ECO385 Chapter 2 graded homework

If the number of employed increases while the number of unemployed does not change, the unemployment rate: A. will decrease. B. will not change. C. may either increase or decrease. D. will increase.

A

When a firm sells a product out of inventory, investment expenditures ______ and consumption expenditures ______. A. decrease; increase B. remain unchanged; increase C. decrease; remain unchanged D. increase; decrease

A

All of the following are measures of GDP except the total: A. income from all production in the economy. B. expenditures of all businesses in the economy. C. expenditures on all final goods and services produced. D. value of all final production.

B

Assume that apples cost $0.50 in 2002 and $1 in 2009, whereas oranges cost $1 in 2002 and $1.50 in 2009. If 4 apples were produced in 2002 and 5 in 2009, whereas 3 oranges were produced in 2002 and 4 in 2009, then real GDP (in 2002 prices) in 2009 was: A. $9.50. B. $6.50. C. $11. D. $5.

B

An increase in the price of imported goods will show up in: A. the CPI but not in the GDP deflator. B. neither the CPI nor the GDP deflator. C. the GDP deflator but not in the CPI. D. both the CPI and the GDP deflator.

A

Assume that apples cost $0.50 in 2002 and $1 in 2009, whereas oranges cost $1 in 2002 and $0.50 in 2009. If 10 apples and 5 oranges were purchased in 2002, and 5 apples and 10 oranges were purchased in 2009, the CPI for 2009, using 2002 as the base year, is: A. 1.25. B. 0.75. C. 0.80. D. 1.

A

Assume that the adult population of the United States is 191.6 million, total employment is 117.6 million, and 9.4 million are unemployed. Then the unemployment rate, as normally computed, is approximately ______ percent. A. 4.9 B. 7.4 C. 9.4 D. 7.9

B

If GDP (measured in billions of current dollars) is $5,465, consumption is $3,657, investment is $741, and net exports are -$1,910, then government purchases are: A. $1,910. B. $2,977. C. -$843. D. $1,067.

B

GNP equals GDP ______ income earned domestically by foreigners ______ income that nationals earn abroad. A. plus; minus B. minus; minus C. plus; plus D. minus; plus

D

Real GDP is a better measure of economic well-being than nominal GDP, because real GDP: A. includes the value of government transfer payments. B. adjusts the value of goods and services produced for changes in the foreign exchange rate. C. excludes the value of goods and services exported aboard. D. measures changes in the quantity of goods and services produced by holding prices constant.

D