macro

we are least likely to be heading into a recession when the national activity index equals: a. -0.33 b. 0.55 c. -0.98 d. 0.81

0.81

According to the table the number of people the labor force is: employed-85 unemployed seeking work-25 discouraged workers-15 unpaid family members working 15 plus hours-5 retired-10 A. 115 B. 110 C.130 D. 120

115

suppose market basket of goods cost 10,000$ in 2009, or base period. Same basket now cost 12,000. what is cpi? A. 89.3 B. 112 C. 120 D. 132.3

120

If a wooden toy costs 15$ to produce and is sold as a loss leader for 13$, then the GDP is? a. 2$ b. 13$ c. 14$ d. 15$

13$

if personal consumption is 100, investment is 25, government purchases total 25, imports equal 20, and exports equal 10, the GDP equals: a. 160$ b. 180$ c. 150$ d. 140$

140$

if an economies GDP will double in 25 years, then its growth rate must be: a. 2.5% b. 2.8% c. 12.5% d. 25%

2.8%

if the growth rate is an ecomoy is 3.5%, then its GDP will double in about a. 3.5 years b. 20 years c. 70 years d. 245 years

20 years

Suppose an economist breaks the unemployment rate into the following components: frictional (2%), structural (1%) and cyclically (4%). Based on these estimates, the natural rate of unemployment is. a. 0% b. 3% c. 5% d. 7%

3%

over the past 150 years, the US economy has endured a recession on average about every: a. 1-2 years b. 4-5 years c. 10-15 years d. 50 years

4-5 years

if outputs equal A*(5k+2l), what is output if A equals 150, capital equals 10, and labor equals 200? a. 150 b. 56,500 c. 67,500 d. 450,000

67,500

if a jeep is produced in Detroit in 2013, but not sold until 2014 in Florence Italy, it should be included in US _____, and its value should be counted in ____ A. GDP, 2013 B. GDP 2014 C. GNP, 2013 D. GNP, 2014

GNP, 2013

Daves salary was 48,000 and his dads was 28,000 years ago. If CPI when dave begins is 180.5 and the year his dad started was 101.8, Dave is... A. correct, 4 adjusting price change, his $ is more B. correct, 4 adjusting quantity change, his $ is more C. Mistaken, 4 adjusting price change, his $ is less D. Mistaken, 4 adjusting quantity change, his $ is less

Mistaken, 4 adjusting price change, his $ is less

what is an example of a final good? A. a windshield purchased by general motors b. petroleum purchased by refiner from company that drilled it. c. nails purchased by a building contractor d. a hamburger purchased by a student

a hamburger purchased by a student

the GDP deflator for base year is: a. less than 100 b. always 100 c. more than 100 d. dependent on the quantities of output & the prices at which outputs are sold in base year

always 100

the net approach to calculation GDP includes compensation of employees plus: a. corporate profits and rental income b. national income and government expenditures c. net interest and net exports d. rental income and net exports

corporate profits and rental income

which of the following allows most flexibility to legislators? a. cyclical unemployment b. frictional c. natural rate of d. structural

cyclical unemployment

which of the following terms describes a situation in which there is a reduction in the rate of inflation from 4% to 3% per year. a. hyperinflation b. inflation c. deflation d. disinflation

disinflation

when the gov. enforces contracts b/w two parties, it is acting in its role to promote economic growth by: a. ensuring a stable legal system b. providing a physical & human capita c. ensuring a stable & secure financial system d. promoting free * competitive markets

ensuring a stable legal system

which of the following groups benefits from an unanticipated rise in the inflation rate? a. homeowners with fixed rate mortgages b. elderly people living on a fixed income c. creditors or lenders d. workers on contracts without escalator clauses

homeowners with fixed-rate mortgages

all of the following are considered sources of long-tun growth except; a. increased demand b. increase in capital c. increase in productivity d. improvements in technology.

