Quiz 3

What is meant by physical capital?

The plant and equipment used by firms in production.

Which of the following best describes gross domestic product (GDP)?

The value of the output of all final goods and services produced within a country.

Which of the following characteristics is specific to cyclical unemployment?

Unemployment closely tied to the business cycle, like higher unemployment during a recession.

What term is used to describe the percentage of adults who are in the labor force and thus seeking jobs, but who do not have jobs?

Unemployment rate

Which of the following best describes a trade surplus?

When exports exceed imports.

What term is used to describe the economic statistic actually announced at that time, not adjusted for inflation?

Nominal value

Which of the following refers to those who do not have a job and are not looking for a job?

Out of labor force

What term is used to describe the value of what is produced per worker or per hour worked?

Productivity

Between 1960 and 2010, worker productivity in the United States:

grew consistently, with a slight variation in the rate of growth.

As reported by Chang, during the Golden Age of Capitalism, the unemployment rate in the United States was typically:

higher than the rate in Western European countries.

Inflation requires that you have a(n) ______ increase in the price level extending across ______ markets.

ongoing; most

To correct for changes in national output that are the result of having more people in the economy, economic growth is measured using:

per capita GDP.

From 1900 to 2010, the longest period of continuous economic expansion in the U.S. happened primarily in which decade?

the 1990's

The most commonly cited measure of inflation in the United States is:

the Consumer Price Index (CPI)

In order to avoid double-counting, GDP counts:

final goods and services

What is meant by recession?

A decline in national output.

During the last two centuries, the average rate of growth of GDP per capita in the leading industrialized countries has averaged about _________ per year.

2%

According to Chang, which of the following is among the top five countries in per capita income?

A: None of the above. Germany The US China

What term is used to describe a hypothetical group of different items, with specified quantities of each one, used as a basic for calculating how the price level changes over time?

Basket of goods and services

The demand measure of GDP accounting adds together:

consumption, investment, government purchase, and trade balance.