Macroeconomics Mid Term 2

The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

16 years old

Refer to table 2. The labor force of Wrexington In 2005 was

1900

Cedar Valley Furniture uses 5 workers working 8 hours to produce 80 rocking chairs. What is the productivity of these workers?

2 chairs per hour

Refer to table 3. How many people were unemployed in Wrexington in 2009?

2,780

Refer to scenario 1. For this economy, government purchases amount to

28,000 $

Refer to scenario 1. For this economy, taxes amount to

32,000$

Refer to table 3. How many people were NOT in Wrexington's labor force in 2009?

6,620

The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of about

60,000 households

Refer to table 2. The labor force participation rate of Wrexington in 2005 was

63.3%

Who of the following would be included in the Bureau of Labor Statistics "unemployed" category?

Halim, who is on temporary layoff.

Refer to table 3. How many people were employed in Wrexington in 2009?

11,000

Refer to table 2. The unemployment rate of Wrexington in 2006 was

11.1%

Refer to scenario 1. For this economy investment amounts to

12,000

Refer to table 3. What was Wrexington's unemployment rate in 2009?

12.7%

Refer to table 3. How many people were in Wrexington's labor force in 2009?

13,380

Refer to table 2. The number of adults not in the labor force of Wrexington in 2006 was

1400

In 2004, based on concepts similar to those used to estimate U.S. employment figures, the Swedish adult non-institutionalized population was 6.712 million, the labor force was 4.576 million, and the number of people employed was 4.276 million. According to these numbers , the Swedish labor force participation rate and unemployment rate were about...

68.2% and 6.6%

Suppose that the adult population is 6 million, the number of employed is 3.8 million, and the labor force participation rate is 70%. What is the unemployment rate?

9.5%

Investment from abroad

All of the above are correct

natural resources

All of the above are correct

Both Tom and Jerry work 10 hours a day. Tom can produce 6 baskets of goods per hour while Jerry can produce 4 baskets of the same goods per hour. It follows that Tom's

All of the above are correct.

If in a closed economy Y = 11 trillion, which of the following combinations would be consistent with national saving of 2.5 trillion?

C = 8 trillion, G = 5 trillion

Waldo works 8 hours and produces 7 units of goods per hour. Emerson works 6 hours and produces 10 units of goods per hour.

Emerson's productivity and output are greater than Waldo's.

Acarapi is a full-time homemaker not currently searching for other work. Ximena is a full-time student who is not looking for a job. Who is included in the labor force by the Bureau of Labor Statistics?

Neither Acarapi nor Ximena

Jai Li just lost her job, and she hasn't yet started looking for a new one. The Bureau of Labor Statistics counts Jai Li as...

Neither in the Labor Force nor unemployed.

Who of the following would necessarily be included in the Bureau of Labor Statistics "unemployed" category?

None of the above are correct.

Egzon is working part time. Dijana is on temporary layoff. Who is included in the Bureau of Labor Statistics "employed" category?

Only Egzon

In a closed economy what does (Y - T - C) represent?

Private saving

Refer to figure 1. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Returns to capital become increasingly smaller as the amount of capital per worker increases.

Which of the following is correct?

The financial system channels funds from savers to borrowers.

Which of the following is NOT a requirement for the Bureau of Labor Statistics to place someone in the "unemployed" category?

The person must not have been fired from their previous job.

Which of the following is NOT correct?

The ranking of countries by average income changes very little over time.

a bond is a

a certificate of indebtedness

Discouraged workers

are counted as as out of the labor force but should be counted as unemployed.

Alyssa is opening up a bicycle shop, and her monthly expenditures to get the shop up and running exceed her monthly income. Alyssa is best described as a

borrower or as a demander of funds

President Bigego is running for re-election against Senator Pander. Bigego that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. You conclude that...

both of them could be telling the truth if the labor force grew faster than employment.

Suppose that a large number of men who used to work or seek work now no longer do either. Other things the same, this makes...

both the number of people unemployed and the labor force fall.

Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where they are unlikely to be hired. If these individuals were counted as out of the labor force instead of as unemployed, then...

both the unemployment rate and labor force participation rate would be lower.

Refer to scenario 1. This economy's government is running a

budget surplus of 4,000 $

in 2007, Modern Electronics, Inc. produced 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 2008 the same firm produced 76,500 calculators, employing 85 workers each working 10 hours per day. Between 2007 and 2008, productivity at Modern Electronics...

decreased by 4%

Refer to table 2. The labor force participation rate of Wrexington

decreased from 2004 to 2005 and decreased from 2005 to 2006

Refer to figure 1. The curve becomes flatter as the amount of capital per worker increases because of

diminishing returns to capital.

Productivity

explains most of the differences in the standard of living across countries.

Which of the following would be human capital and physical capital, respectively?

for an accounting firm, the accountants' knowledge of tax laws and computer software

Suppose that an American opens and operates a candy factory in Finland. This is an example of

foreign direct investment. American saving is used to finance Finish investment.

Which of the following is generally an opportunity cost of investment in human capital?

forgone present wages

despite its status as one of the richest countries in the world, Japan...

has few natural resources

Refer to table 2. The labor force of Wrexington

increased from 2004 to 2005 and decreased from 2005 to 2006.

Refer to table 2. The number of adults not in the labor force of Wrexington

increased from 2004 to 2005 and increased from 2005 to 2006

Refer to table 2. The unemployment rate of Wrexington

increased from 2004 to 2005 and increased from 2005 to 2006

Satchel loses his job and immediately begins looking for another. Other things the same, the unemployment rate...

increases and the labor force participation rate decreases.

Sheamous loses his job and decides to sit on the bench rather than look for work during the next few months. Other things the same, the unemployment rate...

increases and the labor force participation rate decreases.

Technological knowledge

is a determinant of productivity

when a society decides to increase its quantity of physical capital, the society

is in effect deciding to consume fewer goods and services in the present

The catch up effect refers to the idea that

it is easier for a country to grow fast and so catch-up if it starts out relatively poor.

Human capital is

knowledge and skills that workers have acquired

in countries that experience political instability, standards of living tend to be low because of

lack of respect for property rights

According to the definitions of national saving and private saving, If Y, C, G, remained the same, an increase in taxes would

leave national saving unchanged and reduce private saving

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units. This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units. This country's productivity was

lower this year than last year. A possible source of this change in productivity is a change in the size of the capital stock.

Suppose a country reduces trade restrictions. This country would be pursuing an

outward policy, which most economists believe has beneficial effects on the economy.

it has been suggested that a possible benefit of rapid population growth is the likelihood that when there are more people, then there are more

people to discover things, and so technological progress is rapid.

The saws, lathes, and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

physical capital

The quantity of goods and services produced from each unit of labor input is called...

productivity

If a country's saving rate increases, then in the long run

productivity and real GDP per person are both higher.

a bond buyer is a

saver. Bond buyers may sell their bonds prior to maturity.

an understanding of the best ways to produce goods and services is called

technology

The economy's 2 most important financial markets are

the bond market and the stock market