ECON 203 Quiz Answers

Which of the following is an example of frictional unemployment? A. Dora lost her job when the textile factory closed. She does not have skills to work in another industry and has been unemployed for over a year. B. Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel. She expects to get her job back when the economy picks up. C. George is an unskilled worker who mows lawns in the summer, but is unemployed the rest of the year. D. Hector looked for a job for five weeks after finishing college. He turned down several jobs that didn't fit his skills, but now has a job that requires the expertise he gained in college

D

10. Which of the following is an example of structural unemployment? A. Dora lost her job when the textile mill closed. She does not have skills to work in another industry and has been unemployed for over a year. B. Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel. She expects to get her job back when the economy picks up. C. Alan, a software engineer, lost his job when the internet startup he worked for went bankrupt. He interviewed with five companies in the area before taking a job with another firm in the industry. D. Jim had a job as an engineer, but quit when his wife was transferred to another state. He looked for a month before finding a new job that he liked.

A

4. Crowding out is the tendency for increased government deficits to: A. reduce investment spending. B. increase investment spending. C. reduce consumption spending. D. increase consumption spending.

A

5. If total government tax collections equal $200 billion, transfer payments equal $75 billion, and government interest payments equal $10 billion, then net taxes equal: A. $115 billion. B. $125 billion. C. $190 billion. D. $275 billion

A

7. Fred and Wilma just had a baby girl and want to make sure they save enough in the future to send her to college. This is an example of the ____ motive for saving. A. life-cycle B. bequest C. private D. precautionary

A

9. If net taxes paid by households increase: A. private saving will decrease. B. private saving will increase. C. public saving will decrease. D. transfer payments to households will decrease.

A

9. Todd has been working part time (30 hours a week) at Wal-Mart for minimum wages ever since he lost his job as a production worker at the Ford motor company in Michigan. However, Todd is looking hard to find full time employment and hopes to find such a job soon. According to the BLS, Todd is considered to be A. employed B. unemployed C. out of the labor force D. discouraged worker.

A

A government policy of providing free public education is an example of a policy to promote economic growth by: A. increasing human capital. B. increasing physical capital. C. improving technology. D. increasing the availability of natural resources.

A

Crowding out is the tendency for increased government deficits to: A. reduce investment spending. B. increase investment spending. C. reduce consumption spending. D. increase consumption spending.

A

Economists refer to the talents, training, and education of workers as: A. human capital. B. physical capital. C. average labor productivity. D. labor supply.

A

Government health and safety regulations or anti-discrimination laws can reduce real wages by: A. decreasing the demand for labor. B. decreasing the supply of labor. C. reducing employer costs. increasing worker productivity

A

Holding other factors constant, if computers allow factory workers to manufacture more products per hour, then the real wages of factory workers will ______ and employment of factory workers will _____. A. increase; increase B. increase; decrease C. decrease; not change D. decrease; increase

A

If 50 percent of the population in a country is employed and average labor productivity equals $30,000, then real GDP per person equals: A. $15,000. B. $30,000. C. $50,000. D. $60,000.

A

If total government tax collections equal $200 billion, transfer payments equal $75 billion, and government interest payments equal $10 billion, then net taxes equal: A. $115 billion. B. $125 billion. C. $190 billion. D. $275 billion.

A

In the Soviet Union, firm managers had ______ incentive to reduce costs and produce better products because of ______. A. little; the absence of private property rights B. little; the absence of import restrictions C. great; government threats D. great; the complexity of coordinating economic activity

A

Managers contribute to increased average labor productivity in each of the following ways except by: A. developing new products. B. obtaining financing. C. assigning workers to jobs. D. dealing with suppliers.

A

More economic growth is not necessarily better unless the benefits of growth: A. exceed the costs of growth. B. increase average labor productivity. C. increase real GDP per capita. D. increase human capital.

A

Physical capital is: A. the factories and machinery used to produce other goods and services. B. the talents, training, and education of workers. C. the financial resources available for investment. D. the physical labor of workers.

