Econ Final Exam

Which of the following people would be classified as employed in the Current Population Survey? A) Rich, who is working 20 hours a week but wants a full-time job B) Misty, who just quit her job to return full time to school C) April, who just graduated from college and is looking for work D) Jason, who was laid off from work less than 6 months ago but who has stopped looking for work E) Laura, who is unpaid but is working 10 hours a week in the family business she and her husband run

A) Rich, who is working 20 hours a week but wants a full-time job

Structural unemployment usually lasts ________ period of time ________ unemployment A) a longer; than frictional B) a shorter; than frictional C) a shorter; than seasonal D) a shorter; than cyclical E) the same; as cyclical

A) a longer; than frictional

Over the last 50 years, the U.S. labor force participation rate of men has ________ by ________ the labor force participation of women has ________. As a result, the overall U.S. labor force participation has ________. A) decreased; less than; increased; increased B) decreased; more than; increased; decreased C) decreased; about the same rate as; increased; remained steady D) increased; less than; decreased; decreased E) increased; more than; decreased; increased

A) decreased; less than; increased; increased

Which of the following is directly included in the U.S. GDP for 2013? i. a 2013 Cadillac Escalade produced and sold as a new car in the United States in 2013 ii. tires produced in the United States, purchased by General Motors, and installed on a new Cadillac Escalade sold in 2013 iii. General Motors cars produced in Canada because General Motors is an American corporation A) i only B) ii only C) i and iii D) ii and iii E) i, ii, and iii

A) i only

When measuring GDP by the income approach, wage income includes i. health-care insurance paid for by the firm for its employees. ii. Social Security contributions made by the firm. iii. wages paid during a worker's vacation time. A) i, ii and iii B) i and ii only C) i only D) ii only E) ii and iii only

A) i, ii and iii

In a circular flow diagram, i. the value of production = income. ii. the value of production = expenditure. iii. expenditure = income. A) i, ii and iii are true statements. B) Only iii is a true statement. C) i and ii are true statements. D) i and iii are true statements. E) Only i is a true statement.

A) i, ii and iii are true statements.

Which of the following would be considered unemployed as part of normal labor market turnover? i. Juliet, who was fired when the company where she worked went bankrupt in a recession ii. Hannah, who quit her job to find one that better suited her skills iii. Charlotte, who started looking for a job upon graduation from high school A) ii and iii B) i and ii C) i, ii and iii D) i and iii E) iii only

A) ii and iii

Which of the following is classified as an intermediate good? i. the purchase of a Big Mac by a college student ii. McDonald's purchase of pickles iii. a McDonald's restaurant owner's interest payment for the loan on her building A) ii only B) ii and iii C) i only D) i and iii E) i, ii and iii

A) ii only

Which of the following would be considered a marginally attached worker? i. Amy, who is working 20 hours per week at her father's business ii. Carl, who isn't working and has not looked for work in 3 months because he has been turned down for work when he last looked iii. Keke, who quit her job to take care of her daughter A) ii only B) i and ii C) ii and iii D) i only E) i, ii, and iii

A) ii only

Which is true regarding cyclical unemployment? i. Cyclical unemployment is positive at business cycle peaks. ii. Cyclical unemployment is negative at business cycle troughs. iii. Cyclical unemployment is zero at full employment. A) iii only B) i, ii and iii C) i and iii D) i only E) i and ii

A) iii only

In 1961, real GDP totaled $575 billion and in 2011 it totaled $1,255 billion. Between 1961 and 2011, the population increased from 50 million to 100 million. Between 1961 and 2011, the standard of living based on real GDP per person A) increased from $11,500 to $12,550. B) increased by over 300 percent. C) increased by about 118 percent. D) decreased from $125,500 to $28,750. E) decreased by 9 percent.

A) increased from $11,500 to $12,550.

