Question

1) Government statisticians at the _______________ calculate the Consumer Price Index.

Select the correct answer below:

a) Federal Reserve

b) International Monetary Fund

c) U.S. Bureau of Labor Statistics

d) U.S. Treasury Department

2) Which of the following contribute to an individual's human capital?

Select the two correct answers below.

Select all that apply:

a) skills

b) personal beliefs

c) expertise

d) personal preferences

3) Which of the following are not examples of individuals in the labor force?

Select the two correct answers below.

Select all that apply:

a) accountants

b) those receiving unemployment benefits

c) retirees

d) stay at home mothers

4) GDP includes spending on medical care, but does not address ________________, which indicates that GDP has limitations when it comes to measuring the well-being of society in terms of health.

Select the two correct answers below.

Select all that apply:

a) whether life expectancy has risen or fallen

b) how difficult it is to become a doctor

c) high pharmaceutical costs

d) whether infant mortality has risen or fallen

5) On the subject of the "New Economy" controversy, pessimists argue that _______________.

Select the correct answer below:

a) there is no real proof that productivity is higher than it's been previously

b) even five or ten years of stronger productivity growth does not prove that higher productivity will last for the long term

c) current productivity growth is only sustainable with careful regulation of technology

d) the extraordinary advances in communications and information technology of the 1990s will generate higher average productivity growth for decades to come

Answer 1

1) c) U.S. Bureau of Labor Statistics. CPI is reported by U.S. Bureau of Labor Statistics which is a measure of the average change over time in the prices of consumer items—goods and services that people buy for day-to-day living.

2) a) skills and c) expertise contribute to an individual's human capital.

3) c) retirees and d) stay at home mothers are not included in the labor force.

4) a) whether life expectancy has risen or fallen and d) whether infant mortality has risen or fallen are addressed while calculating the GDP. These are the measures which show the development of a country but GDP takes into account only the monetary measures.

5) b) even five or ten years of stronger productivity growth does not prove that higher productivity will last for the long term. This is the argument made by the pessimists on "New Economy".There is this argument that the United States had developed a “new economy” based on the extraordinary advances in communications and information technology of the 1990s.