A

Providing workers with on-the-job training will increase: A. average labor productivity. B. the share of the population employed. C. the unemployment rate. D. the labor force participation rate.

A

Real wages increased in industrialized countries in the twentieth century because the demand for labor: A. increased more rapidly than the supply of labor increased. B. increased more slowly than the supply of labor increased. C. increased, while the supply of labor decreased. D. decreased, while the supply of labor increased.

A

The average annual growth rates of labor productivity from 1947to 1973 were ______ the average rates over the period from 1973 to 1995. A. more rapid than B. slower than C. about the same as D. more rapid in the U.S., but slower in other industrialized countries than

A

The demonstration effect suggests that people will save less when they A. base their spending decisions (and consequently their saving decisions) on spending decisions of others who spend more than they do. B. base their saving decisions on their projections of income and spending needs over their lifetime. C. recognize that the real interest rate has increased. D. control their spending in order to save more when the real interest rate increases.

A

The discovery and utilization of vast, previously unknown oil and mineral deposits in a country will increase: A. average labor productivity. B. the share of the population employed. C. the unemployment rate. D. the quantity of human capital.

A

The introduction of new technologies to production is ______ source of productivity improvement. A. the most important B. the only C. the least important D. no longer a

A

The slowdown in the growth of real wages in the United States since 1973 is consistent with a concurrent: A. slowdown in productivity gains. B. slowdown in the growth of the working age population. C. slowdown in immigration into the country. D. speedup in the rate of inflation.

A

Which of the following is a flow? A. Saving B. Wealth C. Assets D. Money

A

Which of the following is an example of the life-cycle motive for saving? A. Pat puts $400 per month in his 401(k) retirement account. B. Jordan sets aside $200 per month in case she has to pay for a new roof for her house. C. Gerry and Terry put $2,000,000 in a trust fund that will go to their children when they die. D. Chris keeps $15,000 in a money market account to pay expenses in case he loses his job.

A

Which of the following is correct? A. National saving equals private saving plus public saving. B. Public saving equals national saving plus private saving. C. Private saving equals national saving plus public saving. D. National saving equals public saving minus private saving.

A

10. Ex-post (in an accounting sense), Savings _____ equals Investment. However, ex-ante, ______ savings may very well be different from _______ investment. It is the ______ which adjusts to make desired savings equal to desired investment. A. sometimes; public; private; inflation rate B. always; desired; desired; real interest rate C. always; actual; actual; nominal interest rate D. never; actual; actual; real interest rate

B

2. In 1998, average labor productivity in the U.S. was $66,381 per worker and 48.9% of the population was employed. What is the per capita GDP in 1998? A. $33,921. B. $32,460. C. $66,381. D. cannot be determined

B

2. Jordan has the following assets and liabilities: Jordan's wealth is _____, the value of Jordan's assets is _____ and the value of Jordan's liability is _____. A. $107,000; $213,000; $100,000 B. $109,000; $213,000; $104,000 C. $111,000; $213,000; $100,000 D. $213,000; $317,000; $104,000

B

2. Slower growth in labor demand in combination with increases in labor supply explain ____________ accompanied by __________. A. a slowdown in real wage growth; a decline in employment B. a slowdown in real wage growth; rapid employment growth C. a slowdown in real wage growth; increasing wage inequality D. accelerated real wage growth; a decline in employment

B

3. Production data for Joe's Pizza Parlor are as follows. For simplicity assume that labor is the only input. Each pizza sells for $5. How many workers will Joe hire if he must pay each one $35 a day? A. 1 B. 2 C. 3 D. 4

B

5. Which of the following is an example of investing in human capital? A. A firm replaces manually controlled production with a computer controlled procedure. B. A firm pays for workers to take college classes. C. A chemical firm supports research to develop new chemicals. D. A firm purchases new equipment for a manufacturing process.

