Question 1

Regarding the number of discouraged workers,

Accepted Answer

A)  the Bureau of Labor Statistics follows rather loose criteria to classify them. 
B)  they are included in the official unemployment measure. 
C)  there is universal agreement among economists that they should be counted as unemployed 
D)  they are also known as involuntary part time workers. 
E)  no one knows for sure how many are there. 
A)  the Bureau of Labor Statistics follows rather loose criteria to classify them. 
B)  they are included in the official unemployment measure. 
C)  there is universal agreement among economists that they should be counted as unemployed 
D)  they are also known as involuntary part time workers. 
E)  no one knows for sure how many are there.

Question 2

Which of the following groups would not be considered part of the labor force?

Accepted Answer

A)  U.S.senators 
B)  Self-employed individuals 
C)  Individuals who are employed five hours (or less)per week 
D)  Individuals who have given up looking for work because they have been unable to find a job 
E)  Social Security recipients who work part time 
A)  U.S.senators 
B)  Self-employed individuals 
C)  Individuals who are employed five hours (or less)per week 
D)  Individuals who have given up looking for work because they have been unable to find a job 
E)  Social Security recipients who work part time

Question 3

To be considered employed,a person must have

Accepted Answer

A)  worked at least 1 hour during the previous week 
B)  searched at least 1 hour for a job during the previous week 
C)  worked at least 5 hours during the current week 
D)  worked at least 15 minutes during the previous month 
E)  earned at least the minimum wage for five or more hours of work per week 
A)  worked at least 1 hour during the previous week 
B)  searched at least 1 hour for a job during the previous week 
C)  worked at least 5 hours during the current week 
D)  worked at least 15 minutes during the previous month 
E)  earned at least the minimum wage for five or more hours of work per week

Question 4

Suppose that population grows by 2 percent annually.For the standard of living to rise,which of the following must occur?

Accepted Answer

A)  Nominal GDP must grow by more than 2 percent. 
B)  Real GDP must grow by more than 2 percent. 
C)  Real GDP per capita must grow by more than 2 percent. 
D)  Consumption spending must grow by more than 2 percent. 
E)  Private investment spending must grow by more than 2 percent. 
A)  Nominal GDP must grow by more than 2 percent. 
B)  Real GDP must grow by more than 2 percent. 
C)  Real GDP per capita must grow by more than 2 percent. 
D)  Consumption spending must grow by more than 2 percent. 
E)  Private investment spending must grow by more than 2 percent.

Question 5

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

Accepted Answer

A)  a new fighter jet purchased by the federal government 
B)  tires purchased by an automobile manufacturer for installation on new cars 
C)  a new saw purchased by a carpenter 
D)  screwdrivers purchased by a homeowner for home repairs 
E)  aprons purchased by restaurant chefs 
A)  a new fighter jet purchased by the federal government 
B)  tires purchased by an automobile manufacturer for installation on new cars 
C)  a new saw purchased by a carpenter 
D)  screwdrivers purchased by a homeowner for home repairs 
E)  aprons purchased by restaurant chefs

Question 6

In 2008,the nominal GDP of the United States was approximately

Accepted Answer

A)  $11.0 trillion 
B)  $14.4 trillion 
C)  $10.1 trillion 
D)  $12.0 trillion 
E)  $7.5 trillion 
A)  $11.0 trillion 
B)  $14.4 trillion 
C)  $10.1 trillion 
D)  $12.0 trillion 
E)  $7.5 trillion

Question 7

A midwestern farmer grows wheat and sells it to a miller for $500.After processing,the miller sells the flour to a baker for $800,who then sells it to a grocery store for $1,000.The grocery store sells it to customers for $1,200.In these transactions,how much has been added to GDP?

Accepted Answer

A)  $500 
B)  $800 
C)  $1,000 
D)  $1,200 
E)  $3,500 
A)  $500 
B)  $800 
C)  $1,000 
D)  $1,200 
E)  $3,500

Question 8

If a ship-building company purchases $250 million worth of steel in one year but does not use it,this is considered investment spending.

Accepted Answer

A) True 
 B)False

Question 9

In the value-added approach,GDP is the sum of revenue received by all firms in the economy.

Accepted Answer

A) True 
 B)False

Question 10

Fun Time Toys produced $60 million worth of toys in 2008.Because of a slow Christmas shopping season,only $50 million worth was sold to consumers,and the remaining $10 million worth went into inventories.Based on this information,how was GDP affected in 2008?

