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