B

6. You are given the following information about the economy: Private saving is _____; public saving is ________; and national saving is ______. A. 800; 200; 600 B. 800; 200; 1,000 C. 1,000; 800; 1,000 D. 1,500; 700; 2,700

B

7. Mike and Tom debone chicken breasts for Ted's Chicken Co. Mike is new and can only debone 30 chicken breasts per hour by hand, while Tom's experience allows him to debone 60 chicken breasts per hour by hand. Ted buys one new machine that can debone 100 chicken breasts per hour. Both Mike and Tom work the same 40 hours per week, but one of them is assigned to operate the machine instead of deboning the chicken breasts by hand. To obtain maximum average hourly productivity, ____ is assigned to use the machine and their combined average hourly productivity as a team is ____ chicken breasts A. Mike; 65 B. Mike; 80 C. Tom; 65 D. Tom; 100

B

8. Arthur is an unskilled worker, who is currently unemployed. He has been offered a minimum wage job paying $40 a day, but he is currently receiving unemployment insurance benefits of $50 a day, so he chooses not to accept the minimum wage job and to continue looking for a better job. Arthur is ______ unemployed. A. frictionally B. structurally C. cyclically D. not

B

A long-term mismatch between the skills of some workers and the jobs available is a principal cause of ______unemployment. A. cyclical B. structural C. global D. frictional

B

A nation's saving equals its ______ income less its spending on _______. A. real; investment B. current; current needs C. nominal; investment D. nominal; net taxes

B

Data for an economy show that the unemployment rate is 6 percent, the participation rate 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are unemployed this economy? A. 12.0 million B. 18.0 million C. 28.8 million D. 43.2 million

B

Holding other factors constant, if a change in tax laws discourages people from saving more for retirement, then the real interest rate will ______ and the equilibrium quantity of saving and investment will _____. A. increase; increase B. increase; decrease C. decrease; decrease D. decrease; increase

B

In Econland, 500,000 of the 2 million people in the country are employed. Average labor productivity in Econland is $15,000 per worker. Real GDP per person in Econland totals: A. $1,250. B. $3,750. C. $11,250. D. $60,000.

B

Real GDP per person in Richland is $20,000, while real GDP per person in Poorland is $10,000. However, Richland's real GDP per person is growing at 1 percent per year, and Poorland's real GDP per person is growing at 2 percent per year. After 50 years, real GDP per person in Richland minus real GDP in Poorland is: A. positive and greater than $10,000. B. positive but less than $10,000. C. zero. D. negative.

B

Shares of stock are: A. legal promises to repay a debt. B. claims to partial ownership of a firm. C. regular payments made to owners of a firm. D. legal promises to make regular payments to the stockholder.

B

Slower growth in labor demand in combination with increases in labor supply explains ____________ accompanied by __________. A. a slowdown in real wage growth; a decline in employment B. a slowdown in real wage growth; rapid employment growth C. a slowdown in real wage growth; increasing wage inequality D. accelerated real wage growth; a decline in employment

B

Ted and Alice want to make sure that their children will inherit lots of money when they die, so that their children do not have to struggle the way they themselves did. Saving more in response to this is a______ reason for saving. A. life-cycle B. bequest C. private D. precautionary

B

The costs of investment depend on the ______ and the _______. A. marginal product of capital; relative price of the firm's output B. price of new capital goods; real interest rate C. relative price of the firm's output; real interest rate D. taxes levied on the revenue generated; relative price of the firm's output

B

The investment demand curve indicates that there is a(n): A. positive relationship between the real interest rates and the level of investment spending, all other things equal. B. inverse relationship between the real interest rates and the level of investment spending, all other things equal. C. direct relationship between the real interest rates and the level of investment spending, all other things equal. D. inverse relationship between the determinants of investment and the level of investment spending, holding interest rates constant.

B

The maturation date of a bond is the date at which: A. coupon payments will be made. B. the principal will be repaid. C. dividend payments will be made. D. taxes on the bond are due.

