Econ 125 Exam 2 Questions With Correct
Answers
GDP |- |CORRECT |ANSWER✔✔-the |total |value |of |final |goods |and |services |produced |in |a |country
|in |a |given |time |period |
found |by |multiplying |physical |output |of |each |good |by |its |price
nominal |GDP |- |CORRECT |ANSWER✔✔-the |total |v
4 |parts |of |GDP |- |CORRECT |ANSWER✔✔-consumption, |investment, |government |purchases, |and
|net |exports
4 |roles |of |govt. |in |economy |- |CORRECT |ANSWER✔✔-providing |a |legal |framework, |protecting |
consumers, |labor, |and |the |environment
Distribution |of |income |in |society |- |CORRECT |ANSWER✔✔-income |mobility, |taxes, |income |
transfers
progressive |tax |- |CORRECT |ANSWER✔✔-a |tax |system |in |which |tax |rates |rise |as |incomes |rise
income |transfer |- |CORRECT |ANSWER✔✔-gives |lower-income |households |more |output |than |
the |marker |itself |would |provide |
Social |security
Labor |supply |- |CORRECT |ANSWER✔✔-the |willingness |and |ability |to |work |specific |amounts |of |
time |at |alternative |wage |rates |in |a |given |time |period
, Labor |demand |- |CORRECT |ANSWER✔✔-the |quantities |of |labor |employers |are |willing |and |able |
to |hire |at |alternative |wage |rates |in |a |given |time |period
derived |demand |- |CORRECT |ANSWER✔✔-the |demand |for |labor |and |other |factors |of |
production |depends |on |the |demand |for |final |goods |and |services |provided |by |these |factors
equillibrium |wage |- |CORRECT |ANSWER✔✔-the |wage |at |which |labor |supplied |in |a |given |time |
period |equals |the |quantity |of |labor |demanded
3 |effects |of |minimum |wage |- |CORRECT |ANSWER✔✔--reduces |quantity |of |labor |demanded |
-increases |the |quantity |of |labor |supplied
-creates |a |market |surplus
Hiring |decision |- |CORRECT |ANSWER✔✔-Hiring |continues |until |MRP= |wage
Marginal |revenue |product |- |CORRECT |ANSWER✔✔-the |change |in |total |revenue |associated |
with |one |additional |unit |of |input
Marginal |physical |product |- |CORRECT |ANSWER✔✔-change |in |total |output/ |change |in |quantity |
of |labor |
subtracting |between |next |workers |output
market |failure |- |CORRECT |ANSWER✔✔-an |imperfection |in |the |market |mechanism |that |
prevents |optimal |outcomes
4 |sources |of |market |failure |- |CORRECT |ANSWER✔✔-public |goods, |externalities, |market |power,
|inequity
Answers
GDP |- |CORRECT |ANSWER✔✔-the |total |value |of |final |goods |and |services |produced |in |a |country
|in |a |given |time |period |
found |by |multiplying |physical |output |of |each |good |by |its |price
nominal |GDP |- |CORRECT |ANSWER✔✔-the |total |v
4 |parts |of |GDP |- |CORRECT |ANSWER✔✔-consumption, |investment, |government |purchases, |and
|net |exports
4 |roles |of |govt. |in |economy |- |CORRECT |ANSWER✔✔-providing |a |legal |framework, |protecting |
consumers, |labor, |and |the |environment
Distribution |of |income |in |society |- |CORRECT |ANSWER✔✔-income |mobility, |taxes, |income |
transfers
progressive |tax |- |CORRECT |ANSWER✔✔-a |tax |system |in |which |tax |rates |rise |as |incomes |rise
income |transfer |- |CORRECT |ANSWER✔✔-gives |lower-income |households |more |output |than |
the |marker |itself |would |provide |
Social |security
Labor |supply |- |CORRECT |ANSWER✔✔-the |willingness |and |ability |to |work |specific |amounts |of |
time |at |alternative |wage |rates |in |a |given |time |period
, Labor |demand |- |CORRECT |ANSWER✔✔-the |quantities |of |labor |employers |are |willing |and |able |
to |hire |at |alternative |wage |rates |in |a |given |time |period
derived |demand |- |CORRECT |ANSWER✔✔-the |demand |for |labor |and |other |factors |of |
production |depends |on |the |demand |for |final |goods |and |services |provided |by |these |factors
equillibrium |wage |- |CORRECT |ANSWER✔✔-the |wage |at |which |labor |supplied |in |a |given |time |
period |equals |the |quantity |of |labor |demanded
3 |effects |of |minimum |wage |- |CORRECT |ANSWER✔✔--reduces |quantity |of |labor |demanded |
-increases |the |quantity |of |labor |supplied
-creates |a |market |surplus
Hiring |decision |- |CORRECT |ANSWER✔✔-Hiring |continues |until |MRP= |wage
Marginal |revenue |product |- |CORRECT |ANSWER✔✔-the |change |in |total |revenue |associated |
with |one |additional |unit |of |input
Marginal |physical |product |- |CORRECT |ANSWER✔✔-change |in |total |output/ |change |in |quantity |
of |labor |
subtracting |between |next |workers |output
market |failure |- |CORRECT |ANSWER✔✔-an |imperfection |in |the |market |mechanism |that |
prevents |optimal |outcomes
4 |sources |of |market |failure |- |CORRECT |ANSWER✔✔-public |goods, |externalities, |market |power,
|inequity
