By \"Trade-Offs\", economists mean: a. The goods and services countries must off

Question

By "Trade-Offs", economists mean: a. The goods and services countries must offer to other countries each year b. Sacrifices that must be made to allow for defense spending c. The resources, goods, services and time that must be given up in exchange for another combination of resources, goods, services and time d. The terms of trade that countries face when exporting and importing e. Sales of government surplus equipment at the end of a year 34. By "Opportunity Costs", economists mean: a. The cost of sacrificing present resources b. The costs incurred by an entrepreneur taking advantage of a grant by the government c. The hidden costs of sunk capital d. The price to enter an exhibition with limited access e. The value of the best alternative that is given up in exchange for another alternative Which of the following are NOT counted in GDP or as factors of production in a given year a. New graduates entering the workforce in a given year b. Land reclaimed from marshland offered for sale c. Patents for innovation in a given year d. Intermediate goods, that is. goods/services bought by suppliers as inputs to final good/services e. Machinery to make robots In the equation GDP = C + I + (G-T) + (X-M), what does I stand for, in any given year? a. All expenditure on machinery and inventories b. Expenditure on net new equipment, construction, rolling stock, software net of depreciation, plus net inventory increases (or decreases) c. The sum total of all stocks traded on the New York Stock Exchange and all other Exchanges d. The value of assets of all corporations and individual combined e. The money spent on replacing worn-out or out-of-date equipment and buildings Depreciation in National Income Accounting means: a. The value by which unsold goods and services has fallen in a given year b. The decline in the value of stocks and bonds in a recession or stock market decline c. The amount of money to be set aside to replace equipment, buildings, and other capital items used in production used to produce GDP or that have become obsolete or worn out d. The amount by which GDP must be adjusted to account for a decline in the dollar e. An allowance for military emergencies Which best describes the difference between Capitalism and Socialism?: a. In Capitalism, the means of production, distribution and information are mostly in the hands of private owners and private companies, and prices mostly determined by uncontrolled markets, whereas in Socialism, these items are mostly owned by the State, which also sets most prices b. In Capitalism, man exploits man; in Socialism, it's exactly the reverse c. In Capitalism, everyone owns a piece of every company: in Socialism, the State owns everything d. In Capitalism, you have to be rich to succeed; in Socialism you have to be clever to succeed e. In Capitalism, the Government does what business asks it to do; in socialism, it's the reverse. By "Positive Economics", economists mean that: a. Economic analysis always looks for an optimistic outcome b. Economic analysis is involved in giving an account of how the economy really works c. Economic analysis only counts the advances in an economy, not the setbacks d. Economists are sure of their analyses e. Economic analysis looks to the future By "Normative Economics", economists mean that: a. They emphasize normal conditions as an ideal to attain b. They emphasize historical patterns as an ideal to attain c. They focus their work on policies that lead to a set of desired outcomes d. They use philosophy as a guideline to their analyses e. Normative economics is the opposite of positive economics A movement along a Demand Curve for a given good is caused only by: a. A change in technology b. A change in tastes for that good c. A change in taxes d. A change in the weather e. A change in the price of that good Which of the following do NOT cause a shift in a Demand Curve for a given good?: a. A change in income b. A change in tastes for that good c. A change in taxes d. A change in the weather e. A change in the price of that good A movement along a Supply curve for a given good is caused only by: a. A change in technology b. A change in imports of competitive products c. A change in subsidies d. A change in the weather e. A change in the price of that good

Explanation / Answer

(33) (c)

The cost of such trade-off is known as opportunity cost.

(34) (c)

(35) (d)

GDP measures only the value of inal goods and services produced. Including Intermediate goods will lead to double counting.

(36) (a)

I stands for gross private domestic investment, which does not cover depreciation.

(37) (c)

(38) (a)

(39) (b)

It is concerned with questions like "What is" and "How it is."

(40) (c)

It is concerned with question like "What it should be."

(41) (e)

Change in any other factors causes a shift in demand curve.

(42) (e)

(43) (e)

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