ECON 214 quiz 2 solutions complete answers

ECON 214 quiz 2 solutions complete answers 

 

Use the following table to answer the questions that follow:
 
According to the table, the number of employed in this economy is equal to:

 

Use the following table to answer the questions that follow:
 
According to the table, the labor force participation rate in this economy is equal to:

 

Use the following table to answer the questions that follow:
 
According to the table, the unemployment rate in this economy is equal to:

 

If the unemployment rate is 5.8% and the number of unemployed persons is 15 million, the number of people who are employed is approximately:

 

The big difference between the Great Recession and the recession of 1982 was:

 

Employment data is released:

 

Which of the following statements about the composition of the labor force is correct?

 

Jamal works in a factory in Lake Zurich, Illinois, assembling toy trains. The factory owner updates the current equipment and installs new robots that can do Jamal’s job. As a result, Jamal is laid off and is now unemployed. Jamal would be considered:

 

During healthy economic periods, cyclical unemployment:

 

Which of the following equations represents the labor force?

 

Zero unemployment:

 

Holding all else constant, if people who are currently discouraged workers decide to start looking for jobs again, you will see:

 

Which of the following conditions might cause the unemployment rate to be less than the natural rate of unemployment?

 

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

 

If the unemployment rate is 5.8% and the number of unemployed persons is 15 million, the labor force is approximately:

 

The invention of the Internet has reduced ____________ unemployment because it allows for workers and employers to find each other more quickly.

 

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:

 

Which of the following equations represents the unemployment rate?

 

One misconception that people often have about unemployment is that:

 

1.
The 2007-2009 recession lasted for:
 
 
2.
All three types of unemployment:
 
 
3.
Anything that lengthens the job search process:
 
 
4.
Asking whether people are unemployed for short spells or whether the duration of joblessness is long term is:
 
 
5.
Below is data on the natural rate of unemployment and actual unemployment.
Natural rate of unemployment: 5%
Actual unemployment: 5%
The information provided above reflects an economy that is
 
 
6.
Between 1960 and 2012, the average unemployment rate in the United States was about:
 
 
7.
Between 1979 and 2012, manufacturing employment in the United States has
 
 
8.
Between 1979 and 2012, service industries employment in the United States has:
 
 
10.
Bonnie Austin, age 30, used to work part time in a local restaurant. This year she quit her job to take care of her five-month-old daughter. She is currently not looking for a job. The survey conducted by the Bureau of Labor Statistics today will count Bonnie as
 
 
11.
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:
 
 
12.
By approximately how much more did the unemployment rate increase for black men than white men during the 2007-2009 recession?
 
 
13.
Daniel, Steven, and Chris work as engineers in Connecticut. The demand for engineers starts to decline as their company's profits start to decrease during a recession. As a result, Daniel and Steven are laid off from their jobs. Daniel and Steven would be classified as:
 
 
14.
Data on the natural rate of unemployment and actual employment are provided in the table below.
Natural rate of unemployment: 5%
Actual unemployment: 8%
Based on these numbers, the amount of cyclical unemployment in the economy is
 
 
15.
The definition of long-term unemployment is unemployment that lasts:
 
 
16.
The difference between the official unemployment rate and the alternate measure of unemployment that includes discouraged workers and underemployed workers:
 
 
17.
Discouraged workers are defined as:
 
 
19.
During healthy economic periods:
 
 
21.
During normal economic times, unemployment in France and Germany tends to be ____________ than in the United States mainly because of ____________.
 
 
22.
During periods of recession:
 
 
23.
During the 2007-2009 Great Recession, the United States witnessed:
 
 
24.
An economic downturn can lead to mainly which type of unemployment?
 
 
25.
Economists refer to full-employment output as:
 
 
26.
Employment data is released ___________ gross domestic product (GDP) data.
 
 
27.
Frictional unemployment is:
 
 
31.
Government policies such as unemployment compensation and government regulations related to hiring and firing employees result in:
 
 
32.
A government program that reduces the hardship of being out of work by guaranteeing that unemployed workers receive a percentage of their former income while they are unemployed is referred to as:
 
 
33.
The Great Depression lasted most of which decade?
 
 
34.
The Great Recession was most similar to which of the following downturns?
 
 
 
