Question 1

The process by which an economic variable is adjusted to remove the effects of changes predicted to occur at the time of year is known as

Accepted Answer

A)  structural change 
B)  real change 
C)  macroeconomic adjustment 
D)  unemployment adjustment 
E)  seasonal adjustment. 
A)  structural change 
B)  real change 
C)  macroeconomic adjustment 
D)  unemployment adjustment 
E)  seasonal adjustment.

Question 2

Suppose there is a large number of jobs available for computer workers in California,but many such workers live in Texas,New York,and Illinois.This kind of mismatch is an example of

Accepted Answer

A)  regional unemployment 
B)  structural unemployment 
C)  seasonal unemployment 
D)  frictional unemployment 
E)  cyclical unemployment 
A)  regional unemployment 
B)  structural unemployment 
C)  seasonal unemployment 
D)  frictional unemployment 
E)  cyclical unemployment

Question 3

Inventories - goods produced but not sold - are included in GDP because we want to measure total production,not just what is purchased

Accepted Answer

A) True 
 B)False

Question 4

Suppose an economy has 90,000 employed persons and 10,000 unemployed persons,the unemployment rate is

Accepted Answer

A)  11.1% 
B)  10.0% 
C)  5.6% 
D)  12.5% 
E)  9.1% 
A)  11.1% 
B)  10.0% 
C)  5.6% 
D)  12.5% 
E)  9.1%

Question 5

Government re-training programs,such as those that train workers who have lost their jobs due to outdated skills,would best fight the problem of

Accepted Answer

A)  frictional unemployment 
B)  cyclical unemployment 
C)  structural unemployment 
D)  underemployment 
E)  seasonal unemployment 
A)  frictional unemployment 
B)  cyclical unemployment 
C)  structural unemployment 
D)  underemployment 
E)  seasonal unemployment

Question 6

Newly constructed homes are classified as

Accepted Answer

A)  private consumption 
B)  housing services 
C)  housing supply 
D)  investment 
E)  construction. 
A)  private consumption 
B)  housing services 
C)  housing supply 
D)  investment 
E)  construction.

Question 7

Which of the following would most likely cause measured GDP to overstate the actual output produced in a year?

Accepted Answer

A)  Increased production in the underground economy 
B)  A decline in the quality of goods and services produced 
C)  Increased production for home use (non-market production) 
D)  A decline in population 
E)  Increased purchases of market produced services 
A)  Increased production in the underground economy 
B)  A decline in the quality of goods and services produced 
C)  Increased production for home use (non-market production) 
D)  A decline in population 
E)  Increased purchases of market produced services

Question 8

Unemployment that has an entirely macroeconomic cause is called

Accepted Answer

A)  frictional unemployment 
B)  seasonal unemployment 
C)  structural unemployment 
D)  cyclical unemployment 
E)  short-term unemployment 
A)  frictional unemployment 
B)  seasonal unemployment 
C)  structural unemployment 
D)  cyclical unemployment 
E)  short-term unemployment

Question 9

Seasonal unemployment

Accepted Answer

A)  is short-term joblessness experienced by those entering the labor market for the first time 
B)  arises from a mismatch between available jobs and workers' skills or geographic location 
C)  is joblessness affecting people such as construction workers,farm workers and retail sales clerks after the Christmas shopping season 
D)  is joblessness resulting from business cycle movements 
E)  does not exist when the economy is at full employment 
A)  is short-term joblessness experienced by those entering the labor market for the first time 
B)  arises from a mismatch between available jobs and workers' skills or geographic location 
C)  is joblessness affecting people such as construction workers,farm workers and retail sales clerks after the Christmas shopping season 
D)  is joblessness resulting from business cycle movements 
E)  does not exist when the economy is at full employment

Question 10

Inventory changes (that is,goods produced but not sold)are important in calculating GDP because

Accepted Answer

A)  they are the least volatile component of investment 
B)  these changes mean the economy has extra goods available for purchase 
C)  they are an example of transfer payments 
D)  GDP includes all possible sources for goods and services 
E)  we want to measure all current production when computing GDP 
A)  they are the least volatile component of investment 
B)  these changes mean the economy has extra goods available for purchase 
C)  they are an example of transfer payments 
D)  GDP includes all possible sources for goods and services 
E)  we want to measure all current production when computing GDP

Question 11

Which of the following is the best example of an intermediate good?

