Macro practice test 1

The expenditure to measuring GDP is done by using data on only

Consumption expenditure, Investment, Government expenditure on goods and services, and Net exports of goods and services

Which is true regarding cyclical unemployment

Cyclical unemployment is zero at full employment

If aluminum producers expect aluminum prices to fall in the future, this belief shifts the current __________ curve for aluminum to the ______

Demand, left

The total production within an economy is measured as

Gross Domestic Product (GDP)

Milk can be used to produce cheese or butter. If the price of a pound of butter rises, what happens to the supply of cheese?

Supply of cheese decreases

suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound. In this case, there is a

Surplus so the price falls and the quantity demanded increases

The price of cotton clothing falls. As a result

The quantity demanded of cotton clothing increases

Which of the following is classified as a final good or service?

Your purchase of online access to the wall street journal

Gasoline prices increase by 50 percent and other things remain the same. As a result there is

a decrease in quantity of gasoline demanded

Which of the following results in a movement upward along the supply curve for movies in theaters?

an increase in the price of movie tickets

An increase in the number of pineapple growers results in

an increase in the supply of pineapples and a rightward shift in the supply curve of pineapples

How are final goods and services valued when measuring nominal GDP?

as base year prices

Cyclical unemployment includes people who become unemployed from

changes in the business cycle

When demand increases

consumers are willing buy more at any price

Cyclical unemployment is

created by recession

In the Current Population Survery, a person is considered unemployed if the person

does not have a job and is actively looking for a job

If KeKe, age 32, worked 12 hours as a paid employee the week before the Current Population Survey, KeKe is classified in the Current Population Survey as ______ when calculating the unemployment rate

employed

To calculate GDP it is necessary to add up the market value of all the _____ produced within a country during a year

final goods and services produced

As firms search for the best employee to fill an opening and the unemployed search for the job that best fits their skills, the economy experiences

frictional unemployment

Which of the following increases the supply of a product?

lower prices for the resources used to produce the product

Investment is defined as the purchase of

new capital goods and additions to inventories

If Jose is 22 years old, is available to work but does not have a job and made no specific efforts to find a job for the previous month, Jose is classified in the Current Population Survey as

not in the labor force

The labor force is the

number of employed people plus the number of unemployed people

When there is a surplus of snowboards, the

quantity of snowboards supplied is greater than the quantity of snowboards demanded

After 15 years with Ford Motor Corporation, one summer Cameron loses his job. His boss explained that his position has been downsized after the technological advances in automobile production. Cameron is best considered

structurally unemployed

Structural unemployment is the result of

technological change or foreign competition

Quantity Demanded

the amount of a good that buyers are willing and able to buy during a specific time period and at a given price

Market equilibrium occurs when

the quantity demanded equals the quantity supplied

The "law of demand" refers to the fact that, other things remaining the same, when the price of a good rises,

there is a movement up along the demand curve

GDP included the goods and services produced...

within a country's boarders by citizens and by non-citizens