Macroeconomics Exam
Question 1 of 20 | 5.0 Points |
Economists define the labor force to include __________.
[removed] A. only people who are working full time | |||
[removed] B. people who are working | |||
[removed] C. people who are not working but are actively looking for a job, and people who are working | |||
[removed] D. all individuals of working age, regardless of whether they are working or looking for a job | |||
Question 2 of 20 | 5.0 Points | ||
If Sam does not have a job and is not looking for work, he is considered __________.
[removed] A. unemployed and in the labor force | |
[removed] B. unemployed and not in the labor force | |
[removed] C. not in the labor force | |
[removed] D. unemployed |
Question 3 of 20 | 5.0 Points |
Economists believe that the CPI overstates actual price changes by as much as __________ to __________ percent each year.
[removed] A. 1; 2 | |
[removed] B. 2; 3 | |
[removed] C. 0.5; 1 | |
[removed] D. 0.5; 1.5 |
Question 4 of 20 | 5.0 Points |
Macroeconomics __________.
[removed] A. studies the behavior of individual consumers, firms, and markets | |
[removed] B. studies the behavior of the economy as a whole | |
[removed] C. involves the interaction between different countries in specific markets | |
[removed] D. studies how computer automation has changed economics |
Question 5 of 20 | 5.0 Points |
The labor supply and demand most directly affect the level of __________ in an economy.
[removed] A. people attending colleges | |
[removed] B. people requiring retraining | |
[removed] C. employment | |
[removed] D. welfare benefits |
Question 6 of 20 | 5.0 Points |
The value of all final goods and services produced during a given time period measures a nation's __________.
[removed] A. gross domestic product | |||
[removed] B. net national product | |||
[removed] C. consumer price index | |||
[removed] D. net exports
| |||
Question 7 of 20 | 5.0 Points | ||
Which one of the following statements is true of the Consumer Price Index?
[removed] A. It does not take account of the price of imported goods and services. | |
[removed] B. It measures changes in prices of a fixed basket of goods. | |
[removed] C. It does not take into account the price of used goods. | |
[removed] D. It understates the true rate of inflation. |
Question 8 of 20 | 5.0 Points |
The Consumer Price Index (CPI. differs from a chain-weighted price index in that the CPI __________.
[removed] A. requires calculation of GDP, while the chain-weighted index does not | |
[removed] B. measures the costs of a typical fixed basket of goods over time, while the chain-weighted index does not | |
[removed] C. allows for the goods consumed in an economy to change over time, while the chain-weighted index does not | |
[removed] D. compares the prices of all goods in one year to the prices of all goods in other years |
Question 9 of 20 | 5.0 Points |
Suppose that nominal GDP in year 1 is 200 and nominal GDP in year 2 is 242. Assume that inflation is 10 percent per year. How fast did the economy grow between these two years?
[removed] A. 10 percent | |
[removed] B. 12 percent?? | |
[removed] C. 21 percent | |
[removed] D. 42 percent |
Question 10 of 20 | 5.0 Points |
Economists define the unemployed as individuals who are __________.
[removed] A. not currently working | |
[removed] B. not currently working but are actively looking for work | |
[removed] C. working but looking for a different job | |
[removed] D. working less than their desired amount of time |
Question 11 of 20 | 5.0 Points |
Economists say that the economy is at "full employment" when the __________.
[removed] A. structural unemployment rate is zero | |
[removed] B. total unemployment rate is zero | |
[removed] C. frictional unemployment rate is zero | |
[removed] D. cyclical unemployment rate is zero |
Question 12 of 20 | 5.0 Points |
The unemployment rate is the number of unemployed people __________.
[removed] A. divided by the number of people who are working | |
[removed] B. divided by the total working-age population | |
[removed] C. divided by the sum of the number of people who are working and the number of people who are looking for work | |
[removed] D. and the number of people working fewer than their desired number of hours, divided by the number of people who are working or looking for work |
Question 13 of 20 | 5.0 Points |
When there are sustained increases in real GDP over time, we say that the economy is undergoing __________. Answer: C
[removed] A. economic stagnation | |
[removed] B. a recession | |
[removed] C. economic growth | |
[removed] D. massive changes in productive capacity |
Question 14 of 20 | 5.0 Points |
For the purpose of GDP accounting, consumption expenditures include __________.
[removed] A. only nondurable goods | |
[removed] B. only durable goods | |
[removed] C. both nondurable goods and services | |
[removed] D. durable goods, nondurable goods, and services |
Question 15 of 20 | 5.0 Points |
The index most widely used by the government and the private sector to measure changes in the cost of living is the __________.
[removed] A. Producer Price Index | |
[removed] B. Consumer Price Index | |
[removed] C. the GDP deflator | |
[removed] D. the chain-weighted price index |
Question 16 of 20 | 5.0 Points |
Suppose the stock of capital remains constant. By adding more labor, perhaps a second work shift, output __________.
[removed] A. decreases | |
[removed] B. increases | |
[removed] C. remains the same | |
[removed] D. becomes more costly |
Question 17 of 20 | 5.0 Points |
The circular flow is used to make the point that __________.
[removed] A. rising prices never occur during times of unemployment | |
[removed] B. unemployment only occurs during a recession | |
[removed] C. production generates income | |
[removed] D. households purchase factors of production from firms |
Question 18 of 20 | 5.0 Points |
If you take out a bank loan prior to unanticipated inflation, __________.
[removed] A. it will be harder for you to repay the loan because of the inflated dollar | |
[removed] B. you will gain at the expense of your bank | |
[removed] C. your bank will gain at your expense | |
[removed] D. neither you nor your bank will be affected, because the loan was made prior to the inflation |
Question 19 of 20 | 5.0 Points |
Which of the following would be a macroeconomic question?
[removed] A. How have the retirement benefits in the auto industry changed over time? | |
[removed] B. How has inflation increased over time? | |
[removed] C. How has the price of gold increased over time? | |
[removed] D. How has the number of commercial airline flights decreased over time? |
Question 20 of 20 | 5.0 Points |
If you negotiated a salary based on an anticipated inflation rate of 4 percent, and the actual inflation rate turned out to be 6 percent, __________.
[removed] A. the purchasing power of your real wages would be more than you anticipated | |
[removed] B. your employer would have gained at your expense | |
[removed] C. your real wage will increase, but your nominal wage will decrease | |
[removed] D. the purchasing power of your wages will not change, since purchasing power is based on your nominal wage |
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