Identiz the choice that best completes the statement or answers the question.
1. If a bank has a reserve ratio of 8 percent, then
a. government regulation requires the bank to use at least 8 percent of its deposits to make
b. the ba
Idenn; the choice that best completes the statement or answers the question.
1. A clear sign of a decrease in a countrys output is a(n)
a. decrease in nominal GNP. '
b. increase in real GDP.
c. decrease in real GDP.
(1. increase in nominal
GROSS DOMESTIC PRODUCT
BUREAU OF ECONOMICS ANALYSIS
ANNUAL RATES OF GROWTH REPORTED QUARTERLY
REASONS FOR MEASURING GDP
NOMINAL GDP/REAL GDP
CONSTANT DOLLARS/ CURRENT DOLLARS
GROWTH RATE OF GDP
PER CAPITA GDP
LAGS IN GDP
1. Define velocity of money and discuss the major determinants of velocity.
The velocity of money is defined as the frequency at which the average unit of
currency is used to purchase goods and services within a given time period. Velocity of
Economics: The Science of Choice
Most people lived at subsistence level until the past century
Agricultural revolution- 10k years ago
Began settling in cities
Led to authority and feudal system
Wanted protection from danger (sickness,
Unit 4 Assignment
1) U.S. real GDP is substantially higher today than it was 60 years ago. What does this tell us, and
what does it not tell us, about the well-being of U.S. residents? What are the limitations of the GD
Unit 4 Journal
It is customary for the News media to report about consumer confidence and
investor confidence while discussing the national economy. How do you think the
confidence of the economic agents affect the economy? From personal or work
Gross Domestic Product (GDP) only measures the value of marketed goods and
services for a country during a given period of time.
Is the GDP measure underestimating or overestimating national
production and total income in the economy? Why?
1. Given the table below, graph the demand and supply curves for flashlights. Make certain to label
the equilibrium price and equilibrium quantity.
Economic Growth and Loanable Funds Market
I learned more how to review a graph and Loanable Funds Market as a result of Professor
reviewing the assignment for unit 6. For Part 1 prior to completing class was asked to visit th
Unit 7 Assignment
1 This section deals with increase money supply given two scenarios (see a and b below).
In Westlandia, the public holds 50% of money one (M1) in the form of currency, and the required
reserve ratio is 20%.
Unit 7 Journal
The change in money supply affects the economic agents. Suppose the
Federal Reserve increases the money supply to boost aggregate demand during
recessionary pressure. How does the increase in money supply affect consumer
spending and i
Economic Growth and Loanable Funds Market
I learned more how to read a graph and about the Loanable Funds Market as a result of
the seminar on November 23, 2016. Professors review of the assignment for unit 6 was very
Economists use Gross Domestic Product (GDP) to measure the economic activity and
the national income.
What are the major components of the USA GDP? Explain the contribution of
each component to the GDP with data.
What is the difference between real
Externality-the uncompensated impact of one persons actions on the well-being of a bystander.
Internalizing the externality- altering incentives so that people take account of the external effects of
Corrective Tax- a tax designed to induce
Willingness to pay-the maximum amount that a buyer will pay for a good
Consumer surplus-the amount a buyer is willing to pay for a good minus the
amount the buyer actually pays for it.
Cost-the value of everything a seller must give up to produce a goo
Excludability-the property of a good whereby a person can be prevented from
Rivalry in consumption-the property of a good whereby one persons use
diminishes other peoples use.
Private Goods-goods that are both excludable and rival in consumption
Price ceiling-a legal maximum on the price at which a good can be sold
Price floor-a legal minimum which a good can be sold
Tax Incidence-the manner in which the burden of a tax is shared among
participants in a market
A price ceiling is a le
NANHE or ID NUMBER:
7 , (optional)
DO NOT OPENIITHIS EXAM UNTIL
INSTRUCTED TO DO so
WHILE YOU ARE WAITING TO OPEN THE EXAM, PLEASE READ THE
. FOLLOWING INSTRUCTIONS
1. At your seat you should have only a pencil and a calculator if you
Name: 1]) 1]): B
Identzi the choice that best completes the statement or answers the question.
1. During one winter quarter at Cal Poly, rain falls every Friday night. Students assume that, on their campus,
Fridays cause rain. This hypot
EQUATION FOR A LINE/CALCULATING SLOPE
NEGATIVE, POSITIVE, ZERO AND UNDEFINED SLOPE
RAY FROM THE ORIGIN/ 45 DEGREE LINE
CAUSALITY AND CATEGORIES OF PROBLEMS
PRODUCTION POSSIBILITY FRONTIER
TWO SAMPLE FINAL EXAM QUESTIONS
1. Why do lenders suffer if there is a lot of unanticipated inflation?
2. Show with a well-labeled and well-constructed graph the government revenue and dead-
weight losses from a tariff imposed on an imported good.