollar value of GDP divided by the total population is called:

 

_____ GDP, or adjusted GDP, values output in constant prices.

 

According to figure 2.1, which countries had GDP greater than $8 trillion in 2017?

 

Economic growth is _____. 

 

If GDP is $15 trillion and the population is 300 million then the GDP per capita is:

 

If a country has negative GDP growth but positive population growth, we can conclude:

 

The total market value of all final goods and services produced within a nation's borders in a given time period is:

 

GDP per capita means:

 

Although GDP is an incomplete measure of       welfare, it is still the single best measure of the nation's economic well-being.

 

Which of the following are the four major uses of total output? (Select all that apply.)

 

An increase in output or an expansion of production possibilities is called:

 

As long as GDP growth is _____ population growth, a country will experience an increase in per capita GDP.

 

Which of the following is not an example of a consumer good or service?

 

A nation's gross domestic product (GDP):

 

Although GDP is an incomplete measure of social      , it is still the single best measure of the nation's economic well-being.

 

The major uses of total output include:

 

In the figure for 2018, the largest percentage use of GDP is comprised of what?

 

Which of the following are used by economists to define and/or measure economic growth?

 

What are the three major categories of consumer purchases?

 

Which of the following is an example of a consumer good?

 

Investment consists of:

 

According to figure 2.2, in 2018,       made up 13% of GDP.

 

Investment expenditures include:

 

In the figure for 2018, consumption accounted for approximately _____% of GDP.

 

Which of following are components of government services in GDP?

 

The primary category(s) of consumer purchases include _____. 

 

According to figure 2.2 in 2018 spending on government services by state and local government was _____ percent of GDP

 

The types of investment include all final purchases of machinery, equipment, and tools; all construction of new plants; and changes in business      .

 

Social Security payments, welfare payments, and veterans' payments that the government makes directly to households are examples of       transfers.

 

According to the figure, Investment accounted for _____ percent of GDP in 2018.

 

Investment refers to real output, plant and equipment, produced for the       sector.

 

Income transfers are excluded from government services in the accounts of GDP because:

 

Government services as a component of GDP include:

 

The component of GDP called government services includes spending on police, teachers, and road construction by _____. (Check all that apply.)

 

According to figure 2.2, in 2018, total spending on government services was _____ percent of GDP. 

 

Government income transfers include all of the following:

 

An export is

 

Income transfers are excluded from GDP because:

 

A good or service purchased from foreign sources is ______.

 

In calculating government spending, the component "government services" includes spending by:

 

Net exports include goods produced:

 

A good or service sold to foreign buyers is

 

Foreign goods or imports purchased by consumers, firms, or the government should be _______ GDP because the goods _______ produced in the United States.

 

Since we import more than we export, net _____ are a ______ component of GDP.

 

An import is

 

Net exports is exports minus      .

 

Since 1900, the mix of output in the US has moved away from _____ and towards _____.

 

The most dramatic change in industry structure in the U.S. over the last 100 years has been the decline in the relative size of the       sector.

 

Imports must be subtracted from GDP because they are goods and services _____ the borders of the United States.

 

Based on the figure, since 1975, manufacturing

 

Since       exceed exports, net exports are a negative percentage of total GDP.

 

There has been a relative growth of ________ in the United State's economy.

 

The volume of _______ has increased, causing an increase in international trade.

 

Over time, the mix of output in the US has moved away from farming and towards      .

 

The economic question of '______ to produce' is about decisions related to the mix of factor inputs (land, labor, capital...) used to produce goods and services.

 

The most dramatic change in the industry structure in the U.S. over the last 100 years has been:

 

The basic factors of production, or resources, include:

 

Using the figure, manufacturing output has _______ over time and manufacturing jobs have _______ over time.

 

Factories, storage, transportation and distribution facilities, as well as tools and machinery are all examples of       stock.

 

International trade continues to play a(n) _______ important role in how goods are produced in the U.S.

 

Production processes that use a high ratio of capital to labor inputs are:

 

Land, labor, capital, and entrepreneurship are known as       of production.

 

Production in high income countries is generally       capital-intensive compared to lower income countries.

 

Output per unit of input is:

 

Factories, storage, transportation and distribution facilities, as well as tools and machinery are all examples of the available stock of ______.

 

The knowledge and skills possessed by the workforce is called:

 

The U.S. has accumulated over $100 trillion worth of machinery, factories, and buildings and, therefore, the production processes tend to be _______ intensive.

 

Education, on-the-job training, and the general increase in skills of a workforce is an example of:

 

High productivity in the US and other high income countries results from:

 

If a farmer uses tractors, combines, automated irrigation systems, and computers to manage the farm, this farmer is producing in a ________ manner.

 

The U.S. has greater      , or output per worker, compared to poorer countries. This is a reflection of the U.S. quality and quantity of both capital and labor.

 

When land, labor, capital, and entrepreneurship move from one industry to another in response to changing demands and technology, it is known as:

 

The knowledge and skills possessed by the workforce is called            .

 

Proprietorships, partnerships and corporations are business firms where the primary distinction between the three lies in their _______ characteristics.

