ECON 2
Once every __________, the Census Bureau does a comprehensive survey of housing and residential finance.
10 years
the unemployment rate in a town in which 65,400 persons are employed and 11,000 are unemployed equals:
14.4%
If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:
25%
If the price index moves from 107 to 110, the rate of inflation is:
28%
The demand measure of GDP accounting adds together:
consumption, investment, government purchases, and trade balance.
A nation can achieve higher economic growth if:
it devotes more resources to research and development.
the unemployment rate may underestimate the true extent of unemployment if:
many part-time employees would like to work full-time, but are unable to get the additional work.
The effect of substitution bias is that the rise in the price of a fixed basket of goods over time tends to ___________________ the rise in a consumer's true cost of living, because it doesn't take into account that the person can substitute between goods according to changes in their relative prices.
overstate
Which of the following is not counted as part of GDP?
the purchase of 100 shares of AT&T stock by your grandfather.
A nation's prosperity is sometimes measured in terms of ___________.
GDP per capita
which of the following best describes the relationship between economic growth and literacy?
Increased literacy stimulates economic growth by raising labor productivity, and as the economy grows, people consume more education.
what name is given to the index based on the prices of exported or imported merchandise?
International Price Index
Suppose that everyone who has looked for a job for more than six months gave up in despair and stopped looking. What would happen to the unemployment rate?
It would fall
Increased investment alone will guarantee economic growth.
This is a false statement, because economic growth hinges on the quality and type of investment as well as the human capital and improvements in technology.
Frictional unemployment occurs when:
a worker decides to quit one job to seek a different job.
what distinguishes the rea value of a statistic from the nominal value of a statistic?
adjusting for inflation
The labor force consists of:
all adults who are working or actively seeking work.
In macroeconomics, the connection from inputs to outputs for the entire economy is called
an aggregate production function
To compare the GDP of two different countries with different currencies, it is necessary to use _________________________.
an exchange rate
which of the following factors contribute to economic growth?
an increase in the proportion of the population that is college educated
which of the following are most likely classified by economists as consumer durable goods?
automobiles, furniture
The rise in unemployment that occurs because of a recession is known as cyclical unemployment, because it is closely tied to the ______________.
business cycle
The type of unemployment that occurs because of a recession is called:
cyclical unemployment
A forestry worker who is out of work because of the temporarily low demand for wood products associated with a recession is defined as:
cyclically unemployed
With regard to the economy, the term negative inflation is synonymous with which of the following?
deflation
Investment in human capital refers to:
education, on-the-job training, and professional training activities.
In order to avoid double counting, statisticians just count the __________________.
final goods and services
The effects of inflation are seen in:
goods, services, wages and income levels
In the long run, the most important source of increase in a nation's standard of living is a:
high rate of economic growth
which of the following is most likely to contribute to economic growth as measured by GDP per capita?
increased capital formation
A payment is said to be ________________ if it is automatically adjusted for inflation.
indexed
When a price, wage, or interest rate is adjusted automatically with inflation, it is said to be __________.
indexed
__________ implies that pressure for price increases reaches across _______________markets, not just one.
inflation; most
Frictional unemployment is the result of
normal labor market turnover
While one occasionally sees references to inflation over short time periods, the term typically implies a(n)_____________ in prices.
ongoing rise
a university student who is enrolled in school full time and not seeking employment is considered
out of the labor force
george looked for work for six months but could not find a job to his liking. he now spends his time at the beach. for purposes of employment he is considered
out of the labor force
_________ is output per hour in the business sector.
productivity
To achieve a high standard of living, a nation should:
promote economic growth
If a nation's labor force receives a significant influx of young workers:
the natural rate of unemployment is likely to increase.
the difference between nominal GDP and real GDP is:
real GDP adjusts for inflation
Economists typically measure economic growth by tracking:
real GDP per capita
The __________________ is the nominal interest rate minus the rate of inflation.
real interest rate
The nominal value of any economic statistic refers to the number that is actually announced at that time, while the ________________ refers to the statistic after it has been adjusted for inflation.
real value
investment includes:
the amount spent on new factories and machinery.
which of the following is included in GDP?
the fees charged for a stock broker's services
If imports exceed exports, as in recent years, then __________ exists.
trade deficit
the unemployment rate measures
unemployed workers as a percentage of the labor force