economics 2
in calculation of national income, dividends paid to stockholders are part of?
corporate profits
increasing imports spending is?
lower GDP
in many large retail stores, price markdowns are now determined by the computer. the middle managers who used to make these decisions personally became ____ unemployed?
structurally
disposable income is?
that portion of personal income that can be used for consumption and saving
the base year is the year?
that serves as a reference point or benchmark.
consumption expenditures in the us count for?
70%
which of the following items is a final good?
a sweater purchased by someone in a store
which of the following is counted in the GDP?
government transfer payments
a _______ is a person who was previously employed, hasn't worked for some time and is currently reentering the labor force?
reentrant
the unemployment due to changes in the types of skills required is called ______ unemployment?
structural
what illustrates double counting?
the market value of steel used to produce a car and the total market value of the car.
suppose that 1983 is the base year for the CPI and in 2015 the CPI was 226. what does this "226" mean?
what cost $100 in 1983 on average cost $126 more in 2015.
unemployment that arises as a result of the the time it takes for unemployed people to locate a job utilizing their transferable skills is called ________ unemployment?
frictional
an example of income received but not earned is?
gov transfer payments
"full employment" is said to exist when the unemployment rate equals?
the natural unemployment rate
is it possible for the economy to be at full employment and still have some people unemployed?
yes, since full employment exists if the economy is operating at the natural unemployment rate and there is always some natural unemployment.
total market value is?
dollar value at current prices
the value of the CPI is always?
100
the business cycle last approximately?
4 to 5
in the us the largest $ figure?
GDP
the civilian non-institutional population can be broken down into 2 groups?
a person not in the labor force and persons in the labor force.
if a person worked unpaid for 15 hours in a restaurant owned by their family, how is she classified?
an employed person.
in order to be classified as unemployed, a person must be not working and?
and currently be available for work, regardless of weather one is actively looking for a job or not.
which of the following would not be included in the measurement of GDP?
commissions of a stockbroker, the increased value of shares of stock
the cyclical unemployment rate is defined as the ______ unemployment rates?
difference between the existing (actual) and the natural
net exports equals?
exports minus imports
gov purchases consist of the total dollar amounts spent on goods and services by the?
federal, state, and local gov
GDP is the total market value of all?
final goods and services produced annually within the country's borders.
real GDP is
in that year's prices
the unemployment rate equal?
number of unemployed persons divided by the civilian labor force.
which of the following would definitely not be included in the GDP?
value of the services of a person who mows his or her own lawn.
depreciation is?
wear and tear of goods
what is the natural unemployment rate today?
4.9%
what is the natural unemployment goal?
5%
which of the following statements are true?
a,b, and c base year prices are necessarily higher that current year prices the CPI is always 100
if a person did any work as a paid employee during the bureau of labor statistics survey reference week, how is she classified?
as an employed person and part of the labor force.
of a person is waiting to be called back to a job from which she has been laid off, how is she classified?
as an unemployed person.
the civilian non-institutional population consists of everyone in the population who is?
at least 16,not in the armed forces, not institutionalized. b,c,d
to macro-economists, investments is mainly the purchases of goods and services?
by buisnesses
the largest component of national income in the us?
compensation of employees
national income equals?
compensation of employees + proprietors income + corporate profits + rental income + net interest
in the us the largest expenditure component in GDP is
consumption expenditures
the expenditure approach to measuring GDP sums?
consumption, investment, government, gov purchases, net exports
the 2 ways of measuring GDP are?
expenditure and income approach
of all the categories of unemployment, most unemployed persons fall into the category of?
job loser
a person who is retired or engaged in own-home housework is considered to be?
not in the labor force.
what is the business cycle?
peak,contraction,trough,recovery,expansion
1 measure of the inflation rate?
percentage change in the CPI of adjacent year.
macro-economists define consumption as?
purchases by the household sector.
underground activities are not counted in GDP becuase
there are no written records of underground activities
the best reason why economists use final goods to calculate the GDP is?
to avoid double counting.