 
 
 
 
 
 
 
 

36.
Holding all else constant, if people who are currently unemployed become discouraged workers, you will see:
 
 
37.
If a jobless person has not sought a job in ____________ weeks, that person is not counted in the unemployment statistics
 
 
38.
If a large group of U.S. workers begins to retire, you can expect:
 
 
39.
If the economy is expanding beyond its long-run capabilities, we know that:
 
 
40.
If the labor force participation rate increases
 
 
41.
If the relevant population is 268 million people and the number of people in the labor force is 148 million, the labor force participation rate is:
 
 
42.
If the relevant population is 268 million people and the number of people in the labor force is 148 million, the number of people NOT in the labor force is equal to:
 
 
45.
In 1982, which types of unemployment were present for all demographics?
 
 
46.
Individuals who are not working but are willing to work and who have looked for a job in the past 12 months but have not sought employment in the past 4 weeks are defined as
 
 
48.
In his song "Allentown," Billy Joel sings about the demise of the steel and coal industry in Pennsylvania. In areas like Allentown and much of the Midwest, manufacturing was once the largest employer, but many of those jobs have disappeared as technology has changed. What type of unemployment is the song about?
 
 
49.
In January 2008, the U.S. unemployment rate dropped to 4.9%. Oddly, employment also fell from the prior month. How was this possible?
 
 
50.
In November of 2009, the United States was in a deep recession. To help keep the economy afloat, the government extended the period of time one could receive unemployment insurance to 99 weeks. This policy had an unintended consequence because:
 
 
53.
Joanna was laid off from her job 11 months ago. After searching for a job for months, Joanna finds a job but is only offered part-time work. Joanna would rather be working full-time. Economists would classify Joanna as:
 
 
 
 
 
 
 
 
 

54.
JTKB is an accounting firm in South Orange County, Florida. Company policy is that whenever JTKB decides to open up a new accounting position, the hiring manager must conduct at least five interviews over a two-week span. Because of this process, JTKB is increasing ____________ in South Orange County, Florida.
 
 
55.
Katherine was laid off from her job 11 months ago. After searching for a job for months, Katherine gives up her job search because she feels there are no jobs available for her. Economists would classify Katherine as:
 
 
56.
Knowing the length of unemployment is important because:
 
 
57.
The labor force participation rate for white men has _________ since 1972.
 
 
58.
Labor force participation rates among teenagers are:
 
 
59.
The main statistic that is used to monitor unemployment in the economy is:
 
 
60.
A member of the labor force is defined as:
 
 
61.
Natural unemployment is:
 
 
62.
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:
 
 
63.
Official unemployment is identified as when:
 
 
64.
One argument against unemployment insurance is that:
 
 
66.
One shortcoming of the official unemployment rate is that:
 
 
67.
The recession of 2007-2009 has been dubbed:
 
 
68.
Refer to the following table below. Calculate the unemployment rate for this economy based on the data provided.
Institutionalized: 14
Full-time workers: 113
Less than 16 years of age: 40
Armed forces (non-civilian): 20
Part-time workers: 27
Population: 314
Looking for work: 14
 
 
69.
Refer to the table below. Calculate the labor force participation rate for this economy.
Institutionalized: 14
Full-time workers: 113
Less than 16 years of age: 40
Armed forces (non-civilian): 20
Part-time workers: 27
Population: 314
Looking for work: 14
 
 
70.
Refer to the table below. If 4 million of those who are currently unemployed become discouraged workers, the unemployment rate will _______________.
 
 
71.
Since 1948, female labor force participation has __________ and male labor force participation has __________.
 
 
 
 
 
 
 
 
 

72.
Since 1972, labor force participation among women has generally ___________ while labor force participation among men has generally ___________.
 
 
74.
Since 1972, which demographic has generally had the lowest labor force participation rate?
 
 
75.
The size of the labor force is calculated as:
 
 
76.
Some individuals are unemployed because it takes time for them to find a job that fits their skill set. These individuals would be considered to be:
 
 
77.
Some jobs in the economy are no longer needed after an advancement in technology. A person who loses his job this way would be considered:
 
 
78.
Structural, frictional, and cyclical are all types of:
 
 
79.
Structural unemployment is:
 
 
80.
The sum of the number of unemployed and the number of employed is:
 
 
81.
Technological advancements in online banking, have led to its widespread use. As a result, many bank tellers have become unemployed. This is an example of __________ unemployment.
 
