Econ 1101 final
Which of the following statements is correct
A nation acquires more capital by saving some of its income and uses it for economic investments
If the prices of all goods and services rose, but the quantity produced remained unchanged, what would happen to nominal and real GDP?
Nominal GDP would rise, but real GDP would be unchanged.
The type of unemployment associated with recessions is called:
cyclical unemployment
If the unemployment rate is 9 percent and the natural rate of unemployment is 5 percent, then the:
cyclical unemployment rate is 4 percent
The number of years required for real GDP to double can be found by:
dividing the annual growth rate into 70
Assume Kyle is temporarily unemployed because he has voluntarily quit his job with company A and will begin a better job next month with company B. Kyle will be considered as:
frictionally unemployed
Kara voluntarily quit her job as an insurance agent to return to school full time to earn an MBA degree. With degree in hand, she is now searching for a position in management. Kara presently is:
frictionally unemployed
Critics of growth argue the following except:
growth cannot be controlled
Before the period of modern economic growth:
rates of population growth virtually matched rates of output growth
Modern economic growth refers to countries that have experienced an increase in:
real output per person. (Per capita)
In the United States, business cycles have occurred against a backdrop of a long-run trend of
rising real GDP
The business cycle depicts
significant fluctuations in economic output and employment
Unemployment involving a mismatch of the skills of unemployed workers and the skill required for current available jobs is called
structural unemployment
natural rate of unemployment is
that rate of unemployment occurring when the economy is at its potential output.
The following are all determinants of growth except
the allocation factor
The unemployment rate is calculated as follows
the number of unemployed people divided by the labor force
Before the advent of modern economic growth, living standards in the world
were relatively stagnant for very long periods of time
Which of the following institutional arrangements is most likely to promote economic growth
Unrestricted trade between nations
According to the Bureau of Labor Statistics, to be officially unemployed a person must:
be in the labor force
Economic growth is best defined as an increase in
either real GDP or real GDP per capita.
In the depth of the Great Depression, the unemployment rate in the United States was approximately
25 percent
cyclical unemployment results from
A decline in total spending on goods and services in the economy
The United States' economy is considered to be at full employment when
About 4-5 percent of the labor force is unemployed
The quality of "human capital" includes
Knowledge, experience, and labor hours
Official unemployment statistics:
understate unemployment because discouraged workers are not counted as unemployed.
UNEMPLOYED 7 TOTAL POPULATION 145 EMPLOYED 95 DISCOURAGED WORKERS 3 The labor force in Econoland is
102 million
FULL TIME EMPLOYED 80 million PART- TIME EMPLOYED 25 million UNEMPLOYED 15 million DISCOURAGED WORKERS 5 million MEMBERS OF UNDERGROUND ECONOMY 6 million CONSUMER PRICE INDEX 110% The unemployment rate is
12.5 percent
Assuming the total population is 100 million, the civilian labor force is 50 million, and 47 million workers are employed, the unemployment rate is:
6 percent
UNEMPLOYED 7 TOTAL POPULATION 145 EMPLOYED 95 DISCOURAGED WORKERS 3 The unemployment rate in Econoland is
6.9 percent
In the United States the rate of unemployment is highest for
African American teenagers
Labour force includes
Employed workers and persons who are officially unemployed
In the modern economic growth process, it is typical to find that
Follower countries can grow faster than leader countries
In 2007-2009, the United States experienced what has come to be known as the:
Great Recession
Gross Domestic Product (GDP) measures and reports output
In dollar amounts
A nation's gross domestic product (GDP):
Is the dollar value of all final goods and services produced within the boarders of the nation
Which of the following does not correctly characterise modern economic growth
It has not affected the average lifespan of human beings
The presents of discouraged workers
May cause the official unemployment rate to understate the true amount of unemployment
Bureau of Labor Statistics (BLS) collects and reports on the number of jobs in the economy. They collect information
Monthly
Alex works in his own home as a homemaker and full-time caretaker of his children. Officially, he is:
Not in the labor force
There are a number of people who fall into a category called "hidden unemployment" they are all of the following except
Students
The unemployment rate that results from the combination or economic, social and political factors which exist at a time of normal economic conditions is called
The natural rate of unemployment
Suppose there are 10 million part-time workers and 90 million full-time workers in an economy. Five million of the part time workers become full- time. As result:
The official unemployment rate will remain unchanged
Why are high rates of unemployment of concern to economists?
There is lost output that could have been produced if the unemployed had been working.
A college graduate using the summer following graduation to search for a job would best be classified as:
a part of frictional unemployment group
Real GDP is preferred to nominal GDP as a measure of economic performance because:
nominal GDP uses current prices and thus may over or understate true changes in output.