 

Which of the following are examples of human capital?

 

Using the figure,       which business type has the largest share of total assets?

 

High productivity in the US and other high-income countries results from high levels of ______ combined with ______ production processes.

 

The government's primary roles in an economy includes which of the following:

 

Production in high income countries is more _____ compared to lower income countries which tend to be more _____.

 

The title to an automobile or the deed to a cattle ranch assures a buyer that the seller is the legitimate owner of that property. This is an example of the government _________.

 

Which of the following is an example of factor mobility (select all that apply)?

 

Match the type of firm to its ownership characteristics:

 

Which of the following is a single firm that is the only producer of a product which can lead to prices that are too high and quantity or quality that is too low?

 

Using the figure,       which business type has the largest number of firms?

 

True or false: The government has no role in an economy.

 

When the government sets standards for workplace safety, minimum wages, fringe benefits, and overtime provisions, these are examples of the government ______.

 

True or false: By establishing ownership rights, contract rights, and other rules of the game, the government lays the foundation for market transactions.

 

When the government regulates the safety of many products, like medicine or food products, this is an example of the government _____. 

 

When externalities exist, the government can enact laws to limit these external costs of production. This is best described as an example of the government:

 

Which of the following are examples of the role of the government in protecting labor?

 

Providing a legal framework encourages:

 

The idea that the U.S. economy uses the market mechanism to distribute most goods and services and those who receive the most income get the most goods is best represented by the question:

 

The best justification for government regulations limiting externalities is:

 

A quintile is       percent of the total number.

 

Using 2017 data in the figure, the richest 20% of U.S. households earn      % of the income (round to one decimal place).

 

Government intervention that fails to improve economic outcomes is called a:

 

In 2017, the richest (top) 20% of households earn about _____ of the national income.

 

Private property rights, coupled with the freedom to negotiate binding written       enables individuals and businesses to obtain, use, and dispose of property resources as they see fit.

 

Income distribution tends to become more equal in ______ economies.

 

In a market economy like the U.S. the FOR WHOM to produce question is primarily answered by:

 

In the "distribution by quintiles" method of showing income inequality, the total number of households is divided into       equally sized groups.

 

Income mobility refers to:

 

According to the data in the figure, in 2017 the poorest fifth of the U.S. population gets only ___ percent of the total income whereas the highest fifth gets ___ percent of the total income.

 

In 2017, the poorest (lowest) 20% of households earn about _____ of the national income.

 

One tool that the government uses in order to redistribute income is

 

Income distributions tend to be       equal in poorer nations.

 

A _____ tax is a tax system in which tax rates rise as incomes rise.

 

The movement of households from one income group to another over time is called income      .

 

Using 2017 data in the figure, the richest 40% of U.S. households earn      % of the income (round to one decimal place).

 

_______ and income transfers are two primary mechanisms for the government to redistribute incomes in the U.S.

 

The distribution of income in the United States is significantly more equal after       and income       are considered.

 

Average household income in the United States is       than in most other countries in the world.

 

After taxes and transfers are considered, the income distribution for the United States tends to be more       than before.

 

Individuals or countries in poverty can be characterized as _____.

 

Average household income in the U.S. is among the ____ in the world.

 

With economic growth:

 

Poverty can be characterized as the problem of being unable to satisfy one's

 

Which of the following is most consistent with a market economy?

 

Given that resources are scarce:

 

According to the Latin phrase ceteris paribus:

 

If the market mechanism causes the economy to arrive at the wrong mix of output, there is:

 

The essential signal of the market mechanism is

 

When an economist says that "there is no such thing as a free lunch," she means that

 

The opportunity cost of playing tennis with your friend is:

 

An externality is:

 

Macroeconomics focuses on:

 

The price of a good or service:

 

Which of the following is true about the factors of production?

 

If society lacks enough resources to satisfy all the desired uses of the resources, this is known as:

 

Market failure is:

 

Which of the following is an example of labor as a factor of production?

 

The primary concern of economics is the study of:

 

Which of the following statements is consistent with central planning?

 

Which of the following explains why economic choices must be made?

 

Which of the following is the best example of the "WHAT" economic question?

 

The production possibilities curve shifts outward in response to:

 

Microeconomics focuses on:

 

If resources are limited

 

Consumers play a part in the market mechanism by:

 

Economic growth means:

 

Because of scarcity,

 

All points on the production possibilities curve:

 

By multiplying the physical output of each good by its price, the _______ of each good produced can determined.

 

Real GDP divided by the size of the population is called:

 

The primary category(s) or consumer purchases include:

 

Per capita GDP is:

 

What are the three major categories of consumer purchases?

 

Productivity is defined as:

 

The movement of resources between old and new industries is an example of:

 

a firm owned by many individuals, each of whom owns shares (stock)

 

The role of government included which of the following?

 

When excessive regulation inhibits production, raises product prices, and limits consumer choices, we call this:

 

Businesses are able to enter in to binding contracts and can trust their intellectual property rights are protected because of ______

 

Taxes and ______ are two primary mechanisms for the government to redistribute incomes in the U.S.