ECON-2301 Test Review 2
If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:
25%
A country will roughly double its GDP in twenty years if its annual growth rate is:
3.5 percent.
______________________ argues that the productivity of workers will increase if they are paid more, and so employers will often find it worthwhile to pay their employees somewhat more than market conditions might dictate.
Efficiency wage theory
A nation's prosperity is sometimes measured in terms of __________.
GDP per capita
Some prominent members of the slow-economic growth country club include a high-income country like _________.
Germany
___________ is a small category that refers to the goods produced by one business that have yet to be sold to consumers, and are either still sitting in warehouses and on store shelves.
Inventories
______ is calculated by taking _____ and then subtracting the value of how much physical capital is worn out, or reduced in value because of aging, over the course of a year.
NNP; GNP
It is sometimes argued that nation should not depend too heavily on other countries for supplies of certain key products. This argument is commonly know as the _______________.
National Interest Argument
What term is used to describe the unemployment rate that would exist in a growing and healthy economy from the combination of economic, social, and political factors that exist at a time?
Natural rate of unemployment
What term is used to describe all the ways a nation can draw up rules, regulations, inspections, and paperwork to make it more costly or difficult to import products?
Nontariff barriers
Which of the following refers to those who do not have a job and are not looking for a job?
Out of the labor force
________________________ is theoretically possible, even sensible: give an industry a short-term indirect subsidy through protection, and then reap the long-term economic benefits of having a vibrant healthy industry.
The infant industry argument
Which of the following characteristics relate to cyclical unemployment?
Unemployment closely tied to the business cycle, like higher unemployment during a recession.
What term is used to describe the percentage of adults who are in the labor force and thus seeking jobs, but who do not have jobs?
Unemployment rate
Politicians often argue for tariff increases in order to reduce the nation's dependence on imports. If tariffs are increased, the long-run effect is most likely to be:
a decrease in both American imports and exports.
Which of the following is the best example of a quota?
a limit imposed on the number of men's suits that can be imported from a foreign country
A tariff differs from a quota in that a tariff is:
a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be imported.
If imports exceed exports, as in recent years, then __________ exists.
a trade deficit
In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________.
an aggregate production function
A forestry worker who is out of work because of the temporarily low demand for wood products associated with a recession is defined as:
cyclically unemployed.
In order to avoid double counting, statisticians just count the __________________.
final goods and services
The extent of _______________________ will depend on how easy it is for workers to learn about alternative jobs, which may reflect the ease of communications about job prospects in the economy.
frictional unemployment
A welder who quits his job and moves from Pittsburgh to Madison to try to get a better welding job is said to be:
frictionally unemployed.
Some recent economic research has suggested that African countries' economic growth may have been limited by __________________.
geography and climate
For most high-income countries of the world, GDP _________________ over time.
has risen gradually
In the long run, the most important source of increase in a nation's standard of living is a:
high rate of economic growth.
Consumption is the purchase of goods and services by:
households.
An import quota or tariff on French wine that raises the prices for wine will probably:
hurt domestic wine drinkers but help domestic wineries, which will gain from the higher prices.
A nation can achieve higher economic growth if:
it devotes more resources to research and development.
The unemployment rate may underestimate the true extent of unemployment if:
many part-time employees would like to work fulltime, but are unable to get the additional work.
Reginald looked for work for six months but could not find a job to his liking. He now spends his time at the beach. For purposes of employment he is considered:
out of the labor force.
To achieve a high standard of living, a nation should:
promote economic growth.
Investment (I) includes:
the amount spent on new factories and machinery.
If Japan does not have a comparative advantage in producing rice, the consequences of adopting a Japanese policy reducing or eliminating imports of rice into the country would include:
the real incomes of Japanese rice producers would rise, but the real incomes of Japanese rice consumers would fall.
GDP is:
the value of all final goods and services produced domestically.
GDP does not directly include:
the value of intermediate goods sold during a period.
Insofar as government public policy is concerned, the best way to battle unemployment would be __________________.
to minimize recessions
The gap between exports and imports in a nation's economy is called the ___________.
trade balance
Gomer loses his job as a road construction worker and cannot find another position with equivalent pay and benefits. As a result, he is still checking the want ads and reporting to the unemployment office on a weekly basis. He is considered to be:
underemployed
The unemployment rate measures:
unemployed workers as a percentage of the labor force.
