ASU ECN 211 FINAL EXAM (ALL CHAPTERS)

In economics, we measure the cost of something as: - Answer- What you give up to get it. If output rises and unemployment falls, the central bank must have done what to the money supply? - Answer- Increase Real GDP will decrease: - Answer- Only when production of goods and services decrease In the U.S. minimum-wage laws create significant unemployment for: - Answer- Teenagers but not workers such as experienced plumbers. If you want to measure and record economic value, you will primarily use which function of money? - Answer- Money as a unit of account. The unemployed who quit their jobs are eligible for unemployment insurance. - Answer- False. According to 2012 data for U.S. teenagers (ages 16-19) ________ had the highest unemployment rate and _________ had the lowest unemployment rate. - Answer- Black males, white females What will happen to the equilibrium price and quantity of iPhones if the price of other smart phones falls, Apple develops new technology to produce iPhones, wireless phone contracts become more expensive, and Apple expects the price of iPhones to decrease in the near future? - Answer- Price will fall, and the effect on quantity is ambiguous. If there is a natural disaster, the long-run aggregate-supply curve shifts: - Answer- Left Which of the following policies would Keynes's followers support when a decrease in business optimism shifts the aggregate-demand curve away from long-run equilibrium? - Answer- Decrease taxes. Refer to the figure. If the government imposes a minimum wage of $9, then how many workers will be employed? - Answer- 6,000 Historically, real income in the United States has risen about 2 percent per year. - Answer- True. The consumer price index is the only measure of inflation used in the United States - Answer- False.