B

The principle that if the amount of labor and other inputs is held constant, then the greater the amount of capital in use, the less an additional unit of capital adds to production is called the principle of: A. increasing average capital productivity. B. diminishing returns to capital. C. increasing returns to capital. D. decreasing output per unit of capital.

B

Wealth equals: A. current income minus spending on current needs. B. assets minus liabilities. C. saving minus investment. D. investment minus saving.

B

Which of the following events would increase the unemployment rate, if nothing else changed? A. Unemployed workers leave the labor force. B. Employed workers leave the labor force. C. Workers from outside the labor force become employed. D. Unemployed workers become employed.

B

Your financial investments consist of U.S. government bonds maturing in twenty years and shares in a start-up internet company. If interest rates on newly-issued government bonds increase, then the price of your bonds will ______ and the price of the shares you own will ____. A. increase; increase B. decrease; decrease C. increase; not change D. decrease; not change

B

1. The rise in average living standards experienced by most industrialized countries: A. has been continuous over the course of human history. B. was more rapid before 1870 than after 1870. C. has been more rapid since 1950 than before 1950. D. has resulted primarily from an increase in population worldwide.

C

10. Governments contribute to increased average labor productivity in each of the following ways EXCEPT by: A. establishing well-defined property rights. B. maintaining political stability. C. imposing taxes on wages. D. allowing the free and open exchange of ideas

C

4. In a small town of 100 people, there are 10 children under 16, 10 retired people, 60 people with full-time jobs, 3 people with part-time jobs, 3 full-time students over 16, and 4 full-time homemakers. The remaining people did not have jobs, but wanted them. All but one of these had actively looked for a job in the previous four weeks. What is the unemployment rate in this town? A. 10.0% B. 11.0% C. 12.5 % D. 14.3%

C

5. Data for an economy shows that the unemployment rate is 6%, the participation rate 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are unemployed this economy? A. 6 million B. 12 million C. 18 million D. 20 million

C

6. Based on the following information, what is the unemployment rate? A. 7.2% B. 8.0% C. 10.0% D. 28.0%

C

8. Holding other factors constant, a decrease in the tax rate on the revenue generated by capital will: A. shift the savings graph to the right; reduce the equilibrium real rate of interest and increase national saving in equilibrium. B. shift the savings graph to the left; raise the equilibrium real rate of interest and decrease national saving in equilibrium. C. shift the investment graph to the right; raise the equilibrium real rate of interest and increase investment in equilibrium. D. shift the investment graph to the left; reduce the equilibrium real rate of interest and decrease investment in equilibrium.

C

8. Most economists agree that ______ is/are the single most important source of productivity improvements. A. increases in human capital B. increases in physical capital C. technological advances D. discoveries of natural resources

C

A decrease in the perceived riskiness of Company A stock ______ the risk premium investors require to purchase Company A stock and ______ the price of Company A stock. A. increases; increases B. increases; decreases C. decreases; increases D. decreases; decreases

C

An example of a government policy to provide a framework within which the private sector can operate productively is: A. the taxation of savings. B. the suppression of political dissent. C. maintaining a well-functioning legal system. D. government ownership of capital.

C

Arguments that economic growth must be constrained by environmental problems and limits of natural resources ignore the fact that economic growth can: A. be measured in both nominal and real terms. B. increase both average labor productivity and the share of population employed. C. take the form of improved quality as well as increased quantity. D. occur with only benefits and no economic costs.

C

Elaine owns a beautiful diamond ring she purchased for $2,500. When she has it appraised she learns that it is now worth $3,000. Based on this information: A. Elaine's saving this year has increased by $500. B. Elaine's saving this year has decreased by $500. C. Elaine has experienced a $500 capital gain. D. Elaine's wealth is unchanged.

