Question

1. GDP includes

a. All final goods.

b. All final services.

c. Both final goods and final services.

2. Which of the following is counted in US GDP?

a. Used car purchased by a student for his commute to school

b. Used oven purchased by a baker for her cake shop

c. Drill purchased by a construction company

d. b & c only

e. None of the above

3. Which of the following is counted in US GDP?

a. A New video game made in China but purchased in the United States

b. New growth in rainforests

c. A new quilt made by Jane and given to her grandmother for her 80th birthday

d. a & c only

e. None of the above

4. Real GDP controls for

a. changes in preferences.

b. changes in population.

c. changes in prices.

d. a & c only

e. a, b, & c

5. True or false: nominal GDP is always larger than real GDP.

a. True

b. False

6. True or false: real GDP is always larger than real GDP per capita.

a. True

b. False

7. True or false: if a country’s nominal GDP increases, it means the country is producing more goods and services.

a. True

b. False

8. Real GDP per capita in the US ____________ during the great recession of 2009.

a. increased

b. decreased

c. did not change

9. Real GDP per capita is positively correlated with all of the following except

a. malaria cases per capita.

b. life expectancy.

c. happiness.

d. education.

e. b & d only

f. a, b, c, & d

10. Real GDP per capita is usually used to compare the standard of living of

a. the same country at different points in time.

b. two different individuals at one point in time.

c. two different countries at one point in time.

d. a & c only.

e. None of the above.

11. True or False: Government purchases includes all of the following: social security payments, government employee wages, and tanks purchased by the government.

a. True

b. False

12. Measuring GDP using the national spending approach includes

a. Consumption.

b. Net exports.

c. Government spending.

d. a & b only

e. a, b, c

13. Measuring GDP using the factor income approach includes

a. Employee compensation.

b. Interest.

c. Profit.

d. b & c only

e. a, b, c

14. Which job is least likely to be negatively affected by increases in global markets and technology?

a. Plumber

b. Uber driver

c. Umpire

d. Factory worker

15. What percent of jobs in the US require some form of occupational licensing?

a. 15%

b. 25%

c. 40%

d. 50%

e. none of the above

16. Which of the following individuals are counted as unemployed?

a. A military soldier.

b. An adult who is out of work, wants a job, and applied to a job 2 weeks ago but not since then.

c. An adult in prison.

d. An adult who is out of work, wants a job, and applied to a job 5 weeks ago but not since then.

e. a and b only.

f. b and d only.

17. Complete the following equation: Unemployment Rate = (Unemployed/ ______________)*100

a. Employed

b. Labor Force

c. US adult population

d. US population

e. None of the above.

18. Since 1950, in which year was the unemployment rate 0%?

a. 1953

b. 1969

c. 1994

d. a and b only.

e. It’s never been 0%

19. Calculate the unemployment rate with the following data: Unemployed: 10 million, US Population: 200 million, Employed: 90 million

a. 3%

b. 5%

c. 8%

d. 10%

20. According to the video, the average unemployment rate between 1950 and 2015 was approximately

a. 0%

b. 3%

c. 6%

d. 8.5%

e. None of the above.

21. The official unemployment rate definition is

a. An adult out of work who has been looking for work in the past year.

b. An adult who is out of work and has been looking for work in the past 15 weeks.

c. An adult who is out of work and has been looking for work in the past 4 weeks.

d. An adult who is out of

22. Discouraged workers are unemployed individuals who say they want a job, but although they haven’t looked for work in the past ________ , they have looked in the past ________.

a. 4 weeks, 15 weeks

b. 4 weeks, year

c. 15 weeks, year

d. 2 weeks, 15 weeks

23. If we include discouraged workers as unemployed when calculating the unemployment rate,

a. Stays the same.

b. Doubles.

c. More than doubles.

d. Less than doubles.

24. True or false. It would be very beneficial for the US economy if we could greatly reduce or eliminate frictional unemployment.

a. True

b. False

25. If the news reported that 100,000 “new” jobs were created and there were 1,000,000 job separations in the United States in July 2016, how many new hires occurred in the US that month?

a. 100,000

b. 900,000

c. 1,000,000

d. 1,100,000

e. 1,500,000

25. In the above scenario, how many jobs are created for every job destroyed?

a. .1

b. .9

c. 1

d. 1.1

e. 1.5

26. Which of the following is a major cause of structural unemployment?

a. Short-term unemployment caused by college graduates searching for employment.

b. Large and long-lasting shocks to the economy.

c. Decreases in labor force participation amongst older workers.

d. a and b only.

27. Cyclical unemployment is defined as:

a. The amount of workers who have given up looking for work but would still take a job if it paid enough.

b. The natural rate of unemployment.

c. Unemployment correlated with business fluctuations.

d. Short-term unemployment caused by the difficulty of matching employees to open positions.

e. Persistent, long-term unemployment caused by long-lasting shocks to the economy.

28. Which of the following contribute to why wages are considered sticky?

a. People get upset when wages fall, particularly if they think their employer is causing the wage cut, which negatively impacts workplace morale.

b. If wages were easily cut, workers might respond by working less or disrupting their work, thus negatively affecting productivity.

c. Minimum wage requirements make it difficult to lower wages quickly or often.

d. All of the above.

29. The natural rate of unemployment is defined as:

a. Frictional plus structural unemployment.

b. Cyclical plus frictional unemployment.

c. Cyclical unemployment.

d. The rate at which workers retire from the labor force.

e. Structural unemployment plus the rate at which domestic jobs are replaced by outsourcing skills internationally.

Answer 1