30 Questions
What is a key reason why economics is important to study?
To understand how individuals, families, businesses, and societies make decisions in the face of scarcity
Which of the following best describes the concept of scarcity in economics?
The fact that human wants for goods, services, and resources exceed what is available
Which of the following is NOT a key reason why the FRED website is useful for this economics course?
It provides a comprehensive overview of all economic theories and models used in the course
How has the rise of social media impacted the field of economics?
Social media has become a major force in the information superhighway, greatly impacting how economic information travels through society
What is a key characteristic of the concept of scarcity in economics?
Scarcity is a fundamental aspect of the human condition, where human wants and needs exceed the available resources to satisfy them
Which of the following is an example of a critical good or service that is subject to the concept of scarcity?
Basic necessities, such as food, water, shelter, and healthcare
What is the relationship between real GDP and nominal GDP after the base year?
Real GDP is less than nominal GDP.
In which year would real GDP appear higher than nominal GDP?
Before 2012
What does a negative real GDP growth rate indicate?
A decrease in production of goods and services
How is annualized GDP growth rate calculated?
By multiplying the quarterly growth rate by four
What impact does inflation have on real GDP?
Inflation reduces the value of real GDP
What would be the expected relationship between real and nominal GDP if dollars are worth less in later years compared to the base year?
Real GDP will be higher than nominal GDP
During which time period did the U.S. price level experience a more rapid increase?
From 1973 to the end of the 1970s
Which country had the highest inflation rate in 2020 among the mentioned countries?
United Kingdom
Which two countries experienced hyperinflation between the mid-1980s and mid-1990s?
Brazil and Russia
In which decade did China and Nigeria have high inflation rates?
The 1990s
Which country saw a significant decrease in inflation rates over the last two decades?
Brazil
At what inflation rate did the U.S. price level settle around in 2016?
~240%
What is the relationship between the overall unemployment rate and economic recessions?
The unemployment rate tends to increase during recessions and decrease during periods of economic growth.
Based on the information provided, which statement about the long-term trend of the unemployment rate is most accurate?
The unemployment rate does not seem to have a consistent long-term trend, but rather fluctuates within a certain range.
How do unemployment rates compare between men and women according to the information provided?
Unemployment rates for men and women have been largely similar in recent decades.
Which group experiences the highest unemployment rates based on the information provided?
The youngest age group
What is the typical relationship between the unemployment rates of different racial and ethnic groups according to the information provided?
The unemployment rate for Black people is typically about twice as high as that for White people, while the rate for Hispanic people is in between.
Based on the information provided, what can be inferred about the relationship between the unemployment rates of different groups during economic recessions?
The unemployment rates for all groups tend to rise and fall together.
What is the main reason the U.S. unemployment rate typically looks better than the average in an international perspective?
The U.S. uses different definitions and survey tools to measure unemployment
What is the main difference between labor markets in low-income countries and more developed countries?
Workers in low-income countries are not involved in the labor market through an employer who pays them regularly
What is the main cause of cyclical unemployment according to the text?
The business cycle, like higher unemployment during a recession
In a labor market with flexible wages, what will happen at the equilibrium wage and quantity?
The number of people who want jobs (shown by S) will equal the number of jobs available (shown by D)
What is the result of sticky wages in the labor market according to the text?
The number of those who want jobs (Qs) will be greater than the number of job openings (Qd)
What does unemployment represent in the supply-and-demand model of competitive and flexible labor markets?
Unemployment represents something of a puzzle
This quiz covers the fundamental concepts discussed in Chapter 1 of 'Principles of Macroeconomics 3e'. It includes topics like the importance of economics, microeconomics vs. macroeconomics, the use of theories and models by economists, and an overview of economic systems.
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