C

From an economic perspective, the best response to increased wage inequality is to: A. block future technological change. B. stop all international trade. C. provide transition aid to disadvantaged workers. make skill-biased technological change illegal

C

Government support of basic research by funding scientists through the National Science Foundation is an example of a government policy to promote economic growth by: A. increasing human capital. B. increasing physical capital. C. improving technology. D. increasing the availability of natural resources.

C

High rates of saving and investing in the private sector promote economic growth by: A. increasing human capital. B. improving the social and legal environment. C. increasing physical capital. D. improving technology.

C

Holding other factors constant, a technological improvement that increases the marginal product of capital will: A. increase national saving. B. decrease national saving. C. increase investment. D. decrease investment

C

If real GDP per person were equal to $2,000 in 1900 and grew at a one percent annual rate, what would be the value of real GDP per person 100 years later? A. $2,210 B. $4,000 C. $5,410 D. $20,000

C

If you left $2,500 on deposit with a bank promising to pay you a 6 percent compound annual rate of interest, then after 50 years your deposit would be worth approximately: A. $2,800 B. $18,420 C. $46,050 D. $250,750

C

In a small town of 100 people, there are 10 children under 16, 10 retired people, 60 people with full-time jobs, 3 people with part-time jobs, 3 full-time students over 16, and 4 full-time homemakers. The remaining people did not have jobs, but wanted jobs. What is the unemployment rate in this town? A. 10.0% B. 11.0% C. 13.7 % D. 14.5%

C

In the United States between 1970 and 2000, employment: A. was constant, while the over-sixteen population increased. B. decreased, while the over-sixteen population increased. C. grew more rapidly than the over-sixteen population. D. grew at approximately the same rate as the over-sixteen population.

C

In the twentieth century, average real wages have risen substantially: A. only in the United States. B. in industrial countries excluding the United States. C. in industrial countries including the United States. D. in neither the United States nor other industrial countries.

C

Initially, workers in the shoe industry and the computer industry earn the same wage. Reductions in trade barriers give domestic consumers access to cheaper shoes produced abroad, so domestic shoe prices fall. At the same time, foreign consumers purchase more computers, raising the relative price of computers. As a result of these changes, wages in the shoe industry ______ and wages in the computer industry ______. A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease

C

Mike and Tom debone chicken breasts for Ted's Chicken Co. Mike is new and can only debone 60 chicken breasts per hour, while Tom's experience allows him to debone 120 chicken breasts per hour. Both Mike and Tom work 40 hours per week. Their average hourly productivity as a team is ______ chicken breasts. A. 60 B. 75 C. 90 D. 100

C

Most economists generally argue ______ trying to block technological advances because these technological advances ______. A. in favor of; cause the economy to grow to rapidly B. in favor of; increase wage inequality C. against; are necessary for improved standards of living D. against; promote wage equality

C

Most political scientists and economists agree that ______ is detrimental to economic growth. A. a set of well-defined property rights B. the free and open exchange of ideas C. political instability D. a just-in-time inventory system

C

Suppose you have $200 with which you can buy shares of stock from two companies: ABC Hot Chocolate Company and XYZ Lemonade. Each company's stock currently sells for $100 per share. If the temperature next year is lower than average, the stock price for ABC will increase by $20, and the stock price for XYZ will not change. If the temperature next year is higher than average, the stock price for XYZ will increase by $20, and the stock price for ABC will not change. There is a 50% chance that it will be colder than average next year, and a 25% chance that it will be warmer than average. If you purchase one share of ABC stock and one share of XYZ stock, your expected gain will be _______. A. $0 B. $10 C. $15 D. $40

C

The Hatfields and the McCoys both earn $50,000 per year in real terms in the labor market, and both families are able to earn a 5% real interest rate on their savings. In the year 2010, both families began to save. The Hatfields saved 8% of their income each year; the McCoys saved 10%. In 2010, the Hatfields consumed ______ more than the McCoys; in 2011, the Hatfields consumed ______ than the McCoys. A. $1,000; about $960 less B. $2,000; about $960 more C. $1,000; about $960 more D. $2,000; about $960 less