If the number of people in the labor force ________, then ________. A) increases; the labor force participation rate increases B) increases; the unemployment rate definitely increases C) decreases; the unemployment rate definitely decreases D) decreases; the labor force participation rate increases E) decreases, the unemployment rate does not change

A) increases; the labor force participation rate increases

U-1 is a more ________ measure of unemployment rate than the conventional U-3 measure and U-1 counts as unemployed workers who ________. A) narrow; have been unemployed for 15 weeks or more weeks B) narrow; have been laid off C) broad; have been laid off D) broad; who are discouraged workers E) broad; are marginally attached to the labor force

A) narrow; have been unemployed for 15 weeks or more weeks

Using the table above, the Current Population Survey classifies the group of individuals who are left after subtracting from the total population groups 1, 2, 3, 4, 5, and 6 as A) not in the labor force. B) the labor force. C) employed. D) unemployed. E) discouraged workers.

A) not in the labor force.

Although imperfect, which of the following is used as a measure of the standard of living? A) real GDP ÷ population B) real GDP × population C) nominal GDP × population D) nominal GNP ÷ population E) nominal GNP × population

A) real GDP ÷ population

During a recession the unemployment rate generally ________ and during an expansion the unemployment rate generally ________. A) rises; falls B) rises; rises C) falls; rises D) rises; does not change E) does not change; falls

A) rises; falls

The following are groups of individuals in the population: 1. Individuals who are under 16 2. Individuals in institutional care 3. Individual in the armed forces 4. Individuals working for pay at a fulltime job 5. Individuals who are employed 6. Individuals not employed but were available for work and were looking for work 7. Individuals not employed and looking for work Using the table above, the Current Population Survey classifies the group of individuals who are left after subtracting from the total population groups 1, 2, and 3 as A) the working-age population. B) the labor force. C) employed. D) unemployed. E) discouraged workers.

A) the working-age population.

If Brian, age 24, had no job but was available for work and had looked for a job the week before the survey, Brian is classified in the Current Population Survey as A) unemployed. B) employed. C) a discouraged worker. D) not in the labor force. E) not in the working-age population.

A) unemployed.

Consumption goods and services include A) washing machines and tickets to football games. B) new homes and existing homes (as long as improvements have been made to the existing home). C) tickets to concerts and medical care provided to veterans by the government. D) new and used textbooks as long as they are sold via stores or online. E) vacation time accumulated by workers.

A) washing machines and tickets to football games.

Involuntary part-time workers are workers who A) work less than 35 hours but would like to work full time. B) work more than 35 hours but would like to work less than 35 hours. C) work have lost their jobs within the last four weeks and are seeking another job. D) work less than 35 hours by choice. E) have withdrawn from the labor market.

A) work less than 35 hours but would like to work full time.

data for 2009: bread - 50 for $4 soda - 50 for $5 data for 2010 bread - 70 for $3 soda - 50 for $6 The table above gives the production and prices for a small nation that produces only bread and soda. The base year is 2009. What is nominal GDP in 2009? A) $410 B) $450 C) $900 D) $550 E) $460

B) $450

consumption expenditure - $4,000 billion interest, rent, and profit - 300 billion investment - 1,000 billion depreciation - 400 billion government expenditure on goods and services - 1,000 billion net exports of goods and services - 200 billion The table gives data for a nation. What is the amount of the country's GDP? A) $6,000 billion B) $6,200 billion C) $6,600 billion D) $6,900 billion E) $5,800 billion

B) $6,200 billion

wages - 5,000 billion consumption expenditure - 3,500 billion interest, rent, and profit - 1,500 billion statistical discrepancy - 0 net exports - -300 billion indirect taxes minus subsidies - 500 billion depreciation - 800 billion The table above has information about an economy. Using this information, GDP equals A) $6,500 billion. B) $7,800 billion. C) $7,000 billion. D) $8,500 billion. E) some amount that cannot be calculated without information on the amount of government expenditures.

B) $7,800 billion.

The base year is 2011. A country only produces Blu-ray players. The price of a Blu-ray player in 2011 was $100. The price of a Blu-ray player was $90 in 2012. The quantity of Blu-ray players produced in 2011 was 10,000 units and in 2012 was 10,500 units. Nominal GDP in 2012 equals A) $900,000. B) $945,000. C) $1,000,000. D) $1,050,000. E) an amount that cannot be determined without information about nominal GDP in 2008.

B) $945,000.

