Unit 1 Milestone
College tuition for 1 year cost $2,500 in 1976 and $11,000 in 2007. By what factor have the prices increased?
4.4
If a gallon of milk costed 5 cents in 1930 and today costs $4.50, prices have increased by which of the following factors?
90
Which of the following is associated with increasing employment of women in living-wage occupations?
A higher standard of living for families
Which of the following correctly lists the three principal parties in an economy?
Consumers, businesses, and the government
Which statement below is true of GDP?
It describes the past state of the economy instead of present conditions.
Which statement below regarding the circular flow diagram is false?
It is a common misconception that the circular flow diagram and GDP are related.
Which statement below regarding recessions is true?
It is a decline in economic activity.
Which statement below about economics is NOT true?
It only considers the choices that take place at an individual level.
Which of the following are we NOT able to tell about a country's economic health by looking at labor force participation rates by gender?
Measure of income inequality
In the circular flow diagram, which of the following flows from households to firms?
Money for the purchase of goods and services
According to this circular flow diagram, which of the following flows FROM the government TO firms?
Purchases of goods and services
Which of the following is a leading economic indicator?
Retail sales
Which statement is true regarding women's participation in the labor market?
Standards of living increase as women's participation in the workforce increases.
Which of the following statements regarding the PPI and the CPI is true?
The PPI is a leading indicator and the CPI is a lagging indicator.
Which approach for determining GDP calculates the sum of all final goods and services purchased in an economy?
The expenditure approach
Which of the following criteria must be met in order for someone to be classified as unemployed?
They must have made efforts to find work in the last 4 weeks.
Which of the following is a reason to learn about macroeconomics?
Understanding the reasons for economic policy decisions can make us better citizens.
Since it takes businesses time to respond to economic events in hiring or laying off workers, the unemployment rate is generally considered __________.
a lagging indicator
Which of the following is NOT a good reason to study macroeconomics?
It can help someone understand choices made at the individual level.
Which statement below about the business cycle is true?
Although it experiences periods of expansion and recession, overall, the trend is growing.
Which of the following describes the Producer Price Index?
An evaluation of crude, intermediate, and finished goods
Which of these is NOT revealed by labor force participation rates of a country?
Availability of resources
Which statement below regarding economic indicators is true?
Economic indicators are macroeconomic by their very nature.
Which of the following is NOT true about economics?
Economics can accurately predict what the national economy will do in six months to a year.
Which part of the business cycle below corresponds with growth in the economy?
Expansion
Which of the following terms is the sum of all final goods and services purchased in an economy?
Expenditure approach
Naomi has a degree in a field with a great deal of growth at the moment, but she is having a difficult time finding work because she just moved to a new city and does not know anyone yet. Which kind of unemployment is Naomi experiencing?
Frictional
What is the total amount of economic product that a country produces?
GDP
Which of the following is false with respect to the use of GDP to compare countries?
GDP cannot measure consumption-led growth well.
A person who leaves employment and moves to a new state where their skills are marketable to find work is considered to be undergoing __________ unemployment.
frictional
