812426
Description
Flashcards by casedlynch, updated more than 1 year ago
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Created by casedlynch
almost 11 years ago
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| Question | Answer |
| There is a trade-off between the amount of consumption that people can enjoy today and the amount of consumption that they can enjoy in the future because | to increase consumption in the future households must save, thus providing funds for investment. |
| Typically, a higher saving rate is associated with | higher investment rates and higher rates of growth. |
| Banks and other institutions | help allocate resources to the most productive investments. |
| Investment as defined by economists differs from investment as defined by the general public in that | economic investment refers to the purchase of machinery, whereas financial investment refers to the purchase of financial assets. |
| economic investment | purchase of machinery |
| financial investment | purchase of financial assets |
| running shoes (intermediate or final) | final goods |
| cotton fibers (intermediate or final) | intermediate |
| Watches (intermediate or final) | final |
| textbooks (intermediate or final) | final good |
| coal (intermediate or final) | intermediate |
| sunscreen lotion (intermediate or final) | (intermediate or final) |
| lumber (intermediate or final) | intermediate |
| Economic output is equal to economic income because | the value of everything that is produced is also the value of everything sold. |
| are clothes consumer durable goods? | no |
| a table. durable or nondurable? | durable |
| Changes in inventories are included as part of investment spending because anything produced by a business that has | not been sold during the accounting period is something in which the business has invested. |
| Net exports are a country's exports of goods | and services less its imports of goods and services. |
| Nominal GDP is | the market or money value of all final goods and services produced by the economy in a given year, whereas real GDP is adjusted for inflation. |
| The GDP price index is | a measure of the price of a specified collection of goods and services compared to the price of a highly similar collection of goods and services in a reference year. |
| Personal consumption expenditures | add up the final price of the intermediates or the final price at which it is sold |
| a. Technological advance, which to date has played a relatively small role in U.S. economic growth, is destined to play a more important role in the future. t or f | false |
| Many public capital goods are complementary to private capital goods t or f | True |
| c. Immigration has slowed economic growth in the United States. t or f | false |
| The benefits of economic growth, particularly as measured by real GDP per capita, include | higher living standards for the vast majority of people. |
| Real GDP per capita of the United States is | ten times greater than that in China |
| What does this completed table say about the ability to grow a country's per capita income by simply increasing labor and capital? | Increases to K and L can steadily increase output, but even when both double output per capita does not change. |
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