C211 WGU
C211 WGU
Study online at https://quizlet.com/_d6h1mn
1. The basic tools of supply and demand are: central to macroeconomic
analysis as well as to mi-
croeconomic analysis.
2. For an economy as a whole: income must equal ex-
penditure
3. In the actual economy, households divide their income
among spending, taxes,
and saving.
4. Which of the following pairs correctly identify W and Firms and households
Y?
5. In order to include many different goods and services market prices.
in an aggregate measure, GDP is computed using,
primarily,
6. Most goods and services produced at home and most goods and ser-
vices produced illegally
are excluded from GDP
7. A newspaper article informs you that most businesses decreased.
reduced production in the last quarter but also sold
from their inventories during the last quarter. Based
on this information GDP likely
8. U.S. GDP and U.S. GNP are related as follows: GNP = GDP − Income
earned by foreigners in
, C211 WGU
C211 WGU
Study online at https://quizlet.com/_d6h1mn
the U.S. + Income earned
by U.S. citizens abroad.
9. National income differs from net national product be- of a statistical discrepancy
cause
10. Disposable personal income is the income that house-
holds and businesses
have remaining after sat-
isfying their obligations to
the government.
11. The following table contains data for Chereaux for the $130
year 2019.Disposable personal income for Chereaux
in 2019 is
12. The Carters' oldest son attends Big State University. consumption of services
He and his parents pay all his fees and tuition. These
payments count in GDP as
13. Unemployment compensation is not part of GDP because it
is a transfer payment
14. The following table contains data for country A for the $88
year 2019.What were country A's exports in 2019?
15. Changes in real GDP reflect only changes in the
amounts being produced
, C211 WGU
C211 WGU
Study online at https://quizlet.com/_d6h1mn
16. Changes in the GDP deflator reflect only changes in prices.
17. If in some year nominal GDP was $20 billion and the $40 billion
GDP deflator was 50, what was real GDP?
18. The following table reports nominal and real GDP 8.62%
for the U.S. from 1929 to 1932. If prices had re-
mained constant between 1929 and 1930, Nominal
GDP would have decreased
19. GDP per person tells us the income and expenditure average person in the
of the economy
20. International data on GDP and socioeconomic vari- leave no doubt that a na-
ables tion's GDP is closely as-
sociated with its citizens'
standard of living
21. Which of the following statements about oligopolies Unlike monopolies and
is not correct? monopolistically compet-
itive markets, oligopolies
prices do not exceed their
marginal costs.
22. As the number of sellers in an oligopoly becomes very the quantity of output ap-
large, proaches the socially effi-
cient quantity
23. Imagine a small town in which only two residents, $9,000
Rochelle and Alec, own wells that produce safe drink-
ing water. Each week Rochelle and Alec work together
to decide how many gallons of water to pump. They
bring the water to town and sell it at whatever price
, C211 WGU
C211 WGU
Study online at https://quizlet.com/_d6h1mn
the market will bear. To keep things simple, suppose
that Rochelle and Alec can pump as much water as
they want without cost so that the marginal cost of
water equals zero. The town's weekly demand sched-
ule and total revenue schedule for water is shown in
the following table: If Rochelle and Alec operate as a
profit-maximizing monopoly in the market for water,
how much profit will each of them earn, assuming that
the two producers split the market equally?
24. Suppose this market is served by two firms who each $2
face the marginal cost curve shown in the diagram
and have zero fixed cost. The marginal revenue curve
that a monopolist would face in this market is also
shown. If the firms are able to collude successfully,
each firm should earn a profit equal to
25. Suppose the market for this product is served by two $6
firms that have formed a cartel. If the marginal cost
of production is $4 and each firm incurs a fixed cost
of $6, the combined profit of the cartel will be
26. Only two firms, ABC and XYZ, sell a particular product. $140
The following table shows the demand curve for their
product. Each firm has the same constant marginal
cost of $8 and zero fixed cost.ABC and XYZ agree to
maximize joint profits. However, while ABC produces
the agreed-upon amount, XYZ breaks the agreement
and produces 5 more than agreed. How much profit
does XYZ make?