Accepted Answer

A)  military uniforms purchased by the government 
B)  flour purchased by a bakery for the production of bread 
C)  a new computer purchased by a software developer 
D)  screwdrivers purchased by a homeowner for home repairs 
E)  aprons purchased by restaurant chefs 
A)  military uniforms purchased by the government 
B)  flour purchased by a bakery for the production of bread 
C)  a new computer purchased by a software developer 
D)  screwdrivers purchased by a homeowner for home repairs 
E)  aprons purchased by restaurant chefs

Question 12

The Bureau of Economic Analysis estimates the size of the underground economy but many economists believe that the estimates are too low.

Accepted Answer

A) True 
 B)False

Question 13

Assume that the U.S.population is 300 million.If 70 million individuals are legally classified as unable to work (or are less than 16 years of age),80 million are classified as unwilling to work,and 14 million are unemployed,what is the unemployment rate?

Accepted Answer

A)  10.3 percent 
B)  6.4 percent 
C)  4.7 percent 
D)  9.3 percent 
E)  6.7 percent 
A)  10.3 percent 
B)  6.4 percent 
C)  4.7 percent 
D)  9.3 percent 
E)  6.7 percent

Question 14

Economists generally conclude that because GDP rose as a result of the response to the 2005 Hurricanes,they were really a good thing.

Accepted Answer

A) True 
 B)False

Question 15

The chief economic cost of unemployment is

Accepted Answer

A)  the value of the leisure that is lost when people are unemployed 
B)  the cost to employed citizens of paying unemployment benefits 
C)  money spent on the job search process 
D)  the chance that the unemployed might turn to crime to support themselves 
E)  the value of output that could have been produced,but is not 
A)  the value of the leisure that is lost when people are unemployed 
B)  the cost to employed citizens of paying unemployment benefits 
C)  money spent on the job search process 
D)  the chance that the unemployed might turn to crime to support themselves 
E)  the value of output that could have been produced,but is not

Question 16

Structural unemployment

Accepted Answer

A)  arises from a mismatch between available jobs and workers' skills or geographic location 
B)  is short-term joblessness experienced by those re-entering the labor force after a long absence 
C)  occurs because of changes in seasons,tourist patterns,and similar factors 
D)  does not occur when the economy is at full employment 
E)  is joblessness resulting from business cycle movements 
A)  arises from a mismatch between available jobs and workers' skills or geographic location 
B)  is short-term joblessness experienced by those re-entering the labor force after a long absence 
C)  occurs because of changes in seasons,tourist patterns,and similar factors 
D)  does not occur when the economy is at full employment 
E)  is joblessness resulting from business cycle movements

Question 17

Which of the following would be counted in U.S.GDP?

Accepted Answer

A)  A new U.S.-produced radio bought by a Japanese citizen living in Kyoto 
B)  A used U.S.-produced computer bought by a French citizen living in Kansas 
C)  A new Japanese radio bought by a U.S.citizen in Rhode Island 
D)  A U.S.pianist's concert sales in Britain 
E)  Stock in Microsoft Corporation bought by a Russian citizen 
A)  A new U.S.-produced radio bought by a Japanese citizen living in Kyoto 
B)  A used U.S.-produced computer bought by a French citizen living in Kansas 
C)  A new Japanese radio bought by a U.S.citizen in Rhode Island 
D)  A U.S.pianist's concert sales in Britain 
E)  Stock in Microsoft Corporation bought by a Russian citizen

Question 18

The income and expenditure approaches to calculating GDP will produce the same result because for every dollars worth of output that is produced a dollars worth of income will be generated as income for the owners of the factors of production used to produce the output.

Accepted Answer

A) True 
 B)False

Question 19

What is the difference between nominal and real GDP?

Accepted Answer

A)  Nominal GDP is adjusted for changes in the price level;real GDP is not. 
B)  Real GDP is adjusted for taxes and transfer payments;nominal GDP is not. 
C)  Real GDP is adjusted for changes in the price level;nominal GDP is not. 
D)  Nominal GDP is adjusted for depreciation;real GDP is not. 
E)  Real GDP is adjusted for depreciation;nominal GDP is not. 
A)  Nominal GDP is adjusted for changes in the price level;real GDP is not. 
B)  Real GDP is adjusted for taxes and transfer payments;nominal GDP is not. 
C)  Real GDP is adjusted for changes in the price level;nominal GDP is not. 
D)  Nominal GDP is adjusted for depreciation;real GDP is not. 
E)  Real GDP is adjusted for depreciation;nominal GDP is not.

