C11 Lesson 3 Exam SCORE 100 PERCENT

      

Lesson 3

   

Question 1

5   / 5 points

The fraction of the working-age population that is in the labor force is called the __________.

Question options:

  

employment rate

 

unemployment rate

 

labor force participation rate

 

nonresponse rate

 

Question 2

5   / 5 points

       

Economists say that the economy is at "fullemployment" when the __________.

Question options:

  

structural unemployment rate is   zero

 

total unemployment rate is zero

 

frictional unemployment rate is   zero

 

cyclical unemployment rate is zero

 

Question 3

5   / 5 points

       

The value of a dollar __________.

Question options:

  

is its purchasing power

 

remains constant over time

 

is its face value

 

is set by the government

 

Question 4

5   / 5 points

       

What does the Consumer Price Index (CPI. measure?

Question options:

  

prices of durable goods

 

prices of non-durable goods

 

the cost of living over time

 

the cost of replacing lost items

 

Question 5

5   / 5 points

       

What are the two critical measures of a nation's economic health?

Question options:

  

income and spending

 

sales and taxes

 

wages and raises

 

production and income

 

Question 6

5   / 5 points

       

The value of all final goods and services produced during a given time period measures a nation's __________.

Question options:

  

gross domestic product

 

net national product

 

consumer price index

 

net exports

 

Question 7

5   / 5 points

       

Economists define the unemployed as individuals who are __________.

Question options:

  

not currently working

 

not currently working but are   actively looking for work

 

working but looking for a   different job

 

working less than their desired   amount of time

 

Question 8

5   / 5 points

       

Which of the following would be a macroeconomic question?

Question options:

  

How have the retirement benefits   in the auto industry changed over time?

 

How has inflation increased over   time?

 

How has the price of gold   increased over time?

 

How has the number of commercial   airline flights decreased over time?

 

Question 9

5   / 5 points

       

If Sam does not have a job and is not looking for work, he is considered __________.

Question options:

  

unemployed and in the labor force

 

unemployed and not in the labor   force

 

not in the labor force

 

unemployed

 

Question 10

5   / 5 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, __________.

Question options:

  

the purchasing power of your real   wages would be more than you anticipated

 

your employer would have gained at   your expense

 

your real wage will increase, but   your nominal wage will decrease

 

the purchasing power of your wages   will not change, since purchasing power is based on your nominal wage

 

Question 11

5   / 5 points

       

The labor supply and demand most directly affect the level of __________ in an economy.

Question options:

  

people attending colleges

 

people requiring retraining

 

employment

 

welfare benefits

 

Question 12

5   / 5 points

       

Macroeconomics __________.

Question options:

  

studies the behavior of individual   consumers, firms, and markets

 

studies the behavior of the   economy as a whole

 

involves the interaction between   different countries in specific markets

 

studies how computer automation   has changed economics

 

Question 13

5   / 5 points

       

The Consumer Price Index (CPI. differs from a chain-weighted price index in that the CPI __________.

Question options:

  

requires calculation of GDP, while   the chain-weighted index does not

 

measures the costs of a typical   fixed basket of goods over time, while the chain-weighted index does not

 

allows for the goods consumed in   an economy to change over time, while the chain-weighted index does not

 

compares the prices of all goods   in one year to the prices of all goods in other years

 

Question 14

5   / 5 points

       

The index most widely used by the government and the private sector to measure changes in the cost of living is the __________.

Question options:

  

Producer Price Index

 

Consumer Price Index

 

the GDP deflator

 

the chain-weighted price index

 

Question 15

5   / 5 points

       

Suppose the stock of capital remains constant. By adding more labor, perhaps a second work shift, output __________.

Question options:

  

decreases

 

increases

 

remains the same

 

becomes more costly

 

Question 16

5   / 5 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?

Question options:

  

10 percent

 

12 percent

 

21 percent

 

42 percent

 

Question 17

5   / 5 points

       

The circular flow is used to make the point that __________.

Question options:

  

rising prices never occur during   times of unemployment

 

unemployment only occurs during a   recession

 

production generates income

 

households purchase factors of   production from firms

 

Question 18

5   / 5 points

       

The unemployment rate is the number of unemployed people __________.

Question options:

  

divided by the number of people   who are working

 

divided by the total working-age population

 

divided by the sum of the number   of people who are working and the number of people who are looking for work

 

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 19

5   / 5 points

       

The largest component of GDP is __________.

Question options:

  

government spending

 

consumption expenditures

 

private investment expenditures

 

net exports

 

Question 20

5   / 5 points

       

We measure gross domestic product by multiplying the quantities of goods by their prices because it allows us to __________.

Question options:

  

express the values of products in   a common unit of measurement

 

correct for inflation

 

directly compare the output of one   economy to that of another

 

calculate the total number of   units of goods produced in an economy