Macro Final

Because of their relatively small national economies, which of the following is most likely considered to be the most important factor for Belgium, Korea, and Canada to take full advantage of specialization?

• division of labor

• international trade

• 1. economies of scale

• 1. command economy

Which of the following best denotes the reason for the existence of substantial black markets?

• a market-oriented economy

• a command economy

• government laws and rules

• the microeconomy

In deciding how many hours to work, Beula will make a choice that maximizes her ___; that is, she will choose according to her preferences that leisure time and income.

• Budget constraint

• Opportunity set

• Utility

• Production possibilities frontier

The opportunity cost of an action:

• Can be determined by considering both the benefits that flow from as well as the monetary cost incurred as a result of the action.

• Can be determined by adding up the bills in cured as a result of the action

• Can be objectively, determined only by economist

• Is a subjective evaluation that can be determined only by the individual who chooses the action.

Improvements in the productivity of labor will tend to:

• Decrease wages

• Decrease the supply of labor

• Increase wages

• Increase the supply of labor

The labor___ curve(s) will shift__ if there is an increase in productivity or an increase in the demand for the final product

• Demand; left

• Supply; left

• Demand; right

• Supply; right

Many economist, believe that the trend toward greater wage inequality across the US economy was primarily caused by.

• The recession

• New technologies

• The rise of global markets

• Inflation

Which of the following will not result in a right word shift of the market supply curve for labor?

• A decrease in non-wage income

• An increase in the working age population

• An increase in labor productivity

• An increase in immigration

The Czech Republic has a GDP of 2,000 billion koruny. The exchange rate is 20 koruny per US dollar. The Czech population is 20 million. Calculate the per capita GDP of the Czech Republic in US dollars.

• $5

• $100,000

• $500

• $5000

__ is the output per hour in the buisness sector.

• Net exports

• Productivity

• Investment

• GDP per Capita