C

The coupon rate on newly issued bonds is usually higher for bonds with ______ terms and ______ risk that the borrower will go bankrupt. A. shorter; greater B. shorter; smaller C. longer; greater D. longer; smaller

C

The introduction of a new technology that increases the productivity of labor will: A. increase the supply of labor. B. decrease the supply of labor. C. increase the demand for labor. decrease the demand for

C

The introduction of a new technology that raises the marginal product of new capital will: A. decrease real interest rates and increase the equilibrium quantity of saving supplied and demanded. B. decrease real interest rates and the equilibrium quantity of saving supplied and demanded. C. increase real interest rates and the equilibrium quantity of saving supplied and demanded. D. increase real interest rates and decrease the equilibrium quantity of saving supplied and demanded.

C

The opportunity cost of capital investment is the: A. value of the marginal product of capital. B. value of the marginal product of labor. C. real interest rate. D. price of new capital goods.

C

The rise in average living standards experienced by most industrialized countries: A. has been continuous over the course of human history. B. was more rapid before 1870 than after 1870. C. has been more rapid since 1950 than before 1950. D. has resulted primarily from an increase in population worldwide.

C

The supply and demand for saving are brought into equilibrium by adjustments of the ______ rate. A. discount B. nominal interest C. real interest D. dividend

C

The value of the marginal product of labor equals the marginal product of labor times the: A. real wage. B. nominal wage. C. price of output. D. quantity of labor.

C

Unemployment insurance contributes to structural unemployment by: A. keeping wages above the market-clearing level. B. keeping wages below the market-clearing level. C. allowing unemployed workers to search longer or less intensively for jobs. D. forcing unemployed workers to take the first job offered to them.

C

Who of the following would be considered a discouraged worker? A. Ray wants to work forty hours per week, but can only find work for twenty hours per week. B. Anna Marie has been looking for a job every day for the last month, but has not been hired. C. Frank would like to work, but has not looked for work because he believes no jobs are available. D. Melissa has a Ph.D. in physics, but is currently employed full time driving a taxi.

C

You expect a share of EconNews.Com to sell for $65 a year from now. If you are willing to pay $65.74 for one share of the stock today, and you require a return of 8%, what dividend payment must you expect to receive from the stock? A. $4.46 B. $5.20 C. $6.00 D. $9.25

C

Chris pays $10,000 for a newly issued two-year government bond with a $10,000 face value and a 6 percent coupon rate. One year later, after receiving the first coupon payment, Chris sells the bond. If the current one-year interest rate on government bonds is 7 percent, then the price Chris receives is: A. $10,000. B. $700. C. greater than $10,000. D. less than $10,000.

D

1. Chris earns $1,500 per week and spends $1,000 per week on living expenses, puts $200 in a savings account, and buys $300 worth of shares in a stock mutual fund. Chris's saving is ____ and Chris's saving rate is _____. A. $200; 13.3% B. $200; 20% C. $300; 20% D. $500; 33.3%

D

1. Holding other factors constant, if food prices decline relative to the prices of other products, then the real wages of agricultural workers will _____ and employment of agricultural workers will _____. A. increase; increase B. increase; decrease C. decrease; not change D. decrease; decrease

D

3. Growth in the share of population employed in the United States is likely to decline in the future because: A. increasing female labor force participation is predicted. B. increasing male labor force participation is predicted. C. population growth is expected to increase. D. an increasing proportion of those currently employed will be retiring.

D

3. Which of the following is a flow? A. Saving B. Consumption C. Income D. All of the above.

D

4. If average labor productivity increases, real GDP per person: A. increases. B. decreases. C. remains constant. D. may increase or decrease depending on the change in the share of population employed.