Assume the U.S. population is 300 million. If 200 million people are of working age, 125 million are employed, and 15 million are unemployed, what is the size of the labor force? A) 200 million B) 140 million C) 125 million D) 215 million E) 175 million

B) 140 million

total population - 80 million currently employed - 40 million not looking for work 2 million want to work but no longer looking for work - 4 million In the table above, the unemployment rate is A) 50.0 percent. B) 15.0 percent. C) 10.0 percent. D) 4.8 percent. E) 5.0 percent.

B) 15.0 percent.

Suppose the population is 300 million people, the labor force is 200 million people, the number of people employed is 185 million, and the working-age population is 170 million people. What is the unemployment rate? A) 92.5 percent B) 7.5 percent C) 8.8 percent D) 5 percent E) 20 percent

B) 7.5 percent

Canada: employment - 4.5 million unemployment - 1.2 million Japan: employment - 64.2 million unemployment - 3.2 million United States: employment - 133.5 million unemployment - 5.9 million The table above gives the number of people employed and the number of people unemployed in Canada, Japan, and the United States on the average during 1999. In 1999, the unemployment rate in ________ was the highest and the unemployment rate in ________ was the lowest. A) the United States; Japan B) Canada; the United States C) Japan; Canada D) Canada; Japan E) Japan; the United States

B) Canada; the United States

Rick lost his job as a logistics and distribution coordinator nearly three years ago. After a long and failed search, Rick finally gives up and stops looking for a new job. Rick's decision to suspend his job search causes the unemployment rate to ________ and the labor force participation rate to ________. A) increase; decrease B) decrease; decrease C) stay the same; decrease D) increase; stay the same E) increase; increase

B) decrease; decrease

Because of the circular flows of expenditure and income in the economy, total ________ equals total ________ equals total ________. A) expenditure; investment; income B) expenditure; income; value of production C) consumption; expenditure; value of production D) investment; income; consumption E) consumption; investment; expenditure

B) expenditure; income; value of production

Bill just graduated with his degree in economics. Through Career Services he submitted his resume to several companies and he will visit them during the next two weeks. Bill is considered A) not in the labor force. B) frictionally unemployed. C) structurally unemployed. D) cyclically unemployed. E) employed because he is visiting firms.

B) frictionally unemployed.

The expenditure approach values ________ and the income approach values ________. A) goods and services at market prices; services at factor prices B) goods and services at market prices; goods and services at factor prices C) only goods at market prices; only services at factor prices D) services only at factor prices; goods only at market prices E) goods and services at factor prices; goods and services at market prices

B) goods and services at market prices; goods and services at factor prices

Even though it is not a perfect measure, economists can use real GDP to i. compare how the value of the goods and services produced in China have changed over the past 10 years. ii. look at the length of recessions and expansions in the United States. iii. compare the standard of living in China versus the standard of living in Vietnam. A) ii only B) i, ii and iii C) i and iii D) i and ii E) ii and iii

B) i, ii and iii

Which adjustment(s) must be made to convert net domestic product to GDP? i. add indirect taxes ii. subtract subsidies iii. add depreciation A) i and iii B) i, ii and iii C) ii only D) iii only E) i and ii

B) i, ii and iii

Which of the following are included in interest income? i. payments made for the use of land ii. income paid to households for loans they make iii. payments made by households for their borrowing A) i, ii and iii B) ii and iii only C) i and ii only D) ii only E) iii only

B) ii and iii only

Which of the following describe the United States' unemployment rate over the last 80 years? i. The unemployment rate has decreased each year since the Great Depression. ii. The unemployment rate has averaged about 5.7 percent since 1929. iii. Job creation due to defense spending and consumer spending in the 1960s drove the unemployment rate to one of its lowest level. A) i and ii only B) ii and iii only C) i, ii and iii D) i only E) i and iii

B) ii and iii only

When the automobile replaced horse-drawn carriages as the principal means of transportation, firms producing horse-drawn carriages went bankrupt and permanently laid off all their workers, thereby increasing i. seasonal unemployment. ii. structural unemployment. iii. cyclical unemployment. A) i only B) ii only C) i and iii D) i and ii E) ii and iii

