Part I Matching __1. Production Possibilities Frontier __2. Opportunity Cost __3. Equilibrium Price and Quantity __4. Circular Flow __5. Net Taxes __6. Leakages __7. Injections __8. Law of Diminishing Marginal Returns __9. Full Employment __10. Economic Growth __11. Economic Development __12. Real Flow __13. Structural Unemployment __14. Cyclical Unemployment __15. Frictional Unemployment __16. Underemployment __17. Change in Demand/Supply __18. Disinflation __19. Stagflation __20. Invisible Hand __21. Laissez Faire __22. Economic Role of Government __23. Economic Functions of Government __24. Real GDP __25. Nominal GDP __26. Change in Quantity Demanded/Supplied Answers to Matching I A. exemplified by conditions from the middle seventies, it denotes a period of high inflation simultaneous with a recession. B. alleges that continued investment produces reduced returns. C. Total Taxes less Transfer Payments D. plots the opportunity cost of production decisions. E. amounts to approximately five percent and is equal to full employment in theory. F. a period of lower inflation than previously experienced. G. such factors which create disequilibrium in the circular flow model as imports, net taxes, and savings. H. such factors which create disequilibrium in the circular flow model as exports, investments, and government expenditures. I. supposed to be about 5 % unemployment, it represents primarily fricitonal unemployment. J. Adam Smith's term for market forces. K. that portion of idled workforce attributable to a contraction in the business cycle. L. value of the goods and services produced in an economy after adjustment for inflation. M. additional output at existing technological levels. N. stable economic growth, regulation of markets, redistribution of wealth. O. attributable to a change in price effecting demand and causing movement along the curve. P. attributable to a change in taste of consumers causing movement of the curve. Q. taxing, spending, regulation. R. economic activity which results out of technological advance. S. the dollar figure of the value of goods and services produced by an economy. T. Adam Smith is usually associated with this term meaning that the government should be as little involved in the economy as possible. U. results from a mismatch of skills necessary for employment and those of potential workers. V. what must be foregone or given up to produce something else. W. the point toward which market forces are driving the economy, and appears on the supply and demand graph as the point of intersection of the supply and demand curves. X. model which attempts to graphically display the major forces of the economy. Y. occurs with persons engaged in employment for which the skills they have exceed the needs. Z. on the circular flow model, this is represented by the designated arrows of the factors of production and the goods and services consumed. NOTE: This is the actual Mid-Term Exam for this course, Macroeconomics. If you copy it or not, you can take it as you are doing the work. You will receive a 'hard copy' of it on Feb 12, but this is it, and you can begin working on it now as you do the work for the course. In either event, it will be done outside of class and be due by Thursday, Feb 19. Good Luck!! Click Here to Go to Part II of Mid-Term
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