What are the three statistics that economists use to gauge the health of an economy?

Question 1 options:

A.Real GDP per capita, inflation rate, unemployment rate

B.Real GDP, inflation rate, unemployment rate

C.Real GDP per capita, inflation rate, unemployment rate

D.Nominal GDP, Real GDP, GDP per capita

Question 2(1 point)

Which of the following definitions is NOT correct?

Question 2 options:

A.Unemployment rate is the rate of those able to work, seeking work and unable to find a job

B.Real GDP is the aggregate output of an economy in dollar value of the final goods and services produced in the physical borders of a country during a period of time

C.Inflation is the increase in prices

D.Real GDP per capita is Real GDP divided by the population of a country

Question 3(1 point)

The following are questions that macroeconomists strive to answer but one of them do not belong. Circle the imposter.

Question 3 options:

A.Why do some households prefer certain goods while other households buy other goods?

B.How can we fix/prevent fluctuations in the business cycle?

C.Why are some countries rich while some countries stay poor?

D.Why do some countries have an increasing standard of living while other countries continue to stay stagnant?

Question4(1 point)

What is the heart/core of economic growth?

Question 4 options:

A.Supply and demand

B.Negative externalities

C.Savings and investment

D.Shocks and sticky prices

Question 5(1 point)

What are the main causes of short-term fluctuations in the business cycle?

Question 5 options:

A.Supply and demand

B.Consumer surplus

C.Shocks and sticky prices

D.Savings and investment

Question 6(1 point)

Please give me an example of a personal shock from your own experience.

Question 7(1 point)

Determine if the following example belongs in the GDP and if so, which approach and category.

A private firm builds a research facility to develop new alternatives for fossil fuels.

Question 7 options:

A.No

B.Yes, under Income approach, in Profit

C.Yes, under Expenditures approach, in Investments

D.Yes, under Expenditures approach, in Consumption

Question 8(1 point)

Determine if the following example belongs in the GDP and if so, which approach and category.

You buy Snapchat stocks because the market is down.

Question 8 options:

A.Yes, Expenditures approach, in Consumption

B.No

C.Yes Income approach, in Taxes

D.Yes, Expenditures approach, in Income

Question 9(1 point)

Determine if the following example belongs in the GDP and if so, which approach and category.

Your grandma buys a brand-new Tesla from the car dealership.

Question 9 options:

A.No

B.Yes, Income, in Profits

C.Yes, Expenditures, in Investment

D.Yes, Expenditures, in Consumption

Question 10(1 point)

Determine if the following example belongs in the GDP and if so, which approach and category.

A landlord collects rent from an apartment building.

Question 10 options:

A.Yes, Income, in Rent

B.Yes, Expenditures, Net Exports

C.Yes, Expenditures, in Investment

D.No

Question 11(1 point)

When adjusting Nominal GDP to Real GDP, what is the Price Index for the base year, always?

Question 11 options:

A.0

B.Not enough information

C.100

D.10

Question 12(1 point)

Why do we need to adjust the Nominal GDP to Real GDP?

Question 12 options:

A.There is no need to adjust Nominal GDP

B.To correct for the appropriate national currency

C.To account for inflation

D.To make life harder

Question 13(1 point)

When referring to the GDP, what is the statistical discrepancy?

Question 13 options:

A.A figure added to account for the income of those that do not live in the borders of the country

B.A figure added to the expenditures side of real GDP

C.A figure added to the expenditures side to take out imports from exports

D.A figure added to the income side of GDP for it to equal the expenditures side of GDP

Question 14(3 points)

We know the GDP has some shortcomings where it doesn't capture the whole pictures of a nation. There are SEVEN that the book mentions. Name ONE of the shortcomings that you think SHOULD be considered when we look at how a country is doing. Be sure to DEFINE it and explain WHY you think it should be included.

Question 15(1 point)

What is another measure you think we should use? Be sure to tie in how your measure would be able to reflect on how well a nation is doing.

For example: I think the wage gap of women and men should be examined because typically countries that have a smaller gap tend to do better than those with a large wage gap. It also indicates that there is less gender discrimination which is a sign of a growing economy.

Question 16(1 point)

Per our book and lecture, economic growth is defined by:

Question 16 options:

A.The business cycle

B.Increase in inflation rate

C.An increase in Real GDP or an increase in Real GDP per Capita over time

D.The economy growing

Question 17(1 point)

When comparing living standards, which statistic do we use?

Question 17 options:

A.Real GDP

B.Unemployment rate

C.Nominal GDP

D.Real GDP per capita

Question 18(1 point)

Why is possible for countries with a lower living standard to potentially grow faster than countries with an already high living standard?

Question 18 options:

A.It is not possible.

B.Countries with a high living standard are bound to decrease their level of living eventually

C.Countries with a lower living standard are more likely to receive international funding.

D.Countries with a lower living standard only need to adopt existing technology whereas the countries with high living standards need to continue to invent more

Question 19(2 points)

There are several institutional structures that promotes economic growth (efficient financial institutions, patents and property rights, free trade, widespread education, etc.). Pick one and explain how it promotes economic growth in a nation.(Hint: Remember what is at the heart/core of economic growth and tie those two concepts together)

Question 20(1 point)

What is the most recent invention/technological development that allowed us to be at our current living standard?

Question 20 options:

A.Steam engine

B.Automobile

C.Microchip

D.Electricity

Question 21(1 point)

What do you think is the next frontier or invention that will take us to the next level of living standard and why?

Question 22(2 points)

Some people believe economic growth should be a goal (because of cultural, social, political impacts, etc.) while other are against economic growth (because they feel it isn't sustainable, environmental impacts, etc.) Are you for or against economic growth? A mixture of both? Using the reasons we have discussed, please explain and support your argument.