B) ii only

When an American college student in Davis, California spends $200 on a pair of Louis Vuitton jeans (a famous French brand), U.S. consumption ________, U.S. net exports ________, and U.S. GDP ________. A) does not change; increases by $200; increases by $200 B) increases by $200; decreases by $200; does not change C) increases by $200; does not change; increases by $200 D) does not change; does not change; does not change E) does not change; decreases by $200; decreases by $200

B) increases by $200; decreases by $200; does not change

During a recession, cyclical unemployment ________ and real GDP ________. A) increases; increases B) increases; decreases C) decreases; decreases D) decreases; increases E) does not change; decreases

B) increases; decreases

After graduating from college, Yunis, age 22, started working for his parents' real estate business as an unpaid assistant. He works 25 hours a week helping manage rental units. In the Current Population Survey, Yunis is considered A) part of the labor force and unemployed. B) part of the labor force and employed. C) not part of the labor force. D) a discouraged worker. E) part of the labor force but not part of the working-age population.

B) part of the labor force and employed.

Using the table above, the Current Population Survey classifies the group of individuals obtained by adding groups 5 and 6 as A) the working age population. B) the labor force. C) employed. D) unemployed. E) discouraged workers.

B) the labor force.

Which of the following would NOT be directly included in the U.S. GDP in 2010? A) the market value of restaurant meals sold in 2010 B) the market value of the jet fuel bought by Delta to use for its flights in 2010 C) the value of the automobiles produced in 2010 at the Toyota plant located in Georgetown, Kentucky D) legal services provided to first time home buyers during 2010 E) the purchase of a new home in Atlanta, Georgia in 2010

B) the market value of the jet fuel bought by Delta to use for its flights in 2010

Full employment means that A) the unemployment rate is below 6 percent. B) there is no cyclical unemployment. C) the unemployment rate is zero. D) the frictional unemployment rate is equal to the structural unemployment rate. E) there is no frictional unemployment.

B) there is no cyclical unemployment.

3. To calculate GDP it is necessary to A) add the total amounts of all the goods produced. B) use the market price to place a dollar value on each good produced. C) use production cost to place a dollar value on all goods produced. D) use the average market price over the last five years to place a dollar value on all goods produced. E) average the cost of producing a good with the price of the good to place a dollar value on all goods produced

B) use the market price to place a dollar value on each good produced.

The base year is 2012. A country only produces Blu-ray players. The price of a Blu-ray player in 2012 was $100. The price of a Blu-ray player was $90 in 2013. The quantity of Blu-ray players produced in 2012 was 10,000 units and in 2013 was 10,500 units. Real GDP in 2012 equals A) $900,000. B) $945,000. C) $1,000,000. D) $1,050,000. E) an amount that cannot be determined without information about real GDP in 2007

C) $1,000,000.

Last year in a nation to the south, net domestic product at factor cost equaled $3,300 billion. Indirect taxes minus subsidies equaled $200 billion, depreciation equaled $800 billion, the statistical discrepancy equaled zero, and net operating surplus equaled $150 billion. The country's GDP was A) $2,300 billion. B) $3,500 billion. C) $4,300 billion. D) $4,450 billion. E) $4,150 billion.

C) $4,300 billion.

Assume that a small country produces only green peppers and red peppers. Last year, it produced 100 green peppers and 50 red peppers and sold them at prices of $2 per green pepper and $3 per red pepper. This year, it produced 150 green peppers and 60 red peppers and sold them at prices of $2 per green pepper and $4 per red pepper. What is real GDP this year if the base year is last year? A) $540 B) $400 C) $480 D) $350 E) $890

C) $480

The unemployment rate is equal to A) (labor force ÷ population) × 100. B) (number of employed people ÷ labor force) × 100. C) (number of unemployed people ÷ labor force) × 100. D) (number of unemployed people ÷ number of employed) × 100. E) (number of unemployed people ÷ working-age population) × 100.

C) (number of unemployed people ÷ labor force) × 100.

total population - 250 million less than 16 years of age - 30 million institutionalized - 15 million part-time workers - 20 million full-time workers - 145 million looking for work in the past 4 weeks - 10 million in US armed forces - 10 million Using the table above, the number of people in the labor force is A) 145 million. B) 165 million. C) 175 million. D) 195 million. E) 185 million.

