Econ Quiz #3
Including intermediate goods in the GDP calculation is:
double counting.
A wage offered by an employer as an incentive for more work effort and performance and that exceeds the equilibrium wage rate is known as a(n) _____ wage.
efficiency
People who are changing jobs are counted in _____ unemployment.
frictional
Increases in the average level of prices are called:
inflation.
During rapid price inflation, firms must frequently change prices. The cost of changing listed prices is known as the _____ cost.
menu
The sum of frictional and structural unemployment is the:
natural rate of unemployment.
A country's exports minus its imports during a period are:
net exports.
The GDP deflator is equal to:
nominal GDP divided by real GDP times 100.
To be officially unemployed, a person must:
not have a job and must have looked for work in the past four weeks.
You are a college student and not working or looking for work. You are:
not part of the labor force.
Income divided by the price level is _____ income.
real
Inflation is a(n):
rising aggregate price level.
When hyperinflation forces Emily to visit her bank very frequently to keep her cash holdings to a minimum, economists say that Emily has a:
shoe-leather cost.
Private saving by households is:
the portion of disposable income not spent on goods and services.
In a market basket of goods:
the quantities stay constant and the prices may change.
A transfer payment is a payment for:
which no services were rendered.
Suppose a consumer buys a Perfect Pizza frozen cheese pizza at the grocery store for $10. Perfect Pizza purchased the dough and tomato sauce from a food processing company for $2 and bought the cheese for $1. It sold the pizza to the store for $5. How much has GDP increased?
$10
You read in the newspaper that the consumer price index in 2011 was 120. You conclude that a typical market basket in 2011 would have cost _____ more than the same market basket purchased in _____.
20%; the base year
Stock in a company is:
a share of ownership of the company.
Anticipated inflation affects:
all aspects of the economy.
Real GDP per capita is:
an incomplete measure of a country's standard of living.
Which of the following is considered to be an IOU?
bond
Government economists have adopted the _____ method of calculating the change in real GDP, which averages the GDP growth rate according to both an early base year and a late base year.
chain-linking
The consumer price index reflects:
changes in the prices of goods and services typically purchased by consumers.
The natural level of unemployment contains no_____ unemployment.
cyclical
A drop in the inflation rate is called:
disinflation