increased demand

which component of GDP includes inventory changes? a. consumption b. investment c. government spending d. inventory changes are not included in GDP

investment

the national activity index: a. is a weighted average of 85 indicators of national economic activity b. is a weighted average of estimates of economic activity by national bureau of economic research(NBER) and the bureau of economic activity(BEA) c. us produced by the NBER d. is a measure of unemployment and participation in the labor force

is a weighted average of 85 indicators of national ecomonic activity

inflation has significant long-run effects on the economy because a. it distorts the price signal and produces incentives for speculation b. it can enhance the purchasing power of a fixed income c. it can lead to an improvement in real values d. creditors can gain from inflation

it distorts the price signal and produces incentives for speculation

which component is the smallest part of US GDP? a. personal consumption expenditures b. gross private domestic investments c. government purchases of goods and services d. net exports

net exports

CPI=

new/base(100)

the price of feed corn would be included in the... a. consumer price index b. personal consumption expenditures price index c. producer price index d. core consumer price index

producer price index

which of the following items is not a category of a personal consumption expenditures? a. durable goods b. nondurable goods c. residential housing d. services

residential housing

GDP can be found either by adding up all of the _______ or all of the _____ in the economy A. Spending;taxes B. spending;income C. investment;income D. net interest payments;taxes

spending;income

in the united states, our principal measure of inflation is: a. the consumer price index b. gross domestic product c. the producer price index d. the leading economic index

the consumer price index

if a countries population increases at a higher rate than the growth in its real GDP: a. GDP per capita has increased b. the standard of living in the country has declined c. Avg. output per person remains constant d. countries rate of inflation has increased

the standard of living in country has delcined

an economy has historically grown at a rate of 1.25$. Economic activity has decreased every quarter year over the past year, but the decline stopped this quarter. the economy is expected to grow at a rate of 1.4% in the near future and the monetary authorities are concerned that inflation may increase. This economy is probably in the _____________ stage of the business cycle. a. expansion b. recovery c. contraction d. trough

trough

structurally unemployment

unemployment resulting from industrial reorganization

frictionally unemployed

unemployment when people are in the process of moving from one job to another

business cycles: a. are always the same duration b. are always the same magnitude c. are always the same duration and magnitude d. vary in duration and magnitude

vary in duration and magnitude

government expenditures include _______ and ______ but NOT ______. a. wages and salaries; transfers; the purchase of product and services b. transfers, the purchase of products and services, wages and salaries c. wages and salaries, the purchase of products and services; transfers d. government expenditures include wages and salaries; transfers; and the purchase of products and servies

wages and salaries, the purchase of products and services, transfers

the world bank defines extreme poverty as a person living on less than _____ per day? a. 1.25$ b. 2$ c. 16$ d.5,763$

1.25$

an economy has population of 262,500. of them, 12,500- unemployed & actively seeking work. 35,000- have given up looking for a job. 32,000- work part time 150,000- work full time what is the unemployment rate? a. 4.8% b. 6.4% c. 6.9% d. 8.3%

6.4%

At the trough of the business cycle, the economy is typically operating a. at its capacity b. above c. below d. at its lowest level ever

below

which of the following statements about stopping hyperinflation is NOT covered? a. the government must rein in the budget deficit b. the growth of the money supply must slow c. borrowing from foreign governments must take place d. a change in the government and a new currency are usually required.

borrowing from foreign governments must take place

which country is most productive? country A- 150 workers and 500$ capital stock country B- 50 workers and 150$ in capital stock country c- 200 workers and 1,750$ in capital stock country d- 100 workers and 1,000$ in capital stock

country D

the annualized GDP growth rate is typically: a. lower than the year-over-year growth rate b. higher than the year-over-year growth rate c. same as the year-over-year growth rate d. different than the year-over-year growth rate

different than the year-over-year growth rate

Jordan lost his first job last year and hasn't been able to find a job cause economic recession. After getting tired from job hunting he took six months off. He is: A. employed b. unemployed c. discouraged worker d. part of labor force

discouraged worker

wages set high to discourage employee turnovers are called _______ wages a. turnover minimization b. efficiency c. productivity d. labor utilization

efficiency

investment in structures, equipment, software and net inventory is known as? a. total business spending b. gross private domestic investment c. net business spending d. net investment in durables

gross private domestic spending

From 1992 to 1994, Ukraine saw monthly inflation rates of 285%, daily of 4.60% and the average time required to double prices was 15.6 days. Their economy underwent? A. disinflation B. deflation c. hyperinflation d. inflation

hyperinflation

economic growth is most commonly measured by: A GDP B. GDP per capita C. genuine progress indicator per capita D. real GDP per capita

real GDP per capita

Macroeconomics was developed to explain a. the great depression b. jobless recoveries c. the industrial revolution d. the internet boom

the great depression

the biggest group missing from the reported unemployment rate is: a. discouraged workers b. marginally attached workers c. those working part time for economic reasons d. those actively seeking work

those working part time for economic reasons

cyclically unemployment

when business cycles are at their peak and they get rid of people