Question 20

Gross domestic product (GDP)is

Accepted Answer

A)  the total value of all goods and services produced for the marketplace during a given period,within a nation's borders 
B)  the total value of all final goods and services produced for the marketplace during a given period,by a nation's citizens and businesses,both within a nation's borders and abroad 
C)  the total value of all final goods and services produced for the marketplace during a given period,within a nation's borders 
D)  the total value of all goods and services produced for the marketplace during a given period,by a nation's citizens and businesses 
E)  the total value of all goods,services and inputs produced for the marketplace during a given period,within a nation's borders 
A)  the total value of all goods and services produced for the marketplace during a given period,within a nation's borders 
B)  the total value of all final goods and services produced for the marketplace during a given period,by a nation's citizens and businesses,both within a nation's borders and abroad 
C)  the total value of all final goods and services produced for the marketplace during a given period,within a nation's borders 
D)  the total value of all goods and services produced for the marketplace during a given period,by a nation's citizens and businesses 
E)  the total value of all goods,services and inputs produced for the marketplace during a given period,within a nation's borders

The process by which an economic variable is adjusted to remove the effects of changes predicted to occur at the time of year is known as

Suppose there is a large number of jobs available for computer workers in California,but many such workers live in Texas,New York,and Illinois.This kind of mismatch is an example of

Inventories - goods produced but not sold - are included in GDP because we want to measure total production,not just what is purchased

Suppose an economy has 90,000 employed persons and 10,000 unemployed persons,the unemployment rate is

Government re-training programs,such as those that train workers who have lost their jobs due to outdated skills,would best fight the problem of

Newly constructed homes are classified as

Which of the following would most likely cause measured GDP to overstate the actual output produced in a year?

Unemployment that has an entirely macroeconomic cause is called

Seasonal unemployment

Inventory changes (that is,goods produced but not sold)are important in calculating GDP because

Which of the following is the best example of an intermediate good?

The Bureau of Economic Analysis estimates the size of the underground economy but many economists believe that the estimates are too low.

Assume that the U.S.population is 300 million.If 70 million individuals are legally classified as unable to work (or are less than 16 years of age),80 million are classified as unwilling to work,and 14 million are unemployed,what is the unemployment rate?

Economists generally conclude that because GDP rose as a result of the response to the 2005 Hurricanes,they were really a good thing.

The chief economic cost of unemployment is

Structural unemployment

Which of the following would be counted in U.S.GDP?

The income and expenditure approaches to calculating GDP will produce the same result because for every dollars worth of output that is produced a dollars worth of income will be generated as income for the owners of the factors of production used to produce the output.

What is the difference between nominal and real GDP?

Gross domestic product (GDP)is

What is Economics?

Scarcity, Choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

What Macroeconomics Tries to Explain

The Price Level and Inflation

The Classical Long run Model

Economic Growth and Rising Living Standards

Economic Fluctuations

The Short-run Macro Model

Fiscal Policy

Money, Banks, and the Federal Reserve

The Money Market and Monetary Policy

Aggregate Demand and Aggregate Supply

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Filters

Exam 6: Production, Income, and Employment

The process by which an economic variable is adjusted to remove the effects of changes predicted to occur at the time of year is known as

Suppose there is a large number of jobs available for computer workers in California,but many such workers live in Texas,New York,and Illinois.This kind of mismatch is an example of

Inventories - goods produced but not sold - are included in GDP because we want to measure total production,not just what is purchased

Suppose an economy has 90,000 employed persons and 10,000 unemployed persons,the unemployment rate is

Government re-training programs,such as those that train workers who have lost their jobs due to outdated skills,would best fight the problem of

Newly constructed homes are classified as

Which of the following would most likely cause measured GDP to overstate the actual output produced in a year?

Unemployment that has an entirely macroeconomic cause is called

Seasonal unemployment

Inventory changes (that is,goods produced but not sold)are important in calculating GDP because

Which of the following is the best example of an intermediate good?

The Bureau of Economic Analysis estimates the size of the underground economy but many economists believe that the estimates are too low.

Assume that the U.S.population is 300 million.If 70 million individuals are legally classified as unable to work (or are less than 16 years of age),80 million are classified as unwilling to work,and 14 million are unemployed,what is the unemployment rate?

Economists generally conclude that because GDP rose as a result of the response to the 2005 Hurricanes,they were really a good thing.

The chief economic cost of unemployment is

Structural unemployment

Which of the following would be counted in U.S.GDP?

The income and expenditure approaches to calculating GDP will produce the same result because for every dollars worth of output that is produced a dollars worth of income will be generated as income for the owners of the factors of production used to produce the output.

What is the difference between nominal and real GDP?

Gross domestic product (GDP)is

What is Economics?

Scarcity, Choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

What Macroeconomics Tries to Explain

The Price Level and Inflation

The Classical Long run Model

Economic Growth and Rising Living Standards

Economic Fluctuations

The Short-run Macro Model

Fiscal Policy

Money, Banks, and the Federal Reserve

The Money Market and Monetary Policy

Aggregate Demand and Aggregate Supply

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Filters