Question: 1. (True) or X(False)
1. Opportunity cost is the cost for obtaining an opportunity.
2. Positive economics is an economic activity for positive results.
3. Beef and chicken are Normal Goods.
4. Peanut Butter and jelly are Complementary Goods.
5. The shifts of both Demand Curve and Supply Curve result in price increase.
6. Demand's Price Elasticity of necessities is inelastic.
7. Supply's Price Elasticity of oil is alwaysinelastic.
8. Price floor results in quantity shortage.
9. Rent control results in rental house shortage.
10. Consumption is a component of Income GDP.
11. Personal income includes tax.
12. GDP deflator and Consumer Price Index(CPI) are the same price statistics.
13. CPI and COLA are not related.
14. Unemployment rate includes workers not working in last week without searching job in last 4 weeks.
15. Discourage workers and Marginally attached workers are not included in unemployment rate.
16. The unemployed for looking for job are the structural unemployed.
17. Production function is a functional relation of GDP and its Components.
18. The labor productivity is a ratio of GDP over employed.
19. The increase in labor productivity requires the increase in GDP components.
20. Creative destruction is an element for entrepreneurship.
21. The price change is net related to unemployment..
22. The growth of per capita GDP is not related to immigration.
23. Persons of not-in-labor force are not related to employment ratio.
24. Natural unemployment rate is related to cyclical unemployment rate.
25. The spending GDP is the income GDP in its scope.
26. GDP deflator measures the price changes from the base year .
27. Efficiency wage results in labor shortage.
2. Summarize
(1) circular flow model
(2) substitutes and complements
(3) consumer surplus and producer surplus
(4) GDP's 4 methods
(5) CPI's problems
(6) Loanable funds market
(7) unemployment rate and employment ratio
(8) human capital and physical capital
(9) productivity promotion policies
(10) limits to growth
(11) demand's cross price elasticity
(12) labor force participation rate