C211 WGU
Study online at https://quizlet.com/_d6h1mn
1. The basic tools of supply and demand are: central to macroeconomic
analysis as well as to mi-
croeconomic analysis.
2. For an economy as a whole: income must equal ex-
penditure
3. In the actual economy, households divide their income
among spending, taxes,
and saving.
4. Which of the following pairs correctly identify W and Firms and households
Y?
5. In order to include many different goods and services market prices.
in an aggregate measure, GDP is computed using,
primarily,
6. Most goods and services produced at home and most goods and ser-
vices produced illegally
are excluded from GDP
7. A newspaper article informs you that most businesses decreased.
reduced production in the last quarter but also sold
from their inventories during the last quarter. Based
on this information GDP likely
8. U.S. GDP and U.S. GNP are related as follows: GNP = GDP − Income
earned by foreigners in
, C211 WGU
C211 WGU
Study online at https://quizlet.com/_d6h1mn
the U.S. + Income earned
by U.S. citizens abroad.
9. National income differs from net national product be- of a statistical discrepancy
cause
10. Disposable personal income is the income that house-
holds and businesses
have remaining after sat-
isfying their obligations to
the government.
11. The following table contains data for Chereaux for the $130
year 2019.Disposable personal income for Chereaux
in 2019 is
12. The Carters' oldest son attends Big State University. consumption of services
He and his parents pay all his fees and tuition. These
payments count in GDP as
13. Unemployment compensation is not part of GDP because it
is a transfer payment
14. The following table contains data for country A for the $88
year 2019.What were country A's exports in 2019?
15. Changes in real GDP reflect only changes in the
amounts being produced
, C211 WGU
C211 WGU
Study online at https://quizlet.com/_d6h1mn
16. Changes in the GDP deflator reflect only changes in prices.
17. If in some year nominal GDP was $20 billion and the $40 billion
GDP deflator was 50, what was real GDP?
18. The following table reports nominal and real GDP 8.62%
for the U.S. from 1929 to 1932. If prices had re-
mained constant between 1929 and 1930, Nominal
GDP would have decreased
19. GDP per person tells us the income and expenditure average person in the
of the economy
20. International data on GDP and socioeconomic vari- leave no doubt that a na-
ables tion's GDP is closely as-
sociated with its citizens'
standard of living
21. Which of the following statements about oligopolies Unlike monopolies and
is not correct? monopolistically compet-
itive markets, oligopolies
prices do not exceed their
marginal costs.
22. As the number of sellers in an oligopoly becomes very the quantity of output ap-
large, proaches the socially effi-
cient quantity
23. Imagine a small town in which only two residents, $9,000
Rochelle and Alec, own wells that produce safe drink-
ing water. Each week Rochelle and Alec work together
to decide how many gallons of water to pump. They
bring the water to town and sell it at whatever price
, C211 WGU
C211 WGU
Study online at https://quizlet.com/_d6h1mn
the market will bear. To keep things simple, suppose
that Rochelle and Alec can pump as much water as
they want without cost so that the marginal cost of
water equals zero. The town's weekly demand sched-
ule and total revenue schedule for water is shown in
the following table: If Rochelle and Alec operate as a
profit-maximizing monopoly in the market for water,
how much profit will each of them earn, assuming that
the two producers split the market equally?
24. Suppose this market is served by two firms who each $2
face the marginal cost curve shown in the diagram
and have zero fixed cost. The marginal revenue curve
that a monopolist would face in this market is also
shown. If the firms are able to collude successfully,
each firm should earn a profit equal to
25. Suppose the market for this product is served by two $6
firms that have formed a cartel. If the marginal cost
of production is $4 and each firm incurs a fixed cost
of $6, the combined profit of the cartel will be
26. Only two firms, ABC and XYZ, sell a particular product. $140
The following table shows the demand curve for their
product. Each firm has the same constant marginal
cost of $8 and zero fixed cost.ABC and XYZ agree to
maximize joint profits. However, while ABC produces
the agreed-upon amount, XYZ breaks the agreement
and produces 5 more than agreed. How much profit
does XYZ make?