 
82.
To calculate the labor force participation rate, you only need to know:
 
 
83.
Typically during a recession, the percentage of the total unemployed that are classified under short-term unemployment ____________ and the percentage classified as long-term unemployment ____________.
 
 
84.
Underemployed workers are:
 
 
85.
Unemployment caused by delays in matching available jobs and workers is called
 
 
86.
The unemployment rate is:
 
 
87.
Using the data provided in the table below, calculate the labor force participation rate.
Number unemployed: 2,000
Working-age population: 40,000
Labor force: 36,000
The labor force participation rate is
 
 
88.
What was the cyclical unemployment rate for white men in 2010
 
 
89.
What year did the labor force participation rate of black women become greater than 60%?
 
 
90.
When actual unemployment is less than its natural rate:
 
 
92.
When the unemployment rate is equal to its natural rate—that is, no cyclical unemployment exists—the output level produced in the economy is:
 
 
93.
When you include discouraged workers and unemployed workers in calculations of the unemployment rate:
 
 
95.
Which demographic experienced the highest peak unemployment rate during the 1980's?
 
 
 
 
 
 
 
 
 

96.
Which of the following best explains why the United States has shifted from an agricultural economy to a service-based economy?
 
 
98.
Which of the following can be responsible for a drop in the unemployment rate?
 
 
99.
Which of the following can lower the level of frictional unemployment over time?
 
 
100.
Which of the following equations represents the labor force participation rate?
 
 
102.
Which of the following groups of individuals has the lowest unemployment rate?
 
 
104.
Which of the following individuals would NOT be considered part of the labor force?
 
 
106.
Which of the following is an example of frictional unemployment?
 
 
108.
Which of the following is an example of structural unemployment?
 
 
109.
Which of the following is true when the economy is at full employment?
 
 
110.
Which of the following lists the three types of unemployment?
 
 
111.
Which of the following people would be considered unemployed?
 
 
112.
Which of the following questions does the official unemployment rate answer?
 
 
113.
Which of the following recessions saw the highest unemployment rate changes among men?
 
 
114.
Which of the following represents frictional unemployment? 
i. The demand for refrigerators falls when the economy enters a recession and refrigerator manufacturers lay off some of their workers.
ii. General Motors decides to close its U.S. factories and relocate its car manufacturing division to Mexico. 
iii. After quitting your job in Ohio to be closer to your family in California, you are now looking for a new job.
iv. Carla's boss recently fired her for doing a poor job and she hasn't yet found a new one.
 
 
 
 
 
 
 
 
 

115.
Which of the following situations would be considered frictional unemployment?
 
 
116.
Which of the following statements about structural unemployment is true?
 
 
120.
Which of the following statements about unemployment is true?
 
 
123.
Which of the following statements is true about the natural rate of unemployment?
 
 
124.
Which of the following two types of unemployment occur even when the economy is healthy and growing?
 
 
125.
Workers who lose their jobs because the skill set they possess is no longer required in the economy are considered to be:
 
 
126.
You have been hired to determine if unemployment is running too high. First, you must determine the natural state of unemployment. You have been provided the data in the table below.
Frictional unemployment-2%
Structural unemployment-2%
Cyclical unemployment-1%
Using the data above, determine the natural rate of unemployment
 
 
 
 
 
 
 
 
 

 

1.
According to the table, the labor force participation rate is:
 
 
2.
Assume the market for loanable funds is in equilibrium at 5% interest. Assuming that firms become more pessimistic about future profits, all else being equal:
 
 
3.
Assume you put money into an asset that pays you 7% interest and inflation is 5%. Which statement is correct?
 
 
4.
Assuming the figure represents the market for loanable funds, and that point C represents 40 and point D represents 80, then it would be true that:
 
 
5.
Banks:
 
 
6.
Borrowers in the loanable funds market consist of:
 
 
7.
The concept of the loanable funds market is:
 
 
8.
Consider the following figure to answer the questions that follow.
 
 
9.
Consider the following scenario when answering the questions that follow:
Your friend Carson is starting a new photography business that specializes in photographs of Central Park in New York City. Because his business is new and risky, he is unable to obtain a loan from the local bank. On June 21, 2013, you agree to pay a price of $4,000 for a bond from Carson. You will receive $5,000 in return on June 21, 2014.

