ASAP Please:

In constructing economic models, economists:

Question 1 options:

	make simplifying assumptions.
	are unrealistic and therefore of no practical value.
	include all available information and every detail.
	must use mathematical equations.
	attempt to duplicate the real world.

Margo spends $10,000 on one year's college tuition. The opportunity cost of spending one year in college for Margo is:

Question 2 options:

	whatever she would have purchased with the $10,000 together with whatever she would have earned had she not been in college.
	whatever she would have purchased with the $10,000 instead.
	whatever she would have earned had she not been in college.
	$10,000.

A production possibilities frontier (PPF) that is a straight-line sloping down from left to right would suggest that:

Question 4 options:

	the opportunity costs of the products are constant.
	more of both goods could be produced moving along the frontier.
	the two goods must have the same price.
	there are no opportunity costs.

International trade based on comparative advantage allows a country to produce outside it production possibilities frontier (PPF).

Question 5 options:

	True
	False

Which of the following is most likely to shift the demand curve for beer?

Question 7 options:

	the price of beer falls
	the price of hops, an ingredient in beer, increases
	the wages paid to beer-production workers falls
	technological change lowers the price per unit cost of producing beer
	the price of wine falls

Consider the market for cotton shirts. An increase in the price of cotton will:

Question 8 options:

	increase the supply of cotton shirts.
	decrease the supply of cotton shirts.
	increase the quantity supplied of cotton shirts.
	decrease the quantity supplied of cotton shirts.
	decrease the demand for cotton shirts.

Suppose the equilibrium price of Good Y is $5 and the equilibrium quantity is 150 units. If the current price of the good is $12:

Question 9 options:

	the quantity demanded will be greater than 150 units.
	the quantity supplied will be less than 150 units.
	there will be a surplus for Good Y.
	there will be a shortage of Good Y.
	prices are likely to rise.

The government decides to impose a price ceiling on a good because it thinks the market price is "too high". If it imposes a price ceiling above the equilibrium price:

Question 10 options:

	consumers will respond to the higher price and therefore, will wish to purchase less of the good than at equilibrium.
	producers will respond to the higher price and there, will offer fewer units for sale.
	consumers will purchase less of the good after the price ceiling is imposed.
	neither producers nor consumers will change their behavior.

If the minimum wage is a binding price floor, then:

Question 11 options:

	the number of workers who want to work will be greater than the number of jobs available.
	the equilibrium wage will increase.
	there will be a job for everyone who wants to work.
	business owners will hire more workers.

Which of the following will decrease the equilibrium price (P*) and increase the equilibrium quantity (Q*) in the cotton market?

Question 12 options:

	People's preferences for synthetic (as opposed to natural) fibers increase.
	Cotton workers receive a sizeable wage increase.
	Eli Whitney invents the cotton gin. This allows for the more efficient production of usable cotton.
	The boll weevil infects the cotton crop, damaging much of the potential harvest.

In much of the country, homeowners choose to heat their homes with either natural gas or home heating oil. Which of the following would cause a change in the demand for natural gas?

Question 13 options:

	a change in the price of home heating oil
	a change in income
	an increase in consumer tastes for natural gas as an energy source
	all of the above

Which of the following is not a current macroeconomic policy goal?

Question 14 options:

	unemployment no greater than the natural rate
	stable inflation with a target rate of approximately 2%
	positive economic growth
	labor force participation > 60%

Which of the following transactions would not be included in this year's GDP?

Question 15 options:

	your purchase of your neighbor's Subaru
	the purchase of paint from Home Depot
	the hiring of a police officer
	the purchase of a new computer
	the production of a television show

If policy-makers want to increase real GDP by $100 million, and the marginal propensity to consume is 0.75, they should ________ government purchases of goods and services by _______.

Question 16 options:

	increase; $25 million
	increase; $75 million
	increase; $100 million
	decrease; $100 million
	decrease; $133 million

Brad is not currently employed. He would like to work but hasn't been looking for a job due to his poor prospects of finding work. Brad is:

Question 17 options:

	in the labor force, but unemployed.
	not in the labor force.
	a discouraged worker.
	both "b" and "c".
	none of the above.

An example of cyclical unemployment, is a(n):

Question 18 options:

	ski instructor who gives up looking for work at the Colorado ski resorts that closed early this season due to COVID-19.
	autoworker who is temporarily laid off because of a decline in sales due to a recession.
	worker at a fast-food restaurant who quits work and attends college.
	real estate agent who leaves a job in Texas and searches for a similar, high-paying job in Colorado.
	geologist who is permanently laid off from an oil company due to a technological advancement.

An economist estimates that for every one percent that the actual unemployment rate deviates from the natural rate, real GDP is affected inversely. Using Okun's Law, what you know about the natural unemployment rate goal, and an unemployment rate that was almost as high as 20 percent (in April, 2020), determine the percentage change in real GDP as a result of the COVID-19 pandemic.

Question 19 options:

	14.5 percent increase in real GDP
	20 percent increase in real GDP
	29 percent decrease in real GDP
	40 percent decrease in real GDP
	none of the above

Use the table below. Assume than an economy produces only lemonade and cookies. If 2018 is the base year, the growth rate of real GDP from 2018 to 2019 is:

Lemonade Cookies

2018 200 glasses 100 cookies

$1/glass $2/cookie

2019 220 glasses 100 cookies

$1/glass $2.25/cookie

Question 20 options:

	negative 4.7%.
	5%.
	11.25%.
	20%.
	none of the above.

According to the Classical economic theory:

Question 41 options:

a)	flexible wages and prices are the principle causes of recessions.

b)	government policies and spending are needed to keep the economy at full-employment.

c)	the Great Depression confirmed their view of the business cycle.

d)	price, wage, and interest rate flexibility can likely cure any tendencies for a recession.

e)	the crowding-in effect will eliminate recessionary gaps.

What are the sources of long-run economic growth?

Question 42 options:

a)	increases in physical capital

b)	technological progress

c)	increases in human capital

d)	education and training

e)	maintaining a healthy society

f)	both "a" and "b"

g)	all of the above

h)	none of the above