Question 1

GDP is best defined as the total market value of all ___________ produced within a country within a given time.

Accepted Answer

A)  goods and services 
B)  final goods and services 
C)  services 
D)  goods 
E)  final goods

Question 2

The main statistic that is used to monitor unemployment in the economy is:

Accepted Answer

A)  real gross domestic product (GDP). 
B)  the unemployment rate. 
C)  the unemployed-employed ratio. 
D)  real GDP per capita. 
E)  discouraged workers.

Question 3

Unemployment caused by delays in matching available jobs and workers is called _________ unemployment.

Accepted Answer

A)  structural 
B)  cyclical 
C)  discouraged 
D)  frictional 
E)  seasonal

Question 4

Some individuals are unemployed because it takes time for them to find jobs that fit their skill sets.These individuals would be considered to be:

Accepted Answer

A)  frictionally unemployed. 
B)  cyclically unemployed. 
C)  structurally unemployed. 
D)  overemployed. 
E)  discouraged workers.

Question 5

The government has decided to give governmental grants to community colleges that offer job training for individuals who have recently been laid off due to their outmoded skills.The government is trying to reduce the level of:

Accepted Answer

A)  structural unemployment. 
B)  frictional unemployment. 
C)  cyclical unemployment. 
D)  real gross domestic product (GDP). 
E)  household consumption.

Question 6

Consider the following data to answer the questions that follow.
 
-Which country has the lowest average living standard?

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  D 
E)  E

Question 7

Which of the following lists the three types of unemployment?

Accepted Answer

A)  frictional, structural, and practical 
B)  practical, structural, and cyclical 
C)  frictional, unavailable, and structural 
D)  cyclical, practical, and unavailable 
E)  frictional, structural, and cyclical

Question 8

Even in years when unemployment is high and millions of Americans are looking for work,thousands of jobs every year go unfilled by Americans in the farm industry.Which is the best explanation for this phenomenon?

Accepted Answer

A)  Large farm employment states discourage migration into their states. 
B)  Regulations prevent farmers from hiring Americans to work on farms. 
C)  Farmers do not advertise the availability of farm jobs. 
D)  Americans appear to be unwilling or unable to work on farms. 
E)  Americans do not have the educational skills required for farm work.

Question 9

Consider the following data, which shows the quantities and prices of two goods produced in the economy, to answer the questions that follow.
 
-Assuming these are the only two goods produced in the economy,what is the value of the GDP?

Accepted Answer

A)  $110 million 
B)  $750 million 
C)  $2 million 
D)  $250 million 
E)  $500 million

Question 10

The government can assist in reducing the level of structural unemployment by:

Accepted Answer

A)  providing unemployment insurance. 
B)  establishing government regulations on firing employees. 
C)  taxing employers who hire low-skilled workers. 
D)  providing job-training programs. 
E)  incentivizing companies to update their current technology.

Question 11

Why does the unemployment rate remain above 0% during economic expansions? Is this a good or bad thing for the economy? Explain.

Accepted Answer

The answer of Why does the unemployment rate remain above...

Question 12

GDP is a good,but not the best,measure of:

Accepted Answer

A)  the percentage change in the overall level of prices. 
B)  income inequality. 
C)  average living standards. 
D)  environmental quality. 
E)  the cost of living.

Question 13

Anything that lengthens the job search process _________ unemployment.

Accepted Answer

A)  increases structural 
B)  increases frictional 
C)  decreases frictional 
D)  increases cyclical 
E)  decreases structural

Question 14

During a recession,fewer individuals fly across the country for vacations.As a result,many pilots and flight attendants lose their jobs.The pilots and flight attendants would be classified as:

Accepted Answer

A)  frictionally unemployed. 
B)  discouraged workers. 
C)  structurally unemployed. 
D)  overemployed. 
E)  cyclically unemployed.

Question 15

Which of the following questions does the official unemployment rate answer?

Accepted Answer

A)  How many people in the economy are underemployed? 
B)  What percentage of the labor force is classified as unemployed? 
C)  What is the overall health of the economy? 
D)  How many workers are discouraged? 
E)  Are people unemployed for short-term or long-term spells?

Question 16

Inflation necessarily occurs when:

Accepted Answer

A)  the price of gasoline rises. 
B)  a greater number of goods increase in price compared to the number of goods that undergo a price decrease. 
C)  the overall price level rises. 
D)  there is an increase in the rate of change in the price level. 
E)  the price of at least one good, but possibly more than one good, in the economy increases.

Question 17

Which of the following two types of unemployment occur even when the economy is healthy and growing?

Accepted Answer

A)  frictional and structural 
B)  cyclical and frictional 
C)  structural and cyclical 
D)  frictional and practical 
E)  structural and practical

Question 18

Nina has a part-time job as she finishes her degree in fashion design.After obtaining her degree she decides to quit her part-time job to search for a job that better fits her now-improved skill set.Nina has a few interviews,but it is taking time to find the job that suits her best.Nina would be considered:

Accepted Answer

A)  structurally unemployed. 
B)  cyclically unemployed. 
C)  frictionally unemployed. 
D)  overemployed. 
E)  a discouraged worker.

Question 19

Some jobs in the economy are no longer needed after an advancement in technology.A person who loses his or her job this way would be considered:

Accepted Answer

A)  frictionally unemployed. 
B)  cyclically unemployed. 
C)  structurally unemployed. 
D)  overemployed. 
E)  a discouraged worker.

Question 20

Brian Murphy is a political consultant for a candidate in Massachusetts.Mr.Murphy's candidate is defeated in the November election,and as a result,Mr.Murphy finds himself unemployed.Mr.Murphy's unemployment is classified as ___________ unemployment.

Accepted Answer

A)  discouraged 
B)  structural 
C)  frictional 
D)  cyclical 
E)  long-term

Exam 10: What Is Macroeconomics?