The par value of the bond mentioned in the scenario is equal to:
 
 
10.
The creation of a new security by combining otherwise separate loan agreements is called:
 
 
11.
Cyclical unemployment is:
 
 
12.
Economics is the study of:
 
 
14.
Financial markets
 
 
15.
Foreign entities:
 
 
16.
A good is ________ if it takes even a small amount of time, energy, or money to acquire.
 
 
18.
Gross domestic product requires:
 
 
19.
A higher bond rating directly translates into:
 
 
20.
How are changes in opportunity cost related to decision-making behavior?
 
 
21.
How do you convert a price of a good from an earlier time into today's price?
 
 
22.
If interest rates rise, holding all else constant, this would cause:
 
 
23.
If life expectancy falls due to AIDS and other diseases, we would expect:
 
 
24.
If your real wage rose but your nominal wage fell, this would imply that:
 
 
25.
An index of the average prices of all goods and services throughout the economy is called:
 
 
26.
In November of 2009, the United States was in a deep recession. To help keep the economy afloat, the government extended the period of time one could receive unemployment insurance to 99 weeks. This policy had an unintended consequence because:
 
 
27.
The interest rate represents:
 
 
28.
One example of a financial intermediary is:
 
 
29.
Ownership shares in a firm are known as:
 
 
30.
Refer to the following figure when answering the questions that follow.
 
 
31.
Refer to the following figure when answering the questions that follow.
 
 
32.
The sale of American-grown corn to China is included in the ________ category of GDP.
 
 
33.
To evaluate the change in average living standards over time, it is best to use:
 
 
34.
The trade-offs that are made because of scarcity:
 
 
35.
What is the highest rating a bond can receive from the rating firm Standard and Poor's (S&P)?
 
 
36.
Which combination of events could have caused the equilibrium interest rate to fall and the equilibrium quantity of loanable funds (both borrowed and lent) to fall?
 
 
37.
Which of the following forms the largest share of household holdings of financial assets?
 
 
 
 
 
 
 
 
 
 
 

38.
Which of the following statements about structural unemployment is true?
 
 
39.
Those with the least patience:
 
 
40.
Your friend Jamarcus is an award-winning chef. Jamarcus wants to start his own restaurant in Denver but is unable to obtain a loan from his local bank. Jamarcus has decided to issue a one-year bond with a face value of $6,000 and an interest rate of 10%. If you wanted to buy this bond, what would be the initial price?
 
 
 

 

1.
Access to lifesaving medicine is very limited in parts of Africa; as a result, over 10% of children do not reach the age of five. What effect would an increase in medical aid to African children have on overall economic growth for the continent?
 
 
2.
Access to lifesaving medicine is very limited in parts of Africa; as a result, over 10% of children do not reach the age of five. What effect would this have on economic growth in Africa?
 
 
3.
According to the textbook, which of the following countries is not considered a "wealthy nation"?
 
 
4.
A(n) _____________ in capital goods should ____________ worker productivity.
 
 
5.
A(n) _____________ in the amount of resources will tend to _____________ economic growth.
 
 
6.
Annual real per capita gross domestic product (GDP) in India was roughly $2,900 in 2000. If it grew by 8% the following year, by 2001 the annual real per capita GDP would be:
 
 
7.
Annual real per capita gross domestic product (GDP) in the United States was roughly $44,000 in 2000. If it grew by 3% the following year, by 2001 the annual real per capita GDP would be:
 
 
8.
Average world income began to rapidly rise during the Industrial Revolution because:
 
 
9.
The business cycle measures:
 
 
10.
A company sells 100 boxes of chocolate, yet it only produced 90 boxes of chocolate during the year. Which of the following is true?
 