C) 175 million.

total population - 250 million less than 16 years of age - 30 million institutionalized - 15 million part-time workers - 20 million full-time workers - 145 million looking for work in the past 4 weeks - 10 million in US armed forces - 10 million Using the table above, the working-age population is A) 155 million. B) 170 million. C) 195 million. D) 250 million. E) 220 million.

C) 195 million.

total population - 250 million working-age population - 160 million labor force - 120 million part-time workers - 15 million full-time workers - 100 million discouraged workers - 2 million Using the table above, the unemployment rate is A) 11.2 percent. B) 6.3 percent. C) 4.2 percent. D) 10 percent. E) 5.8 percent.

C) 4.2 percent.

total population - 80 million currently employed - 40 million not looking for work 2 million want to work but no longer looking for work - 4 million In the table above, the size of the labor force is A) 80 million. B) 46 million. C) 42 million. D) 40 million. E) 34 million.

C) 42 million.

employment - 14.5 million labor force - 15.7 million working-age population - 24 million average weekly hours - 34.2 hours The table shows data reported by Statistics Canada for 1999. In 1999, the unemployment rate was A) 1.2 million. B) 5.0 percent. C) 7.6 percent. D) 7.9 percent. E) 6.1 percent

C) 7.6 percent.

total population - 250 million working-age population - 160 million labor force - 120 million part-time workers - 15 million full-time workers - 100 million discouraged workers - 2 million Using the table above, the labor participation rate is A) 67 percent. B) 48 percent. C) 75 percent. D) 83 percent. E) 40 percent.

C) 75 percent.

________ unemployment changes slowly and depends on ________. A) Frictional; the skills of the unemployed B) Seasonal; the rate at which people enter and exit the labor force C) Frictional; the rate at which people enter and exit the labor force D) Structural; the rate at which people enter the labor force E) Structural; the inflation rate

C) Frictional; the rate at which people enter and exit the labor force

Gross Domestic Product equals A) Y = C + I - G + NX. B) Y = C - I + G + NX. C) Y = C + I + G + NX. D) Y = C - I - G - NX. E) Y = C + I + G - NX.

C) Y = C + I + G + NX.

A marginally attached worker is A) a worker who is unhappy at his or her job. B) a worker who is looking for a job but can't find one. C) a worker who does not have a job and is available and wants one but has not made any efforts to find a job within the previous four weeks. D) a person who only works part time but wants full-time work. E) counted as unemployed in the official labor market statistics.

C) a worker who does not have a job and is available and wants one but has not made any efforts to find a job within the previous four weeks.

The working-age population consists of all the people in the population A) aged 16 and over. B) aged 16 to 65. C) aged 16 and over who are not in jail, hospital, or an institution or in the U.S. Armed Forces. D) aged 21 and over who are not in jail, hospital, or an institution or in the U.S. Armed Forces. E) who are employed plus the unemployed people.

C) aged 16 and over who are not in jail, hospital, or an institution or in the U.S. Armed Forces.

Undistributed profits ________ counted as part of GDP because ________. A) are not; households are not paid by the firms B) are; they can be used to buy other goods C) are; they are considered income paid to households and loaned back to firms D) are not; they are considered an intermediate good E) are; firms are required to pay corporate income taxes on them

C) are; they are considered income paid to households and loaned back to firms

The natural unemployment rate is the unemployment rate that exists when there is no A) structural unemployment. B) frictional unemployment. C) cyclical unemployment. D) cyclical or structural unemployment. E) unnecessary unemployment.

C) cyclical unemployment.

The working-age population includes A) those in jails and hospitals. B) youngsters between the ages of 14 and 16 if they are working at least part time. C) employed and unemployed people over the age of 16. D) only employed people over the age of 16. E) people over the age of 16 who are in the Army.

C) employed and unemployed people over the age of 16.

Discouraged workers who are over 16 years old are i. not counted as unemployed. ii. part of the working-age population. iii. part of the labor force. A) i only B) ii only C) i and ii D) ii and iii E) i, ii, and iii

C) i and ii

5. Which of the following is included in Germany's GDP? i. BMWs produced in a German-owned factory in South Carolina ii. the value of the stocks sold on the German stock exchange, the Frankfurt Stock Exchange iii. china produced by the English-owned Wedgewood Company at a factory in Berlin, Germany A) i and iii B) ii only C) iii only D) i and ii E) None of the above answers is correct.