Accepted Answer

A)  $60 million was added to GDP;$50 million was classified as consumption spending and $10 million was classified as private investment 
B)  $60 million was added to GDP,all classified as consumption spending 
C)  $50 million was added to GDP,all classified as consumption spending 
D)  $40 million was added to GDP;$50 million was classified as consumption and -$10 million was classified as private investment 
E)  $40 million was added to GDP,all classified as consumption 
A)  $60 million was added to GDP;$50 million was classified as consumption spending and $10 million was classified as private investment 
B)  $60 million was added to GDP,all classified as consumption spending 
C)  $50 million was added to GDP,all classified as consumption spending 
D)  $40 million was added to GDP;$50 million was classified as consumption and -$10 million was classified as private investment 
E)  $40 million was added to GDP,all classified as consumption

Question 11

Private investment during a year includes

Accepted Answer

A)  the value of inventories plus the values of stocks and bonds 
B)  spending on plant and equipment,new housing construction,and changes in inventories 
C)  stocks and bonds purchased by firms 
D)  spending on plant and equipment plus government spending plus household spending on stocks and bonds 
E)  spending on plant and equipment 
A)  the value of inventories plus the values of stocks and bonds 
B)  spending on plant and equipment,new housing construction,and changes in inventories 
C)  stocks and bonds purchased by firms 
D)  spending on plant and equipment plus government spending plus household spending on stocks and bonds 
E)  spending on plant and equipment

Question 12

In 2008,net exports in the U.S.were

Accepted Answer

A)  $1,831 billion. 
B)  -$2,539 billion. 
C)  -$900 billion. 
D)  -$1,500 billion. 
E)  -$708 billion. 
A)  $1,831 billion. 
B)  -$2,539 billion. 
C)  -$900 billion. 
D)  -$1,500 billion. 
E)  -$708 billion.

Question 13

Which of the following is not included when using the expenditure approach to compute GDP?

Accepted Answer

A)  Consumer spending on goods and services 
B)  Net exports 
C)  Government purchases 
D)  Private investment 
E)  Transfer payments 
A)  Consumer spending on goods and services 
B)  Net exports 
C)  Government purchases 
D)  Private investment 
E)  Transfer payments

Question 14

Which of the following is the best example of a stock variable?

Accepted Answer

A)  U.S.GDP in 2008 
B)  The daily sales of economics textbooks 
C)  Bill Gates' annual salary from Microsoft Corporation 
D)  The total wealth of the 50 richest U.S.citizens 
E)  U.S.government purchases during 2008 
A)  U.S.GDP in 2008 
B)  The daily sales of economics textbooks 
C)  Bill Gates' annual salary from Microsoft Corporation 
D)  The total wealth of the 50 richest U.S.citizens 
E)  U.S.government purchases during 2008

Question 15

Which of the following is included in GDP?

Accepted Answer

A)  The imputed rental value of a family-owned home 
B)  The sale prices of all previously built homes 
C)  Social security payments to retirees 
D)  The salary of a U.S.scientist working in a foreign country 
E)  Purchases of stocks and bonds 
A)  The imputed rental value of a family-owned home 
B)  The sale prices of all previously built homes 
C)  Social security payments to retirees 
D)  The salary of a U.S.scientist working in a foreign country 
E)  Purchases of stocks and bonds

Question 16

What can be said about the comparison between the unemployment benefits offered in Europe and in the United States?

Accepted Answer

A)  Unemployment benefits tend to be lower in Europe and are offered for shorter periods than in the United States 
B)  Unemployment benefits tend to be higher in Europe and are offered for shorter periods than in the United States 
C)  Unemployment benefits tend to be lower in Europe and are offered for longer periods than in the United States 
D)  Unemployment benefits tend to be higher in Europe and are offered for longer periods than in the United States 
E)  Unemployment benefits in Europe and the United States tend to be of similar magnitude and are offered for similar periods. 
A)  Unemployment benefits tend to be lower in Europe and are offered for shorter periods than in the United States 
B)  Unemployment benefits tend to be higher in Europe and are offered for shorter periods than in the United States 
C)  Unemployment benefits tend to be lower in Europe and are offered for longer periods than in the United States 
D)  Unemployment benefits tend to be higher in Europe and are offered for longer periods than in the United States 
E)  Unemployment benefits in Europe and the United States tend to be of similar magnitude and are offered for similar periods.