 
11.
Company X sells paper to company Y for $100,000. Company Y uses the paper to make textbooks, selling them to consumers for $500,000. The total contribution to GDP is:
 
 
12.
Company X sells sugar to company Y for $50,000. Company Y uses the sugar to make chocolate bars, selling them to consumers for $150,000. The total contribution to GDP is:
 
 
13.
A computer company builds a new factory. This is included in the ________ category of GDP.
 
 
14.
Consumption is approximately ________ of GDP.
 
 
15.
Consumption is approximately ________ of GDP.
 
 
16.
Deflation
 
 
17.
Does the value of cleaning your house count toward the value of GDP?
 
 
18.
Donna Newton made $0.30 per hour in 1946 at a small restaurant in Clearfield, Pennsylvania. If the consumer price index (CPI) was 18.3 in 1946 and 202.4 in 2011, then Donna's inflation-adjusted wage would be:
 
 
19.
During a recession, fewer individuals fly across the country for vacations. As a result, many pilots and flight attendants lose their jobs. These individuals would be classified as:
 
 
21.
From 2006 to 2010, per capita real gross domestic product (GDP) in China grew an average of 10.62% per year. At that rate, according to the Rule of 70, in roughly how many years will Chinese per capita real GDP double in size, beginning in 2006?
 
 
22.
From 2006 to 2010, per capita real gross domestic product (GDP) in Ethiopia grew an average of 7.99% per year. At that rate, according to the Rule of 70, in roughly how many years will the Ethiopian economy double in size?
 
 
23.
From 2006 to 2010, per capita real gross domestic product (GDP) in India grew an average of 7.11% per year. At that rate, according to the Rule of 70, in roughly how many years will the Indian economy double in size?
 
 
24.
GDP is an important indicator because it is used as a measure of all of the following except:
 
 
25.
GDP is not a good measure of:
 
 
26.
Higher rates of economic growth are negatively correlated with:
 
 
28.
How do you convert a price of a good from an earlier time into today's price?
 
 
29.
If a Hershey's chocolate bar cost $0.05 in 1921 when the price index was 18 and the same size and weight Hershey's chocolate bar cost $0.05 in 1955 when the price index was 27, then:
 
 
30.
If mustard now costs $0.75 when today's price index is 225, and if the price index in 1970 was 38, we would most accurately say that:
 
 
31.
If the consumer price index (CPI) was 100 in the period of 1982-1984, then:
 
 
32.
If the price index in 1922 was 17 and a unit of Nabisco Oreo cookies cost $0.32, and if the price index today is 220 and a unit of Nabisco Oreo cookies costs $2.99, then the inflation-adjusted price of Oreos is:
 
 
33.
If the price of a typical market basket of goods increased from about $20 in 1960 to $200 in early 2012, then it:
 
 
 
 
 
 
 
 
 
 
 

34.
In 1940 you could buy a "nickel Pepsi" for (oddly enough) a nickel. If the price index in 1940 was 14 and the 2011 price index was 221, then the inflation-adjusted price of a Pepsi would be:
 
 
35.
In 1998, per capita real gross domestic product (GDP) in Thailand was $4,444.19. By 1999, it had increased to $4,695.22. At what rate did Thailand's economy grow in that time?
 
 
36.
Inflation occurs:
 
 
37.
The inputs used to produce goods and services are also known as:
 
 
38.
It has been shown that increases in the money supply are directly related to the rate of inflation. If the previous statement is true, then:
 
 
39.
JTKB is an accounting firm in South Orange County, Florida. Company policy is that whenever JTKB decides to open up a new accounting position, the hiring manager must conduct at least five interviews over a two-week span. Because of this process, JTKB is increasing ____________ in South Orange County, Florida.
 
 
40.
Lauren owns a bakery. She wants to increase her daily production of baked goods, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the physical capital resource at her bakery?
 
 
41.
Official unemployment is identified as when:
 
 
42.
Real GDP is GDP adjusted for changes in:
 
 
43.
Residents of poor countries tend to have fewer automobiles per capita because:
 
 
44.
Saudi Arabia is an oil-rich country in the Middle East. Much of the country is covered by desert, meaning that the nation's food production is very low. Much of its food must be imported from other countries. Does this mean that Saudi Arabia has a very small endowment of natural resources?
 
 
45.
Steve owns a bike shop. He wants to increase the number of bikes he sells each month, so he knows he needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at his bike shop?
 