C) iii only

Which of the following is classified as a final good or service? i. tires bought by GM to put on new Tahoes ii. mustard bought by Subway to put on its sub sandwiches iii. your purchase of online access to the Wall Street Journal A) i and ii B) i, ii and iii C) iii only D) ii and iii E) ii only

C) iii only

The category of "rent" in the income approach to GDP A) includes the money paid to rent apartments only. B) includes the money paid to rent machinery only. C) includes the money paid to use land and other rented inputs. D) does not have any connection to owner-occupied housing. E) includes only the imputed rent for owner-occupied housing.

C) includes the money paid to use land and other rented inputs.

Real GDP can increase if the i. quantities of goods and services produced decrease and prices fall by a smaller percentage. ii. quantities of goods and services produced decrease and prices fall by a larger percentage. iii. quantities of goods and services produced decrease and prices do not change. iv. quantities of goods and services produced increase. A) i only B) iii only C) iv only D) i and iii E) i, ii, and iii

C) iv only

Gross Domestic Product measures the A) quantity of the goods and services produced in a given year, listed item by item, within a country. B) income of the business sector within a country. C) market value of the final goods and services produced in a given year within a country. D) measures the market value of the domestic labor in a given year within a country. E) market value of the final goods and services consumed by households in a given year within a country.

C) market value of the final goods and services produced in a given year within a country.

Wobet is a small country that produces only steak and potatoes. Steaks have a price of $10 each and potatoes have a price of $1 each. Suppose that Wobet produces 10 steaks and 20 potatoes in 2010. Using ________, Wobet has GDP equal to ________. A) market value; 30 units B) a market basket; 30 units C) market value; $120 D) real value; $120 E) a price index; $120

C) market value; $120

Which of the following is NOT included in the income approach to calculating GDP? A) interest B) wages C) net exports of goods and services D) profits E) rent

C) net exports of goods and services

Phillip is a 22-year old who has no job and is available for work, but has not actively looked for a job in the last month. The Current Population Survey identifies Phillip as ________, ________ the labor force, and ________ the working-age population. A) unemployed; part of; part of B) unemployed; part of; not part of C) not unemployed; not part of; part of D) not unemployed; not part of; not part of E) not unemployed; part of; part of

C) not unemployed; not part of; part of

Which type of unemployment arises when changes in technology or international competition change the skills needed to perform jobs or change the location of jobs? A) cyclical B) fluctuating C) structural D) frictional E) skill-set

C) structural

In order to obtain the data used to calculate the unemployment rate, the Bureau of Labor Statistics A) adds the number of people collecting unemployment insurance from each state. B) adds the state unemployment claims reports. C) uses a survey from 60,000 households. D) adds together all the reports of layoffs from businesses. E) uses a survey from 160,000 firms.

C) uses a survey from 60,000 households.

One bag of coffee beans is sold for $7 to a cafe that uses it to brew coffee which it sells to customers for a total of $15. A second bag of coffee is sold directly to Joan for $7, who uses it to brew coffee for her family every morning. What is the contribution to GDP from the purchases of coffee beans and coffee? A) $7 B) $14 C) $15 D) $22 E) $29

D) $22

Last year in Candamica, consumption expenditure was $20 billion, interest, rent, and profit were $2.5 billion, government expenditure on goods and services was $7 billion, net exports of goods and services was $5 billion, and investment was $2 billion. Hence total expenditure was A) $24.5 billion. B) $34.5 billion. C) $36.5 billion. D) $34 billion. E) undetermined without information about imports.

D) $34 billion.

wages - 300 billion consumption expenditure - 350 billion interest, rent, and profit - 50 billion statistical discrepancy - 0 government expenditure - 300 billion indirect taxes minus subsidies - 15 billion net exports of goods and services - -11 billion depreciation - 15 billion Using the information in the table above, what does GDP equal? A) $365 billion B) $350 billion C) $650 billion D) $380 billion E) GDP cannot be calculated without information on the amount of investment.

