Amanda TindalQuestion 2.1: When private ownership of a resource is clearly defined and enforced,the private owner has a strong incentive to use the resource wisely and to consider seriously…Question 2.2: In the fictitious country of Lebos, the government allows private ownership of pigs but not of cows. If the demand for pork and the demand for beef both permanently increased in Lebos, in the long run, we would expect the population of pigs to rise and the population of cows to fall.Question 2.3: Opportunity costs differ among nations primarily because nations have different endowments of land, labor skills, capital, and technology.Question 2.4: When voluntary trade occurs, which statement is most accurate? Both people gain some value.Question 3.2: In economics, the demand for a good refers to the amount of the good people are willing to buy at various prices.Question 3.3: When economist say the quantity demanded of a product has increased, they mean the price of the product has fallen, and consequently, consumers are buying more.Question 3.4: When economists say the demand for a product has decreased, they mean the demand curve has shifted to the left.Question 3.5: According to the law of supply, more of a good will be offered by suppliers as the price rises.Question 3.6: Ceteris paribus, an increase in the price of a good will cause the quantity supplied of the good to increase.Question 3.7: When economists say the supply of a product has increased, they mean the supply curve has shifted to the right.Question 3.8 (MA): Which of the following statements are true? With a shortage, quantity demanded exceeds quantity supplied and price will be pushed up & With a surplus, quantity supplied exceeds quantity demanded and price will be pushed downQuestion 3.9: If there is a decrease in demand for laptop computers, we would expect both the price and quantity sold to decrease.Question 3.10: Which of the following would reduce the price of DVD players and increase the quantity sold? An increase in the supply of DVD players.ECO2013 Clicker QuestionsAmanda TindalQuestion 3.11 (PMA): If there is a simultaneously an increase in demand and an increase in supply, we would expect an increase in equilibrium price and an increase in equilibrium quantity & a decrease in equilibrium price and an increase in equilibrium quantity.Q3.12: Adam Smith’s invisible hand principle stresses the tendency of the competitive market process to direct self-interested individuals into activities that enhance the economic welfare of society.Question 7.1: A business produced $10 million of goods in 2005 but sold only $9 million. Is the $1 million increase in inventory counted as part of the 2005 gross domestic product? Yes, because these inventories are part of the output of the economy in 2005.Question 7.2: George lived in a home that was newly constructed in 2005. In 2005, he paid $200,000 for the brand new house. He sold the house in 2006 for $225,000. Which of the following statements is correct regarding the sale of the house? The 2006 sale affected neither 2005 GDP nor 2006 GDP.Question 7.3: Y = C + I +G + X. Which of the four is the largest component of GDP? Consumption.Question 7.4: If a used car dealer purchases a used car for $3,000, refurbishes it, and sells it for $8,000, the dealer contributes value added equal to $5,000, and consequently $5,000 is added to GDP.Question 7.5 (PMA): An American-owned McDonald’s opens in Russia. How would the net revenue earned by this restaurant affect the GDP and GNP of the United States? GNP would rise, GDP would remain unchanged.Question 7.6: Gasoline prices are lower right now than they were in 1980. True & False. TRICK QUESTION!Question 7.7: If the GDP deflator in 2006 was 130 compared to a value of 100 during the 1996 base year, this would indicate that the general level of prices during 2006 was 30% higher than during 1996.Question 8.1: A person not working is considered unemployed. FalseQuestion 8.2: Mary is a homemaker. Last week, she was busy with her normal household chores. She is not a member of the labor force.Question 8.3: Which of the following would be officially classified as unemployed? A laid-off construction worker waiting to return to a previous job.Amanda TindalQuestion 8.4: How would you classify Stewie? Not in labor force—under 16.Question 8.5: How would you classify Spicoli? Not in labor force—not seeking job.Question 8.6: How would you classify Harry and Lloyd? Frictional & structural.Question 8.7: Which of the following is a positive effect of job search and the unemployment that often accompanies it? It permits individuals to better match their skills and preferences with the requirements of a job.Question 8.8: Full employment is the situation in which the economy operates at an unemployment rate equal to the sum of structural and frictional unemployment.Question 8.9: Actual GDP will be below potential GDP during a recession.Question 8.10: Suppose you received a 3% increase in your nominal wage. Over theyear, inflation ran about 6%. Which of the following is true? Your real wage fell.Question 9.1: For an economy, aggregate demand equals consumption + investment + government purchases + (exports minus imports).Question 9.2: In the context of aggregate supply, the short run is defined as the period during which some prices are set by contracts and cannot be adjusted.Question 9.3: In the context of aggregate supply, the long run is defined as the period during which individuals have sufficient time to modify their behavior in response to price change.Question 9.4/9.5 (MA): Which of the following statements are true? At point (1) actual GDP is less than potential GDP, At point (1) actual unemployment is greater than the natural rate of unemployment, At point (3) actual GDP is greater than potential GDP, At point (3) actual unemployment is less than the natural rate of unemployment.Question 9.6: Other things constant, an increase in resource prices will increase the cost of producing goods and services, which will lead to a higher price level.Question 9.7: Which of the following is the most accurate statement about real and nominal interest rates? Real interest rates can be either positive or negative, but nominal interest rates must be positive.Question 9.8 (MA): If the dollar price of the English pound goes from $1.75 to $1.50,then the dollar has appreciated against the
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