 
46.
Structural unemployment is:
 
 
47.
Technological advances:
 
 
48.
The textbook shows that the inflation-adjusted movie receipts for Star Wars (released 1977) were $1,410,707,000 and the original receipts were $460,998,000. The implication is that:
 
 
49.
Typically the consumer price index (CPI) is calculated by:
 
 
50.
Underemployed workers are:
 
 
51.
The website that provides official inflation statistics is:
 
 
52.
When actual unemployment is less than its natural rate:
 
 
53.
When George buys a new computer for his business, it is included in GDP as _______, and when he buys a new computer for use at home, it counts as ________.
 
 
 
 
 
 
 
 
 

54.
When it is difficult to hire employees, firms take ____________ to hire, which increases ____________ unemployment.
 
 
55.
When you include discouraged workers and unemployed workers in calculations of the unemployment rate:
 
 
56.
Which is the largest component of U.S. GDP?
 
 
59.
Which of the following is a topic of macroeconomics?
 
 
60.
Which of the following lists the three types of unemployment?
 
 
61.
Which of the following represents the technology used in a classroom?
 
 
62.
Which of the following statements about historical unemployment rate is true?
 
 
64.
Which of the following would be classified as human capital?
 
 
65.
You are offered two jobs, one in Chicago paying $67,000 and one in Dallas paying $58,000. The price index in Chicago is 110.8, and in Dallas it is 91.5. If real wages are the only consideration, then:
 
 
66.
You bought stock in 2010 for $100 and you sold it in 2012 for $200. You used a broker to sell the stock for you, and he charged you $20. This transaction contributed ________ to GDP.
 
 
 

 

 

1.
Which of the following topics will most likely be taught in a macroeconomics?
 
 
2.
Who is considered unemployed?
A. Jean, a full-time college student who is currently not working
B. Zoe, a recent college graduate who sent out job applications, but has yet to hear back from the businesses
C. Michael, a stay-at-home dad
D. Jim, a retired computer engineer.
 
 
5.
According to the table, the unemployment rate in this economy is equal to:

Group # in Millions
Relevant population ???
Labor force 179
Not in labor force 95
Employed ???
Unemployed 18
 
 
8.
Assuming that the total work-eligible adult population is 200 million, the labor force is 100 million, and 92 million workers are employed, the unemployment rate is:
 
 
9.
Assuming that the work-eligible adult population is 200 million, the labor force is 100 million, and the unemployment rate is 5%, then number of employed workers equals to:
 
 
10.
Assuming these are the only two goods produced in the economy, what is the value of the gross domestic product (GDP)? 

Quantity produced Price
Cell phones 5 million $100/cell phone
Pizza 25 million $10/pizza
 
 
11.
Between two given years, if real gross domestic product (GDP) and nominal GDP grow at the same rate, then
 
 
12.
Company X sells leather to company Y for $60,000. Company Y uses the leather to make shoes, selling them to consumers for $180,000. The total contribution to gross domestic product (GDP) is
 
 
31.
The Great Recession lasted most of which decade?
 
 
 
 
 
 
 
 
 
 
 
 

32.
The "G" term in C+I+G+NX includes all of the following except:
A. state government purchases of new computers
B. Social Security checks received by retirees
C. salaries received by members of military
D. local government expenditures for new school construction
 
 
35.
If actual GDP is less than full-employment level of output Y*, then
 
 
36.
If a discouraged worker re-enters the labor force and begins searching for jobs but doesn't find one, the unemployment rate will:
 
 
37.
If real gross domestic product (GDP) grew by 4 percent and nominal GDP grew by 3 percent, then the inflation rate was
 
 
38.
If someone wins the lottery, Is it included in any category of the GDP?
 
 
39.
In addition to total output, GDP also measures what?
 
 
40.
In a given year a country's exports total 25 billion and its imports are 27 billion. Its net exports are"
 
 
42.
Joanna was laid off from her job 11 months ago. After searching for a job for months, Joanna finds a job but is only offered part-time work. Joanna would rather be working full-time. Economists would classify Joanna as
 
 
43.
Katherine was laid off from her job 11 months ago. After searching for a job for months, Katherine gives up her job search because she feels there are no jobs available for her. Economists would classify Katherine as
 
 
47.
The market value of all final goods and services produced in a nation within a specific period of time
 
 
48.
The market value of pizza is...


Quantity produced Price
Cell phones 5 million $100/cell phone
Pizza 25 million $10/pizza
 
 
49.
a measure of the price level based on the consumption pattern of a typical consumer
 
 
50.
Nominal gross domestic product (GDP) increased from $14.0 trillion to $14.7 trillion, and the price level increased from 120 to 126. Which of the following is true?