D) $380 billion

The highest unemployment rate in U.S. history was about A) 10.2 percent in 2009. B) 5.9 percent in 1972. C) 10 percent in 1982. D) 25 percent in 1933. E) 52 percent in 1939.

D) 25 percent in 1933.

In fall 2009, the population of the United States was 301 million, the working-age population was 235.7 million, the total number of people employed and unemployed was 154.9 million, and the total number of unemployed people was 14.7 million. What is the unemployment rate? A) 51 percent B) 6.2 percent C) 4.9 percent D) 9.5 percent E) 4.6 percent

D) 9.5 percent

Which is true concerning U-2? i. It does not count marginally attached workers as unemployed. ii. It counts as unemployed workers who were laid off. iii. It is smaller than U-3. A) i only B) i and ii C) i and iii D) ii and iii E) i, ii and iii

E) i, ii and iii

Which of the following persons is NOT considered a part of the labor force? A) Mary, who has a part-time job as a day care specialist B) Lones, an unemployed mechanic looking for a new job C) Jameson, an accountant who has been temporarily laid off during the holiday season D) Desire, a wealthy hedge fund manager who just took early retirement E) Lucy, who works 20 hours a week in her father's restaurant for no pay

D) Desire, a wealthy hedge fund manager who just took early retirement

Which of the following statement is correct? A) If nominal GDP increases, then real GDP must increase. B) If nominal GDP decreases, then real GDP must increase. C) If real GDP decreases, then nominal GDP must decrease. D) Nominal and real GDP can change either in the same direction or the opposite direction. E) If nominal GDP does not change, then real GDP cannot change.

D) Nominal and real GDP can change either in the same direction or the opposite direction.

When the value of nominal GDP increases from one year to the next, we know that one or two things must have happened during that time: A) The nation produced fewer goods and services and/or prices fell for goods and services. B) Consumption expenditure increased and/or corporate profits increased. C) Investment increased and/or payments to employees increased. D) The nation produced more goods and services and/or prices rose for goods and services. E) the value of real GDP must have increased and/or the price level must have decreased.

D) The nation produced more goods and services and/or prices rose for goods and services.

Kelly's Surf Shop orders 5,000 new surf boards at the beginning of the year but only sells 4,500 by the end of the year. How are the 500 unsold surfboards accounted for in Gross Domestic Product? A) They will be included in the nondurable consumption category of GDP. B) They will be included in the residential investment category of GDP. C) They will be included in the government spending category of GDP. D) They will be included in the inventory investment category of GDP. E) They will be included in the durable consumption category of GDP.

D) They will be included in the inventory investment category of GDP.

Which of the following is true? A) To be classified as employed, you must be a full-time worker at a paid job. B) To be classified as employed, you must work at least 20 hours per week at a paid job. C) Part-time workers are all those who work less than 40 hours per week. D) To be classified as employed, you must work at least 1 hour per week at a paid job or 15 hours or more as an unpaid worker in your family business. E) If you are not working and turn down a job offer in the previous week, you are no longer classified as unemployed.

D) To be classified as employed, you must work at least 1 hour per week at a paid job or 15 hours or more as an unpaid worker in your family business.

National differences in women's labor force participation rates are explained by A) family friendly labor market policies. B) percentage of women with college degree. C) cultural differences. D) all of the above E) none of the above

D) all of the above

Cyclical unemployment includes people who become unemployed from A) changes in the seasons. B) changes in international competition. C) technological changes. D) changes in the business cycle. E) normal labor market turnover.

D) changes in the business cycle.

In the Current Population Survey, a person is considered unemployed if the person A) is without a job. B) is working anything less than 40 hours per week. C) is working without pay. D) does not have a job and is actively looking for a job. E) is working less than 20 hours per week.

D) does not have a job and is actively looking for a job.

The unemployment rates during the last 10 years in the Eurozone was A) constantly lower than the unemployment rate in the United States and not rising toward the U.S. unemployment rate. B) constantly lower than the unemployment rate in the United States but were rising toward the U.S. unemployment rate. C) more or less constant at 3 percent. D) generally higher than the U.S. unemployment rate. E) approximately equal to those in the United States, with some years the U.S. unemployment rate being slightly higher and in other years the U.S. unemployment rate being slightly lower.