D

6. Based on the table below, if the production process described below is subject to diminishing returns to capital, then total packages wrapped when a fourth machine is installed must be less than _____ packages. A. 3,000 B. 4,000 C. 12,000 D. 15,000

D

7. Two groups of workers not counted as unemployed in the official unemployment statistics are _______ workers. A. chronically unemployed and short-term unemployed B. chronically-unemployed and discouraged C. chronically unemployed and involuntary part-time D. discouraged and involuntary part-time

D

9. Entrepreneurs contribute to increased average labor productivity in each of the following ways EXCEPT by: A. introducing new production methods. B. implementing new technological processes. C. developing new products. D. assigning workers to jobs.

D

9. The supply of saving equals desired (or, ex-ante) _____ and the demand for saving equals desired (or, ex ante) _____. A. investment; national saving B. investment; public saving C. national saving; investment D. national saving; capital

D

All of the following describe trends in U.S. labor markets except: A. growing wage inequality in the United States in recent decades. B. a slowdown in real wage growth since the 1970s. C. substantial growth in the level of employment in the United States since 2000. D. substantial growth in real ages during the last century.

D

Depression and lost self-esteem are examples of the ______ costs of unemployment, while the lost income and tax revenue are examples of the ______ costs of unemployment. A. social; psychological B. economic; social C. economic; psychological D. psychological; economic

D

Each of the following statements describes how the political and legal environment encourages productivity except: A. Well-defined property rights encourage production and saving. B. Political stability promotes economic growth. C. Price changes in markets give suppliers incentives to supply goods to markets. D. Pay rates determined by a governmental planning agency provide workers with incentives to work hard.

D

Globalization can increase wage inequality in the United States if international competition is primarily in industries requiring ______ workers. A. many B. few C. highly-skilled D. low-skilled

D

If Alex deposits $1,000 from her paycheck into her checking account and, at the same time, increases her credit card balance by $1,500, then her saving is ______, and her wealth ______. A. +$1,000; decreases by $500 B. +$500; decreases by $1,000 C. -$500; increases by $2,500 D. -$500; decreases by $500

D

If in the economy, business saving equals $240 billion, household saving equals $15 billion and government saving equals -$150 billion, what is the value of national saving? A. $415 billion B. $265 billion C. $250 billion D. $105 billion

D

Private saving is positive when: A. there is a government budget surplus. B. there is a government budget deficit. C. the government's budget is balanced. D. after-tax income of households and businesses is greater than consumption expenditures.

D

Real GDP per person can increase: A. only if the share of the population employed increases. B. only if the share of the population employed decreases. C. only if average labor productivity increases. D. if the share of population employed and/or average labor productivity increases.

D

Saving equals: A. current spending minus current income. B. wealth minus assets. C. assets minus liabilities. D. current income minus spending on current needs.

D

Structural unemployment is: A. the additional unemployment not captured in official statistics resulting from discouraged workers and involuntary part-time workers. B. the extra unemployment tht occurs during periods of recession. C. short-term unemployment that is associated with the process of matching workers with jobs. D. long-term and chronic unemployment that exists even when the economy is producing at a normal rate.

D

The key indicator of a country's living standard and economic well-being is: A. the interest rate. B. nominal GDP per person. C. real GDP. D. real GDP per person.

D

The key variable in determining changes in a country's standard of living is the: A. interest rate. B. inflation rate. C. unemployment rate. D. long-run rate of economic growth.

D

Which of the following is a liability of a family? A. Checking account balance B. Share of stock C. House D. Mortgage

D

Who from among the following would be classified as out of the labor force? A. Brenda Smith, an 18 year old college student employed part-time at a fast food restaurant. B. Mario Faubert, a NHL hockey player at home sick with the flu. C. Jack Little, a 21 year old new college graduate actively looking for his first job. D. Amanda Pie, a full-time homemaker.

D

Workers whose spells of unemployment are broken up by brief periods of employment or withdrawal from the labor force are referred to as ______ workers A. short-term unemployed B. discouraged C. long-term unemployed D. chronically unemployed

D