Malcom Econ Final

Juliette lost her job as a soda bottler to a robot. What kind of unemployment is this?

• frictional

• structural

• seasonal

Define economics

• How people deal with investment alternatives

• How people deal with the problem of scarcity

• How the government controls the money supply

Does the GDP count finished, new goods that are sold?

• yes

• no

Does the GDP count raw materials?

• yes

• no

Does the GDP count illegal economic activity?

• yes

• no

.Does the GDP count USED goods? (like used cars or things sold at a garage sale?)

• yes

• no

Who is hurt most by inflation?

• Households with debt

• Workers in growth industries

• People on a fixed income

When investing $$, it is best to choose a VARIETY of assets. This is called

• Net asset value

• Rate of return

• Diversification

Why does a market economy function well?

• Because of central planning

• Because of the voluntary exchange between buyers and sellers

• Because of the stock market

Profit =

• Price x quantity

• Rent + wages + interest

• Total revenue - total cost