Question 17

When a mall Santa Claus loses his job at the end of the Christmas season,this is an example of

Accepted Answer

A)  frictional unemployment 
B)  structural unemployment 
C)  seasonal unemployment 
D)  economic unemployment 
A)  frictional unemployment 
B)  structural unemployment 
C)  seasonal unemployment 
D)  economic unemployment

Question 18

Which of the following describes the relationship between net exports and imports?

Accepted Answer

A)  Net exports = imports + exports 
B)  Net exports = exports - imports 
C)  Net exports = imports - exports 
D)  Imports = net exports - exports 
E)  Imports are not related to net exports 
A)  Net exports = imports + exports 
B)  Net exports = exports - imports 
C)  Net exports = imports - exports 
D)  Imports = net exports - exports 
E)  Imports are not related to net exports

Question 19

Economists began carefully calculating GDP

Accepted Answer

A)  simply because the data was available 
B)  to determine the contribution of specific firms to the economy 
C)  as a result of the problems during the Great Depression 
D)  to make sure that firms were being productive 
E)  to gain insight into the causes of unemployment 
A)  simply because the data was available 
B)  to determine the contribution of specific firms to the economy 
C)  as a result of the problems during the Great Depression 
D)  to make sure that firms were being productive 
E)  to gain insight into the causes of unemployment

Question 20

Which of the following would be included in the consumption component of GDP?

Accepted Answer

A)  Movie ticket sales 
B)  Purchase of a new home 
C)  Purchase of used clothes 
D)  Purchase of a baseball card collection at a yard sale 
E)  Purchase of a chain saw at an auction 
A)  Movie ticket sales 
B)  Purchase of a new home 
C)  Purchase of used clothes 
D)  Purchase of a baseball card collection at a yard sale 
E)  Purchase of a chain saw at an auction

Regarding the number of discouraged workers,

Which of the following groups would not be considered part of the labor force?

To be considered employed,a person must have

Suppose that population grows by 2 percent annually.For the standard of living to rise,which of the following must occur?

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

In 2008,the nominal GDP of the United States was approximately

A midwestern farmer grows wheat and sells it to a miller for $500.After processing,the miller sells the flour to a baker for $800,who then sells it to a grocery store for $1,000.The grocery store sells it to customers for $1,200.In these transactions,how much has been added to GDP?

If a ship-building company purchases $250 million worth of steel in one year but does not use it,this is considered investment spending.

In the value-added approach,GDP is the sum of revenue received by all firms in the economy.

Fun Time Toys produced $60 million worth of toys in 2008.Because of a slow Christmas shopping season,only $50 million worth was sold to consumers,and the remaining $10 million worth went into inventories.Based on this information,how was GDP affected in 2008?

Private investment during a year includes

In 2008,net exports in the U.S.were

Which of the following is not included when using the expenditure approach to compute GDP?

Which of the following is the best example of a stock variable?

Which of the following is included in GDP?

What can be said about the comparison between the unemployment benefits offered in Europe and in the United States?

When a mall Santa Claus loses his job at the end of the Christmas season,this is an example of

Which of the following describes the relationship between net exports and imports?

Economists began carefully calculating GDP

Which of the following would be included in the consumption component of GDP?

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

Regarding the number of discouraged workers,

Which of the following groups would not be considered part of the labor force?

To be considered employed,a person must have

Suppose that population grows by 2 percent annually.For the standard of living to rise,which of the following must occur?

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

In 2008,the nominal GDP of the United States was approximately

A midwestern farmer grows wheat and sells it to a miller for $500.After processing,the miller sells the flour to a baker for $800,who then sells it to a grocery store for $1,000.The grocery store sells it to customers for $1,200.In these transactions,how much has been added to GDP?

If a ship-building company purchases $250 million worth of steel in one year but does not use it,this is considered investment spending.

In the value-added approach,GDP is the sum of revenue received by all firms in the economy.

Fun Time Toys produced $60 million worth of toys in 2008.Because of a slow Christmas shopping season,only $50 million worth was sold to consumers,and the remaining $10 million worth went into inventories.Based on this information,how was GDP affected in 2008?

Private investment during a year includes

In 2008,net exports in the U.S.were

Which of the following is not included when using the expenditure approach to compute GDP?

Which of the following is the best example of a stock variable?

Which of the following is included in GDP?

What can be said about the comparison between the unemployment benefits offered in Europe and in the United States?

When a mall Santa Claus loses his job at the end of the Christmas season,this is an example of

Which of the following describes the relationship between net exports and imports?

Economists began carefully calculating GDP

Which of the following would be included in the consumption component of GDP?

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