The official unemployment rate may understate the true rate of unemployment because of
workers who hold two jobs
increases in worker productivity
changes in wage rates
discouraged workers who no longer are actively seeking work and are excluded from the statistics.
Increases in the duration of unemployment may
reflect a general downturn in economic activity that depresses job opening
increase the number of discouraged workers
increase the unemployment rate
all of the above
If a person loses her job because her abilities and skills are a poor match with current requirements of employers, this person is considered
structurally unemployed
frictionally unemployed
discouraged worker
seasonally unemployed
Cyclical unemployment occurs when
individuals enter the labor market and make the rounds of potential employers.
individuals with skills no longer valued in the domestic labor market cannot find employment.
individuals give up the search for employment.
a downturn in economic activity increases employment.
The formula for computing a basic price index is
(cost of market basket today/cost of market basket in base year) ´ 100.
(cost of market basket in base year/100) ´ cost of market basket today.
(cost of market basket in base year/cost of market basket today) ´ 100.
(100/cost of market basket in base year) + cost of market basket today.
The Consumer Price Index attempts to measure
the average of raw material prices paid by producing firms
the level of prices with respect to goods and services purchased by a typical consumer in urban areas
the level of prices with respect to goods and services purchased by retired couples in rural areas
hourly wages rate of manufacturing workers
During a recession
income rise and employment decreases
income fall and employment increases
incomes fall and unemployment fall
incomes rise and unemployment increases
To be officially unemployed a person must:
be in the labor force
be 21 years of age or older
have just lost a full time job
be waiting be called back from a layoff
Which of the following would most likely be sold in the product market?
a new car
stocks and bonds
iron ore
entrepreneurial ability
Economist consider profit to be
a cost of producing goods and services
the same as a salary
a reward for incurring losses
something that should be eliminated by antitrust laws
The total market value of final goods and services produced in an economy during a one year period is
gross domestic product
net national product
profit
personal income
One method of calculating GDP is to add together
investment, consumption, gross profits, and net exports
consumption, investment, government spending, and net exports
wages, gross profits, net investment, and net exports
consumption, wages, interest, rental income, and exports
When economists discuss the nominal value of an economic variable, the variable is
expressed in current dollar
expressed as an index figure
adjusted for a changing price level
expressed as a percentage
Economics growth is usually defined as
the rate of increase in the output divided by the increase in labor
the increase in output over time, as measured by real per capita GDP
the increase in input avaliability
the reduction in the real cost of necessities
When a nation's real per capita GDP increases, which of the following is true?
Every individual in that nation's shares in the economic gain
A national must channel most of the economic gains to its poorest citizens.
Low income people are guaranteed to lose; they never share in their nation's economic gains.
We don't know who has most benefited form economic growth unless we look at distribution of income
Which of the following transaction is included in GDP?
Money borrowed by a college student from her parents
Money paid by a college student to buy a new car
Money given to a family on welfare
Social Security checks received by an elderly couple
Real GDP generally increases over the long term because
investment in new factory machinery are usually more productive than the old machinery
investments in new factory machinery are usually more expensive than the old machinery
prices tend to increase over time
all of the above are possible
Imagine that you have learned that nominal GDP increased by 5% last year over the previous year and that the economy produced exactly the same quantities of goods and services as the previous year. This tells you that: