Question 1

GDP calculations do not account for:

Accepted Answer

A)  costs that may arise in the future because of current production levels. 
B)  the impact of current production and consumption on the environment. 
C)  the deterioration of air and water quality that can result from a high GDP. 
D)  all of the above. 
A)  costs that may arise in the future because of current production levels. 
B)  the impact of current production and consumption on the environment. 
C)  the deterioration of air and water quality that can result from a high GDP. 
D)  all of the above.

Question 2

An increase in productivity occurs when:

Accepted Answer

A)  output per worker increases. 
B)  a nation's rate of inflation falls. 
C)  money GDP increases at the same time that real GDP decreases. 
D)  a nation's GDP goes up as a result of an increase in the size of its labor force. 
A)  output per worker increases. 
B)  a nation's rate of inflation falls. 
C)  money GDP increases at the same time that real GDP decreases. 
D)  a nation's GDP goes up as a result of an increase in the size of its labor force.

Question 3

What in national statistics is required for a person to be "employed,"and what might the definition of "employed"hide about a person's work situation?

Accepted Answer

A person is considered "employed" if, du

Question 4

It's possible for a person to earn more money this year than last year but still experience a decrease in real income.

Accepted Answer

A) True 
 B)False

Question 5

Who are included in the labor force, and why are discouraged workers excluded?

Accepted Answer

Those "in the labor force" are either em

Question 6

If a good cost $500 in the base year and $575 in a later year, the price index number for this good in the later year was:

Accepted Answer

A)  75.0. 
B)  115.0. 
C)  175.0. 
D)  575.0. 
A)  75.0. 
B)  115.0. 
C)  175.0. 
D)  575.0.

Question 7

A price index that compares prices in a given year to prices in a fixed base year:

Accepted Answer

A)  must contain at least two base years. 
B)  may mask the effects of year-to-year changes in prices. 
C)  measures changes in employment better than it measures changes in prices. 
D)  all of the above. 
A)  must contain at least two base years. 
B)  may mask the effects of year-to-year changes in prices. 
C)  measures changes in employment better than it measures changes in prices. 
D)  all of the above.

Question 8

A good cost $40 in the base year and $50 this year. The price index number for this year is:

Accepted Answer

A)  100.0. 
B)  110.0. 
C)  125.0. 
D)  140.0. 
A)  100.0. 
B)  110.0. 
C)  125.0. 
D)  140.0.

Question 9

In the Employment Act of 1946, the federal government committed itself to:

Accepted Answer

A)  creating state employment services to collect statistics on the unemployed. 
B)  insuring that the economy will always operate with stable prices and at full employment. 
C)  helping create conditions that will lead to stable prices, full employment, and full production. 
D)  hiring large numbers of workers for government projects whenever the unemployment rate gets too high. 
A)  creating state employment services to collect statistics on the unemployed. 
B)  insuring that the economy will always operate with stable prices and at full employment. 
C)  helping create conditions that will lead to stable prices, full employment, and full production. 
D)  hiring large numbers of workers for government projects whenever the unemployment rate gets too high.

Question 10

The labor force consists of all persons:

Accepted Answer

A)  16 years of age and older. 
B)  18 years of age and older (or 21 and older if attending college). 
C)  16 years of age and older who are working or actively seeking work. 
D)  18 years of age and older (or 21 and older if attending college) who are working or actively seeking work. 
A)  16 years of age and older. 
B)  18 years of age and older (or 21 and older if attending college). 
C)  16 years of age and older who are working or actively seeking work. 
D)  18 years of age and older (or 21 and older if attending college) who are working or actively seeking work.

Question 11

If the nominal or stated rate of interest on an investment is 8% per year and inflation averages 5% per year, then the real rate of interest is 13%.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is true?

Accepted Answer

A)  Banks holding long-term, fixed-rate mortgages carrying low interest rates are penalized by high rates of inflation. 
B)  People saving for the future benefit when the inflation rate is greater than the interest rate they receive on their savings. 
C)  Borrowers paying back past loans are penalized if the inflation rate is greater than the interest rate they are paying on their loans. 
D)  All of the above. 
A)  Banks holding long-term, fixed-rate mortgages carrying low interest rates are penalized by high rates of inflation. 
B)  People saving for the future benefit when the inflation rate is greater than the interest rate they receive on their savings. 
C)  Borrowers paying back past loans are penalized if the inflation rate is greater than the interest rate they are paying on their loans. 
D)  All of the above.

Question 13

If this year's price index number for good X is 125, then good X is:

Accepted Answer

A)  currently priced at $125. 
B)  priced 25 percent higher this year than in the base year. 
C)  priced 125 percent higher this year than in the base year. 
D)  priced 125 percent higher in the base year than this year. 
A)  currently priced at $125. 
B)  priced 25 percent higher this year than in the base year. 
C)  priced 125 percent higher this year than in the base year. 
D)  priced 125 percent higher in the base year than this year.

Question 14

Why does demand-pull inflation tend to be a problem as the economy approaches full employment?

Accepted Answer

Once the economy is near full

Question 15

-Money GDP and real GDP are equal in:

Accepted Answer

A)  year 1. 
B)  year 2. 
C)  year 3. 
D)  year 4. 
A)  year 1. 
B)  year 2. 
C)  year 3. 
D)  year 4.