D) generally higher than the U.S. unemployment rate.

The circular flow shows that GDP measures ________. i. total income. ii. total expenditures. iii. price changes. A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii

D) i and ii

Which of the following is included as investment in GDP? i. cars produced during the year but unsold at the end of the year ii. new capital equipment produced and purchased during the year iii. purchases of a company's stocks and bonds A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii

D) i and ii

Which of the following is included in U.S. GDP? i. the rental value of homes owned by U.S. citizens ii. the production of Suburban SUVs by GM in its plant in Mexico iii. tickets sold by U2 for concerts held in the United States A) ii only B) ii and iii C) i, ii and iii D) i and iii E) i only

D) i and iii

Government expenditures on goods and services include i. the New York City Library's purchase of new books. ii. Washington D.C.'s purchase of gas for its city buses. iii. California's payment of wages to prison guards. A) i and ii B) i and iii C) ii and iii D) i, ii and iii E) i only

D) i, ii and iii

In the United States, between 1961 and 2011, there has been i. a consistent , non-changing growth rate of potential GDP per person. ii. an increase in the standard of living based on real GDP per person. iii. fluctuations in real GDP per person around potential GDP per person. A) ii only B) i, ii and iii C) i and ii D) ii and iii E) i only

D) ii and iii

In comparing the magnitudes of the components of GDP according to the expenditure approach, we see that in the United States A) government expenditure on goods and services is the largest category. B) investment is the largest category. C) investment is much larger than government expenditure on goods and services. D) investment is less than government expenditure on goods and services. E) investment, government expenditure on goods and services, and consumption expenditure are all about the same size.

D) investment is less than government expenditure on goods and services.

As technology advancements have led to more white collar jobs, A) the unemployment rate has steadily fallen. B) the labor force participation rate for men and women have increased. C) a higher percentage of men of working age have entered the labor force. D) the labor force participation rate for women has increased over the last 50 years. E) the labor force participation rate for women has decreased since 1960.

D) the labor force participation rate for women has increased over the last 50 years.

During last year, a country produced 20,000 pizzas and 10,000 hamburgers and nothing else. The pizzas sold for $10.00 each and the hamburgers for $3.00 each. Nominal GDP was A) $230,000. B) $70,000. C) $460,000. D) $390,000. E) $360,000.

E) $360,000.

In 2012, part-time workers for noneconomic reasons were about ________ of total employment, and part-time workers for economic reasons were about ________ of total employment. A) 3 percent; 25 percent B) 17 percent; 17 percent C) 2 percent; 12 percent D) 13 percent; 20 percent E) 13 percent; 6 percent

E) 13 percent; 6 percent

total population - 250 million less than 16 years of age - 30 million institutionalized - 15 million part-time workers - 20 million full-time workers - 145 million looking for work in the past 4 weeks - 10 million in US armed forces - 10 million Using the table above, the unemployment rate is A) 5.13 percent. B) 5.88 percent. C) 6.45 percent. D) 6.90 percent. E) 5.71 percent.

E) 5.71 percent.

Which of the following would be included in Germany's GNP? A) the production of BMWs (made by a German-based company) in South Carolina B) the production of Michelin tires made in Germany by a French company and then sold directly to French consumers C) the production of BMWs in Germany D) the production of Michelin tires made in France by a French company and then sold to BMW in Germany for use in BMW cars E) Answers A and C are correct.

E) Answers A and C are correct.

Gross Domestic Product is the market value of all ________ produced within a country in a given period of time. A) final goods B) intermediate goods C) final services D) intermediate services E) final goods and services

E) final goods and services

Which of the following is NOT directly included in U.S. GDP? A) sales to tourists of beach umbrellas in Hilton Head, South Carolina B) sales of sandwiches at a Subway store in Bangor, Maine C) ticket sales to Ripley's Aquarium in Gatlinburg, Tennessee D) popcorn purchased by a movie theater chain in Georgia E) movie tickets purchased by consumers in Georgia

E) movie tickets purchased by consumers in Georgia