A. Output grew slower than the price level. 
B. Real GDP grew faster than nominal GDP. 
C. Output grew at the same rate as the price level. 
D. Output grew faster than price level
 
 
56.
Suppose 5,000 discouraged workers begin to look for jobs. In this case the number of people in the work-eligible population will be ________ and the number of people in the labor force will be ________.
 
 
57.
This measure only includes production of domestic firms and residents anywhere in the world
 
 
60.
True or False: GDP includes both goods and services?
 
 
61.
True or False: if you buy a used car in 2019 that was produced and originally sold in 2014, it will count in the 2019 GDP
 
 
62.
true or false: short-run unemployment is a bigger concern than long term?
 
 
63.
true or false: unemployment rate always goes up during recessions?
 
 
64.
typical rate of unemployment in a healthy economy
 
 
65.
An unemployment rate that is above the natural rate indicates ________ unemployment, and we say that the economy is producing at ________ output level.
 
 
82.
What is the value of the gross domestic product (GDP) deflator in 2011? Round to the nearest decimal.


Year Nominal GDP Real GDP GDP Deflator
2009 ________ $500 100
2010 $551.2 ________ 106
2011 $600.6 $546 ________
2012 ________ $600.6 120
 
 
83.
What is unemployment insurance?
 
 
84.
What was the gross domestic product (GDP) deflator in 2016?


Good 2015 Price 2015 Quantity 2016 Price 2016 Quantity
A $2 250 $3 200
B $3 300 $2 400
C $4 400 $5 500
 
 
85.
What was the inflation rate between the two years?


Good 2015 Price 2015 Quantity 2016 Price 2016 Quantity
A $2 250 $3 200
B $3 300 $2 400
C $4 400 $5 500
 
 
86.
What was the real gross domestic product (GDP) in 2016?


Good 2015 Price 2015 Quantity 2016 Price 2016 Quantity
A $2 250 $3 200
B $3 300 $2 400
C $4 400 $5 500
 
 
87.
When John buys new tires for his car it ________, and when Ford buys tires to put on new cars it ________.
 
 
88.
When you include discouraged workers and unemployed workers in calculations of the unemployment rate
 
 
89.
Which of the following could cause nominal GDP to increase, but real GDP to decrease? 
A. The price level falls and the quantity of final goods and services produced falls. 
B. The price level rises and the quantity of final goods and services produced falls
C. The price level rises and the quantity of final goods and services produced rises
D. The price level falls and the quantity of final goods and services produced rises
 
 
90.
which of the following is an example of investment (in a macroeconomic sense)? 
A. Facebook purchases a computer for use at its corporate headquarters.
B. You purchase a computer for tweeting and gaming.
C. You buy shares of stock in Facebook.
D. You deposit $200 into a bank account.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

91.
Which of the following items will be included in the calculation of GDP?
A. Buns bought by McDonald
B. Used textbook bought by you
C. Loaf of bread bought at Uprise Bakery by you
D. Cup of coffee purchased at Starbucks
 
 
92.
Which of the following people would be counted as being in the labor force?
A. Snooki, who lost her job and last looked for work 3 months ago
B. Pauly D, who holds a PhD in music history but can only find part- time employment as a disc jockey
C. Ronnie, who would like to work as a stockbroker but is now a house husband and content with his new life
D. Michael "The Situation" Sorrentino, who thinks he could easily earn $1,000,000 per year, despite the opinion of the psychiatrist at the state hospital where he is a patient
 
 
93.
Which of the is an example of structural unemployment?
A. Josh the mechanic loses a job at a factory due to the company relocating to Thailand
B. Layla decides to quit her job in order to find a better job once she hears about more attractive opportunities
C. Zara lost her job at an investment bank because of the 2007-2009 recession.
D. Manu the recent college graduate decides to move to NYC and look for a job there which he should find soon.