Ap Macro

A wage offered by an employer that exceeds the equilibrium wage rate as an incentive for greater work effort and performance is known as the

Efficiency wage

An economy's gross domestic product is made up of

Consumption, investment, Government spending and net exports

In a group of 10 people, there are three retirees, two part time workers, two discourage workers, one unemployed worker, and two full-time workers. What is the labor force participation rate?

50%

Jim has a part-time job and would prefer to have a full-time job, but has been unable to find full-time work. Jim's Labor market status is classified as:

And underemployed worker

Structural unemployment consists of people Who are unemployed due to

More people seeking jobs in the labor market then there are jobs available at the current wages rate

Investment spending represent spending on

Productive physical capital

Included as an addition to GDP would be

The dollar value of a new car exported during the period

Employment in the labor force is defined as

The total number of persons actively working

Gross domestic product or GDP is

The total value of final goods and services produced in the economy during a given time period

Structural unemployment occurs when

There is a surplus of labor at the current wages rate

Unemployment rates tend to decrease when

There is an expansion in the economy

The natural rate of unemployment is achieved when

There is no cyclical unemployment

Consider a government that only produces two goods; DVDs and DVD players. Last year 10 DVDs were sold at $20 each and 5 DVD players were sold at $100 each, while this year 15 dvds were sold at $10 each and 10 DVD players were sold at $50 each. Real GDP this year using last year as a base year is

$1,300

The Boeing Corporation buys $3 million worth of steel from the steel manufacturers, $2.5 million worth of computerized hardware and software, and $1 million worth of mechanical tools to manufacture a certain type of aircraft. The Boeing Corporation sells this particular model of aircraft for $10 million. The value- Added by Boeing is equal to

$3.5 million

If the rate of unemployment is 10%, and the labor force is 130 million, The number of unemployed workers is:

13 million

If a country has a working age population if 200 million, 135 people with jobs, and 15 million people unemplyed and seeking employment, then itd labor force is

150 million

If the labor force is 100 million and 5 million are unemployed but actively seeking work, then the unemployment rate is;

5%

A laptop computer purchased by A private individual is considered to be

Consumption spending

Do you natural level of employment occurs if there is no

Cyclical unemployment

Unemployment that is due to the time workers spend in job search is considered

Frictional unemployment

Which of the following represents an outflow of funds from a domestic economy

Imports

Shoe leather costs refer to the

Increased costs of transaction due to inflation

When inflation rises quickly

Lenders will be hurt and borrowers will benefit

You are a college student who is not working or looking for work. you are:

Not counted as part of the labor force

To be classified as unemployed, a worker must

Not have a job and must be actively searching for work

To be classified as unemployed a person must be

Not working and actively seeking a job in the last four weeks

An example of investment spending would be

Purchase of a new productive machine

If a worker becomes unemployed due to an increase in the minimum wage, that worker is

Structurally unemployed

In the circular flow diagram government spending of goods and services are financed by

Tax revenues net of transfer payments