MACROECONONICS MID-TERM EXAM/R.ZIEGLER/WINTER 1999/DCB-WARREN
Part I Matching
__1. Production Possibilities Frontier
__2. Opportunity Cost
__3. Equilibrium Price and Quantity
__4. Circular Flow
__5. Net Taxes
__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
__17. Change in Demand/Supply
__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
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!!
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