Question 16

The unemployment rate is highest among:

Accepted Answer

A)  males. 
B)  females. 
C)  teenagers. 
D)  women who maintain families. 
A)  males. 
B)  females. 
C)  teenagers. 
D)  women who maintain families.

Question 17

For economic growth to occur, an economy must:

Accepted Answer

A)  operate on its production possibilities curve. 
B)  have its production possibilities curve shift outward, or to the right, over time. 
C)  maintain a level of demand sufficient to absorb the economy's expanded output. 
D)  all of the above. 
A)  operate on its production possibilities curve. 
B)  have its production possibilities curve shift outward, or to the right, over time. 
C)  maintain a level of demand sufficient to absorb the economy's expanded output. 
D)  all of the above.

Question 18

How might severe inflation politically destabilize a country?

Accepted Answer

Severe inflation puts signific

Question 19

Musicians who are out of work because electronic equipment can produce the same sounds that live musicians produce are:

Accepted Answer

A)  cyclically unemployed. 
B)  frictionally unemployed. 
C)  structurally unemployed. 
D)  none of the above. 
A)  cyclically unemployed. 
B)  frictionally unemployed. 
C)  structurally unemployed. 
D)  none of the above.

Question 20

Income stated in terms of current dollars is:

Accepted Answer

A)  real income. 
B)  effective income. 
C)  money, or nominal, income. 
D)  a good measure of purchasing power in a period of severe inflation. 
A)  real income. 
B)  effective income. 
C)  money, or nominal, income. 
D)  a good measure of purchasing power in a period of severe inflation.

GDP calculations do not account for:

An increase in productivity occurs when:

What in national statistics is required for a person to be "employed,"and what might the definition of "employed"hide about a person's work situation?

It's possible for a person to earn more money this year than last year but still experience a decrease in real income.

Who are included in the labor force, and why are discouraged workers excluded?

If a good cost $500 in the base year and $575 in a later year, the price index number for this good in the later year was:

A price index that compares prices in a given year to prices in a fixed base year:

A good cost $40 in the base year and $50 this year. The price index number for this year is:

In the Employment Act of 1946, the federal government committed itself to:

The labor force consists of all persons:

If the nominal or stated rate of interest on an investment is 8% per year and inflation averages 5% per year, then the real rate of interest is 13%.

Which of the following statements is true?

If this year's price index number for good X is 125, then good X is:

Why does demand-pull inflation tend to be a problem as the economy approaches full employment?

-Money GDP and real GDP are equal in:

The unemployment rate is highest among:

For economic growth to occur, an economy must:

How might severe inflation politically destabilize a country?

Musicians who are out of work because electronic equipment can produce the same sounds that live musicians produce are:

Income stated in terms of current dollars is:

Introduction to Economics

Economic Decision Making and Economic Systems

Demand, Supply, and the Determination of Price

Foundations of the Macroeconomy

The Role of Government in the Macroeconomy

Money, Financial Institutions, and the Federal Reserve

Money Creation, Monetary Theory, and Monetary Policy

Macroeconomic Viewpoints and Models

Households and Businesses: An Overview

Benefits, Costs, and Maximization

Production and the Costs of Production

Competition and Market Structures

Government and the Markets

Labor Markets, Unions, and the Distribution of Income-A

International Trade

International Finance

Filters

Exam 4: Goals and Problems of the Macroeconomy: Employment, Prices and Production

GDP calculations do not account for:

An increase in productivity occurs when:

What in national statistics is required for a person to be "employed,"and what might the definition of "employed"hide about a person's work situation?

It's possible for a person to earn more money this year than last year but still experience a decrease in real income.

Who are included in the labor force, and why are discouraged workers excluded?

If a good cost $500 in the base year and $575 in a later year, the price index number for this good in the later year was:

A price index that compares prices in a given year to prices in a fixed base year:

A good cost $40 in the base year and $50 this year. The price index number for this year is:

In the Employment Act of 1946, the federal government committed itself to:

The labor force consists of all persons:

If the nominal or stated rate of interest on an investment is 8% per year and inflation averages 5% per year, then the real rate of interest is 13%.

Which of the following statements is true?

If this year's price index number for good X is 125, then good X is:

Why does demand-pull inflation tend to be a problem as the economy approaches full employment?

-Money GDP and real GDP are equal in:

The unemployment rate is highest among:

For economic growth to occur, an economy must:

How might severe inflation politically destabilize a country?

Musicians who are out of work because electronic equipment can produce the same sounds that live musicians produce are:

Income stated in terms of current dollars is:

Introduction to Economics

Economic Decision Making and Economic Systems

Demand, Supply, and the Determination of Price

Foundations of the Macroeconomy

The Role of Government in the Macroeconomy

Money, Financial Institutions, and the Federal Reserve

Money Creation, Monetary Theory, and Monetary Policy

Macroeconomic Viewpoints and Models

Households and Businesses: An Overview

Benefits, Costs, and Maximization

Production and the Costs of Production

Competition and Market Structures

Government and the Markets

Labor Markets, Unions, and the Distribution of Income-A

International Trade

International Finance

Filters