Econ Homework 3

not in the labor force

Vladimir quit his job at the gym 12 weeks ago and is now planning on traveling across Europe for the next year. According to the Bureau of Labor Statistics, Vladimir is currently: A) unemployed B) a discouraged worker C) not in the labor force D) Both B and C are correct

I

Which category of GDP would Honda (Japanese company) expanding its factory in Ohio fall into? A) C B) I C) G D) NX E) Not included

Both A and C

All of the following are examples of consumption expenditures except: A) the renovation of restrooms at LP Field (home of the Titans). B) the purchase of a ticket to a Nashville Predators game. C) the purchase of a 2011 Zamboni by the Nashville Predators. D) the purchase of a hot dog at a Tennessee Titans game. E) Both A and C

Patrick buys a home which was built in 2003

All of the following are included in current calculations of GDP using the expenditures approach except: A) Ndamukong Suh buying Omaha Steaks B) Patrick buys a home which was built in 2003 C) Mark takes his dog Jasper to the Veterinarian for his annual check-up D) Governor Haslam receives his monthly paycheck

$660

Based on the information given above and assuming that 2007 is the base-year, real GDP in 2007 in this economy is: A) $980 B) $830 C) $440 D) $660

$830

Based on the information given above and assuming that 2007 is the base-year, real GDP in 2008 in this economy is: A) $780 B) $830 C) $940 D) $1,010

49

Based on the information given above, nominal GDP grew by about ________ percent from 2007 to 2008. A) 18 B) 33 C) 49 D) 67

$660

Based on the information given above, nominal GDP in 2007 in this economy was: A) $660 B) $300 C) $440 D) $780

$980

Based on the information given above, nominal GDP in 2008 in this economy was: A) $560 B) $780 C) $980 D) $1,205

26

Based on the information given above, real GDP grew by about ________ percent from 2007 to 2008. A) 15 B) 31 C) 85 D) 26

counting intermediate goods and services would lead to double-counting of many activites.

GDP calculations only count final goods and services because A) one cannot calculate the quantities of intermediate goods produced. B) it is difficult to measure the prices of intermediate goods produced. C) counting intermediate goods and services would lead to double-counting of many activites. D) these are the only goods and services that are purchased in an economy.

browsing through job listings on Monster.com

Which of the following activities would the Census Bureau not count as an indication that a person is actively seeking work? A) browsing through job listings on Monster.com B) sending resumes to potential employers C) contacting employment agencies D) scheduling job interviews

It occurs when a person leaves one job for another job but cannot report to the new employer for several weeks.

Which of the following statements about structural unemployment is false? A) It can be caused by changes in technology. B) It is usually associated with extended periods of unemployment. C) It occurs when a person leaves one job for another job but cannot report to the new employer for several weeks. D) It often necessitates extensive retraining.

Cyclical unemployment comes about because of changes in technology

Which one of the following is incorrect concerning cyclical unemployment? A) Cyclical unemployment is the difference between the current unemployment rate and what it would be at full employment. B) Cyclical unemployment comes about because of changes in the business cycle. Correct Response C) Cyclical unemployment comes about because of changes in technology D) Cyclical unemployment is below the natural rate of unemployment during economic expansions.

Peak

Which phase of the business cycle follows immediately after the recovery? A) Trough B) Peak C) Recession D) Contraction

frictional unemployment

Which type of unemployment is natural for our economy and can be considered beneficial because it allows for searching? A) cyclical unemployment B) frictional unemployment C) structural unemployment D) natural unemployment

Real GDP controls for price changes, while nominal GDP does not.

How does real GDP differ from nominal GDP? A) Nominal GDP controls for price changes, while real GDP does not. B) Nominal GDP can be used to directly compare the amount of output produced from year to year, while real GDP cannot be used for such comparison. C) Real GDP controls for price changes, while nominal GDP does not. D) There is no difference between nominal GDP and real GDP.

11%

If there are 450,000 people in the population, 300,000 people in the labor force, and 267,000 are classified as being employed, then what is the unemployment rate? A) 11% B) 7.33% C) 66.67% D) 5%

Both B and C are correct

Jim has been out of work for over a year and has sought employment during that time, but has not sought employment during the last 4 weeks because he has given up trying to get a new job until the economy gets better. Jim is considered to be: A) unemployed B) not a member of the labor force C) a discouraged worker D) underemployed E) Both B and C are correct

It does not measure discouraged workers or the underemployed.

Many people have an issue with the regular (i.e. Headline) unemployment rate that is reported. What is the issue? A) 16 and 17 year-olds are included even though they are not legal adults until they turn 18. B) The government tampers with the data. C) The frictionally unemployed are included even though this is only short-term unemployment. D) It does not measure discouraged workers or the underemployed.

structural unemployment

Roger worked in a coal mine until it went out of business because fewer utility companies were using coal to generate electricity. Now he is unable to find a new job because he is not qualified for any of the jobs that are available. This is an example of: A) structural unemployment B) seasonal unemployment C) frictional unemployment D) cyclical unemployment

I

Suppose Target (American company) builds a new store in Cookeville, TN (You wish,right?). Which category of U.S. GDP does this fall into? A) C B) I C) G D) NX E) Not included

G

Suppose a new bridge is built on TN Hwy 111. Which category of U.S. GDP does this fall into? A) C B) I C) G D) NX E) Not included

Not included

Suppose that Chevy (American company) purchases 500,000 tires for its Malibu cars from Goodyear (American company). Which category of U.S. GDP does this purchase fall into? A) C B) I C) G D) NX E) Not included

NX

Suppose that Korean Air (Korean company) purchases a new 787 jet from Boeing (American company). Which category of U.S. GDP does this purchase fall into? A) C B) I C) G D) NX

$160

Suppose that in a country GDP is $520, consumption(C) is $300, net exports(NX) is -$40, government purchases(G) is $100. How much is investment(I)? Correct Response A) $160 B) $80 C) $120 D) There is not enough information given to answer this question

the total number of people who are either employed or unemployed.

The Bureau of Labor Statistics (BLS) defines the labor force as: A) the total number of people who are either employed or unemployed. B) all those willing to work, whether they have a job or not and whether they are actively looking for a job or not. C) the total number of people who are either employed, unemployed, or discouraged workers. D) the total U.S. population.

spending equals income.

The circular flow diagram is used to make the point that: A) unemployment only occurs during a recession. B) rising prices never occur during times of unemployment. C) households purchase factors of production(resources) from firms. D) spending equals income.

Consumption (C)

The largest component of GDP in the U.S. is: A) Consumption (C) B) Investment (I) C) Government Purchases (G) D) Net Exports (NX)

5% - 7%

The natural rate of unemployment in the U.S. is: A) 8% - 9% B) 1% - 2% C) 5% - 7% D) zero percent